William Penn Life, 2006 (41. évfolyam, 2-12. szám)
2006-04-01 / 4. szám
ANNUAL ACTUARY’S REPORT A fine record WPA continues its long history ofsuccessful and prof table operations by Robert E. Bruce, FCA, MAAA It is once again a privilege to summarize certain highlights from the financial reports to the regulatory authorities and the actuarial report to the Officers and Directors. All numbers herein are taken from the official reports as filed. References are rounded for convenience. The year 2005 continued the Association's long history of successful and profitable operations. Unassigned funds, assets and insurance totals again reached record levels. William Penn Association continues the policy of returning to the members the highest possible benefits consistent with safety. Unassigned funds maintained the high level at $25,036,000. The net gain on operations after dividends was $150,000 in 2005, representing 38 consecutive years of profits. The officers and directors deserve great credit for management skills. The major lines of business, life and annuity, were again profitable. This is a fine record. The members should feel very proud of WPA and its financial strength to guarantee their benefits. Assets continued their strong growth, increasing by over $11,918,000 to another record high of $193,104,000. All assets continue to be valued very conservatively, are of very high quality and fully comply with the strict standards of the National Association of Insurance Commissioners. All members can continue to have confidence that the assets standing behind their policies are sound and will provide the required funds when needed. The solvency ratio at Dec. 31, 2005 continues to be very strong at 114.90 percent. This means that the Association held $114.90 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. The slight decline from 2004 is due to the large increase in assets. The Association enjoys a stronger safety margin than most of the very large companies. This strong safety margin will continue for the benefit of all members, even into the next generation. The Association enjoyed a very favorable year from investments. The net rate of return on mean assets was 5.9 percent, which supports the generous rates paid to members. During 2005, the Association earned net investment income of $10,768,000 after deducting all investment expenses. Investment income exceeded requirements by $4,426,000 in 2005. Excess interest continued to be the most important profit source to the Association. It is significant to note that interest earned, over and above that required, increased in 2005 notwithstanding declining yields in the marketplace. In addition to the excellent investment returns, it is worth noting that the Association maintains $3,769,000 in the Security Valuation Reserves to guard against adverse fluctuation in investments. The members' assets are well protected by this strong safety fund. During 2005, total income, at $34,631,000, is constant with 2004 income. Total insurance in force passed $243,700,000. Annuity premiums exceeded $21,858,000, which, together with deposits on hand, brought total annuity deposits to $109,305,000, representing another new record for the Association. The Association has set aside $161,367,000 of life, annuity and A & H reserves, deposits and claims for future payments to members. Management continues its prudent and conservative practice of setting aside sufficient funds with which to meet all known and contingent liabilities. William Penn Association is doing an outstanding job of managing the members' funds. An important index of service to members is the total amount paid to members. During 2005 the Association paid the significant amount of $17,961,000. A summary of these payments to members for the past two years is as follows: ITEM 2004 2005 Death Claims $1,792,000$1,792,000 Matured Endowments 111,000 101,000 Emergency Cash Surrender Benefits 592,000 657,000 Payments to A & H Certificates 79,000 55,000 Annuity and Old Age Benefits 6,973,000 10,610,000 Excess Interest on Funds to Member's Acct.3,430,000 4,436,000 Dividends 357,000 310,000 Benefits to Members $13,334,000$17,961,000 8 William Penn Life, April 2006
