Verhovayak Lapja, 1953 (36. évfolyam, 1-12. szám)
1953 / Verhovay Journal
April 15, 1953 Verhovay Journal PAGE 5 VALUATION REPORT HARLEY N. BRUCE & ASSOCIATES Consulting Actuaries and Insurance Accountants 436 Boulevard of the Allies, Pittsburgh 19, Pa. Phone: GRant 1-0238 iMarch 13, 1953 Verhovay Fraternal Insurance Association 436-40 Fourth Avenue Pittsburgh 19, Pennsylvania Fentiemen: For the year 1952, Verhovay Fraternal Insurance Association continued to show substantial increase in all phases of its operations: 1. Insurance in force increased for year 1952 by §1,288,835 which is an increase of 22% over the gain made for the year 1951. Insurance In force on December 31, 1952 had grown to the all time “high" of $47,900,792. 2. Ledger assets at end of the year had increased to $13,366,070, a gain for the year of S84S,301 which breaks another record in the history of the Association growth. 3. During the year 1952, the Association added $808,836 to its life insurance funds, thus building its total reserves to $12,417,960. All reserves are calculated by the safest and most conservative standards, thereby placing the future safety and security of the insured members above all other considerations. The Management of the Association has voluntarily established the most conservative reserve standards so as to be beyond the statutory requirements of any state insurance department. 4. The interest earned on invested funds increased for the year to the gross rate of 3.41% of the ledger assets, which is exceedingly favorable and particularly so when study is given to the high quality of the securities in which funds are invested. The Association has indeed been most fortunate over the years in having such skillfull investment management. 5. Total benefits and payments made to members totaled $765,051.... a new high in payments to members. This represents an increase of $82,710 over the payments made to members in 1951. G. Total income amounted to $2,111,281.80, while total disbursements amounted to 81,262,980.19 for the year. 7. The above valuation indicates that, on the basis of the A. E. & A. M. table of mortality with interest at 3% and 2-|%, the future assessments of the society, at the net rates now being collected together with the now invested assets, are sufficient to meet all certificates as they mature by their terms, with a margin of safety of $756,811.30 (or 5.98%) over and above the statutory standards. We, as Consulting Actuaries, are justifiably proud to serve an organization with the efficiencies and progressiveness of the Verhovay Fraternal, Insurance Association. Respectfully submitted, H. X. BRICE & ASSOCIATES Consulting Actuaries for VERHOVAY FRATERNAL INSURANCE ASSOCIATION By: H. N. BRUCE, Chief Actuary ANNUAL STATEMENT FOR THE YEAR 1952 OF THE VERHOVAY FRATERNAL INSURANCE ASSOCIATION '........... .. ■ --- --- •• Life Benefit Disability Combined Department Department Department I — Balance From Previous Year ,11,925,437.31 592,331.9512,517,769.26 II —INCOME Payments received from members during first Twelve months of benefit protection of which all or a part is used for expense* .......95,298.81 95,298.81 All other payments or premiums received from members* ..............1,330,455.49 1,425,754.30 168.892.25 168.892.25 1,499,347.74 1,594,646.55 Total Payments received ....... Total received from members ......... Deduct payments returned to ap-1,425,754.30 168,892.25 1,594,646.55 plicamts and members, including 8295.28 first year ........................- 3,715.44 - 118.28 - 3,833.72 Net amount received from members Gross interest on mortgage loans 1,422,038.86 168,773.97 1,590,812.83 less accrued interest on mortgages acquired during the year 16,051.71 16,051.71 Life Benefit Department Disability Department Combined Department Gross interest on bonds $356,437.46 less $4,638.78 accrued interest on bonds acquired during the year, per Schedule D ............................333,369.89 18,428.79 351,798.68 Gross dividends on stocks ..............2,756.86 2,756.86 Gross interest on liens and loans on certificates of members ............19,818.23 19,818.23 Gross interest on deposits in trust companies and banks ...... 389.24 389.24 Gross interest from all other sources 350.18 350.18 Gross income from society’s property, including $10,920.00 for society’s occupancy of its own buildings .....a...................... ...... 41,009.61 41,009.61 Total income from investments---413,745.72 18,428.79 432,174.51 Miscellaneous Income ..... .............. 4.64 4.64 Trust Fund Deposits ........................ 40,992.11 40,992.11 Service Charges on Cash Surrenders and Loans .......................................4,470.60 4,470,60 Sports Activities ..............................8,777.85 8,777.85 Pension Fund Deposits ..................15,617.40 15,617.40 Gross profit on sale or maturity of ledger assets, viz: Bonds per Schedule D ......................11,326.35 11,326.35 Gross increase, by adjustment, in book value of ledger assets, viz: Bonds per Schedule D (including $1,287.63 for accrual of discount)1,287.63 1,287.63 Mortgages ........ 5,817.88 5,817.88 TOTAL INCOME 1,924,079.04 187,202.76 2,111,281.80 Amounts carried forward ..............13,849,516.35 779,534.71 14,629,051.06 III — DISBURSEMENTS (A) (a) Death Claims ....................473,189.51 473,189.51 (h) Additional Accidental Death Benefits .......................................2,500.00 2,500.00 Sickness and accident claims .......... 145,127.30 145,127.30 Matured endowments ...................35,800.00 35,800.00 Payments Waived — Re Payor Benefit .......................................... 23.55 23.55 Total benefits paid ............... ..........511,513.06 145,127.30 656,640.36 Net benefits paid 511,513.06 145,127.30 656,640.36 Surrender values .............................100,819.27 100,819.27 Refunds to members: Dividends Paid in cash .....................................7,591.63 7,591.63 Total benefits and payments made to members . .................................619,923.96 145,127.30 765,051.26 Commission and fees on payments by members: .................................65,463.57 65,463.57 Branch office expense ....................3,391.96 3,391.96 Medical examiners’ fees $8,164.00 .... Inspection of risks $466.25 ..............8,630.25 8,630.25 Salaries of home office employees, ’ No. 32 ............................. 72,797.71 72,797.71 Salaries and all other compensation of officers, trustees and committees 46,100.00 46,100.00 Traveling and other expenses of officers, trustees and committees 17,892.13 17,892.13 For collection and remittance of payments and dues .....................„97,487.21 97,487.21 Taxes, licenses and fees: (a) Insurance Department 207.44 1,683.05 1,683.05 (b) Other State Taxes, including Social Security ..........................237.44 237.44 (c) Federal, including $2648.54 Social Security ..........................4,598.45 4,598.45 Rent, including $10,920.00 for society’s occupancy of its own buildings .....................................10,920.00 10,920.00 General office maintenance and expense ..................................... 2,815.46 2,815.46 Advertising, printing and stationery 15,640.15 15,640.15 Postage, express, telegraph and telephone ........................................5,404.44 5,404.44 Donations .................. 3,020.35 3,020.35 Official Publication ........................13,142.98 13,142.98 Dec. 1951 M'ithholding Taxes Pd.2,399.85 2,399.85 Pension Fund ....................................10,000.00 10,000.00 Legal expenses .................................2,700.00 2,700.00 (Continued on page 6) T
