William Penn Life, 1992 (27. évfolyam, 1-12. szám)

1992-04-01 / 4. szám

Page 6, William Penn Life, April 1992

Summary of Bruce & Bruce Actuaries’ Report for 1991

This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1991 continued the long history of successful and profitable operations for the Association.

Unassigned funds continued to climb during a period which saw many declines and a number of insolvencies. Unassigned funds reached another new record high of $11,800,101. The Association reported profits for the twenty-fourth straight year. The increase in 1991 profits to $824,534 reflects great credit on the officers and directors. The actuaries congratulate the Association.

Assets continued their rapid growth, reaching another record high of $99,389,160. All assets continue to be 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, 1991 was at a very favorable level of 113.47%. This means that the Association held $113.47 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 most of the very large companies. It is expected that the high ratio will be continued.

The Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 8.42%. During 1991, the Association earned net investment income of $7,874,201 after deducting all investment expenses. This amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,204,785. 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 $944,942 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments.

During 1991, new life certificates were issued for $12,847,243. Total insurance in force is $219,325,267. Annuity premiums were $4,054,954, which together with deposits on hand, brought total annuity deposits to $31,850,133, representing another new record.

The Association has set aside $80,660,032 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 1991, the Association paid the significant amount of $6,877,073. A summary of these payments to members for the past two years is as follows:

ITEM

1990

1991

Death Claims

$1,661,528$1,811,403

Matured Endowments

223,383

165,598

Emergency Cash Surrender Benefits

1,063,061

827,932

Payments to A&.H Certificates

288,558

244,346

Annuity and Old Age Benefits

1,823,301

2,165,820

Supplemental Contract and

Refund Accumulation

242,844

205,671

Interest on Certificate or

Contract Funds

745,834

1,024,463

Dividends

427,744

431,840

TOTAL

$6,476,253$6,877,073

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 to and sworn before me

this 12th day of February, 1992. Respectfully submitted,

Virginia S. Kiddle Robert E. Bruce

Notary Public FCA, MAAA

William Penn Association

1991 Annual Statement Financial Report

ASSETS

Bonds.............................................................................$82,887,092.65

Stocks .......................................................................... 4,440,971.49

Mortgage Loans........................................................... 2,141,823.78

Real Estate ................................................................... 2,509,134.34

Certificate Loans.......................................................... 1,826,265.90

Electronic Data Processing Equipment.................... 29,916.99

Precious Metals........................................................... 2,343.00

Cash and Bank Deposits............................................ 3,741,152.56

Premiums Due and Uncollected

Life............................................................................. 16,585.97

Accident & Health........................................................ 287.65

Accrued Investment Income...................................... 1,793,586.04

Total Admitted Assets.......................................................$99,389,160.37

LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES

Life, Accident & Health Supplementary Contracts

Without Life Contingencies, Policy Reserves .......$80,776,617.40

Life and Accident & Health Claim Reserves ............ 284,352.52

Refund (Dividend) Accumulations............................. 3,493,107.10

Provision for Refunds Payable in Following

Calendar Year........................................................... 300,000.00

Premiums Paid in Advance........................... 520,058.46

Officials’ (Directors) Retirement Program ............... 745,109.06

Commissions, Taxes, General Expenses

Due or Accrued........................................................ 99,443.30

Mandatory Security Valuation Reserve..................... 944,942.06

Trust Account.............................................................. 312,691.68

Other Liabilities........................................................... 112,737.00

Total Liabilities...................................................................$87,589,058.58

Unassigned Surplus......................................................... 11,800,101,79

Total .....................................................................................$99,389,160.37

Statement of Operations December 31,1991

Premiums & Annuity Considerations.......................$ 6,663,170.55

Considerations for Supplementary Contracts Without Life Contingencies and

Refund Accumulations............................................ 394,394.29

Net Investment Income............................................... 7,874,201.50

Miscellaneous Income................................................ 53,971.32

Total Income.......................................................................$14,985,737.66

Life Benefits Paid, Including Dividends....................$ 4,713,439.11

Annuity and Pension Benefits Paid........................... 2,165,820.36

Increase in Aggregate Reserve for Life,

Accident & Health Certificates,

Supplementary Contracts Without Life

Contingencies and Refund Accumulation............ 4,121,116.17

Commissions on Premiums & Annuity

Considerations ........................................................ 273,419.38

General Operating and Fraternal Expenses.............. 2,992,815.08

Insurance Department Licenses, Taxes & Fees........ 104,452.57

Total Disbursements & Reserve Increase....................$14,371,062.67

Net Gain from Operations after Refunds

to Members ....................................................................$614,674.99

Net Realized Capital Gains............................................. 209,859.49

Net Income from Operations.................................................$824,534.48

Frances A. Furedy

National Vice President-Treasurer