William Penn Life, 1980 (15. évfolyam, 1-4. szám)

1980-04-01 / 2. szám

William Penn Actuary Report

March 27, 1980

Officers and Directors William Penn Association 429 Forbes Avenue Pittsburgh, Pennsylvania 15219

RE: 1979 Year of Operations Gentlemen:

The following statistics represent certain highlights of information from the actuarial report prepared for the Officers and Board of Directors.

The year 1979 continued the long history of successful and profitable operations for the Association. Unassigned funds increased by $418,932 and reached a new record high of $4,668,001. The gain from operations in 1979 was again highly satisfactory for the twelfth straight year, amounting to $435,610 after the payment of dividends of $257,435. Management is to be congratulated on the successful operations of the Association during the year.

Assets continue their rapid ascent, reaching to a record high of $42,391,474 at year end. This represents an increase of $3,979,936 over the assets of December 31, 1978. The solvency ratio on December 31, 1979 was at the very favorable level of 112.37%. This means that the Association held $112.37 of admissible assets behind each $100 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 5 year average of $ 112.34.

The Association again enjoyed a favorable year from investments. The net rate of return on mean assets was 6.77°7o. During 1979, the Association earned investment income of $2,644,747 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $1,607,285 which reflects an excellent gain over the 1978 excess earnings of $1,420,806.

In addition to the excellent investment returns, it is worth noting that the Association has set aside the sum of $659,607 over the past years into the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments.

During 1979, the life certificates were issued for $15,197,507 of insurance. Total insurance in force amounted to $123,370,672 at the end of the year on 65,520 certificates. In

addition, the Association has issued, and has outstanding, several thousand Sick Benefit, Accident and Health and Hospitalization certificates.

The Association has set aside $33,768,389 of life reserves, and $318,036 of A&H reserves for the payment of future claims, which amounts are in addition to those amounts set aside for claims currently in process. Management continues its prudent 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 1979, the Association paid the significant amount of $2,570,120. A summary of these payments to members for the past two years is as follows:

Item

Death Claims Matured Endowments Surrender Benefits Payments to A&H Certificates Disability Benefits and Annuity Benefits Supplementary Contracts and Refund Accumulations Dividends

TOTAL

A major accomplishment of 1979 was the successful merger of the American Fund into the Association. This transaction had the desirable effect of adding $6,260,429 of insurance and $3,583,983 of assets to the Association’s portfolio. This merger will aid the Association in rendering better service to more Hungarians, many of whom were members of both organizations.

Flag Day, June 14

June 14, 1980, is the 203rd birthday of our nation’s flag. The flag symbolizes the strong faith and firm conviction of our founding fathers that gave birth to our “one nation under God". World problems and crises in the last year have once again demonstrated the need for loyalty and patriotism.

The Stars and Stripes are a living symbol of ten generations of Americans. The colors have inspired men and women to mighty works and supreme sacrifices in defense of their liberty. But unless you

In our opinion, the amounts carried in the balance sheet on account of the actuarial items identified above;

(i) are computed in accordance with commonly accepted actuarial standards consistently applied and are fairly stated in accordance with sound principles;

(ii) are based on actuarial assumptions which are in accordance with or stronger than those called for in certificate provisions;

(iii) meet the requirements of the insurance laws of the Commonwealth of Pennsylvania;

(iv) make a good and sufficient provision for all unmatured obligations of the Association guaranteed under the terms of its certificates;

(v) are computed on the basis of assumptions consistent with those used

1978

1979

$ 970,743

$1,032,035

333,733

403,676

482,358

533,700

169,056

169,584

11,259

69,208

89,029

104,482

206,755

257,435

$2,262,755

$2,570,120

in computing the corresponding items in the annual statement of the preceding year end;

(vi) include provision for all actuarial reserves and related statement items which ought to be established.

Respectfully submitted,

BRUCE & ASSOCIATES

Consulting Actuaries

R.E. Bruce, FCA, FFAA, MAAA

make the effort, June 14 will be just another day.

As a citizen, you can join with others to make Flag Day, June 14, a special event. You can help organize a Flag Day celebration in your community. You could be the person to give leadership to this patriotic observance.

In every community, members of fraternal benefit societies are dedicated to honoring the birthday of our nation’s flag. Combine your personal efforts and energies to make Flag Day a special event in your town. Bring together neighbors and community leaders. Make your flag's birthday party every bit as big as the country it stands for!

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