William Penn Life, 2011 (46. évfolyam, 1-12. szám)
2011-04-01 / 4. szám
Actuary's Report for 2010 WPA continues to be a very safe, secure place to hold money for future delivery by R. E. Bruce, FCA, MAAA William Penn Association continues its long history and outstanding service to members while maintaining a strong margin of safety 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. Emphasis in 2010 was on growth and development. The program was eminently successful. Assets increased by 12 percent and premium income increased by 53 percent. At the same time, profits increased by $210,000. This increase is attributable to careful management since, normally, new business costs money and reduces profits. The year 2010 continued the Association's long history of returning to the members the highest possible benefits consistent with safety. 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. WPA continues its emphasis on safety to members. The strong financial position of WPA was such that no WPA member suffered any loss in benefit value or reduction in dividends nor experienced a rate increase. By contrast, many persons insured in commercial companies, under variable indexed or market value adjustment contracts, experienced a loss in policy value of 30 to 50 percent. Many universal life plans imposed rate increases. WPA continues to be a very safe, secure place to hold money for future delivery. Assets at over $223,000,000 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 safety margin at December 31, 2010, continues to be very strong at 110 percent. This means that the Association held $110 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. Although the solvency ratio is slightly lower than the 2010 ratio, 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 5.94 percent, which supports the generous rates paid to members. During 2010, the Association earned net investment income of $12,181,000 after deducting all investment William Penn Association 2010 Annual Statemen ASSETS Bonds $209,494,859 LIABILITIES, SPECIAL RESERVES & SURPLUS CERTIFICATE RESERVES Stocks 6,537,163 Life, Annuity and Accident & Health Policy Reserves $190,672,000 Mortgage Loans 696,678 Liability for Deposit-Type Contracts 6,720,791 Real Estate Cash and Short-Term Investments 791,410 1,465,913 Life and Accident & Health Claim Reserves Provision for Refunds Payable in Following 204,907 Certificate Loans 946,945 Calendar Year 325,000 Accrued Investment Income 3,281,898 Premiums Paid in Advance 470,282 Electronic Data Processing Equipment & Software 18,418 Officials' Retirement Program 1,879,585 Premiums Due and Uncollected 24,043 Interest Maintenance Reserve 996,035 Total Admitted Assets 14 0 April 2011 0 William Penn Life $223,257,327 General Expenses and Taxes Due or Accrued Asset Valuation Reserve Trust Account Other Liabilities Total Liabilities Unassigned Surplus Total 54,719 1,195,000 713,150 487,094 $203,718,563 19,538,764 $223,257,327
