William Penn Life, 2000 (35. évfolyam, 1-12. szám)
2000-04-01 / 4. szám
ft All Adds Up ’99 was another strong year financially for the WPA By Robert E. Bruce, FCA, MAAA It is once again a privilege to summarize 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 1999 continued the WPA's long history of successful and profitable operations. Unassigned funds, assets and insurance totals reached record levels. The WPA continues its fine financial program. Unassigned funds increased by $2,215,000 (all numbers herein are rounded for convenient reading), reaching a record high of $23,096,000. The net gain on operations after dividends was $1,532,000 in 1999, representing 32 years of profits. The officers and directors deserve great credit. All lines of business were again profitable. Very few financial organizations report such a fine record. The members should feel very proud of the WPA and its financial strength to guarantee their benefits. Assets continued their strong growth, increasing by over $2,500,000 to a record high of $131,864,000. All assets continue to be valued very conservatively and they 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 at Dec. 31,1999, was very strong, increasing to the exceptionally favorable level of 121.24 percent. This means that the WPA held $121.24 of admissable assets behind each $100 of liabilities as a safeguard and guarantee to all members that the benefits promised in the certficates will be paid when due. The WPA enjoys a stronger safety margin than most of the very large companies. This strong safety margin will continue for the benefit of the next generation. The WPA enjoyed a very favorable year from investments. The net rate of return on mean assets was 7.2 percent, which was the same as the prior three years. During 1999, the WPA earned net investment income of $9,076,000 after deducting all investment expenses. Investment income exceeded requirements by $4,096,000 in 1999. Excess interest continued to be the most important profit source to the WPA. In addition to the excellent investment returns, it is worth noting that the WPA maintains $2,800,000 in the Security Valuation Reserves to guard against adverse fluctuations in investments. The members' assets are well protected. During 1999, premium income increased to over $5,5000,000. Total insurance in force passed $222,000,000. Annuity premiums were $3,577,000, which, together with deposits on hand, brought total annuity deposits to $49,900,000, representing another record for the WPA. The WPA has set aside $103,400,000 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. The WPA 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 1999, the WPA paid the significant amount of $9,224,000. A summary of these payments to members for the past two years is as follows: ITEM 1998 1999 Death Claims $1,893,000$2,082,000 Matured Endowments 91,000 167,000 Emergency Cash Surrender Benefits 844,000 845,000 Payments to A & H Certificates 181,000 35,000 Annuity and Old Age Benefits 2,940,000 3,171,000 Refund Accumulation 287,000 310,000 Excess Interest on Funds 1,818,000 2,222,000 Dividends 396.000 392.000 Total Benefits Paid to Members»8,450,000 »9,224,000 The WPA is rendering a truly valuable financial service to its members. 18 Willin' Pen tile. April 2000
