William Penn Life, 1975 (10. évfolyam, 2-4. szám)
1975-04-01 / 2. szám
WILLIAM PENN ACTUARY’S REPORT BRUCE AND ASSOCIATES, CONSULTING ACTUARIES March 10, 1975. REPORT TO: Officers and Directors William Penn Association 429 Forbes Avenue Pittsburgh, Pa. 15219 RE: 1974 Year of Operation Gentlemen: The following statistics represent certain highlights of information from the actuarial report prepared for the officers and Board of Directors. The year 1974 was another successful and profitable year for the Association. Unassigned funds increased by $120,498 and reached a high of $3,766,404. The gain from operations in 1974 was again higher than average for the seventh straight year, amounting to $263,771, after the payment of dividends of $170,669. The officers are to be congratulated on the successful operations of the Association during 1974. The assets continued to climb, reaching to a new high of $35,044,600 on December 31, 1974. This represents an increase of $271,223 over the assets of December 31, 1973. The solvency ratio on December 31, 1974, was at the desirable level of 112.04%. This means that the Association held $112.04 of admissable 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. This represents an increase from the corresponding figure of $111.71 of December 31, 1973. The Association again enjoyed a favorable year from investments. The net rate of retprn during 1974 on mean assets was 4.65 %. During 1974, the Association earned investment income of $1,585,042 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $857,068 which reflects excellent gains over the 1973 and 1972 excess earnings of $746,619 and $680,244. Notwithstanding the excellent investment returns, it is worth noting that the Association has set aside the sum of $644,350 in the past 20 years into the Mandatory Security Valuation Reserve to guard against fluctuation in investments. During 1974, new life certificates were issued for $7,295,535 of insurance. Total insurance in force amounts to $105,137,872 at the end of the year on 67,244 certificates. In addition, the Association has issued, and has outstanding, several thousand Sick Benefit, Accident and Health and Hospitalization certificates. The most important index of services to members is the total amount paid to members. During 1974, the Association paid the significant amount of $2,473,879. A summary of these payments to members is as follows: In the opinion of the actuaries, the reserves and other amounts set aside for payment of future claims and future premiums will be sufficient to meet all future obligations as they arise without reduction or abatement. We certify that reserves were determined in satisfaction Item Death Claims_______ Matured Endowments. Surrender Benefits__ Payments to A&H Certificates________ $1 Disability Benefits________ Supplementary Contracts and Refund Accumulations. Dividends______________ 1973 ,048.048 520,614 . 368,438. 178,409. 1,103. 57,057. 163,597. 1974 .$1,063,232 - 520,818 . 444,984 _ 202,349 2,451 TOTAL $2,337,266 69,376 _ 170,669 $2,473,879 The Association has set aside $27,164,303 of life reserves, and $441,707 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 prudent' and conservative practice of setting aside sufficient funds with which to meet all known and contingent liabilities. of statutory requirements and were determined in accordance with generally accepted actuarial principles on a basis consistent with prior years. BRUCE & Respectfully submitted, A S S O C I A T E S Consulting A ctuaries 1974 ANNUAL STATEMENT FINANCIAL REPORT ASSETS: Bonds ...................................................................................................$29,963,315 Stocks .......................................................................................................... 983.080 Mortgage Loans......................................................................................... 1,149,345 Real Estate...................................................................................................1,316,155 Certificate Loans ......................................................................................... 835,268 Cash ........................................................................................................... 306,432 PREMIUMS: Life.................................................................................................................. 34,608 Accident & Health...............................................................................................1,017 Accrued Investment Income ........................................................................ 455,380 Total Admitted Assets.............................................................$35,044,600 LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES: Life .......................................................................................................$27,164,303 Accident & Health......................................................................................... 441,707 Supplementary Contracts Without Life Contingency........................................50,315 Miscellaneous ............................................................................................. 225,000 CERTIFICATE CLAIMS: Life ................................................................................................................106,311 Accident & Health .........................................................................................16,201 Refund (Dividend) Accumulations ............................................................ 1,084,312 Advance Premiums ..................................................................................... 674,390 Commissions, Taxes, General Expenses Due or Accrued ...................................................................................................17,280 Pension Benefit Funds ................................................................................. 754,865 Security Valuation Reserve ........................................................................ 644,350 Trust Account.................................................................................................. 35,392 Other Liabilities ...............................................................................................63,710 Total Liabilities .....................................................................$31,278,136 Special Reserves ...........................................................................................18,784 Unassigned Surplus ................................................................ 3,747,680 Total ......................................................................................$35,044,600 3
