William Penn Life, 1998 (33. évfolyam, 1-12. szám)
1998-04-01 / 4. szám
Page 10, William Penn Life, April 1998 Summary of Bruce & Bruce Actuaries Report for 1997 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 1997 continued the long history of successful and profitable operations for the Association. Unassigned funds and profits reached record levels. These accomplishments were achieved during a year of declining investment yields. Unassigned funds approached another new record high of $18,400,000.* Surplus increased strongly, by $1,900,000, in 1997. The Association reported profits for the thirtieth consecutive year, which reflects great credit on the officers and directors. All lines of business were profitable. Very few financial organizations report such a fine record. The members should feel very proud of WPA and its financial strength to guarantee their benefits. Assets continued their strong growth, increasing by over $4,100,000 to another record high of $125,900,000. All assets are valued very conservatively and fully comply with 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 will provide funds when needed. The solvency ratio on December 31,1997 was very strong, increasing to the exceptionally favorable level of 117.15%. This means that the Association held $117.15 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 this strong safety margin will continue. The Association enjoyed a very favorable year from investments notwithstanding the decline of general yields. The net rate of return on mean assets was 7.2%, which was the same as 1996. During 1997, the Association earned net investment income of $8,655,000 after deducting all investment expenses. Investment income exceeded requirements by $3,657,000 in 1997. 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 $3,839,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. During 1997, premium income approached $5,000,000. Total insurance in force approached $220,000,000. Annuity premiums amounted to $2,930,000, which together with deposits on hand, brought total annuity deposits to $47,066,000, representing another new record for the Association. The Association has set aside $100,884,000 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. William Penn Association is doing an outstanding job of managing the members’ funds. An important index of service to members is the total amount paid to members. During 1997, the Association paid the significant amount of $7,423,000. A summary of these payments to members for the past two years is as follows: ITEM 1996 1997 Death Claims $1,828,000$1,785,000 Matured Endowments 127,000 125,000 Emergency Cash Surrender Benefits 690,000 782,000 Payments to A & H Certificates 145,000 72,000 Annuity and Old Age Benefits 2,372,000 2,391,000 Refund Accumulation 268,000 287,000 Excess Interest on Funds 1,575,000 1,591,000 Dividends 406,000 390,000 Benefits to Members $7,411,000$7,423,000 In our opinion, the amount 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 Respectfully submitted, this 10th day of February, 1998. g g Bruce Virginia S. Kiddle FCA, MAAA Notary Public *Numbers herein are rounded to the nearest $1,000for convenient reading. William Penn Association 1997 Annual Statement Financial Report ASSETS Bonds..............................................................................................$107,134,817 Stocks............................................................................................ 8,933,688 Mortgage Loans............................................................................. 663,933 Real Estate..................................................................................... 2,640,273 Certificate Loans............................................................................ 1,478,132 Electronic Data Processing Equipment.......................................... 64,296 Precious Metals.............................................................................. 3,570 Cash and Short-Term Investments................................................. 2,982,313 Premiums Due and Uncollected Life............................................................................................. 11,248 Accident & Health...................................................................... 111 Accrued Investment Income.......................................................... 2,003,202 Total Admitted Assets.................................................................$125,915,583 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health and Supplementary Contracts Without Life Contigencies, Policy Reserves...............................$ 95,679,508 Life and Accident & Health Claim Reserves.................................. 205,738 Refund (Dividend) Accumulations.................................................. 4,998,872 Provision for Refunds Payable in Following Calendar Year............................................................................. 400,000 Premiums Paid in Advance............................................................ 392,008 Officials’ (Directors’) Retirement Program...................................... 860,256 Interest Maintenance Reserve....................................................... 1,964,882 Commissions, Taxes, General Expenses Due or Accrued............ 44,522 Asset Valuation Reserve................................................................ 1,874,303 Trust Account.................................................................................. 839,815 Other Liabilities............................................................................... 219,188 Total Liabilities...............................................................................$107,479,092 Unassigned Surplus.................................................................... 18,436,491 Total................................................................................................$125,915,583 INCOME Premiums & Annuity Considerations.............................................. $ 4,937,738 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations............ 371,950 Net Investment Income.................................................................. 8,655,453 Amortization of Interest Maintenance Reserve.............................. 113,511 Miscellaneous Income................................................................... ..........(2,511) Total Income................................................................................. $14,076,141 OUTGO Life Benefits Paid, Including Dividends.......................................... $ 5,031,746 Annuity and Pension Benefits Paid................................................ 2,391,211 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulation.................................. 2,343,690 Commissions on Premiums & Annuity Considerations................. 183,925 General Operating and Fraternal Expenses.................................. 2,494,965 Insurance Department Licenses, Taxes & Fees............................ 62,407 Total Outgo & Reserve Increase................................................. $12,507,944 Net Gain from Operations after Refunds to Members............. $1,568,197 RECONCILIATION Net Gain from Operations.............................................................. $ 1,568,197 Realized Gains (excluding transfers to the IMR)............................ ...........0 Net Income..................................................................................... $ 1,568,197 Unassigned Funds as of 12/31/96................................................. 16,514,770 Unrealized Gains............................................................................ 182,244 Net Admitted Gains........................................................................ (153,025) Asset Valuation Reserve................................................................ 326,266 Special Reserves........................................................................... (1,961) Unassigned Funds as of 12/31/97................................................. $18,436,491 Diane M. Torma National Vice President-Treasurer
