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

1957-07-01 / 7. szám

FRATERNITY

9

4. U. S. BONDS TO ASSETS

Life insurance companies are doing their full share in supporting our government’s economic balance by absorption of U. S. Government obligations. This ratio shows the percentage of its total assets which each company had invested in such bonds on December 31, 1956.

We again rank 8th with a ratio of ..................................... 7.10%

5. MORTGAGE INCOME

A goodly proportion of the policy reserves of all companies is invested in real estate mortgage loans. Therefore, the interest the company is able to earn on mortgages is an important item to be considered.

In this item we rank 1st with a ratio of ........................ 5.40%

(This is indeed an extraordinary example of the shrewd thinking, efficient operation and sound business management on the part of our Federation.)

6. INCREASE IN ASSETS

This figure is the percentage increase in total admitted assets during 1956.

We rank 1st again with a ratio of ..................................... 10.58%

(This is another tremendous proof of the efficiency with which our Federation operates.)

7. INCOME ON BONDS

A life insurance company, by reason of its activity lying both within the banking and risk fields, must perform a dual function. While the safety factor must be the cardinal concern upon all investments, a company must nevertheless earn a rate of interest equal to the rate assumed upon its legal reserves in order to mature its policies. Thus it will be seen that especially in its investments in bonds a company must seek both safety and adequate returns.

We are 5th in this line with a ratio of ............................ 3.42%

(The wisdom with which our Federation is investing its monies is reflected in this gainful return.)

8. GOVERNMENT AND MUNICIPAL BONDS TO

ADMITTED ASSETS

Any institution with a high percentage of its assets invested in such securities is in a position to meet any contingencies and all unusual policy demands.

Here again we rank 1st with a ratio of ............................ 56.92%

AND NOW, THE CONSENSUS

The old line commercial companies with which our Hungarian Reformed Federation is compared are all of superior quality, and are well established and stable firms. The consensus, based upon the