William Penn, 1956 (39. évfolyam, 1-12. szám)

1956-04-04 / 4. szám

HEAR GYPSY COUNTESS JULIA SING PAGE 10 William Penn April 18, 1956 VALUATION REPORT HARLEY N. BRUCE & ASSOCIATES 'Consulting Actuaries 7620 North Rogers Avenue. Chicago 26, Illinois. March 20, 1956 Officers and Directors of the William Penn Fraternal Association, 436 Fourth Avenue Pittsburgh 19, Pennsylvania. lie: Actuarial Opinion for 1955 Operations Gentlemen: December 31, 1955 marked the close of the first fiscal period of the great new fraternal giant, the William Penn Fraternal Association. This wonderful new organization, of which such great things may be expected in service to its members, experienced an excellent year for which some interesting ac­tuarial observations should be made. 1. Insurance in force now stands at S75.665.613 and membership stands at 89,392 members. New business written during 1955 topped $5,163, 100. 2. Surplus stands at $1,657,992.78, which represents a solvency ratio of 107.27%. This means that after establishing all liabilities on the most conservative principles, the William Penn still has $107.27 of assets behind every $100 of liability. This ratio is arrived at after establishing almost $1,090,000 of extra liabilities. These extra liabili­ties were established to provide 3% reserves on all business of the former Rákóczi Aid Association, to provide extra reserves for the loss of interest in the year of death and also to provide for $500,000 of special dividends to certain former Rákóczi members as provided by the merger agreement. The fact that these extra liabilities had been established and the William Penn reports the very strong sol­vency ratio of 107.27% attests to the excellent financial condition of the Association. 3. The net rate of interest earned on the invested assets is 2.95% which is a good rate of return on a very high quality investment portfolio. This ratio is figured in a more conservative manner than followed by many other insurers, since all expenses attributable in any way to the handling of the investments are charged as an in­vestment expense, thereby reducing the rate of return. It should be observed that the Association is required to earn only $663,349.75 in order to meet the interest bearing liabilities, whereas it actually earned $693,942.00. 4. The mortality ratio of 50.49% on the gross amount at risk basis is exceptionally favorable.' 5. Reserves for the William Penn are maintained on the conservative! principles previously enforced for the Verhovay. All reserves are maintained on an interest assumption of 3% or 2*% with extra reserves voluntarily established for the loss of interest and loss of premiums in the year of death. The conservative principles followed by management should give the membership supreme confidence that all liabilities will be met as they accrue. 6. The cash payments to the membership during thp year 1955 amount­ed to more than $1,000.000, the exact figure, being $1,250.019.95. This will give an idea of the service being rendered to membership by the Association. Contained in the foregoing figure are the di­vidends for 1955, which increased by 66% over 1954. CONCLUSION 1955 marked the close of a year of considerable historical importance since it culminated the efforts of many years to form the William Penn Fraternal Association. The sound principles of management and the financial situation as of December 31. 1955 reveal an organization of which its mem­bers can be proud. We consider it a privilege to be associated with the Wil­liam Penn and its excellent corps of officers and feel that under such leader­ship the William Penn will continue to grow and prosper. Respectfully submitted HARLEY X. BRUCE & ASSOCIATES By R. E. Bruce, Actuary ANNUAL STATEMENT FOR THE YEAR 1955 OF THE WILLIAM PENN FRATERNAL ASSOCIATION ASSETS Dollars Cents ‘Bonds ........................................................*-•.....-...................v.~. ‘Stocks .............................................................................................. Mortgage loans on real estate .............—.................................... Real estate Properties occupied by the Society ................ 367,083.31 Investment real estate .................................... 39,225.27 Certificate loans and liens ............................................................v Cash and bank deposits .................................................................... Premiums actually collected by subordinate lodges not yet re­mitted to Home Office ............................................................ Interest and other investment income due and accrued .............. TOTAL .................-....................................................