William Penn, 1965 (48. évfolyam, 1-24. szám)

1965-04-07 / 7. szám

6-IK OLDAL William Penn 1965 április 7. VALUATION REPORT HARLEY N. BRUCE & ASSOCIATES Consulting Actuaries 7620 North Rogers Avenue, Chicago 26, Illinois. February 26, 1965 Officers and Directors William Penn Fraternal Association 436 — 4th Avenue Pittsburgh, Pennsylvania 15219 Re: 1964 Year of Operation^ Gentlemen: The following statistics represent certain highlights of information which will be contained in the actuarial report. This information is presented in advance of the longer and more detailed actuarial report so that it can be published for the benefit of your membership. The year 1964 was an excellent year for the Association, reflecting the best financial results since organization. Management is to be congratulated for this achievement. The assets continued to climb, reaching a new high of $30,892,544.78 as of December 31, 1964, and representing an increase of $817,417.75 over the assets as of December 31, 1963. The Association maintains admissible assets of $107.44 behind each $100.00 of liabilities as a safeguard and guarantee to all members that the benefits promised in the certificate will be paid when due. The Association again enjoyed a favorable year from an investment standpoint. The net rate of return during 1964 on mean ledger assets was 3.82%, representing a significant gain over the 1963 and 1962 rates. During 1964, the Association earned $1,140,170.54 after deducting all investment ex­penses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $364,615.54, which compares favorably with the 1963 and 1962 excess interest earnings of $333,475.40 and $306,587.01 respec­tively. In spite of the excess interest earnings and capital gains realized, the Association continues to maintain the Security Valuation reserve as a further protection to its members against the possibility of adverse market fluctua­tions. As of December 31, 1964, $843,353.03 had been set aside for this pur­pose. The sum of $837,305.53 was set aside for this purpose at the end of 1963. During 1964, 3,288 new life certificates were issued for $6,113,050.00 of insurance. Total insurance in force increased to $88,702,604.00 at the end of the year on 78,310 certificates. In addition, the Association has issued and has outstanding over 13,000 Sick Benefit, Accident and Health and Hospitali­zation certificates. The Association has set aside $26,001,818.00 of life re­serves and $620,525.00 of A & H reserves for the payment of future claims, which amounts are in addition to the amounts set aside for claims currently in process. Management continues its wise practice of setting aside sufficient funds with which to meet all known and contingent liabilities. The most important index of service to members is the total amount paid to members. During 1964, the Association paid $2,460,192.29 to its members which is consistent with payments of $2,313,591,58 and $2,377,974.77 in 1963 and 1962 respectively. A summary of the 1964 payments to members is as follows: Death Claims Matured Endowments Surrender Benefits A & H & Mise. Payments Dividends TOTAL $ 981,347.69 829,418.00 333,579.17 183,385.48 132,461.95 $2,460,192.29 During the year the Association enjoyed a net capital gain of $114,528.10 of which $47,588.04 was actually realized and $66,940.06 was not realized. Un­realized gains reflect increases in values which can be converted into realized gains by sale of the investment if Management should choose to do so. Profits in 1964 were substantial, amounting to $370,297.82 before divi­dends and $237,835.87 after dividends. Management voted to return 35.8% of all profits to the members in the form of dividends after giving due consi­deration to the funds which should be set aside to guarantee the safety of benefits on all members. Management is to be congratulated on the amount of profits developed during 1964 and the judicious application of these profits. In the opinion of the actuaries, the reserves and other liabilities set aside for payment of future claims, together with future premiums, will be suffi­cient to meet all future obligations as they arise without deduction or abatement. Respectfully submitted, HARLEY N. BRUCE & ASSOCIATES by R. E. Bruce, Actuary Annual Statement For The Year 1964 OF THE WILLIAM PENN FRATERNAL ASSOCIATION ASSETS •Bonds (Schedule D) ........................................ •Stocks (Schedule D) ........................................ Mortgage loans an real estate (Schedule B) Real estate Properties occupied by the Society ......................$196,544.25 Investment real estate ..........................................$1,010,981.46 Certificate loans and liens ................................................................... Cash and bank deposits ........................................................................... Cash and invested assets $30,570,278.01 24,446,221.26 2,139,507.45 1,445,529.60 1,207,525.71 1,074,438.68 257,055.31 Premiums actually collected by subordinate lodges not yet remitted to Home Office .................................................. 54,065.26 Accident and health premiums due and unpaid effective after September 30th of current year .................. 3,690.60 interest and other investment income due and accrued ................ 264,510.91 TOTAL ............................................................................................. 30,892,544.78 • State basis of valuation: Bonds — Amortized or Investment Value Stocks — Market Value LIABILITIES, SPECIAL RESERVES AND UNASSIGNED FUNDS Aggregate reserve for life certificates and contracts .................... 