Verhovayak Lapja, 1949 (32. évfolyam, 1-12. szám)

1949 / Verhovay Journal

May 18, 1949

Verhovay Journal

PAGE 5

VALUATION REPORT

(Phone: COurt 5430.)

E. T. KNODEL CONSULTING ACTUARY 634 Bakewell Building Pittsburgh 19, Pa.

April 12, 1949

Board of Directors

Verhovay Fraternal Insurance Association 436-442 Fourth Avenue Pittsburgh, Pennsylvania

Gentlemen:

I will endeavor to give you a brief summary of the financial picture of your 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 ap of December 31, 1948 was 109.59% compared to 110.08%, 112.32%, 117.93% and 121.16% for the previous four years. The ratio of actual deaths to expected death losses was 56.14% as of December 31, 1948 compared to 51.35%, 62.06%, 67.72%, and 66.14% for the previous four years. The rate of interest earned during 1948 was 2.95% compared to 3.04%, 3.10%, 3.09% and 3.30% 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 yon will notice, the per cent, of solvency has decreased from 110.08% to 109.59% in the past year. In the determination of the percent of Solvency, the contingency reserves are included in this calculation. This contingency reserve amounted to $450,000.00 in the year 1948. 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. The rate of interest of 2.95% compared to 3.04% in 1947 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 $207,165.90 to $240,913.05, with the contingency reserve of $35,000.00 remaining the same. The ratio of 4.88% actual to expected death losses was again very favorable althought the rate of interest tarned of 2.74% was not favorable due to the present conditions. The Juvenile Mortuary Fund, however, as well as the Senior Mortuary Fund reflected a favorable position in the affairs of the Association.

If I can be of any further help, 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, 1948, OF THE VERHOVAY FRATERNAL INSURANCE ASSOCIATION

I — Balance From Previous Year ..................................

Payments received from members during first Twelve months of benefit protection of which

all or a part is used for expense ...................................

All other payments or premiums received from

members .....................................................................................................

Total received from members ......................................................

Gross interest on mortgages loans less None accrued interest on mortgages acquired during the year Gross interest on bonds $240,253.19 less $5,054.06 accrued interest on bonds acquired during the

year ...................................................................................................

Gross dividends on stocks .................................................................

Gross interest on liens and loans on certificates of

members ...................................................................................................

Gross interest on deposits in trust companies and

banks ............................................................................................................

Gross income $10,920.00

buildings .,...............................................................................................

Total income from investments .............................................

Harding Lawrence (Asset Previously Charged Off)

Trust Fund Deposits ............................................................................

Service Charges on Cash Surrenders and Loans ....

Dividends Returned ................................................................................

Refund of Taxes ....................;...............................................................

Transfer of Closed Tr. Fund Assets ......................................

Gross profit on sale of maturity of ledger assets,

viz: Bonds ...............................:...;.........................................................

Gross increase, by adjustment, in book value of ledger assets, viz: Bonds (including $1,388.30 for

accrual of discount) ......................................................................

TOTAL INCOME Amounts carried forward

from society’s property, including for society’s occupancy of its own

Death Claims ................................................,....'......................................

Additional Accidental Death Benefits ...................................

Permanent dissbility claims ..............................................................

Sickness and accident claims .....................................:.................

Matured endowments ........,..................................................................

Total benefits paid ......................................................................

Surrender values ........................................................................................

Refunds to members:

Paid in cash Dividends ............................................................

Total Ben?fits and payments made to members Commissions and fees on payments by members:

First Year $39,355.29, Renewal None. ,....................

Field supervision and traveling (except compensation for home office supervision) ................................

Medical examiners’ fees ...................................................................

Inspection of risks ...................,................................................................

1

Adult

Mortuary

Fund

7,963,286.70

Disability

Fund

409,038.56

Trust

Fund

106,331.00

Juvenile

Mortuary

Fund

660,085.08

Expense

Fund

26,793.21

II. INCOME

835.251.65

835.251.65

2,036.95

201,835.06

1,580.35

17,730.16

615.61

37,697.29

261,495.42

105.34

182.030.05

182.030.05

12,822.05

12,822.05

3.62

1,565.77

5,899.21

1,311.05

2,070.44

90.40

2,160.84

36,280.40

154.182.99

154.182.99

95,353.56

224,861.16

320,214.72

18,471.58

188.24

18,659.82

5.61

7.23

70.02

3,042.05

1.90

17.71

III. DISBURSEMENTS

361,684.75 --------.—

6,000.00

33,500.00

401,184.75

53,977.04

2,930.67

146,421.38

149,352.05

455,161.79

149,352.05

291.00

2,085.00

2,085.00

4,981.84

2,732.26

9,799.10

897.23

897.23

897.23

39,355.29

23,721.98

7,293.00

324.65

6

Totals

9,165,534.55

95,353.56

1,396,325.85

1,491,679.41

2,036.95

235,199.13

1,580.35

17,730.16

894.25

37,697.29

295,138.13

105.34

36,280.40

3,042.05

3.62

1.90

1,583.48

5,894.82

1.388.30

1,105,622.06

194,852.10

38,454.08

172,912.83

323,276.38

1.835,117.45

9,068,908.76

603,890.66

106,331.00

832,997.91

350,069.59

11,000.652.00

364,666.98

6,000.00

2,930.67

146,421.38

33,500.00

553,519.03

58,958.88

2,732.26

615,210.17

39,355.29

23,721.98

7.584.00

324.65