A.M.P.

Auckland Star, Volume LXII, Issue 103, 4 May 1931, Page 4

A.M.P.

AFTER EIGHTY-TWO YEARS. HUGE AUSTRALIAN CONCERN. RECORD OF PAST YEARS. After 82 years of trading Australia's greatest life insurance office shows earnings for the past twelve months that exceed £11,800.000, and total accumulated funds amounted on December 31 to the huge sum of £80,000.000. Despite the impressive strength of this popular institution, comparisons of the latest statements show that the A.M.P. received a further check during last year, the inevitable reflection of the financial depression in the Commonwealth. New business in the ordinary department was back to that written'in 1922, and there was also a largo falling off in new business in the industrial department.

New business completed in the ordinary department, including reassurances of £123,479, was for 21.231 policies, assuring £10,651.440, compared with 28,457 policies, assuring £15.107,915, in 1929. There were also issued 36 annuities for £3596, against 52 annuities for £4639 a year previously. The animal revenue yielded by the new policies is £329,498, and the consideration for the 36 annuities was £27,082. Renewal premiums, after deduction of reassurance premiums, amounted to £5,214,379, against. £4.975,757 a year previously. With interest of £4,042,298, revenue of the ordinary department for 1930 was £9.652,433, compared with £9,320,824 in 1929. Course of business in the ordinary department i≤ indicated in the table below: —

COURSE OF NEW BUSINESSORDINARY.

Claims by death in the ordinary department distributed among 3064 policies amounted to £2,085,886, including £785,027 in bonuses. The death rate was 52 per cent of that expected from the table of mortality used. Endowments and endowment assurance policies numbering <*484 matured, in the amount of £1,301,C52, including £424,681 in bonuses. Surrenders were made of 6105 policies, amounting to £803,441, including £272,192 in bonuses. The previous year surrenders numbered 3804 policies. Forfeited policies numbered 5827, insuring £3,065,312, compared with 5495 policies, assuring £2,699,000, in 1029. Policies and amounts of assurance in force over a number of years follow: —

annuities. In this table the small increases in policies remaining in force and ill the net sum assured compared with increases in previous years will be noted. Heavy Taxation. Expenses of management of the ordinary department amounted to £422,057, against £420,637 in 1929, and commission in 1930 to £168,854. Taxation was £381,266, compared with £284,721 in 1929, and £148,139 in 1928. Funds of the ordinary department increased from £67,702,287 to £70,836,303. According to the actuary, there is a surplus of funds over liabilities amounting to £2,909,656, out of which £2,849,656 is available for division among participating policy-holders, and, with interim distribution of £26,630, it represents on the average 51.8 per cent of premiums received on participating policies during the year. The distribution for l!! 20 was £2,941,005, and represented 54.6 per cent of the premiums received. The amount provided for 1930 represents reversionary bonuses of £4,980,000. Interest rates earned and percentage of expenses and taxation to premium income over ten years are shown below: —

As the office assumes that the assurance funds will earn 3 per cent in interest, it will be seen that substantial profits accrue from this source. On the industrial side new policies numbered 49,418, assuring £3,300,683, with an annual premium revenue of £178,709. The figures of 1929 were 64,510 new policies, assuring £4,383,916. Premium income was £1,604,132, compared with £1,541,821 the previous year. Interest was £551,538, and total income of the department £2,175,179. Claims paid following on death numbered 1753, for £69.564. including bonuses, and by maturity 12,271 for £542,976, including bonuses. Cash surrenders were for £45.774, compared with £46,756 in 1929. Forfeiture of 27,308 policies was made, against 18,952 a year previously. Commission paid was £241.792, compared with £264,147 in 1930, and expenses of management were £162,371, against £156,737. Taxes paid were £51,476, compared with £35,455 in 1929 and £17,721 in 1928. Management costs and taxes were 28.40 per cent of premium income. Surplus in the industrial department to be distributed among policy-holders is £226.578, providing reversionary bonuses amounting to £330.000. Funds of the department increased from £9,076,767 to £9.947,277. A record of industrial business in force at the end of each of ten years is as follows: —

Taxation paid in the two departments combined amounted during 1930 to £432,742, as against £320,177 during 1929. Balance-Sheet Figures.