26,001,818.00 Aggregate reserve for accident and health certificates ................ 620,525.00 Supplementary contracts without life contingencies ..................... 19,269.96 Certificate and contract claims Life ............................................................................................................. 42,517.00 Accident and Health ........................................................................... 69 314.49 Refund accumulations ................................................................................. 251 078.16 Refunds due and unpaid ........................................................................... 8,016.75 Premiums and annuity considerations received in advance, including $16,448.09 accident and health premiums .............. 257 403 61 Commissions to fieldworkers due or accrued. Life and Annuity $13,831.07 Accident and Health $1,536.78.. 15,367.85 General expenses due or accrued..................... 6,347.38 Taxes, licenses and fees due or accrued ............................................... 3,370.83 Unearned investment income ................................................................... 5,341.28 Amounts withheld or retained by Society as agent or trustee ............................................................................................... 11,353.32 Amounts held for fieldworkers account (including $1,741.11 fieldworkers credit balances) ....................................... 1,741.11 Liability for benefits for employees and fieldworkers if not included above .................................. 397,923.33 Mandatory securities valuation reserve ........................................ 843,353.03 Amounts retained by Society in Trust Acct. for Minor (and Unknown Beneficiaries) ............................................... 50,693.19 Charity, Welfare and other Amounts held by Society ................ 146,696.07 TOTAL LIABILITIES .................................................. 28,752,130.36 Unassigned funds ............................................................................. 2,140,414.42 TOTAL............................................................................................... 30,892,544.78 SUMMARY OF OPERATIONS (Accrual Basis) Premiums and annuity considerations Life ............................................................................................................. 2,620,664.01 Accident and health ............................................................................. 197,828.40 Considerations for supplementary contracts without life contingencies and refund accumulations ....................................... 76,886.22 Net investment income ............................................................................... 1,140,170.54 Miscellaneous Income ................................................................................ -717.08 TOTAL ............................................................................................. 4,034,832.09 DEDUCT: Death benefits ................................................................................................. 981,347.69 Matured endowments ................................................................................... 829,418.00 Disability benefits ....................................................................................... 402.57 Surrender benefits ....................................................................................... 333,579.17 Accident and health benefits ................................................................... 175,062.12 Payments on supplementary contracts without life contingencies and of refund accumulations ............................... 7,920.79 Increased in aggregate reserve for certificates and contracts with life contingencies ................................................... 388,608.00 Increase in reserve for supplementary contracts without life contingencies and for refund accumulations ............................... 75,573.15 Increase in Reserve for A. and H. Certificates ................................. -5,337.00 Subtotal ..................................................................................................... 2,(86,574.49 Commissions on premiums ..................................................................... 291,455.63 Genera] insurance expenses and fraternal payments ....................... 558,965.87 Insurance taxes, licenses and fees............................................................ 27,538,23 Total ................................................................................................... 3,664,534.27 Net gain from operations before refunds to members and excluding capital gains and losses ............................................... 370,297.S2 Refunds to members ....................................r........................................... 132,461.95 NET GAIN FROM OPERATIONS AFTER REFUNDS TO MEMBERS AND EXCLUDING CAPITAL GAINS AND LOSSES ......................................................................................... 237.835.S7 UNASSIGNED FUNDS AND SPECIAL RESERVES ACCOUNT Unassigned funds December 31, previous year ................................. 1,835,780.71 Net gain from operations ........................................................................... 237,835.87 Net capital gains .......................... 114,528.10 TOTAL ................................................................................................. 2,188,144.68 Net loss from non-admitted and related items ............................... 10,478.09 Increase in mandatory securities valuation reserve .................. 6,047.50

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