William Penn Life, 1995 (30. évfolyam, 1-12. szám)
1995-04-01 / 4. szám
Page 10, William Penn Life, April 1995 Summary of Bruce & Bruce Actuaries Report for 1994 This summarizes certain highlights from the actuarial report for the Officers and Directors. The year 1994 continued the long history of successful and profitable operations for the Association. Unassigned funds continued to climb and profits remained at a high level. These accomplishments were achieved in a year characterized by many investment analysts as the worst year for the bond market. Unassigned funds reached another new record high of $14,510,000*. Surplus increased strongly, by $1,168,000 in 1994. The Association reported profits for the 27th 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 strong growth, reaching another record high of $ 114,349,000. 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 31,1994 was very strong, increasing to the exceptionally favorable level of 114.53%. This means that the Association held $114.53 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 7.4%. During 1994, the Association earned net investment income of $8,050,000 after deducting all investment expenses. This amount earned exceeded that required to be earned to maintain interest bearing liabilities at $3,265,000. 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 $3,340,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. An additional $288,000 was placed into these reserves in 1994. During 1994, new life certificates were issued for $9,525,000. Total insurance in force is $212,463,000. Annuity premiums were $2,810,000 which, together with deposits on hand, brought total annuity deposits to $40,356,000, representing another new record for the Association. The Association has set aside $89,249,000 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 1994, the Association paid the significant amount of $6,854,000. A summary of these payments to members for the past two years is as follows: ITEM 1993 1994 Death Claims $1,594,000$1,740,000 Matured Endowments 120,000 107,000 Emergency Cash Surrender Benefits 652,000 596,000 Payments to A&H Certificates 197,000 204,000 Annuity and Old Age Benefits 2,320,000 2,269,000 Supplemental Contract and Refund Accumulation 217,000 212,000 Interest on Certificate or Contract Funds 1,300,000 1,302,000 Dividends 533,000 424,000 TOTAL $6,933,000$6,854,000 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. It is apparent that the officers and directors continue the skillful management of the members’ money while maintaining very strong safeguards. Subscribed and sworn to before me this 3rd day of February, 1995. Virginia S. Kiddle Notary Public Respectfully submitted, R. E. Bruce FCA, MAAA *Numbers herein are rounded to the nearest $1,000 for convenient reading. William Penn Association 1994 Annual Statement Financial Report ASSETS Bonds.........................................................................................................$ 98,000,542 Stocks ....................................................................................................... 7,891,755 Mortgage Loans...................................................................................... 958,463 Real Estate................................................................................................ 2,645,125 Certificate Loans.................................................................................... 1,602,705 Electronic Data Processing Equipment............................................ 17,451 Precious Metals ...................................................................................... 2,922 Cash and Bank Deposits....................................................................... 1,267,592 Premiums Due and Uncollected Life ......................................................................................................... 13,838 Accident & Health............................................................................... 174 Accrued Investment Income............................................................... 1,948,881 Total Admitted Assets........................................................................$114,349,448 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health Supplementary Contracts Without Life Contingencies, Policy Reserves.............................$ 89,369,634 Life and Accident & Health Claim Reserves..................................... 242,173 Refund (Dividend) Accumulations .................................................... 4,321,414 Provision for Refunds Payable in Following Calendar Year...................................................................................... 400,000 Premiums Paid in Advance................................................................... 438,662 Officials’ (Directors) Retirement Program....................................... 850,558 I nterest Maintenance Reserve............................................................. 1,912,001 Commissions, Taxes, General Expenses Due or Accrued.......... 48,064 Asset Valuation Reserve....................................................................... 1,428,581 Trust Account.......................................................................................... 750,285 Other Liabilities ...................................................................................... 78,013 Total Liabilities...................................................................................$ 99,839,385 Unassigned Surplus.......................................................................... 14,510,063 Total......................................................................................................$114,349,448 INCOME Premiums & Annuity Considerations..................................................$ 4,865,827 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations......... 393,220 Net Investment Income........................................................................... 8,050,004 Amortization of Interest Maintenance Reserve................................. 100,236 Miscellaneous Income............................................................................. 24,909 Total Income..........................................................................................$13,434,196 OUTGO Life Benefits Paid, Including Dividends..............................................$ 4,586,620 Annuity and Pension Benefits Paid...................................................... 2,268,785 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulation..................................... 2,117,765 Commissions on Premiums & Annuity Considerations................. 173,728 General Operating and Fraternal Expenses....................................... 2,807,852 insurance Department Licenses, Taxes & Fees............................... 64,912 Total Outgo & Reserve Increase ........................................................$12,019,662 Net Gain from Operations after Refunds to Members......................$1,414,534 RECONCILIATION Net Gain from Operations.....................................................................$ 1,414,534 Realized Gains.......................................................................................... 9,540 Net Income ................................................................................................$ 1,424,074 Unassigned Funds as of 12/31/93 ........................................................ 13,341,894 Unrealized Gains...................................................................................... (305,366) Net Admitted Gains ................................................................................. 16,873 Asset Valuation Reserve......................................................................... 28,785 Special Reserves...................................................................................... 3,803 Unassigned Funds as of 12/31/94..........................................................$14,510,063 Frances A. Furedy National Vice President-Treasurer