— 24.455,545,73 * State basis of valuation: Bonds — Amortized or Investment Value Stocks — Market Value 20,779,374.31 144,945.00 1,856,237.85 406,308.58 711,496.90 310,173.36 54,323.41 192,686.32 LIABILITIES, SPECIAL RESERVES AND UN ASSIGNED FUNDS Dollars Cents Aggregate reserve for life certificates and contracts ............... Aggregate reserve for accident and health certificates .............. Supplementary contracts without life contingencies .................. Certificate and contract claims Life ........................................................................................... Accident and Health ....................................................v..... Refunds Accrued $1,171.13 and $500.900.00 Set aside for Ad­ditional Paid-up Life Insurance per Merger Agreement .... . Premiums and annuity considerations received in advance; in­cluding $7,446.03 accident and health premiums . . ............. Commissions to fieldworkers due or accrued. Life and Annuity $13,563.18 Accident and Health $713.85 ................................... General expenses due or accrued .................................................. Taxes, licenses and fees due or accrued ....................................... Unearned investment income ......................................................... Liability for benefits for employees and fieldworkers if not included above ........................................................................ Miscellaneous liabilities (give items and amounts) Mandatory Security Valuation Reserve ................................. Amounts Retained By Society' in Trust Account for Minor or unknown Beneficiaries ................................................. Charity, Welfare and Other Amounts Held by Society ....... TOTAL LIABILITIES ................................................. Unassigned funds ..............................................*..... TOTAI............................................. 20,834,675.00 718,558.90 4,015.43 20,500.90 51,956.81 501,171.13 116,217.16 14,277.03 10,816.72 5,677.42 16,970.99 233,280.75 119,274.00 56.294.92 63,836.64 22.797,552.95 1.657,992.78 SUMMARY OF OPERATIONS _______(ACCRUAL BASIS)__________________ Dollars Cents Premium and annuity considerations Life ............................................. 2,264,366.61 Accident and health .....................................................;........ 213 610.40 Considerations for supplementary contracts without life con­tingencies and refund accumulations .................................... 4,000.00 Net investment income ..................................................................... 893,942.00 Miscellaneous Income ...................................._............................... 10,155.99 TOTA-L ....................................i......................................... 3,186,075.00 DEDUCT: Death benefits .................................................................................. 696,220.80 Matured endowments ....................................................................... 133,900.00 Disability benefits (including premiums waived $50.51) ........... 50.51 Surrender benefits ................................. 196,897.06 Accident and health benefits ......................................................... 172,821.23 Increase in aggregate reserve for certificates and contracts with life contingencies .................. 1,004,525.00 Increase in reserve for supplementary contracts without life contingencies and for refund accumulations .......................... 4,015.48 Increase in Reserves for A & H Certificates ............................... 5,81.1.70 Subtotal ..................................... 2,214,244.73 Commissions on premiums and annuity considerations .............. 338,666.44 General insurance expenses and fraternal payments .................. 688,094.73 Taxes, license and fees ....................... 11,925.(8 Total - 3,252,931.43 Net gain from operations before refunds to members and exclud­ing capital gains and losses .............•....................................... — 66,856.43 Refunds to members ......................................................................... 524,301.53 NET GAIN FROM OPERATIONS AFTER R EFUNDS TO MEMBERS AND EXCLUDING CAPITAL GAINS AND LOSSES (Including $500,000.00 set aside for additional Paid-up Life Insurance for Rákóczi Members Per Merger Agreement) ............-..................................................................... — 591,157.96 UNASSIGNED FUNDS AND SPECIAL RESERVES ACCOUNT Dollars Cents Unassigned funds December 31, previous year (Includes Both Societies in Merger) ............................................................... 2,687,060.29 Net gain from operations ......................................... — 591,157.96 Net capital gains .......................................... 44,144.00 Net gain from non-admilted and related items .............................. 4,450.68 TOTAL .................................................................................a 2,144,497.01 " • Increase in Trust & Welfare Account and Pension Plan ............ 475,000.00 Increase in Mandatory Security Valuation Reserve ................. 9,659.10 Increase in Trust & Welfare and Pension Funds ......................... 1,845.13 Unassigned funds December 31 of current year ..............*........... 1.657,992.78 TOTAL ..................................................................................... 2,144,497.01 its time to roll up your sfeeve.~ CAU YOUR RED CROSS TODAY!

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