William Penn Life, 2007 (42. évfolyam, 1-12. szám)
2007-04-01 / 4. szám
ANNUAL ACTUARY’S REPORT Safe and Sound WPA continues to render a truly valuable financial service to members by Robert E. Bruce, FCA, MAAA William Penn Association continues its long history of profitable operations and outstanding service to members. Certain highlights from the financial reports to the regulatory authorities and the actuarial report to the Officers and Directors should be summarized for the benefit of the members. All numbers herein are taken from the official reports as filed. References are rounded for convenience. The year 2006 continued the Association's long history of successful and profitable operations. Unassigned funds and insurance totals again reached record levels. William Penn Association continues the policy of returning to the members the highest possible benefits consistent with safety. Unassigned funds reached a new high level at $26,330,000. The net gain on operations after dividends was $380,000 in 2006, representing 39 consecutive years of profits. The officers and directors deserve great credit for management skills. 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 at $192,030,000 continue to be valued very conservatively, are of very high quality 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 the required funds when needed. The solvency ratio at December 31, 2006 continues to be very strong at 115.89%. This means that the Association held $115.89 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 5.96%, which supports the generous rates paid to members. During 2006, the Association earned net investment income of $11,136,000 after deducting all investment expenses. Investment income exceeded requirements by $4,425,000 in 2006. Excess interest continued to be the most important profit source to the Association. It is significant to note that interest earned, over and above that required, again increased in 2006 notwithstanding declining yields in the marketplace. In addition to the excellent investment returns, it is worth noting that the Association maintains $2,940,000 in Security Valuation Reserves to guard against adverse fluctuation in investments. The members' assets are well protected by this strong safety fund. The Association has set aside $159,574,000 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 2006 the Association paid the significant amount of $18,118,000. A summary of these payments to members for the past two years is as follows: ITEM 2005 2006 Death Claims $1,792,000$1,909,000 Matured Endowments 101,000 90,000 Emergency Cash Surrender Benefits 657,000 536,000 Payments to A & H Certificates 55,000 67,000 Annuity and Old Age Benefits 10,610,000 10,778,000 Excess Interest on Funds to Member's Acct.4,436,000 4,395,000 Dividends 310.000 343,000 Benefits to Members $17,961,000$18,118,000 WPA is rendering a truly valuable financial service to members. 12 William Penn Life, April 2007
