William Penn Life, 1983 (18. évfolyam, 1-4. szám)
1983-04-01 / 2. szám
William Penn Actuary Report RE: 1982 Year of Operations The following summarizes certain highlights of information from the information from the actuarial report prepared for the Officers and Board of Directors. The year 1982 continued the long history of successful and profitable operations for the Association. Unassigned funds increased by $2,472,217 and reached a new record high of $8,145,728. The Association reported profits for the fifteenth straight year. The 1982 profit of $611,045 after dividends was the highest in the Association’s history. Management is to be congratulated on the successful operations of the Association during the year. Assets continue their rapid ascent, reaching to another record high of $49,454,428 at year end. This represents an increase of $4,270,720 over the assets of December 31, 1981. The solvency ratio on December 31, 1982 was at the very favorable level of 119.72%. This means that the Association held $119.72 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 substantial increase from the 1981 ratio of 114.36%. This large increase is due to the fine gains from operations and an unusually large gain on sale of investment real estate in the amount of $2,126,414. The Association again enjoyed a favorable year from investments. The net rate of return on mean assets was 9.08%. During 1982, the Association earned investment income of $4,109,927 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $2,876,953, which reflects an excellent gain over the 1981 excess earnings of $2,249,647. In addition to the excellent investment returns, it is worth noting that the Association has set aside the sum of $871,497 over the past years into the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments. During 1982, new life certificates were issued for $16,664,420 of insurance. Total insurance in force amounted to $120,234,203 at the end of the year on 58,290 certificates. New annuity certificates were issued for $1,111,193 of premium, which, together with interest, brought total annuity deposits to $1,521,873. In addition, the Association has issued, and has outstanding, several thousand Sick Benefit, Accident and Health and Hospitalization certificates. The Association has set aside $36,522,417 of life and annuity reserves, and $270,884 of A & H reserves for the payment of future claims, which amounts are in addition to those 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. The most important index of services to members is the total amount paid to members. During 1982, the Association paid the significant amount of $3,846,095. A summary of these payments to members for the past two years is as follows: Item Death Claims Matured Endowments Emergency Cash Surrender Benefits Payments to A & H Certificates Annuity and Old Age Benefits Supplementary Contracts and Refund Accumulations Dividends TOTAL Members of the Auditing Committee met at the Home Office from March 14 thru March 18, 1983 inclusive. Committee members are, Emma Beganyi, Chairperson; Louis A. Fodor, Secretary; Charles S. Fabian, Michael J. Hrabar, Michael R. Kara and Violet B. Lenart. On March 15, the Committee met with the Board of Directors, honoring Hungarian Independence Day. Chairperson Beganyi greeted all in the name of the Committee. We have checked the following income from stocks, bonds, interest on bank accounts, premiums and other investments. Disbursements on pensions, disability and death benefits were checked against vouchers and ledger entries. 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 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 in the annual statement of the preceding year end; (vi) include provision for all actuarial reserves and related statement items which ought to be established. 1982 1981 $1,191,914 $1,133,173 394,174 386,925 1,366,838 869,967 149,125 180,560 311,826 142,023 182,710 141,105 249,508 244,570 $3,846,095 $3,098,323 New purchases, also sales of stocks and bonds were verified. Stocks and bonds were counted in the bank vault. Hospitalization and sick benefit payments were checked, mortgage payments and income from same were checked; petty cash was counted. The success of the Agency Operation was explained to us. The Committee’s questions were fully answered by both Mr. Charles, National President and Mr. Nagy, National Secretary- Treasurer. The cooperation we received from all the employees at the Home Office was appreciated and made our duty of auditing more precise. The audit was conducted in accordance with general accepted audit standards and procedures. Emma L. Beganyi and Louis A. Fodor Auditing Committee Report 2
