William Penn Life, 2003 (38. évfolyam, 1-12. szám)
2003-04-01 / 4. szám
fiflSOllDGround= Members can have confidence in the financial standing of the 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. References are truncated for convenience. The year 2002 continued the Association's long history of successful and profitable operations. Unassigned funds remained strong; assets and insurance totals reached record levels. William Penn Association continues its fine financial program in a manner designed to fully protect the interests of its members. Unassigned funds maintained the high level at $23,925,000. The net gain on operations after dividends was $706,000 in 2002, representing 35 consecutive years of profits. The officers and directors deserve great credit. The major lines of business, life and annuity, were again profitable. This is 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 $10,112,000 to another record high of $147,272,307. 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. 31,2002 continues to be very strong at 119.40 percent. This means that the Association held $119.40 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 most of the very large companies. This strong safety margin will continue for the benefit of all members, even into the next generation. The Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 6.8 percent, which supports the generous rates paid to members. During 2002, the Association earned net investment income of $9,296,000 after deducting all investment expenses. Investment income exceeded requirements by $3,791,000 in 2002, which is slightly higher than in 2001. 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 $2,554,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. The members' assets are well protected, because there is no liability against this amount. During 2002, premium income jumped to over $16,250,000. Total insurance in force passed $230,000,000. Annuity premiums exceeded $14,600,000, which, together with deposits on hand, brought total annuity deposits to $64,600,000, representing another new record for the Association. The Association has set aside $116,900,000 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 2002, the Association paid the significant amount of $11,309,000. A summary of these payments to members for the past two years is as follows: ITEM 2001 2002 Death Claims $2,037,000$1,788,000 Matured Endowments 112,000 135,000 Emergency Cash Surrender Benefits 773,000 639,000 Payments to A & H Certificates 86,000 66,000 Annuity and Old Age Benefits 2,978,000 4,395,000 Excess Interest on Funds to Member's Acct.2,906,000 3,913,000 Dividends 381,000 373,000 Benefits to Members $9,273,000$11,309,000 WPA is rendering a truly valuable financial service to its members. 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 12 WOliu Pm Life, April 2003
