William Penn Life, 1988 (23. évfolyam, 1-12. szám)
1988-04-01 / 4. szám
April 1988, William Penn Life, Page 9 Summary of Bruce & Bruce Actuaries Report for 1987 This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1987 continued the long history of successful and profitable operations for the Association. Unassigned funds maintained the high level and reached another new record high of $10,095,415. The Association reported profits for the twentieth straight year. The 1987 profit of $477,417 compares favorably with profits of prior years, notwithstanding declining yields in the investment marketplace. Management is to be congratulated on the successful operations of the Association during the year. Assets continued their rapid growth, reaching another record high of $85,261,539. The increase was again the highest in the history of the Association. The members can continue to have confidence in the benefits provided by and the safety of the Association. The solvency ratio on December 31,1987 was at the very favorable level of 113.43%. This means that the Association held $113.43 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 rapid increase in amounts caused a slight decrease in the solvency ratio. Nevertheless, the Association still enjoys a strong and safe solvency position. The Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 8.84%, which represents a decrease from 1986, reflecting declining yields in the market. During 1987, the Association earned investment income of $6,979,265 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,289,102. Excess interest continues to be the most important profit source to the Association. In addition to the excellent investment returns, it is worth noting that the Association maintains $1,300,000 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments. During 1987, new life certificates were issued for $34,148,525 of insurance which was the second highest in the history of the Association. At the end of the year, insurance on 66,422 certificates amounted to $210,470,809, which is a record high for the Association. New annuity certificates were issued for $3,807,842 of premium, which, together with renewal deposits, brought total annuity deposits for the year to $5,243,670, another record. The Association has set aside $68,324,689 of life, annuity and A &. H reserves for the payment of future claims. These 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 1987, the Association paid the significant amount of $5,958,445. A summary of these payments to members for the past two years is as follows: ITEM 1986 1987 Death Claims $ 1,849,117$1,754,117 Matured Endowments 377,805 282,002 Emergency Cash Surrender Benefits 11,018,684 1,261,305 Payments to A &. H Certificates 532,646 324,455 Annuity and Old Age Benefits 1,240,656 1,075,912 Supplementary Contract and Refund Accumulation 400,764 249,403 Interest on Certificate or Contract Funds 433,202 450,757 Dividends and Pension 687,680 560,494 TOTAL $16,540,554$5,958,445 In our opinion, the amounts carried in the balance sheets on account of the various actuarial items: (1) are computed in accordance with commonly accepted actuarial standards consistently applied and are fairly stated in accordance with sound principles; (2) are based on actuarial assumptions which are in accordance with or stronger than those called for in certificate provisions; (3) meet the requirements of the insurance laws of the Commonwealth of Pennsylvania; (4) make a good and sufficient provision for all unmatured obligations of the Association guaranteed under the terms of its certificates; (5) 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; and (6) include provision for all actuarial reserves and related statement items which ought to be established. Subscribed and sworn to before me this 1st day of February, 1988 Respectfully submitted, Virginia S. Kiddle Robert E. Bruce Notary Public MAAA, FCA William Penn Association 1987 Annual Statement Financial Report ASSETS Bonds........................................................................................$69,402,808 Stocks ..................................................................................... 3,070,539 Mortgage Loans.................................................................... 2,317,065 Real Estate............................................................................. 1,579,999 Certificate Loans................................................................... 2,002,803 Electronic Data Processing Equipment.......................... 62,794 Cash and Bank Deposits.................................................... 5,052,064 Premiums Due and Uncollected Life..................................................................................... 20,801 Accident & Health..................................... 993 Accrued Investment Income.............................................. 1,751,673 Total Admitted Assets...........................................................$85,261,539 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health, Supplementary Contracts Without Life Contingencies Policy Reserves.............$68,460,127 Life and Accident & Health Claim Reserves .................. 436,089 Refund (Dividend) Accumulations.................................... 2,857,574 Provision for Refunds Payable in Following Calendar Year................................................................. 300,000 Premiums Paid in Advance................................................. 550,989 Officials’ (Directors) Retirement Program ..................... 750,245 Commissions, Taxes, General Expenses Due or Accrued................................................................ 83,786 Mandatory Security Valuation Reserve............................ 1,300,000 Trust Account........................................................................ 224,918 Other Liabilities.................................................................... 202,396 Total Liabilities........................................................................$75,166,124 Unassigned Surplus............................................................ 10,095,415 Total ..........................................................................................$85,261,539 Statement of Operations December 31,1987 Premiums & Annuity Consideration..................................$ 8,972,153 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations................................................... 251,013 Net Investment Income....................................................... 6,979,265 Miscellaneous Income......................................................... 13,633 Total Income..........................................................................$16,216,064 Benefits Paid, Including Dividends...................................$ 5,445,384 Pension Benefits Paid ......................................................... 263,064 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life, Contingencies and Refund Accumulations ............. 5,853,759 Commissions on Premiums & Annuity Considerations................................................................ 719,777 General Operating Expenses & Fraternal Expenses ... 3,353,503 Insurance Department Licenses, Taxes and Fees......... 103,160 Total Pay Out .........................................................................$15,738,647 Net Gain From Operations After Refunds to Members........$477,417
