William Penn Life, 2001 (36. évfolyam, 1-12. szám)
2001-04-01 / 4. szám
Safe& Sound In the turbulent seas of today’s economy our members can find a harbor in 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 2000 continued the WPA's long history of successful and profitable operations. Unassigned funds, assets and insurance totals reached record levels. William Penn Association continues its fine financial program. Unassigned funds increased by $734,000 (all numbers herein are rounded for convenient reading), reaching another new record high of $23,830,000. The net gain on operations after dividends was $1,262,000 in 2000, representing 33 consecutive 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 WPA and its financial strength to guarantee their benefits. Assets continued their strong growth, increasing by over $1,568,000 to another record high of $133,432,000. 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. 31,2000, was very strong, increasing to the exceptionally favorable level of 121.74 percent. This means that the WPA held $121.74 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 Association 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 Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 7.3 percent, which represents a slight increase from the stable rate of return for the previous four years of 7.2 percent. During 2000, the Association earned net investment income of $9,278,000 after deducting all investment expenses. Investment income exceeded requirements by $4,164,000 in 2000. 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 Association maintains $2,826,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. The members' assets are well protected. During 2000, premium income was $4,100,000. Total insurance in force passed $224,000,000. Annuity premiums were $2,206,000, which, together with deposits on hand, brought total annuity deposits to $50,600,000, representing another new record for the Association. The Association has set aside $103,900,000 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 2000, the WPA paid the significant amount of $8,753,000. A summary of these payments to members for the past two years is as follows: ITEM 1999 2000 Death Claims $2,082,000$1,858,000 Matured Endowments 167,000 89,000 Emergency Cash Surrender Benefits 845,000 785,000 Payments to A & H Certificates 35,000 14,000 Annuity and Old Age Benefits 3,171,000 2,880,000 Refund Accumulation 310,000 276,000 Excess Interest on Funds 2,222,000 2,463,000 Dividends 392.000 388.000 Total Benefits Paid to Members$9,224,000 $8,753,000 WPA is rendering a truly valuable financial service to its members. 18 William Penn Lile, April 2001
