Verhovayak Lapja, 1945 (28. évfolyam, 1-52. szám)
1945 / Verhovay Journal
June 13, 1945 Verhovay Page 5 VALUATION REPORT Phone COurt 5430 634 Bakewell Building E. T. KNODEL CONSULTING ACTUARY Pittsburgh 19, Pa. May 29, 1945 Board of Directors Verhovay Fraternal Insurance Association Standard Life Building Pittsburgh, Pennsylvania GENTLEMEN: I will endeavor to give you a brief summary of the financial picture of the Association so that you may follow the progress of your Association from the viewpoint of an actuary. The solvency ratio of your Senior Mortuary Fund as of December 31, 1944 was 121.16% compared to 120.02%, 121.87%, 123.55% and 123.13% for the previous four years. The ratio of actual deaths to expected death losses was 66.14% as of December 31, 1944 compared to 63-02%, 64.07%, 61.55% and 63.12% for the previous four years. The rate of interest earned during 1944 was 3.30% compared to 3.71%, 3i64%, 3.83% and 3.80% for the previous four years. The question may arise in your minds as to the effect of these matters on the financial condition of your Association. As you will notice the solvency has increased from 120.02% to 121.16% in the past year which was reflected in the increase in your surplus from $867,333.99 to $1,021,977-60 during the year. Your death ratio was again favorable for the year which contributed to the increase in surplus. The rate of interest earned was not favorable but the assets of the Association have shown an appreciation in value. The matter of appreciation or depreciation of assets is very vital to any organization and although the assets of all organizations tend to appreciate in prosperous times such as we are now enjoying, it likewise follows that they will depreciate during periods of depression. It is therefore, gratifying that the contingency reserve of the Association has been increased from $35,000.00 to $65,000.00 during the past year and that a similar program will be followed in the future. Your assets as of December 31, 1944 were $5,852,347.46 and if a 10% depreciation of assets occurred, it would mean that your assets would be depreciated $585,234.75 which would be more than half of your present surplus and contingency reserve. You can therefore readily understand the importance of a substantial contingency reserve. I have only commented on the affairs of the Senior Mortuary Fund, but the Juvenile Mortuary Fund is also very important to the Association. In the past year the surplus has increased from $136,257.64 to $138,790.36 and the contingency reserve has increased from $25.000.00 to $35,000.00. The ratio of 14.78% actual to expected death losses was again very favorable although the rate of interest earned of 3.14% was not favorable due to present interest conditions. The Juvenile Mortuary Fund, however, as well as the Senior Mortuary Fund reflected a favorable position in the affairs of your Association. It is again my advice that the dividend payments be discontinued for the present and this amount be allocated to the contingency reserve. The payment of dividends can again be considered after the war is over and conditions are normal again. If I can be of any further help on this matter, I shall be pleased to have you call on me. Very truly yours, E. T. KNODEL Consulting Actuary. ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1944 OF THE VERHOVAY FRATERNAL INSURANCE ASSOCIATION Adult Mortuary Fund Disability Fund Trust Fund Juvenile Mortuary Fund Expense Fund Totals I—Balance From Previous Year _______ $5,356,400.95$ 279,901.24 $ 78,627.06 $ 274,221.61 $ 6,409.10 $5,995,559.96 i i-II. INCOME Payments received from members during first 12 months of benefit protection of which all or a part is used for expense-- i 105,578.73 190,953.10 t 105;578.73 1,044,733.55 4,955.67 Ail other payments or premiums received from members Gross interest on mortgage loans less accrued interest 640,915.20 4,955.67 140,509.08 72,356.17 Gross interest on bonds $192,016.13 and dividends on sticks $1,069.75, less $8,325.80 accrued interest on bonds acquired during the year per Schedule D Gross interest on liens and loans on certificates of members 163,158.25 20,399.66 769.16 14,260.72 9,958.82 1,960.54 9,038.12-9.61 644.35 184,760.08 20,409.27 ) 857.77 t 14.260.72 1 3.00 4*727.26 225.00 37Í704.36 852.51 49,686.13 Gross interest on deposits in trust companies and banks, per Schedule N ...................................................................... 88.61 Gross income from society’s property, including $ None for society’s occupancy of its own buildings (less $ None interest on incumbrances), per Schedule A Sales of lodge supplies ............................................................. 3^00 South Shore Apartments _ _______ ______ 4.727.26 225.00 Harding . Lawrence _ _ Trust Deposits ................................................................................ 37,704^36 Handling Charges on Loans ........................................................ 852.51 Gross profit on- sale or maturity of ledger assets, viz: Bonds per Schedule D ........................................................ 46,329.26 1,724.01 1,632.86 Gross increase, by adjustment, in book value of ledger assets, viz: Bcftds per Schedule D (including $—.— for accrual of discount) ____ _____ 1.757.31-----------62.56 148.39 1;968.26 TOTAL INCOME .................................................................. 897,497.49 150,467.90 41,540.08 83.185.15 298,031.69 1.470(722.31 Amounts carried forward ......-.....................................$6,253,898.44 $ 430,369.14 $ 120,167.14 $ 357,106.76 $ 304,440.79$7,466,282.2*/
