Verhovayak Lapja, 1950 (33. évfolyam, 1-12. szám)
1950 / Verhovay Journal
Apni 19,1950---------------------------------------------------------------------------------------------------------------------------------------Verhovay Journal-------------------------------------------------------------------------------------------------------------------------------VALUATION REPORT MILES M. DAWSON & SON Incorporated CONSULTING ACTUARIES, AUDITORS AND ACCOUNTANTS 500 Fifth Avenue at 42nd Street New York 18, N. Y. March 13, 1950 Board of Directors Verhovay Fraternal Insurance Association 436-442 Fourth Avenue Pittsburgh 19, Pennsylvania Gentlemen: The following is a summary of the results of the annual valuation of the Association as of December 31, 1949: *The Senior Mortuary Fund shows a ratio of solvency of 109.25% as of December 31, 1949 (compared with 109.59% for 1948). Included in the reserves was an increase in the contingency reserve of $50.000 for the year, making a totaT contingency reserve of $500,000. This reserve is being built up so as to enable the Association to make future valuations on the assumption that earnings of 3% on investments will be sufficient instead of the need, as at present, to earn as much as 4%. Under today’s investment conditions it is not possible to earn as much as 4%, on all assets. The actual deaths of the Senior Mortuary Fund for 1949 were only 57.04% of expected deaths under the mortality tables now in use. This compares with 56.14% for 1948. In the past 5 years there were two years where the ratio was between 60% and 70%, so the experience for 1949 was excellent. Combining the juvenile mortality experience with the senior produces a ratio of actual to expected deaths of 53.09%, showing that the juvenile fund continues to have a very favorable experience. The members of the Association pay rates on the basis that all rates irv excess cf amounts needed for death claims and expenses will be invested to earn either 4%, 31%, 3% or 2%%, depending upon the basis adopted at the time the members took out their certificates. Therefore, we can calculate the amount of interest the Association should earn each year. Thus, we find the Association should have earned in 1949 on combined Senior and Juvenile funcia a total of $332,655.66, but actually earned §302.921.46, a failure to earn interest required of §29,734.20. The rate of net interest earned of 3.00' compares with 2.93G in 1948 and explains why the Association recently sdlopted a 2-j% interest rate fór new members, and why we are building up from mortality savings and other savings a contingency reserve to place all members on the basis of 3% earnings instead of 4% or 34%. The Investment Profit and Loss Exhibit shows a net profit from invest-- ' ments for 1949 of $16,392.84. This includes not only actual gains and losses on sales, but also increases or decreases in value of investments. From the financial standpoint, therefore, the Association had a go, 4 year in 1949, as other gains greatly exceeded the loss in interest earning-. For -the combined Senior and Juvenile funds, the surplus increased $1104 C"E. in \ spite of an increase in contingency reserves of $50,060. ; « Yours very truly, i MILES M. DAWSON & SON, INC. By: FRANK E. GERRY ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1949, OF THE VERHOVAY FRATERNAL INSURANCE ASSOCIATION 1 2- Adult Mortuary Disability Fund Fund X — Balance From Previous Year ............................... 8,577,308.00 453,133.61 II. INCOME Payments received from members during first Twelve months of benefit protection of yvhich * all or a part is used for expense ......................... .........__ — AH other payments or premiums received from members ....................................................... Total received from members ...................................... Deduct payments returned to applicants and members Net amount received from members ........................... Gross interest on mortgage loans .............................. Gross interest on bonds $273,217.43 less $8,574.02 accrued interest on bonds acquired during the year, per Schedule D .......................... ........... Gross dividends on stocks $1,790.96 ..................... Gross interest on liens and loans on certificates of members 854.283.27 854.283.27 3,524.50 850,758.77 2,015.70 224,554.83 1,790.96 17,593.00 186.263.12 186.263.12 16.SO 186,246.32 13,867.89 Gross interest on deposits in trust companies and \ banks .......................................................................... Gross interest from all other sources ....................... Gross income from society’s property, including 621.38 469.99 $10,920.00 for society’s occupancy of its own 3 4 Juvenile Trust Mortuary Fund Fund 100,224.49 798,279.51 6 Expense Totals Fund 19,737.50 9,948,683.11 , 163.330.84 163.330.84 388.68 162,942.16 2,608.16 23,612.53----337.46 104.51 ------— . 54,463.45 54,463.45 235,819.87, 290,283.32 177.01 290,106.31 1,439,697.10- 1,494,160.55 4,106.99- 1,490,«5330 2 015.7% 264,643.41 1,790.96 17,930.46 725.89 469.99“ buildings ................................................................ Total income from investments ................................. Miscellaneous Income .............................................. Trust Fund Deposits ................................................. Service Charges on Cash Surrenders and Loans Gross profit on sale of maturity of ledger assets, 37,850.56 284,896.42 15.05 13,867.89 2,712.67 29,934.36 23,949.99 125.80 3,921.00 3 7.850.56 32E,426.9T 146.8» 2® «34.38 3.924.00-viz: Bonds .................................................................... Gross increase, by adjustment, in book value of ledger assets, viz: Bonds (including $1,471.34 for accrual of discount) ............................................. 8,355.42 1,323.15 • 10.94 14.07 137.25 * 8,369.4»-1,471.34-TOTAL INCOME ............................................ 1,145,348.81 200,114.21 32.657.97 187,043.47 294,156.11 1,859,320.57 Amounts carried forward ....................................... y -----9,722,656.81 653,247.82 132,882.46 985,322.98 313,893.61 11,808,003.6» Death Claims ...................;.................................................. Additional Accidental Death Benefits ......................... Permanent disability claims: Income Payments ....... Sickness and accident claims ....................................... Matured endowments . .................................................. Total benefits paid .................................................. Surrender values ............................................................... Refunds to members: Paid in cash Dividends ........................................... Total Benefits and payments made to members Commissions and fees on payments by members: First Year $33,181.15, Renewal None ....,............ Field supervision and traveling (except compensation for home office supervision) ....................... Medical examiners’ fees ................................................. inspection of risks ............................................................ III. DISBURSEMENTS 374,642.73 .— 5.500.00 .—------.— 3,700.00------147,691.46 25,054.27 ------405,197.00 151,391.46 62,100.63 ------467,297.63 151,391.46 216.00 1,425.00 1,425.00 7,643.56 2,090.73 11,159.29 1,595.00 1,595.00 1.595.00 33,181.15 13,119.12 6.623.00 267.25 377,662.73 S, 500.09 '■ 'UP.00 147.691.46 25,054.27 559.608.46 69,744.'J 9 2,090.75 631,443.38 33,181.15 13,119.12 6.839.00 267.25
