William Penn Life, 1986 (21. évfolyam, 1-6. szám)
1986-03-01 / 2. szám
7 March 5, 1986 gBuu» and G^tuce do/rfía/u/ CONSULTING ACTUARIES 91 e Sherwood Drive. Lake Bluff. Illinois 60044 Phone (312) 293-6200 Officers and Directors William Penn Association 709 Brighton Road Pittsburgh, PA 15233 Gentlemen: Re: 1985 Year of Operations This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1985 continued the long history of successful and profitable operations for the Association. It was the second full year of combined operations for William Penn Association and Catholic Knights of St. George. Unassigned funds again increased by a large amount ($556,690) and reached a new record high of $9,420,790. The Association reported profits for the eighteenth straight year. The 1985 profit of $892,470 after dividends was also a new high. This achievement was aided by a substantial decline in A & H benefits. Management is to be congratulated on the successful operations of the Association during the year. Assets continued their rapid ascent, reaching another record high of $74,563,946. The increase of $3,103,313 was about the same as the 1984 increase of $3,160,438. The solvency ratio on December 31, 1985 was at the very favorable level of 114.46%. This means that the Association held $114.46 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. The Association enjoyed another favorable year from investments. The net rate of return on mean assets was 8.98%, up slightly form the 8.94% of 1984. During 1985, the Association earned investment income of $6,224,559 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $4,052,083. In addition to the excellent investment returns, it is worth noting that the Association maintains $867,733 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments. rdjwc* art// dTZtuee dw/t/Mut// CONSULTING ACTUARIES During 1985, new life certificates were issued for $28,751,829 of insurance. Total insurance in force amounted to $164,029,839 at the end of the year on 68,450 certificates. New annuity certificates were issued for $1,765,931 of premium, which, together with renewal deposits, brought total annuity deposits for the year to $2,514,873. The Association has set aside $56,945,714 of life and annuity reserves, and $903,715 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. An important index of services to members is the total amount paid to members. During 1985, the Association paid the significant amount of $8,596,937. A summary of these payments to members for the past two years is as follows: Item 1984 1985 Death Claims $1,483,055 $1,501,397 Matured Endowments 411,540 528,534 Emergency Cash Surrender Benefits 1,829,984 4,203,790 Payments to A & H Certificates 2,029,176 717,392 Annuity and Old Age Benefits 888,024 723,415 Supplementary Contract and Refund Accumulations 272,817 336,853 Dividends 230,747 585,556 Total $7,145,347 $8,596,937 In our opinion, the amounts carried in the balance sheets on account of the various actuarial items: (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 in computing the corresponding items in the annual statement of the preceding year end; estate am/Cdotn/Mvu/ CONSULTING ACTUARIES (vi) include provision for all actuarial reserves and statement items which ought to be established. Respectfully submitted, BRUCE AND BRUCE-COMPANY Consulting Actuaries related <U, R. E. Bruce, FCA, MAAA REB/ep Subscribed and sworn to before me this 5th day of March, 1986. /\ Notary Public WILLIAM PEHN ASSOCIATION 1985 ANNUAL STATEMENT FINANCIAL REPORT ASSETS: Bonds $62,042,787 Stocks 2,143,343 Mortgage Loans 2,464,561 Real Estate 1,699,628 Certificate Loans 1,865,525 Electronic Data Processing Equipment 28,330 Cash 3,109,720 Premiums Due and Uncollected: Life 16,481 Accident S Health 1,198 Accrued Investment Income 1,192,367 Total Admitted Assets $74,563,946 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES: Life, Accident & Health, Supplementary Contracts Without Life Contingencies Policy Reserves $57,999,023 Life and Accident & Health Claim Reserves 688,862 Refund (Dividend) Accumulations 2,784,237 Provision for Refunds Payable in Following Calendar Year 500,000 Premiums Paid in Advance 641,737 Officials (Directors) Retirement Program 751,895 Provision for Convention and Centennial 435,000 Ccmnissions, Taxes, General Expenses Due or Accrued 108,419 Mandatory Security Valuation Reserve 867,733 Trust Account 269,577 Other Liabilities 96,666 Total Liabilities $65,143,155 Unassigned Surplus 9,420,790 TOTAL $74,563,946
