NATIONAL MUTUAL LIFE.

Auckland Star, Volume LXV, Issue 10, 12 January 1934, Page 3

NATIONAL MUTUAL LIFE.

- INCREASED VOLUME OF NEW J BUSINESS. t Accounts of the National Mutual Life Association of Australasia, Limited, for f the year ended September 30, 1933, were j presented at the annual meeting held . recently. r New Business Figures Up.—During i the year 18,067 policies were issued, assuring £7,577,445. This amount ! assured is £1,027,000 more than the > amount for the previous year. The t amount of premiums received, including , consideration for annuities, but deductl ing the amount paid away as re- . assurance premiums, was £113,000 ; more than the amount received the I previous year. Interest showed a small ! improvement, the amount received, • £1,716,299, being equal to £4 16/4 per . cent of the mean assurance fund. After ! deducting taxes amounting to £292,090, i the net return was £3 19/11 per cent, , or 1/11 per cent better than the net rate for 1932. The claims by death which accrued during the year were £982,078, or about £113,000 more than in 1932. The increase is due partly to the larger amount at risk and to the older age of the members, but also to the fact that it so happened that the claims fell amongst policies with a larger amount assured. The average amount per claim was some £60 higher. Fewer Policies Surrendered. — The amount paid to members for the surrender of their policies was £695,675, or £58,244 less than in 1932. As it may be assumed that a life policy is surrendered only under the stress of circumstances, this can be taken as a healthy sign. The cost of conducting the business is practically unchanged; the ratio of expenses to total income is 9.04 per cent, as compared with 8.97 per cent in the previous year. Heavy Taxation Burden.—During the last five years the association has paid taxes amounting to £790,658. This means that the amounts of the assurance policies held by the members are £1,275,000 less than they would have been if these taxes had not been imposed. It has been pointed out frequently that no part of the revenue of a mutual life assurance company is income that should be taxed. The sole object of such a company is to provide the benefits of life assurance at cost price, and yet they are taxed more severely than any trading company. Sound Investment Policy. — The assurance fund at the beginning of the year amounted to £35,028,282, and at the end of the year reached the splendid total of £36,243,174—an increase of £1,214,892 for the year. In addition, the investment fluctuation reserve was strengthened still further by the transfer of £153,145, and now stands at £776,244. The' principal changes in investments are an increase of £874,495 in Government securities, which now amount to £10,136,584; an increase of £480,755 in municipal debentures; a decrease of £103,104 in loans on mortgage; an increase of £55,936 in house property due to a further expenditure on our Capetown building; and an increase of £184,314 in cash in hand and on deposit. Future Prospects Bright.—ln presenting the annual report, the chairman, Sir J. H. MacFarland, said: "The association has made good progress, and has extended its influence in many directions. There are signs of a distinct improvement in the business of life assurance, and this can be taken as an indication of a. general improvement in the welfare of the community; also it seems that many people now realise that the best and surest investment they can find is a life assurance policy."—(Ad.)