William Penn Life, 1984 (19. évfolyam, 1-4. szám)

1984-04-01 / 2. szám

William Penn Actuary Report

RE: 1983 Year of Operations

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

1983 marked an important milestone in the Association history. During 1983, William Penn and Catholic Knights of St. George joined forces to form a bigger and better fraternal organization. All members will receive the benefit of this amalgamation for many years.

The year 1983 continued the long history of successful and profitable operations for the Association. Unassigned funds increased by $172,718 and reached a new record high of $8,318,446. The Association reported profits for the sixteenth straight year. The 1983 profit of $395,587 after dividends and extraordinary expenses for conventions and amalgamation was highly gratifying. Management is to be congratulated on the successful operations of the Association during the year.

Assets continued their rapid ascent, reaching another record high of $68,300,195. This represents an extraordinary increase of $18,845,767 over the assets of December 31, 1982. This extraordinary increase is due to: (a) $13,365,093 of assets received on amalgamation; (b) an unusually large volume of new life and annuity premiums in the amount of $5,378,395; and (c) normal asset growth.

The solvency ratio on December 31, 1983, was at the very favorable level of 113.87%. This means that the Association held $113.87 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 ratio compares favorably with the ratio for 1981 at 114.36% and for prior years at a comparable level. The 1983 ratio is lower than the 1982 ratio of 119.72%, which was unusually high because of large real estate gains in that year, due to the temporary effect of the amalgamation. Although the effect of the amalgamation in 1983 was to reduce the solvency ratio, it is expected that future profits will be enhanced thereby.

The Association enjoyed an especially favorable year from investments. The net rate of return on mean assets was 10.29%. During 1983, the Association earned investment income of $5,760,176 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,805,261. It is to be expected that the 1983 returns will not be quite as favorable.

In addition to the excellent investment returns, it is worth noting that the Association has now accumulated the sum of $1,153,642 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments.

During 1983, new life certificates were issued for $17,672,388 of insurance and $44,997,591 was received by amalgamation. Total insurance in force amounted to $64,305,832 at the end of the year on 76,098 certificates. New annuity certificates were issued

for $3,998,534 of premium, which, together with interest, brought total annuity deposits for the year to $4,198,760.

The Association has set aside $52,176,418 of life and annuity reserves, and $1,267,489 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 1983, the Association paid the significant amount of $7,081,348. A summary of these payments to members for the past two years is as follows:

The above portrait of President Ronald Reagan, painted by Americo Makk, was presented to President Reagan on March 29, 1 984 in the Oval Office of the White House. Mr. Makk is identified as the gentleman with glasses and is standing to the left of the portrait. Mr. Makk is an internationally acclaimed artist. His wife, Eva and their son A. B. Makk are also brilliant artists and are shown above standing next to Americo Makk.

Eva, Americo and A. B. Makk have won over thirty international awards and gold medals, including, just in the last four years, four gold medals from Italy's Academy of Arts and two from the U.S.A.'s Arpad International Academy, and two honorary international diplomas from Italy's University of Art. Their awards and accomplishments are listed annually in Who's Who in America, Who's Who in Art and Antiques, International Register of Profiles, Two Thousand Men and Women of Achievement, Contemporary Western Artists, International Book of Honor and many others from both Europe and the Americas. The three Makks have exhibited at embassies, galleries and museums in Budapest, Paris, Rome, Venice, Florence, Verona, Madrid, Lisbon, Monte Carlo, Nice, Munich, Vienna, Sao Paulo, Rio de Janeiro, Caracas, New York, Washington, D.C., Miami, New Orleans, Houston, Dallas, Chicago, Las Vegas, Los Angeles, San Francisco, Honolulu, and innumerable other cities on four continents.

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