William Penn Life, 1982 (17. évfolyam, 1-4. szám)

1982-04-01 / 2. szám

William Penn Actuary Report

RE: 1981 Year of Operations

The following statistics represent certain highlights of information from the actuarial report prepared for the Officers and Board of Directors.

The year 1981 continued the long history of successful and profitable operations for the Association. Unassigned funds increased by $609,101 and reached a new record high of $5,673,511. The gain from operations in 1981 was again highly satisfactory for the fourteenth straight year, amounting to $376,337 after the payment of dividends of $244,570. Management is to be congratulated on the successful operations of the Association during the year.

Assets continue their rapid ascent, reaching to a record high of $45,183,709 at year end. This represents an increase of $1,847,432 over the assets of December 31, 1980. The solvency ratio on December 31, 1981 was at the very favorable level of 114.36%. This means that the Association held $114.36 of admissible 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 a slight increase from the 5-year average of $113.03.

The Association again enjoyed a favorable year from investments. The net rate of return on mean assets was 8.09%. During 1981, the Association earned investment income of $3,410,684 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $2,249,647, which reflects an excellent gain over the 1980 excess earnings of $1,815,032.

In addition to the excellent investment returns, it is worth noting that the Association has set aside the sum of $845,995 over the past years into the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments.

During 1981, new life certificates were issued for $9,208,820 of insurance. Total insurance in force amounted to $118,041,239 at the end of the year on 60,858 certificates. In addition, the Association has issued, and has outstanding, several thousand Sick Benefit, Accident and Health and Hospitalization certificates.

The Association has set aside $35,049,648 of life reserves, and $276,155 of A&H reserves for the payment of future claims, which amounts are in addition to those amounts set aside for clafms currently in process. Management continues its prudent and conservative practice of setting aside sufficient funds with which to meet all known and contingent liabilities.

The most important index of services to members is the total amount paid to members. During 1981, the Association paid the significant amount of $3,098,323. A summary of these payments to members for the past two years is as follows:

Item

Death Claims Matured Endowments Surrender Benefits Payments to A&H Certificates Annuity and Old Age Benefits Supplementary Contracts and Refund Accumulations Dividends

TOTAL

In our opinion, the amounts carried in the balance sheet on account of the various actuarial items:

(i) are computed in accordance with commonly accepted actuarial standards consistently applied and are fairly

The Auditing Committee met at the Home Office on March 15 through March 19, 1982. All

members of the Committee were present.

They are: Emma L. Beganyi, Chairperson; Louis A. Fodor, Secretary; Charles S. Fabian, Michael J. Hrabar, Michael R. Kara and Violet B. Lenart.

The Auditing Committee was welcomed by Mr. Elmer Charles, National President. Louis A. Fodor extended greetings to the National Officers and Board members on behalf of our committee.

The committee conducted audit of the following items:

All income from stocks and bonds, premiums, investments and interest on bank accounts. Checked disbursements on pensions, disability, death benefits against computer

stated in accordance with sound principles;

(ii) are based on actuarial assumptions which are in accordance with or stronger than those called for in certificate provisions;

(iii) meet the requirements of the insurance laws of the Commonwealth of Pennsylvania;

(iv) make a good and sufficient provision for all unmatured obligations of the Association guaranteed under the terms of its certificates;

(v) are computed on the basis of assumptions consistent with those used in computing the corresponding items

1981

1980

$1,133,173

$1,127,413

386,925

308,201

869,967

628,790

180,560

172,925

142,023

113,646

141,105

103,573

244,570

245,899

$3,098,323

$2,700,447

e annual

statement of the

preceding year end;

(vi) include provision for all actuarial reserves and related statement items which ought to be established. Respectfully submitted,

BRUCE AND BRUCE COMPANY

ledgers and vouchers. Verified sales of stocks and bonds, matured securities, new purchases and physically counted each and every bond and stocks. Hospitalization and sick benefit payments were checked, income from mortgages and 1 their payments verified, counted the petty cash.

The committee met with Mr. Charles, who supplied answers to all of our questions.

The committee now wishes to thank the National Officers and the office personnel for the excellent cooperation provided to all of us in fulfilling our duty. It made for a very smooth working condition.

The audit was conducted in accordance with general accepted audit standards and procedures.

Emma L. Beganyi Louis A. Fodor

Auditing Committee Report

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