William Penn Life, 1969 (4. évfolyam, 1-12. szám)

1969-04-01 / 4. szám

WILLIAM PENN ACTUARY’S REPORT HARLEY N. BRUCE & ASSOCIATES Consulting Actuaries R. E. Bruce Consulting Actuary 441 Park Lane, Lake Bluff, 111. 60044 Phone (312) 234-3618 March 7, 1969 Officers and Directors William Penn Fraternal Association 429 Forbes Avenue Pittsburgh, Pennsylvania 15219 Re: 1968 Year of Operations Gentlemen: The following statistics represent cer­tain highlights of information which will be contained in the actuarial report. This information is presented in ad­vance of the longer and more detailed report to the Board of Directors so that it can be presented to your mem­bers at the earliest possible time. The year 1968 was another profitable year for the Association, reflecting in­creases to surplus from both profits and surplus transactions. Management is to be congratulated for these achieve­ments. Profits in 1968 were again quite fine for the Association, amounting to $277, 413.43 before dividends and $132,442.15 after dividends. The Association is reaping the benefit of the many years of careful planning and development by management. The officers are to be congratulated on the judicious disposition of the money entrusted to them by the members. The assets continued to climb, reach­ing to a new high of $32,617,520.32 as of December 31, 1968, and representing an increase of $412,597.70 over the assets as of December 31, 1967. The Associa­tion maintains admissable assets of $109.85 behind each $100.00 of liabilities as a safeguard and guarantee to all members that the benefits promised in the certificates will be paid when due. This represents a slight increase from the corresponding figure as of December 31, 1967 of $109.81. The Association again enjoyed a fa­vorable year from an investment stand­point. The net rate of return during 1968 on mean ledger assets was 4.16%, representing continuing gains over the 1967 and prior rates of return. During 1968 the Association earned investment income of $1,318,157.77 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $533,341.77, which com­pares quite favorably with the 1967 and 1966 excess interest earnings of $494,- 826.86 and $443,390.02 respectively. In addition to the excess interest earnings, the Association added $62, 558.80 to surplus through capital trans­actions. These capital transactions rec­ognize gains and losses in the sale of assets, the change in value of assets not sold and the Mandatory Security Valuation Reserve. Special recognition should be given to the fact that the sum of $802,152.24 has been set aside in the Mandatory Security Valuation Reserve to guard against adverse fluctu­ation in investments. During 1968 new life certificates were issued for $10,143,831 of insurance. Total insurance in force amount to $87,303,999 at the end of the year on 68,675 certifi­cates. In addition, the Association has issued and has outstanding over 10,000 Sick Benefit, Accident and Health and Hospitalization certificates. The Association has set aside $26,- 541,868.00 of life reserves and $597,956.14 of A & H reserves for the payment of future claims, which amounts are in addition to the amounts set aside for claims currently in process. Management continues its wise and conservative prac­tice of setting aside sufficient funds with which to meet all known and con­tingent liabilities. The most important index of services to members is the total amount paid to members. During 1968, the Association paid $2,380,878.09 to its members which is consistent with payments of prior years. A summary of the 1968 payments to members is as follows: Item 1968 Death Claims ......................$1,007,761.94 Matured Endowments ......... 606,293.00 Surrender Benefits ............ 415,417.55 A&H and Miscellaneous Payments .......................... 206,434.32 Dividends ............................. 144,971.28 Total .................................$2,380,878.09 In the opinion of the actuaries, the reserves and other liabilities set aside for payment of future claims, together with future premiums, will be sufficient to meet all future obligations as they arise without deduction or abatement. Respectfully submitted, HARLEY N. BRUCE & ASSOCIATES By R. E. Bruce, Consulting Actuary 1968 ANNUAL STATEMENT FINANCIAL REPORT ASSETS Bonds ..........................................................................................................$28,040,433.88 Stocks .......................................................................................................... 1,066,480.42 Mortgage Loans ......................................................................................... 1,062,593.97 Real Estate ................................................................................................ 544,922.75 Certificate Loans ....................................................................................... 1,041,582.16 Deposit on Real Estate ........................................................................... 1,000.00 Cash ............................................................................................................ 236,212.07 Branch Real Estate Loans ...................................................................... 29,274.19 Other Invested Assets ............................................................................. 200,000.00 PREMIUMS: Life .............................................................................................................. 38,117.34 Accident & Health ................................................................................... 6,594.72 Accrued Investment Income .................................................................... 350,308.82 Total Admitted Assets ..................................................................$32,617,520.32 LIABILITIES, SPECIAL RESERVES AND SURPLUS Certificate Reserves: Life ..........................................................................................................$26,541,868.00 Accident & Health .............................................................................. 597,956.14 Supplementary Contracts ..................................................................... 35,431.30 Certificate Claims: Life .......................................................................................................... 101,357.00 Accident & Health ............................................................................... 8,944.57 Refund (Dividend) Accumulations .................................................... 556,129.96 Refunds Due and Unpaid .................................................................... 110,073.87 Advance Premiums ............................................................................... 371,692.99 Commissions, Taxes, General Expenses Due or Accrued .............. 26,294.02 Pension Benefit Funds ......................................................................... 441,700.42 Security Valuation Reserve ................................................................ 802,152.24 Trust Account ......................................................................................... 44,660.61 Other Liabilities ..................................................................................... 55,711.12 Total Liabilities ..............................................................................$29,693,972.24 Special Reserves .................................................................................. 144,126.65 Unassigned Surplus .............................................................................. 2,779,421.43 Total ...............................................................................................$32,617,520.32 7

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