The Ashburton Guardian. Magna est Veritas et Prævalebit FRIDAY, MAY 24, 1889. A SUCCESSFUL INSTITUTION.
The Australian Mutual Provident Society affords one.of the most prominent examples of success to be found m the history of Life Assurance Associations, indeed its success has been so remarkable as to be almost phenomenal Established m 1849 it has now completed the fortieth year of its career, and we have now before us the fortieth annual report. This shows that during the year ended 81st December 1888 of 12,898 proposals received, 9394 were accepted, to which adding 225 proposals made prior to Ist January and since accepted, there were altogether 9619 new policies issued assuring the sum of £3,047,541. The new premiums amount to £126,993 18s 2d. Claims have arisen during the year on 666 policies by the death of 590 members amounting to £334,494 18s, including bonus additions to the amont of £69,064 18s, and 43 endowment assurances have matured amounting to £60,616 Is including £16,360 Is for bonus ad ditions. Notwithstanding these outgoings tbe accumulated fund has increased by£726,064 9s lOd, and now amounts to the enormous total of £8,1.69,310 15s 3d. The total number of existing policies is 87,070 assuring £30,691,196, and the annual income of the Society from premiums ib now £1.016,542 5s 3d, and from interest £495,737 16s 2d, making a total income of £1,512,280 1b 2d or roundly a million and a half. The report of the actuary presented with the balance sheet shows an available surplus at 31st December last of £599,568 19s 3d of which over four hundred thousand pounds (£400,893 6s lid; will be dis tributed m cash bonuses among the members, being equal to 41*3 per cent on premiums received as against 40*6 per cent last year. During the past five years the new business shows an increase over that of the previous five years of 52 4 per cent m number of policies, 50 9 per cent m snms assured, 53*3 per cent m annual premiums, and 62 4 percent m single premiums, while on the other hand the percentage of costs of management have been reduced. Thus, while* for the year ended 81st December, 1884, these charges averaged 16 09 per cent on the premium income, the rate for the year just ended was only 1283 per cent. In regard to profit and loss on investments the Actuary, Mr Morice A Black, says "there is a balance m favor of the Society over the whole period to the extent of £829, m addition to which there is the further sum of £41,637 18s 3d composing the Investment Fluctuation Fund which is an interest-bearing asset, and consists of profits not yet actually reduced to possession and subject to further" increase or diminution as the case play be It will thus be seen that so far from any loss baying been incurred m connection with tbe Society's invest ments during the past, there has, on the contrary, been a considerable profit." | P©, however, intimates his opinion that the maintenance of present rate of bonus m the future depends upon the Sooiety being able to realise as high a rate of / "••rest as it is now doing (£6 1b JOd " nd evidently questions the percent) v -<V o fV members wisdom of the decision 71 rfl arrived at some three years ago strict the business of the Sooiety to the Australasian colonies. He thinks that further increases m the rates of profits divided to premiums received can scarcely be looked for, and concludes his report by the following eulogistic remarks which are fully borne out by the figures of the balance-sheet, and upon which tbe members of the Society ,nay be heartily congratulated :— " Ten years ago I as it were challenged Life Assurance Societies wherever situated to show a record comparable to that of this Society. Adapting the language then used to the facto and figures of to-day, the A ustralian Mutual Provident Society at 40 years of age stands before the world as a life assurance institution that has achieved unparalleled success. For stability it is unsurpassed, for the profit it has realised and divided it is unexcelled, and for the liberalty of its business arrangements it is matchless. No other life assurance sooiety m any part of the world has had at, the end of 40 years 87,070 policies^ m v-force, assuring £30,691,196, an accumulated fund of £8,169,311, and an annual revenue of £1,512,280, of which it could be said that the rate of expenses to premium income has been less , the rate of interest realised on the funds higher, the premiums charged lower, the reserve for tbe liabilities higher, and the bonuses allotted to its members larger than those of this Society. If I repeat myself, it is true now as then that such an institution may well be the ,boas,t of A*m r VaJasjia and the special pride of" Sydney, the city of its foundation."