At December 31 the society's assets totalled £83.216,172, of which about half was invested in public securities, an about a quarter in loans on mortgage. In view of the prevailing financial conditions in the Commonwealth it is important to know just where these securities are held. The assets include the following list of "investmente" in Government stocks: — INVESTMENTS. £ In New , Zealand Government securities 2,730,8<0 In British Government securities 442,347 In Indian and Colonial Government securities: — Commonwealth of Australia . 14.537.990 K.o.W. funded stock 3,365,066 N.S.W. Government debentures 140,174 N.S.W. Rural Bank loan ... 9,990 Victoria Government inscribed 711,411 Savings Bank of Victoria .... 455,348 Queensland Govt. inscribed . . 108,757 Queensland Govt. debentures . 284,687 Queensland Government Savings Bank 383,729 South Aus. Govt. inscribed .. 230,244 West Aus. Govt. debentures .. 64,826 West Aus. Govt. inscribed .. 363,298 Tasmanian Govt. inscribed .. 208,327 Dominion of Canada 15,207 Proviuce of Saskatchewan .. 10,015 Province of British Columbia 8,829 Province of Manitoba deben. . 10,062

The location ot mortgogae totalling with interest £20,761.4-3 u not indicated, except that tliey arc not in the Luuca Kingdom; presumably they are Held almost wholly in Australia und -now Zealand.

. Another classification gives the amounts out on loan on tue security of municipal and other rates. This represents over £20,000,000, and the location of the securities is not indicated. The item loans on company's policies, £13,524,183, is, from a balauce-saeet point of view, practically a contra entry, and does not call for special attention. New Zealand Business. Considering the great depreciation which has occurred in Lommoiiweaitu securities tae statement given out by the board that over £ 15,00U,IaaJ of tue company s iunus are invested in this country will be well received by New Zealand policy holders. it must not be supposed, However, that securities have not depreciated m -New Zealand, tor although Government and municipal stocks are etill worth close to par value, properties have fallen considerably, ani only where mortgages have been hxeu on an ultra conservative basis can they be expected to realise face vaiue to-day. On this point the New Zealand delegate at the annual meeting in bydiiey, Mr. li. A. Holmes, gave an assurance that "the society's investments in New Zealand were standing the test of troublous times satisfactorily. The earthquake iu Hawke's Hay had caused the director's concern, but they were satisfied that while leniency and consideration would have to be extended in some cases to mortgagors, tne society s Josses, if any, were likely to be inconsiderable.' .

However, taking all the facte into consideration there would appear to be little grounds for uneasiness on the part of -New Zealand policy holders. Ilie amount of assurances given by the company iu New Zealand tor 1929— the latest figures available—totalled £38,783,000, and against these the £15,000,000 held in this country should prove sufficient to satisfy the most exacting critic, for the prospective liability for any particular year would be provided for several times over iu the sum mentioned.

No. Policies Amount issued. assured. 1921 25,515 £0,855,217 1<)22 * 25,058 10,S27,77G ]<)23 20,309 12,330,487 ]<)24 2«,34S 1,'!,303,721 1925 25,081 13,751,641 1920 20,527 3 3,070,203 1927 27,610 15.307.52S 192S 30,519 17,075,837 1929 ....*... 28,407 15,107,015 1930 21,231 10,051,440

ORDINARY INSURANCE IN FORCE. On No. of Net sum Dec. 31. Policies.* Assured.* 1921 368,935 £ 115,1!27,S84 1<)22 380,012 121,529,497 1!123 387..".70 128,202,746 192-t 396,070 136,371,344 192.-, 404,399 144,700,597 3020 411,364 152,708,894 1927 420,970 101,744,1)82 1928 437,411 171,932,399 1929 445,379 180,174,044 1930 447,209 183,253,130 "Exclusive of endowment on lives and

Interest Percentage Earned. Expenses* to premium Rate per cent. Income. 1021 £5 5 0 15.50 1022 r» 7 io ir».oi 1U23 5 9 2 13.78 1921 f> 10 8 15.40 1925 r> 11 2 15.00 102R 5 13 1 14.7S 1027 5 12 11 14.70 1028 5 13 5 14.04 192!) 5 14 4 10.00 1030 5 14 11 17.41 * Includes taxation.

INDUSTRIAL INSURANCE IN FORCE, On Dec. 1. Business in force. Increase. 1021 £13,136,020 £2,120,184 1022 ...... 15,008,108 1,032,079 1023 16,033,550 1,8G5,448 1024 10,004,721 2,131,100 1025 21,320,514 2,264,703 3 020 23.572,108 2,242,054 1027 25,010,041 2,338,478 1028 28.207.240 2,200,004 ]020 30,501,775 2,204,520 1030 30,796,800 205,124