MUTUAL LIFE AND CITIZENS' ASSURANCE CO. LTD.

Press, Volume LXVIII, Issue 14320, 3 April 1912, Page 6

MUTUAL LIFE AND CITIZENS' ASSURANCE CO. LTD.

TWENTY-FIFTH ANNUAL KEPORT.

A SOUND ANT> ECONOMICALLY- . MANAGED INSTITUTION.

The -twonty-fiftli annual mooting of the Mutual .Life and Citizejis' Assuranco Comiwiiy, Limited, was held on Saturday. March IGth. jt tho head offiw. Huildings. M<v>i-o and street. Syd- . iicv. I ' CHAIRMAN'S ADI>KKSS. j The Chaiaman (Sir Normand Mac-i liaurin, M.D.. M.L.C,.). ,»a remorfn^; the adoption of tho report and bal-j said: — . . . •Tho year 1!>11 has been tbo mev-t , proßifssivo and i" tho his-. Tory of the company. Kvery departnieiit of its business luis shown marked advance. A larpc ik-w business hns l)o.>n transacted; tho premium income in all branches t-liows expansion, and now excoiKls I - I.<XX).OOO jkm- annum.; Hah" a million stvrlins: has bwn added ; to the funds, and tho yield _ h'oin Mi-; vestments lias improved. .Thoe in- J t<.v»wtetl in the tympany Jiave every > roa.son to ho woll tatistied with tho J voar's work. I " - . HIASINI-ViS. ' I '•KxclmliiiK reassurances the now j business in tho ordinary branch re pro- j siMited IU. •'>»-' polieiw. assuring: t'J.'ill.^K , . l'2s M, Mhidfis larger j than that of any previous year, and I mark.vl expansion also took place in , the industrial and ac<:idi>nt. braiirhes J Tho company has now in force ilo(i..v»L ', assiiriiiK i'JS.WI.I'O. .v:\t\\ an I annual premium ineotne-oJ 11.020. IS-L ; To have'built up siieb a busi- j ness in the comparatively *-h»i-t j of 2~> years is ■ a noteworthy achieve- j INVESTMENTS. \ "The earning iK»wer of the rospeo-: tive funds shows a cons.dernhlo ad-1 vaneo over the oorrespondin;.: rates «>t j last year Tin; whole of the company .s , investment* are kept constantly under! review, and the strictest methods employed in estimating their value. EXPENSES OF .MANAGEMENT. "The M.L.C. occupies nrst place amongst Australian life officer, ••*„'*-1 gards economy of lunnagement. The , e<-onomical management of.tho company is the direct outcome of the company's co-operative constitution. 1 his constitution imposes on ttie company an obligation to conduct the business ol iwlieyholdcrs at an expense rate agreed upon' witii tho polieyholders, and a sharing of the profits between aharchbldeiu and pplicyholders upon a fixed basis. K-o.inoniie.al administration .is one of the greatest source of profit, and is thei'clore an.ffisentiabfeature in producing largo bonufi?s lor policy holders. It is this feature of the company s affairs that most commands attention. Before the advent of tho M-L.G. there was only one Austral ; :f i life oihtv, whose expense rate was loss than an peE cent, of the premnnis. The Mutual . Life Association and the. Australian Widows' Fund were two repfosentative mutual offices, whose ■ businesses are now incorporated with our own. Both had an expense rate exceeding 25 per cent, of premiums at tho time their businesses were taken over by the M.L.C. The nolicyholders of these two institutions now enjoy the benefit of guaranteed expense, rates lower than that at which any Australian mutual office conducts its business. Tho high standards of efficiency established by tho M.L.C. in the conduct of its business havo had a salutary effect on tho business of life assuraiye genera V BONUSES. ' " "A complete valuation , has been made of the whole of the policy contracts of the company in force at December 31st last, on the same bases as those employed on the last occasion with the addition of special reserves for substantial amounts in each section of t-U? business. Including the amounts carried forward to the. credit of each section, 'the total surplus was £208,235, of which £114,766 was allotted to the 'M.L."C section. £44.457 to the 'M.L.A.' section, and £49,012 to the 'A.W.F.''section. The rates'of bonus on the , policies have been maintained at the same' high level ais those of the previous year. In tho 'M.L.A. , section, it is anticipated that a 3i per cent, basis will be attained at/tfie close of the current year, aftwr which an increaso may l>e expected in the rates of bonus for this particular section. In the case of the 'A.W.F.' tho-first full year's operations since the union with the 'M.L.C have resulted in an increase of 50 i>er cent, in the> rate of bonus over that allotted at the'previous valuation. Full provision has been made- for the 'M.L.A,' and 'A.W.F.' policies to participate in the benefits of a running business, in addition to which they have the advantage of very low expense rates. The rapidity with which theuo • two sections have advanced in bonus-earn ing power (as you gather from the report to. the policyholders) is striking evidence of tlio beneficial effects of the unions, and the trustees who are elected by the policyholders join with tho directors in inviting tho hearty co-operation of tho policyholders in forwarding the interests of the company. "In all essential features, for" the conduct of a sound and profitable business, tho M.L.C. stands pre-eminent. Wo conduct our business at a: lower rate of expense than does any other life.office in Australasia; our assets are sound and remunerative, while our reeerves are-unequalled for stringency in Australia. The company has achieved something for the life assurance business generally, inasmuch as its results have become standards for the contluct of the business." The managing director. Mr John J. Garvan, seconded the motion for thr I adoption of the reports and balance- | sheet. ■ j Sir \V. P. Manning and Mr A. M. j Eedy were re-elected directors. j The chairman proposed a vote of thanks to the indoor staff, the field force, and the medical cxamine.rs, which was carried. I