Fraternity-Testvériség, 1957 (35. évfolyam, 1-12. szám)

1957-07-01 / 7. szám

8

FRATERNITY

AS WE GROW, WE SERVE YOU BETTER

(Second in a Series of Articles)

In last month’s issue of Fraternity, we tried to acquaint you with the progress made by the Hungarian Reformed Federation of America during the year 1956, and its standing in comparison with the many other fraternal insurance organizations presently doing business in the United States. We referred to statistics published by the Fraternal Monitor and showed our readers that in order to have a sound, financial organization, we must continually grow to prove our strength and stability.

The state law requires that a financial statement of all insurance companies be submitted to the State Insurance Department each year. The Dunne’s Insurance Reporting Service, with which firm we would now like to acquaint you, is an independent organization which analyzes these figures and gives a ratio of comparison that is computed by a strict application of the Dunne formula for analyzing and rating the various life insurance companies. The ratios are then published in a chart known as the Analysis Chart which measures (1) financial strength, (2) growth, and (3) competency of management. The purpose of the Dunne’s Report is to demonstrate that a company which is soundly operated by competent management can secure and maintain unquestioned financial stability. The Hungarian Reformed Federation of America, based upon the financial statement submitted as of December 31, 1956, was compared with 15 old line commercial companies whose names are all familiar to us. No conclusions of a negative nature are to be found in this study, because each company being compared is superior in its strength and operations. A company, therefore, which compares favorably with these top insurance companies, is necessarily classed as sound and entitled to the complete confidence of the public.

There are eight factors upon which this analysis is based:

1. ASSETS TO LIABILITIES

This compares the total admitted assets with all liabilities.

The excess over 100% represents additional funds held for the protection of the policyholders.

We rank 8th with a ratio of ................................................ 107.67%

2. LIQUIDITY

When a company can maintain a high ratio of its assets in a liquid condition, and still maintain satisfactory earnings, it reflects a high degree of credit on the management.

We rank 8th with a ratio of ................................................ 67.09%

3. NET INTEREST ON MEAN ASSETS This figure is computed after deduction of investment expenses.

It shows the rate of interest earned on mean ledger assets.

We rank 2nd with a ratio of

3.73%