NATIONAL MUTUAL LIFE ASSOCIATION.

Auckland Star, Volume LXVI, Issue 7, 9 January 1935, Page 4

NATIONAL MUTUAL LIFE ASSOCIATION.

GiiE/ ' INCREASE IN POLICIES

The 05th annual ".oneral meeting of members of the Xation.il Mutual Life Association of Australasia, Ltd., was held in Melbourne recently.

In the absence of the chairman of directors (Sir John MacFarland) through illness, the vice-chairman (Sir David Orme Masson) presided. Presenting the annual report, the chairman said: —

"The number of new policies issued, 23,050, is larger than the number issued in any previous year. The amount assured under these policies, £9.110,007, is £1,542,102, or more than 20 per cent, greater than the. new amounts assured in 10.'!3. Our total income for the year from premiums, interest and rents was £5,107,9-19, but, following our usual practice, the revenue account ehows the amounts paid to other life companies for re-assurance premiums and to various Governments for taxes as deductions from the total income, leaving a remainder of £4,002,114. Fewer Surrendered Policies. "The amount paid to policy-holders for death claims, matured policies, surrenders, annuities and cash bonuses — £2,857,242—18 £180,466 lese than the amount so paid in 1933. Death claims were £10,200 less; maturities, £05,800 lees; surrenders, £01,000 less-, cash bonuses paid. £10.400 less. The most significant of these figures is the reduction of the amount paid to members for the surrender of their policies. This, following the reduction reported at our last meeting, may be taken as an indication, that the general conditions are improving, and that our members are not being driven to realise what is in moist cases their most valuable asset. The total expenses of management wore £.12.800 more than in 1033. This increase is due mainly to the increase in the amount of new business transacted, the cost of which is in direct proportion to the new premiums received.

"The result of the year's transactions is that the assurance fund has been increased by £1,007,832, and it now stands at £37,851,000. If to this is added the amount of the investment fluctuation reserve and the staff superannuation fund the total funds of the association are £38,005,720.

"The distribution of the assets is shown in the balance-sheet. Government securities are £065,500 more than they were a year ago; Melbourne and Metropolitan "Board of Works stock is £.10,000 more; municipal debentures are £.'58,000 less; loans On mortgage are £20,000 less; loans on policies issued by the association with collateral security are £148.000 more; house property is £30,000 more."

Referring to the increases of £100,000 in the amount of cash in hand and £2(59.000 in cash on deposit, the vicechairman drew attention to the prevailing condition of the investment market, and pointed out that every institution with funds to invest has difficulty in finding an outlet for them. This condition affected interest income, and it was doubtful if improvement could be expected until the facilities for trade and intercourse between the nations of the world were improved.

In concluding, Sir David Orme Masson said: "This, as 1 have eaid, completes the 65th year of the association; it is yet in its infancy. But it is interesting to see what lias been accomplished so far. During the l>s years the association has received from its members in premiums £01,221,000, and interest received amounts to £20,502,000. It has distributed as bonuses among its members £10,200,000. It has paid to its members £42,122,000, and it has in hand belonging to its members funds amounting to £38,605,000."—(Adt)