William Penn Life, 1989 (24. évfolyam, 1-12. szám)
1989-04-01 / 4. szám
Page 8, William Penn Life, April 1989 Summary of Bruce & Bruce Actuaries Report for 1988 This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1988 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 $10,658,546. The Association reported profits for the twenty-first straight year. The 1988 profit of $630,703 represents a 32% increase over the 1987 profits. 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 $87,412,629. All assets are valued according to the strict standards of the National Association of Insurance Commissioners. All members can continue to have confidence in the benefits provided by and the safety of the Association. The solvency ratio on December 31,1988 was at the very favorable level of 113.89%. This means that the Association held $113.89 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 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 9.03%, which represents an increase from 1987, thereby running contrary to the national trend of decline. During 1988, the Association earned net investment income of $7,451,800 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,490,125, which is greater than 1987. 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 $1,630,000 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments. During 1988, new life certificates were issued for $40,511,429 of insurance which is more than $6,000,000 ahead of 1987 and was the second highest in the history of the Association. At the end of the year, insurance on 64,697 certificates amounted to $222,711,331, which is a record high for the Association. New annuity certificates were issued for $1,910,898 of premium, which together with deposits on hand, brought total annuity deposits to $21,121,421, another record. The Association has set aside $69,471,205 of life, annuity and A&cH 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 service to members is the total amount paid to members. During 1988, the Association paid the significant amount of $8,167,563. A summary of these payments to members for the past two years is as follows: ITEM 1988 1987 Death Claims $1,631,206$1,754,117 Matured Endowments 244,424 282,002 Emergency Cash Surrender Benefits 1,219,799 1,261,305 Payments to A&lH Certificates 395,956 324,455 Annuity and Old Age Benefits 2,883,540 1,075,912 Supplementary Contract and Refund Accumulation 214,449 249,403 Interest on Certificate or Contract Funds 991,007 450,757 Dividends and Pension 587,182 560,494 TOTAL $8,167,563$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 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 31st day of January, 1989. Respectfully submitted, Virginia S. Kiddle Robert E. Bruce Notary Public FCA, MAAA William Penn Association 1988 Annual Statement Financial Report ASSETS Bonds.................................................................................$69,387,351.97 Stocks ................................................................................ 4,653,256.53 Mortgage Loans................................... 2,100,241.94 Real Estate ........................................................................ 2,766,054.65 Certificate Loans.............................................................. 1,938,343.55 Electronic Data Processing Equipment..................... 115,718.39 Precious Metals .............................................................. 4,047.00 Cash and Bank Deposits..................................... 4,641,619.68 Premiums Due and Uncollected Life................................... 21,526.66 Accident & Health........................................................ 559.21 Accrued Investment Income......................................... 1,783,909.64 Total Admitted Assets...............,...............................$87,412,629.22 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health, Supplementary Contracts Without Life Contingencies Policy Reserves........$69,602,064.22 Life and Accident & Health Claim Reserves ............. 372,152.47 Refund (Dividend) Accumulations............................... 2,933,412.20 Provision for Refunds Payable in Following Calendar Year................. 300,000.00 Premiums Paid in Advance............................................ 539,223.68 Officials’(Directors) Retirement Program ................ 759,791.36 Commissions, Taxes, General Expenses Due or Accrued............................................................ 40,714.83 Mandatory Security Valuation Reserve....................... 1,630,000.00 Trust Account................................................................... 364,714.34 Other Liabilities...........................................................:.. 212,009.67 Total Liabilities.............................................................$76,754,082.77 Unassigned Surplus .................................................... 10,658,546.45 Total ................................................ $87,412,629.22 Statement of Operations December 31,1988 Premiums & Annuity Consideration............................$ 6,278,830.81 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations............................................... 234,766.34 Net Investment Income................................................... 7,451,800.63 Miscellaneous Income................................ 17,332.64 Total Income................................. $13,982,730.42 Benefits Paid, Including Dividends.............................$ 7,867,016.92 Pension Benefits Paid ...................................................... 300,551.01 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulations....................................... 1,224,441.74 Commissions on Premiums & Annuity Considerations ............................ 501,390.49 General Operating and Fraternal Expenses................. 3,365,309.54 insurance Department Licenses, Taxes & Fees......... 93,317.17 Total Pay Out ............................................................ $13,352,026.87 Net Gain from Operations after Refunds to Members ...$630,703.55
