William Penn Life, 1991 (26. évfolyam, 2-10. szám)
1991-04-01 / 4. szám
Page 10, William Penn Life, April 1991 Summary of Bruce & Bruce Actuaries Report for 1990 This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1990 continued the long history of successful and profitable operations for the Association. Unassigned funds continued to climb and reached another new record high of $ 11,341,497. The Association reported profits for the twenty-third straight year. The 1990 profit of $584,669 was achieved in a depressed economic year. The actuaries congratulate the Association. Assets continued their rapid growth, reaching another record high of $95,623,513. All assets are valued according to the strict standards of the National Association of Insurance Commissioners. All members can continue to have confidence that the assets standing behind their policies are sound and are valued conservatively. The solvency ratio on December 31,1990 was at the very favorable level of 113.46%. This means that the Association held $113.46 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 enjoys a stronger safety margin than many of the very large companies. The Association enjoyed a very favorable year from investments. The next rate of return on mean assets was 8.75%. During 1990, the Association earned net investment income of $7,828,436 after deducting all investment expenses. This amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,406,482. Excess interest continued 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 $1,155,431 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments. During 1990, new life certificates were issued for $17,189,065 which was sufficient, after deducting terminations, to hold total insurance at $223,338,830. New annuity certificates were issued for $4,387,662 of premium, which together with deposits on hand, brought total annuity deposits to $28,077,100, a new record. The Association has set aside $76,793,340 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 service to members is the total amount paid to members. During 1990, the Association paid the significant amount of $6,476,253. A summary of these payments to members for the past two years is as follows: ITEM 1989 1990 Death Claims $1,709,294$1,661,528 Matured Endowments 155,934 223,383 Emergency Cash Surrender Benefits 1,121,087 1,063,061 Payments to A&.H Certificates 440,886 288,558 Annuity and Old Age Benefits 1,943,883 1,823,301 Supplemental Contract and Refund Accumulation 208,817 242,844 Interest on Certificate or Contract Funds 814,449 745,834 Dividends 267,970 427,744 TOTAL $6,662,320$6,476,253 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 on computing the corresponding items in the annual statement of the preceding year end; and (6) include provisions for all actuarial reserves and related statement items which ought to be established. Subscribed and sworn to before me this 18th day of February, 1991. Respectfully submitted, Virginia S. Kiddle R. E. Bruce Notary Public FCA, MAAA William Penn Association 1990 Annual Statement Financial Report ASSETS Bonds........................................... $80,436,250.87 Stocks .......................................................................... 4,830,935.13 Mortgage Loans........................................................... 2,539,636.45 Real Estate.................................................................. 2,768,538.00 Certificate Loans......................................................... 1,817,647.32 Electronic Date Processing Equipment.................... 108,900.99 Precious Metals........................................................... 4,047.00 Cash and Bank Deposits............................................ 1,312,487.94 Short Term Investments............................................. 2,597.81 Premiums Due and Uncollected Life............................................................................. 18,570.39 Accident & Health................................................... 197.74 Accrued Investment Income...................................... 1,783,703.95 Total Admitted Assets.................................................$95,623,513.59 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health, Supplementary Contracts Without Life Contingencies, Policy Reserves .......$76,913,975.58 Life and Accident & Health Claim Reserves ............ 332,827.34 Refund (Dividend) Accumulations............................. 3,234,632.75 Provision for Refunds Payable in Following Calendar Year........................................................... 300,000.00 Premiums Paid in Advance......................................... 548,513.81 Officials’ (Directors) Retirement Program ............... 724,167.04 Commissions, Taxes, General Expenses Due or Accrued........................................................ 168,573.52 Mandatory Security Valuation Reserve..................... 1,155,431.84 Trust Account.............................................................. 754,388.87 Other Liabilities........................................................... 149,504.87 Total Liabilities.............................................................$84,282,015.62 Unassigned Surplus................................................... 11,341,497.97 TOTAL...........................................................................$95,623,513.59 Statement of Operations December 31,1990 Premiums & Annuity Consideration..........................$ 7,472,041.64 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations............................................ 390,173.91 Net Investment Income............................................... 7,828,436.80 Miscellaneous Income................................................ 11,489.48 Total Income.................................................................$15,702,141.83 Life Benefits Paid, Including Dividends....................$ 4,652,955.28 Annuity and Pension Benefits Paid........................... 1,823,301.79 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulation...................................... 4,854,457.13 Commissions on Premiums & Annuity Considerations ........................................................ 413,408.56 General Operating and Fraternal Expenses.............. 3,341,567.49 Insurance Department Licenses, Taxes & Fees........ 138,870.22 Total Disbursements & Reserve Increase..................$15,224,560.47 Net Gain from Operations after Refunds to Members...$477,581.36 Net Realized Capital Gains............................................. 107,088.07 Net Income from Operations............................................$584,669.43
