William Penn Life, 1987 (22. évfolyam, 1-12. szám)
1987-06-01 / 6. szám
Page 10, William Penn Life, June 1987 Summary of Bruce & Bruce Actuaries report for 1986 This summarizes certain highlights from the actuarial report prepared for the Officers and Directors. The year 1986 continued the long history of successful and profitable operations for the Association. Unassigned funds again increased by a large amount ($667,718) and reached another new record high of $ 10,094,509. The Association reported profits for the nineteenth straight year. The 1986 profit was $502,195. Management is to be congratulated on the successful operations of the Association during the year. Assets continued their rapid growth, reaching another record high of $79,827,221. The increase of $5,263,275, which was the highest in the history of the Association, was attributable to a strong flow of new single pay life and annuity business. The solvency ratio on December 31,1986 was at the very favorable level of 114.48%. This means that the Association held $114.48 of .dmissible 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. Notwithstanding the large increase in surplus, assets increased even faster so that the 1986 solvency ratio remained at the same level as 1985. The Association still enjoys a strong and safe solvency position. The Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 9.54%, which represents a significant increase over the net rate for 1985 at 8.98%. During 1986, the Association earned investment income of $7,019,874 after deducting all investment expenses. The amount earned exceeded that required to be earned to maintain interest bearing liabilities by $3,499,939. In addition to the excellent investment returns, it is worth noting that the Association maintains $1,059,911 in the Mandatory Securities Valuation Reserve to guard against adverse fluctuation in investments. During 1986, new life certificates were issued for $59,345,388 of insurance which was the highest in the history of the Association. Total insurance in force amounted to $ 193,006,649 at the end of the year on 68,142 certificates. New annuity certificates were issued for $2,887,967 of premium, which, together with renewal deposits, brought total annuity deposits for the year to $4,008,118. The Association has set aside $61,606,715 of life and annuity reserves, and $869,821 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 contigent liabilities. An important index of services to members is the total amount paid to members. During 1986, the Association paid the significant amount of $16,300,723. A summary of these payments to members for the past two year is as follows: Item 1985 1986 Death Claims $1,501,397$ 1,849,117 Matured Endowments 528,534 377,805 Emergency Cash Surrender Benefits 4,203,790 11,018,684 Payments to A &. H Certificates 717,392 532,646 Annuity and Old Age Benefits 723,415 1,240,656 Supplimentary Contract and Refund Accumulation 336,853 400,764 Interest of Certificate or or Contract Funds 274,796 433,202 Dividends 585,556 447,849 TOTAL $8,871,733$16,300,723 In our opinion, the amounts carried in the balance sheets on account of the various actuarial items: (1) are computed in accordance with commonly accepted actuarial standards consistenly applied and are fairly stated in accordance with sound principles; (2) are based on actuarial assumptions which are in accordance with or stronger than those called for in certificate provisions; (3) meet the requirements of the insurance laws of the Commonwealth of Pennsylvania; (4) make a good and sufficient provision for all unmatured obligations of the Association guaranteed under the terms of its certificates; (5) are computed on the basis of assumptions consistent with those used in computing the corresponding items in the annual statement of the preceeding year end; and (6) include provision for all actuarial reserves and related statement items which ought to be established. Subscribed and sworn to before me this 17th day of February, 1987. William Penn Association 1986 Annual Statement Financial Report ASSETS Bonds .................................................................................................................................................... $63,094,736 Stocks .................................................................................................................................................... 3,631,363 Mortgage Loans...................................................................... 2,267,275 Real Estate................................................................................ 1,515,525 Certificate Loans.................................................................................................................. 2,026,139 Electronic Data Processing Equipment.............................................80,747 Cash and Bank Deposits............................................................................................. 5,580408 Premiums Due and Uncollected Life.................................................................................................................................................21,019 Accident & Health .........................................................1,069 Accrued Investment Income................................................. 1,608,940 Total Admitted Assets.......................................................... $79,827,221 J,I2D LIABILITIES, SPECIAL RESERVES AND SURPLUS CERTIFICATE RESERVES Life, Accident & Health, Supplementary Contracts Without Life Contingencies Policy Reserves............. $62,619,549 Life and Accident & Health Claim Reserves...............................607,458 Refund (Dividend) Accumulations............................................................. 2,851,346 Provision for Refunds Payable in Following Calendar Year...............................................................................................................550,000 Premiums Paid in Advance.................................................................................562,851 Officials’ (Directors) Retirement Program....................................746,825 Commissions, Taxes, General Expenses Due or Accrued..........................................................................................................174,003 Mandatory Security Valuation Reserve................................................ 1,059,911 Trust Account ........................................................................................................................430,719 Other Liabilities.....................................................................................................................130,050 Total Liabilities........................................................................................................................ $69,732,712 Unassigned Surplus.......................................................................................................... 10,094,509 Total......................................................................................................................................................... $79,827,221 Statement of Operations December 31,1986 Premiums & Annuity Considerations..................................................... $18,273,121 Considerations for Supplementary Contracts Without Life Contingencies and Refund Accumulations....................................................................................345,764 Net Investment Income............................................................................................... 7,019,874 Miscellaneous Income...............................................................................................45,146 Total Income................................................................................................................................ $25,683,905 Benefits Paid, Including Dividends........................................................... $16,300,723 Pension Benefits Paid.........................................................239,831 Increase in Aggregate Reserve for Life, Accident & Health Certificates, Supplementary Contracts Without Life Contingencies and Refund Accumulations................ 4,690,633 Commissions on Premiums & Annuity Considerations................................................................835,061 General Operating Expenses & Fraternal Expenses ...... 2,997,219 Insurance Department Licenses, Taxes and Fees ......118,236 Total Pay Out........................................................................... $25,181,710 Net Gain From Operations After Refunds to Members.......... $502,195
