William Penn Life, 1996 (31. évfolyam, 1-12. szám)
1996-04-01 / 4. szám
April 1996, William Penn Life, Page 3 jummary of Bruce & Bruce Actuaries Report for 1995 This summarizes certain highlights from the financial reports to the regulatory authorities and the actuarial report to the Officers and Directors. All numbers herein are taken from the official reports as filed. The year 1995 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 during a year of declining investment yields. Unassigned funds reached another new record high of $15,515,000*. Surplus increased strongly, by $1,105,000 in 1995. The Association reported profits for the 28th straight year, which reflects great credit on the officers and directors. All lines of business were profitable. 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 $117,809,000. 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, 1995 was very strong, increasing to the exceptionally favorable level of 115.17%. This means that the Association held $ 115.17 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 notwithstanding the decline in general yields. The net rate of return on mean assets was 7.4%, which is the same as in 1994. During 1995, the Association earned net investment income of $8,296,000 after deducting all investment expenses. Investment income exceeded requirements by $3,800,000 in 1995. 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 $3,978,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. An additional $569,000 was placed into these reserves in 1995. During 1995, 1,090 new life certificates were issued for $8,699,000 of insurance. Total insurance in force is $211,119,000. Annuity premiums were $2,477,000 which, together with deposits on hand, brought total annuity deposits to $41,940,000, representing another new record for the Association. The Association has set aside $96,016,000 of life, annuity and A&.H reserves, deposits and claims for future payments to members. Management continues its prudent and conservative practice of setting aside sufficient funds with which to meet all known and contingent liabilities. In view of its financial success, the Association will make a call on its members to manage a greater share of their funds. An important index of service to members is the total amount paid to members. During 1995, the Association paid the significant amount of $7,394,000. A summary of these payments to members for the past two years is as follows: ITEM Death Claims Matured Endowments Emergency Cash Surrender Benefits Payments to A&.H Certificates Annuity and Old Age Benefits Refund Accumulation Interest on Funds Dividends TOTAL 1994 1995 $1,740,000$1,795,000 107,00095,000 596,0001,007,000 204,000168,000 2,269,0002,363,000 212,000285,000 1,302,0001,265,000 424,000416,000 $6,854,000$7,394,000 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. Respectfully submitted, Subscribed and sworn to before me this 13th day of February, 1996. Virginia S. Kiddle R- E. Bruce Notary Public FCA, MAAA *Numbers herein are rounded to the nearest $1,000 for convenient reading. William Penn Association 1995 Annual Statement Financial Report ASSETS Bonds............................................................................................................................$ 99,575,480 Stocks ........................................................................................................................... 8,105,355 Mortgage Loans...................................................................................................... 846,367 Real Estate................................................................................................................. 2,706,288 Certificate Loans.................................................................................................... 1,594,880 Electronic Data Processing Equipment.................................................... 49,322 Precious Metals ...................................................................................................... 3,066 Cash and Bank Deposits.................................................................................... 2,978,070 Premiums Due and Uncollected Life ............................................................................................................................. 14,142 Accident & Health............................................................................................. 178 Accrued Investment Income........................................................................... 1,936,582 Total Admitted Assets ..........................................................................................$117,809,730 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health Supplementary Contracts Without Life Contingencies, Policy Reserves..................................$ 91,187,481 Life and Accident & Health Claim Reserves........................................... 287,384 Refund (Dividend) Accumulations ............................................................. 4,542,938 Provision for Refunds Payable in Following Calendar Year...................................................................................................... 400,000 Premiums Paid in Advance............................................................................... 407,253 Officials’ (Directors) Retirement Program.............................................. 768,967 Interest Maintenance Reserve......................................................................... 1,980,534 Commissions, Taxes, General Expenses Due or Accrued............ 50,680 Asset Valuation Reserve.................................................................................... 1,997,854 Trust Account........................................................................................................... 501,565 Other Liabilities ...................................................................................................... 169,537 Total Liabilities..........................................................................................................$102,294,192 Unassigned Surplus................................................... 15,515,538 Total................................................................................................................................$117,809,730 INCOME Premiums & Annuity Considerations...........................................................$ 4,786,391 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations....................................... 389,282 Net Investment Income......................................................................................... 8,296,412 Amortization of Interest Maintenance Reserve....................................... 109,496 Miscellaneous Income........................................................................................... (4,078) Total Income.................................................................................................................$13,577,503 OUTGO Life Benefits Paid, Including Dividends......................................................$ 5,035,163 Annuity and Pension Benefits Paid................................................................ 2,363,038 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulation........................................... 2,043,000 Commissions on Premiums & Annuity Considerations..................... 181,176 General Operating and Fraternal Expenses.............................................. 2,513,484 Insurance Department Licenses, Taxes & Fees.................................... 109,533 Total Outgo & Reserve Increase ...........................................................$12,245,394 Net Gain from Operations after Refunds to Members.....................$1,332,110 RECONCILIATION Net Gain from Operations..................................................................................$ 1,332,110 Realized Gains........................................................................................................... 3,318 Net Income .................................................................................................................$ 1,335,428 Unassigned Funds as of 12/31/94................................................................ 14,510,063 Unrealized Gains...................................................................................................... 421,392 Net Admitted Gains ............................................................................................... (82,367) Asset Valuation Reserve...................................................................................... (569,273) Special Reserves...................................................................................................... (99,705) Unassigned Funds as of 12/31/95..................................................................$15,515,538 Frances A. Furedy National Vice President-Treasurer
