Verhovayak Lapja, 1946 (29. évfolyam, 1-52. szám)
1946 / Verhovay Journal
May 29, 1946 # VALUATION REPORT _________________Verhovay Journal__________________ Phone COurt 5430 E. T. KNODEL CONSULTING ACTUARY 634 Bakewell Building Pittsburgh 19, Pa. Page 5 f March 14, 1946 Board of Directors Verhovay Fraternal Insurance Association 436-442 Fourth Avenue Pittsburgh, Pa. 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 rates of your Senior Mortuary Fund as of December 31, 1945, was 117.93% compared to 121.16%, 120.02%, 121.87% and 123.55% for the previous four years. The ratio of actual deaths to expected death losses was 67.72% as of December 31, 1945 compared to 66.14%, 63.02%, 64.07% and 61.55% for the previous four years. The rate of interest earned during 1945 was 3.09% compared to 3.30%, 3.71%, 3.64% and 3.83% for the previous fcur years. The question may arise in your minds as to the effect of these matters on the financial ccndition of your Association. As you will notice the per cent of solvency has decreased from 121.16% to 117.93% in the past year which was reflected in the decrease in your surplus from $1,021,977.60 to $995,754.37 during the year. In the determination of the per cent of solvency the contingency reserves are not included in this calculation. This contingency reserve was increased from $65,000.00 to $220,000.00 in the year 1945. If this additional safety factor of $155,000.00 had been considered as surplus, the surplus would have been $1,150.754.37 instead of $995,754.37 as shown in the annual statement. The various Insurance Departments regard substantial contingency reserves very highly and in recent years suggestions have been made to the various societies to provide for ample contingency reserves. Your death ratio was again favorable for the year which contributed to an increase in surplus. The rate of interest was not favorable, but this same condition is true for a large majority of fraternal societies and insurance companies. 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 $138,790.36 to $150,249.07, with the contingency reserve of $35,000.00 remaining the same. The ratio of 7.85% actual to expected death losses was again very favorable although the rate of interest earned, of 3.00% was not favorable due to present conditions. The Juvenile Mortuary Fund, however, as well as the Senior Mortuary Fund reflected a favorable position in the affairs of the Association. It is again my advice that the dividend payments be discontinued for the present and this amount be allocated tq the contingency reserve. The payment of dividends can again be considered after a study is made as to the proper distribution of dividends on a sound actuarial basis. If I can be of any further help on this matter, I shall be pleased to have you call on me. Very truly yours, (s) E. T. KNODEL Consulting Actuary. ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1945 OF THE VERHOVAY FRATERNAL INSURANCE ASSOCIATION 1—Balance From Previous Year Adult Mortuary Disability Trust Juvenile Mortuary Expense Totals Fund Fund Fund Fund Fund $5,894,429.43$ 302,517.91 $ 86,830.72 f$ 333,042.71 $ 15,211.64 $6,632,032.41 II. I N C O M E Payments received from members during first 12 months of benefit protection of which all or a part is used for expense ________________________________ All other payments or premiums received from members Total Payments received _____________________ Total received from members _________________ Net amount received from members ___________ Gross interest on mortgage loans less accrued interest on mortgages acquired during the year .................. Gross interest cn bonds $202.107.44 and dividends on stocks $835 05, less $9,629.72 accrued interest on bonds acquired during the year per Schedule D Gross interest od liens and loans on certificates of members .....r................................................................ Gross interest on deposits in trust companies and banks, per Schedule N .................................1........................ Gross income from society’s property, including $ None for society’s occupancy of its own buildings (less $ None interest on incumbrances), per Schedule A Total income from investments _______________ Harding Lawrence Co. ______.y_________________ Trust Deposits ...................................v............................. Handling Charges on Loans ............................................... Miscellaneous Income ___________________________ Gross profit on- sale or maturity of ledger assets, viz: Bonds per Schedule D ............................................... Gross increase, by adjustment, in book value of ledger assets, viz: Bonds per Schedule D (including $1,005.23 for accrual of discount) TOTAL INCOME .... Amounts carried forward ......................................................... 694,024.06" 694.024.06 694.024.06 694.024.06 2,526.48 141.956.05 141.956.05 141.956.05 141.956.05 139,894.98 18,638.41 10,196.73 2,292.70 808.01 16,304.71 208,222.59 7,625.00 89.05 10,196.73 2,381.75 43,009.17 75,890.30 410.89 883.49 .28 986.645.44______152.152.78________45,802,09 6,881,074.87 454,670.69 182,632.81 ' 97.235.29 97.235.29 97.235.29 97.235.29 10,645.88 16.83 10,662.71 ’.50 4,904.95 121,46 112.924,91 445,967.62 94,290.01 197.638.11 291.928.12 291.928.12 291.928.12 282.48 282.48 1,111.50 293,322.10 308,533.74 94,290.01 1.130.853.51 1.225.143.52 1.225.143.52 1.225.143.52 2,526.48 193,312.77 18,705.2'1 897.06 16,304.71 231,746.23 7,625.00 43,009.17 1,111.50 .50 81,206.14 1,005.23 1,590,847.32 8,222,879.73
