William Penn Life, 1993 (28. évfolyam, 1-11. szám)
1993-04-01 / 4. szám
Page 8, William Penn Life, April 1993 Summary of Bruce & Bruce Actuaries Report for 1992 This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1992 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 $ 12,016,000.* The Association reported profits for the twenty-fifth straight year, which reflects great credit on the officers and directors. Very few financial organizations of any kind can boast of a similar record. The actuaries congratulate the Association. Assets continued their rapid growth, reaching another record high of $ 104,597,000. 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 31,1992, was at the very favorable level of 112.98%. This means that the Association held $112.98 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. 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 8.21%. During 1992, the Association earned net investment income of $8,041,000 after deducting all investment expenses. This amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,090,000. 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 $1,855,000 in the Securities Valuation Reserves to guard against adverse fluctuation in investments. An additional $911,000 was placed into these reserves in 1992. During 1992, new life certificates were issued for $9,112,000. Total insurance in force is $213,816,000. Annuity premiums were $4,630,000, which together with deposits on hand, brought total annuity deposits to $35,554,000, representing another new record. The Association has set aside $83,769,000 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 1992, the Association paid the significant amount of $7,722,000. A summary of these payments to members for the past two years is as follows: ITEM 1991 1992 Death Claims $1,811,000$1,865,000 Matured Endowments 165,000 138,000 Emergency Cash Surrender Benefits 827,000 969,000 Payments to A&.H Certificates 244,000 338,000 Annuity and Old Age Benefits 2,165,000 2,330,000 Supplemental Contract and Refund Accumulation 205,000 249,000 Interest on Certificate or Contract Funds 1,024,000 1,404,000 Dividends 431,000 429,000 TOTAL $6,872,000$7,722,000 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 actuarial principles; (2) are based on actuarial assumptions which produce reserves at least as great as those called for in any contract provision as to reserve basis and method, and are in accordance with all other contract provisions; (3) meet the requirements of the insurance laws and regulations of the Commonwealth of Pennsylvania and are at least as great as the minimum aggregate amounts required by the state in which this statement is filed; (4) 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 with any exceptions as noted below; and (5) include provisions for all actuarial reserves and related statement items which ought to be established. Subscribed and sworn to before me this 3rd day of February, 1993. Respectfully submitted, Virginia S. Kiddle R. E. Bruce Notary Public FCA, MAAA *Numbers herein are rounded to the nearest $1,000 for convenient reading. William Penn Association 1992 Annual Statement Financial Report ASSETS Bonds.............................................................................. $ 85,629,027 Stocks.............................................................................. 7,315,664 Mortgage Loans .............................................................. 1,939,634 Real Estate....................................................................... 2,655,706 Certificate Loans.............................................................. 1,658,940 Electronic Data Processing Equipment.......................... 14,885 Precious Metals............................................................... 2,202 Cash and Bank Deposits ................................................ 3,333,600 Premiums Due and Uncollected Life................................................................................ 12,913 Accident & Health........................................................ 143 Accrued Investment Income............................................ 2,034,351 Total Admitted Assets..................................................... $104,597,065 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health, Supplementary Contracts Without Life Contigencies, Policy Reserves............................................................ $ 84,488,267 Life and Accident & Health Claim Reserves .................. 307,379 Refund (Dividend) Accumulations................................. 3,738,313 Provision for Refunds Payable in Following Calendar Year....................... 300,000 Premiums Paid in Advance............................................. 495,935 Officials’ (Directors’) Retirement Program..................... 739,930 Interest Maintenance Reserve......................................... 629,598 Commissions, Taxes, General Expenses Due or Accrued............................................................ 90,033 Asset Valuation Reserve.................................................. 1,225,935 Trust Account.................................................................. 451,267 Other Liabilities............................................................... 114,383 Total Liabilities ............................................................... $ 92,581,040 Unassigned Surplus........................................................ 12,016,025 Total.................................................................................. $104,597,065 Statement of Operations December 31,1992 Premiums & Annuity Considerations ................................$ 7,088,349 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations................................................... 396,983 Net Investment Income...................................................... 8,041,891 Amortization of Interest Maintenance Reserve ................. 28,537 Miscellaneous Income........................................................ 13,043 Total Income........................................................................$15,568,803 Life Benefits Paid, Including Dividends.............................$ 5,394,444 Annuity and Pension Benefits Paid ................................... 2,330,602 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulations.................... 3,957,650 Commissions on Premiums & Annuity Considerations ............................................................... 238,647 General Operating and Fraternal Expenses....................... 3,039,769 Insurance Department Licenses, Taxes & Fees................. 63,391 Total Disbursements & Reserve Increase...........................$15,024,503 Net Gain from Operations after Refunds to Members...........................................................................$544,300 Net Realized Capital Gains..................................................... 48,596 Net Income from Operations..................................................$592,896 Frances A. Furedy National Vice President-Treasurer
