William Penn Life, 1999 (34. évfolyam, 2-12. szám)
1999-04-01 / 4. szám
WPA earns a thumbs up’ for 98 performanoe By Robert E. Bruce, FCA, MAAA The year 1998 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 approached another new record high of $20,881,000 (All figures are rounded for easier reading). Surplus increased strongly, by $2.4 million in 1998. The Association reported profits for the 31st 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 hit record high Assets continued their strong growth, increasing by over $3.4 million to another record high of $129.3 million. 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 Dec. 31,1998, was very strong, increasing to the exceptionally favorable level of 119.25%. This means that the Association held $119.25 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. Excellent investment returns 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 was the same as 1997. During 1998, the Association earned net investment income of $8,863,000 after deducting all investment expenses. Investment income exceeded requirements by $3.7 million in 1998. 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 $3,425,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. During 1998, premium income approached $4.8 million. Total insurance in force approached $222 million. Annuity premiums amounted to $2.83 million, which together with deposits on hand, brought total annuity deposits to $48,576,000, representing another new record for the Association. The Association has set aside over $102.2 million 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 1998, the Association paid the significant amount of $8.45 million. (See table, left) 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. |yyp| ) Robert E. Bruce is president of Bruce & Bruce Actuaries. — Going up, up, UP! Benefits we paid to our members increased yet again during 1998. Here's a summary of these payments for the past two years: ITEM 1997 1998 Death Claims $1,785,000$1,893,000 Matured Endowments 125,000 91,000 Emergency Cash Surrender Benefits 782,000 844,000 Payments to A & H Certificates 72,000 181,000 Annuity and Old Age Benefits 2,391,000 2,940,000 Refund Accumulation 287,000 287,000 Excess Interest on Funds 1,591,000 1,818,000 Dividends 390.000 396.000 TOTAL BENEFITS TO MEMBERS$7,423,000 $8,450,000 V___________________________________J 8 William Penn Life, April 1999
