William Penn Life, 1994 (29. évfolyam, 1-12. szám)
1994-05-01 / 5. szám
Page 10, William Penn Life, May 1994 Summary of Bruce & Bruce Actuaries Report for 1993 This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1993 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 $13,342,000.* Surplus increased by the remarkable amount of $1,326,000 in 1993. The Association reported profits for the 26th 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 again congratulate the Association. Assets continued their rapid growth, reaching another record high of $ 110,578,000. 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 31,1993, was at the very favorable level of 113.72%. This means that the Association held $113.72 of admissable 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 7.8%. During 1993, the Association earned net income of $8,086,000 after deducting all investment expenses. This amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,198,000. 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 $3,052,000 in the Securities Valuation Reserves to guard against adverse fluctuation in investments. An additional $ 1,197,000 was placed into these reserves in 1993. During 1993, new life certificates were issued for $8,109,000. Total insurance in force is $211,466,000. Annuity premiums were $3,932,000 which, together with deposits on hand, brought total annuity deposits to $38,580,000, representing another new record. The Association has set aside $86,898,000 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 1993, the Association paid the significant amount of $6,933,000. A summary of these payments to members for the past two years is as follows: ITEM 1992 1993 Death Claims $1,865,000$1,594,000 Matured Endowments 138,000 120,000 Emergency Cash Surrender Benefits 969,000 652,000 Payments to A&H Certificates 338,000 197,000 Annuity and Old Age Benefits 2,330,000 2,320,000 Supplemental Contract and Refund Accumulation 249,000 217,000 Interest on Certificate or Contract Funds 1,404,000 1,300,000 Dividends 429,000 533,000 TOTAL $7,722,000$6,933,000 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 provision for all actuarial reserves and related statement items which ought to be established. Subscribed and sworn to before me this 7th day of February, 1994. Respectfully submitted, Virginia S. Kiddle Robert E. Bruce Notary Public FCA, MAAA * Numbers herein are rounded to the nearest $1,000 for convenient reading. William Penn Association 1993 Annual Statement Financial Report ASSETS Bonds...................................................................................................$ 92,295,870 Stocks ................................................................................................................... 7,969,908 Mortgage Loans................................................................................................ 1,110,495 Real Estate.......................................................................................................... 2,638,220 Certificate Loans................................................................................ 1,619,238 Electronic Data Processing Equipment.......................................... 12,505 Precious Metals ................................................................................................ 3,048 Cash and Bank Deposits............................................................................... 2,899,151 Premiums Due and Uncollected Life .................................................................................................... 12,510 Accident & Health.......................................................................... 131 Accrued Investment Income............................................................ 2,017,158 Total Admitted Assets............................................................................$110,578,233 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health Supplementary Contracts Without Life Contingencies, Policy Reserves................................$ 87,560,457 Life and Accident & Health Claim Reserves......................................... 270,384 Refund (Dividend) Accumulations ......................................................... 4,016,634 Provision for Refunds Payable in Following Calendar Year................................................................................................ 400,000 Premiums Paid in Advance.......................................................................... 461,244 Officials’ (Directors) Retirement Program........................................... 737,925 Interest Maintenance Reserve.................................................................... 1,595,040 Commissions, Taxes, General Expenses Due or Accrued........... 72,671 Asset Valuation Reserve............................................................................... 1,457,366 Trust Account.................................................................................................... 597,126 Other Liabilities ............................................................................................. 67,494 Total Liabilities........................................................................................$ 97,236,339 Unassigned Surplus............................................................................... 13,341,894 Total................................................ $110,578,233 INCOME Premiums & Annuity Considerations.......................................................$ 6,207,755 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations........... 392,766 Net Investment Income................................................................................... 8,086,482 Amortization of Interest Maintenance Reserve.................................... 75,812 Miscellaneous Income..................................................................................... 13,377 Total Income...............................................................................................$14,776,193 OUTGO Life Benefits Paid, Including Dividends...........................................$ 4,613,268 Annuity and Pension Benefits Paid................................................... 2,320,916 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulation................................... 3,352,710 Commissions on Premiums & Annuity Considerations................ 210,642 General Operating and Fraternal Expenses.................................... 2,758,424 Insurance Department Licenses, Taxes & Fees............................. 70,071 Total Outgo & Reserve Increase ...........................................................$13,326,032 Net Gain from Operations after Refunds to Members.....................$1,450,161 RECONCILIATION Net Gain from Operations.................................................................$ 1,450,161 Realized Gains..................................................................................... (1,317,056) Net Income ..........................................................................................$ 133,105 Unassigned Funds as of 12/31/92 ..................................................... 12,016,025 Unrealized Gains.................................................................................. 1,363,002 Net Admitted Gains ............................................................................ 58,244 Asset Valuation Reserve..................................................................... (231,430) Special Reserves.................................................................................. 2,947 Unassigned Funds as of 12/31/93......................................................$13,341,894 Frances A. Furedy National Vice President-Treasurer i C i: ■> ,r i
