William Penn Life, 2019 (54. évfolyam, 2-5. szám)
2019-04-01 / 4. szám
Actuary's Report for 2018 A fine record The year 2018 continued the Association's long history of returning to its members a high level of benefits consistent with safety by Grant Hemphill, FSA, MAAA William Penn Association continues its long history of outstanding service to members while maintaining its strong margin of safety for members, with an emphasis on member guaranteed benefit contracts. 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. Controlled growth and development were again emphasized in 2018. This approach has proven to be eminently successful. Assets increased by over 4%. Profits before dividends increased to $3,984,000 from $3,773,391 in 2017. These profits are attributable to careful management of investments, favorable persistency, prudent control of expenses, and favorable mortality experience. The year 2018 continued the Association's long history of returning to the members a high level of benefits consistent with safety. The major lines of business were again profitable. This is a fine record and is sufficient to sustain fraternal activities. 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 should be emphasized. In its history, no WPA member suffered any loss in benefit value or reduction in dividends nor experienced a rate increase because of market fluctuations. The Association enjoys a B++ rating from AM Best, an unusual achievement for a medium size fraternal society. WPA continues to be a very safe, secure place to hold money for future delivery. Assets at over $467,000,000 continue to be valued very conservatively, are of high quality and fully comply with the strict standards of the National Association of Insurance Commissioners (NAIC). William Penn Association is doing an outstanding job of managing members' funds. 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 margin of safety at December 31, 2018 continued at a high level of 108.61%. This means that the Association held $108.61 of admissible assets behind each $100 of liabilities as a safeguard to all members that the benefits promised in the certificates will be paid when due. The Association maintains a safety margin comparable to other fraternal benefit societies. The Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 5.26%, which remained remarkably consistent with the return in 2017 and which supports the generous rates paid to members. During 2018, the Association earned net investment income of $23,442,000 after deducting all investment expenses. Investment income exceeded requirements by $9,137,000 in 2018. 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 maintained its Security Valuation Reserves, to guard against adverse fluctuation in investments, at $3,814,000. The Association has set aside $426,235,000 of life, annuity and A&H reserves, deposits and claims for future payments to members. These insurance liabilities are computed according to the prudent and conservative standards of the Commonwealth of Pennsylvania to meet all known liabilities. 8 ° April 2019 ° WILLIAM PENN LIFE
