Verhovayak Lapja, 1952 (35. évfolyam, 1-12. szám)

1952 / Verhovay Journal

PAGE 6

Verhovay Journal

April 16, 1952

VALUATION REPORT

HARLEY N. BRUCE and ASSOCIATES CONSULTING ACTUARIES AND INSURANCE ACCOUNTANTS

Suite 522, 335 Fifth Avenue Pittsburgh 22, Pennsylvania Phone: GRant 1-0238

Verhovay Fraternal Insurance Association 436-442 Fourth Avenue Pittsburgh 19, Pennsylvania

March 15, 1952

Gentlemen:

We, your consulting actuaries, based on the valuation of the Association, as of December 31, 1951, and study of the financial statements of the Association, submit herewith a digest of our actuarial conclusions of operations for the calendar year 1951. Such digest discloses that all departments of the business showed a very favorable increase:

1. Insurance in force at the end of the year 1951 was $1,052,121 greater than at the beginning of the year. The total amount of insurance in force on December 31, 1951 was $46,611,957.

2. Ledger assets at the end of the year were $12,517,769.26 thus showing an increase for the year of $817,439.54.

3. Surplus at the end of the year was $703,342.95, representing an increase of $125,554.38 for the year 1951.

4. Life insurance reserves at the close of- the year were $11,079,863.00 representing an increase of $667,990.00 for the year. Prior to this year a reserve strengthening program was completed whereunder the Association is required to earn interest, for all future time, at a rate of only 3% on reserves which previously required that 4% and 3.5% be earned. Still higher reserves are maintained on all new risks being written so that interest of only 2.5% needs to be earned thereon for all future time.

5. The favorable mortality ratio of the Association for recent year« has continued. The death rate for 1951 was even lower than for the year 1950, being 51.77% for 1951 as compared with 51.78% for the preceding year.

6. For the third straight year net interest earnings were equal to or in excess of 3%, thus having margins of surplus interest earnings, since no reserves require ihat more than 3% be earned and each year an increasing flow of new business requires that only 2.5% be earned.

7. Liberal dividends are now being paid to the new members.

As actuaries for many fraternal societies and insurance companies, and chargeable with the responsibility of advising management on the best courses to pursue with relation to rates, policy values, reserves, mortality and interest assumptions, for the future safety of members, we conclude that members of Verhovay Fraternal Insurance Association are indeed fortunate in having officers of such outstanding capabilities and who, in their wisdom, not only have developed the present strong financial structure of the Association but have perfected sound plans for the continuing future growth of the organization.

Respectfully submitted,

HARLEY N. BRUCE <£ ASSOCIATES

Consulting Actuaries for

VERHOVAY FRATERNAL INSURANCE ASSOCIATION (signed) H. N. BRUCE Actuary

HNB:m

ANNUAL STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 1951, OF THE VERHOVAY FRATERNAL INSURANCE ASSOCIATION

1

2

3

4

5

6

Adult

Juvenile

Mortuary

Disability

Trust

Mortuary

Expense

Totals

Fund

Fund

Fund

Fund

Fund

I — Balance From Previous Year ............................. 9.938,751.06

553,950.36

107,865.46

1,090,813.21

8,949.63

11,700,329.72

II. INCOME

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 Payments received .....................................

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

Deduct payments returned to applicants and members

including $86.21 first year ......................................

Net amount received from members ...............................

Gross interest on mortgage loans ..................................

Gross interest on bonds $321,043.51 less $5,267.77 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 interest from all other sources ...........................

Gross income from society’s property, including $10,920.00 for society’s occupancy of its own

buildings ........................................................................

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

Miscellaneous Income ....................................................

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

Service Charges on Cash Surrenders and Loans .......

Withhold Taxes—Dec., 1951 .............................................

Sports Activities .............................................................

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 $1,225.36 for

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

Mortgages ..............................................................

817.472.04

817.472.04

817.472.04

173.103.35

173.103.35

173.103.35-2,765.06

814,706.98

11,249.45

173,103.35

262,855.75

2,340.70

17,286.09

19,697.97

498.09

500.45

41,405.73

338,548.14

9.474.54

17,286.09

7,072.56

1,089.04

100.00

•

154.701.02

154.701.02

154.701.02

79,424.55

321,897.25

401,321.8»

401,321.80

79,424.55

1,467,173.66

1.546.598.21

1.546.598.21-614.51

154,086.51-86.21

461,235.59-3,465.78

1.543,132.43

11,248.45

315,775.74

2,340.70

20,423.23

581.90

500.45

41,405.73

392,277.20

10,592.18

14,247.35

4.340.85

2.399.85 1,209.3#

8,868.39

2,897.50

32,736.40

725.26

83.81

2,981.31

33,461.66

1,117.64

14,247.35

4.340.85

2.399.85 1,209.30

'

1,795.83

11.62 124.70

1,225.36

100.00

TOTAL INCOME

k

Amounts carried forward

1,170.991.26

190,389.44

17,240.28

189,468.70

410,303.23

1.978,392.91

11,109,742.32

744,339.80

125,105.74

1,280,281.91

419,252.86

13,678,722.63