T. & G. Mutual Life Society

Press, Volume XCIV, Issue 28157, 21 December 1956, Page 18

T. & G. Mutual Life Society

RECORD PROGRESS Assurances in Force exceed £354,000,000

At the 80th Annual Meeting held on Wednesday, 19th December, at the Society’s Head Office, the Chairman, Mr H. G. Brain, said:—

Before presenting the Directors* Report and Accounts I wish to refer with deep regret to the death, on 15th May last, of Mr A. R. Stewart, Chairman of the Board of Directors. He joined the Board in 1922 shortly after the death of his father who had been appointed during the Society’s first year of operations. As Directors for nearly 80 years father and son gave wise and friendly counsel which contributed substantially to the progress of the Society. I had the honour to be elected Chairman of Directors and Mr H. W. Buckley was elected Deputy Chairman.

During the year the Board appointed Messrs J. R. Burt and H. D. Stewart as Directors to fill vacancies. Their high standing and wide experience will materially assist the Board. You will share our pleasure that Mr Stewart continues the distinguished line of Directors from a family identified with the Society throughout its existence. New Business I am pleased to report that the Society has continued to serve its policyholders and the public in a manner that must give general gratification. The Society confines its operations to Australia and New Zealand and the New Business completed was again a record in its history. In the Life Departments 102,050 policies were issued assuring million pounds, an increase of 2 million pounds on the previous year’s total. The increase was due substantially to the business completed under Superannuation and Group Assurances Schemes. Many existing schemes entrusted to the Society were revised and extended for the better protection of the employees

concerned and many new schemes were placed with it. Our experience in this field is such that employers welcome the expert advice freely available. Assurance Funds The Statements of Account for the year have been presented in a form which your Directors believe will demonstrate more clearly the nature of our Society’s operations. Life Assurance contracts are mainly long-term and the ultimate payment of benefit may not occur for many years. During the intervening period the Society must build up funds to meet the eventual liability and must invest them to ensure the security of the policy benefits. Funds now amount to ill million pounds in the Life Departments and £339,000 in the Accident Department. The principles adopted by the Board in the investment of these funds may be stated quite simply as security of capital with a satisfactory rate of interest. Your Directors have paid particular attention to ensuring a proper distribution of assets among the different classes of investments suitable for a Mutual Life Society. Rates of interest continued at a satisfactory level and the interest earned on the mean assurance funds was £4/6/0 per cent., an improvement of 4/-d per cent, over the previous year. Healthy expansion and efficiency in methods have enabled us to show a further reduction in the ratio of operating expenses. Excluding Taxes the ratio of total expenses to total income in the Ordinary Department was reduced from 13.73 per cent, to 12.89 per cent. In the Industrial Department, wherein the Society’s Agents attend to Policyholders’ requirements in their homes, the reduction was from 28.17 per cent, to 27.56 per cent.

Owing to a substantial increase in the provision for Income and Land Taxes the ratios of total expenses, including Taxes, to total income show a smaller reduction from 14.99 per cent, to 14.85 per cent, in the Ordinary Department and a slight increase from 29.70 per cent, to 29.72 per cent, in the Industrial Department. Payments to Policyholders

Payments to policyholders and beneficiaries during the year exceeded 7J million pounds. Death claims, though greater than the previous year, were well within actuarial expectation and the amounts payable on matured endowment / policies were, of course, covered by funds accumulated for the purpose.

The Accident Department showed further expansion and its Premium Income exceeded £500,000 for the first time.

The Actuary’s Report again brings good news to policyholders. The conservative bases of valuation were maintained and more than 2| million pounds will be used to provide increased bonuses to policyholders in both Ordinary and Industrial Departments. Increased benefits will be provided under certain Accident policies. Progress Under Mutual System

The programYne for the current year is one of continuous progress. Our aim is to make available a complete Life Assurance service to cover all requirements, so that the greatest number of people may benefit from the undoubted advantages of Life Assurance on the mutual principle. As an illustration I would remind you that our Society was one of the pioneers in making available Life Assurance for diabetics. The range of contracts offered covers all forms of Life Assurance and Personal Accident and Sickness Insurance.

Payment of premiums is arranged on the basis most suitable to the policyholder, whether it be by payment direct to the Office, by Bank Order, by deduction from salary or wages under Group conditions,, or through the Industrial Department by collection at the policyholder’s home. The Society makes available a personal service through which people may voluntarily make provision for financial security according to theii own needs. Staff Our progress is attributable in no small measure to the devotion to duty of the men and women of the Field and Indoor Staffs. Members of the Board fully appreciate their work and you may rest assured that your Society is in good hands and will continue to make a notable contribution to the well-being of Australia and New Zealand. Value of Life Assurance The outlook today has elements of uncertainty—both political and economic—under the shadow of the international situation: and in such times Life Assurance has a special appeal. There is no other method of building up an asset of comparable security and elasticity, with the unique feature that your programme of savings is automatically completed without cost when the emergency created by death of the person assured arises. No form of industrial investment carries with it the degree of taxation exemption applicable to your premium payments: and you have the satisfaction of knowing that the moneys you entrust to the Society are playing their part in the development of every phase of National life. Retiring Directors, Messrs H. W. Buckley, R. A. Rowe, J. R. Burt and H. D. Stewart, and the retiring Auditors. Messrs J. M. F. Relph and W. Mr Scott, were re-elected. (Extended report by arrangement.)