Another year of progress for C.M.L.

Press, Volume CVII, Issue 31449, 16 August 1967, Page 20

Another year of progress for C.M.L.

“I am able to report that yet another year of notable progress has been achieved by the Society in its long history of service and security to policy-holders,” said Mr R. P. Martell, Manager for New Zealand and Fiji of The Colonial Mutual Life Assurance Society Limited, when commenting on the results of operations for the year ended December 31, 1966.

“Fully conscious of the spectacular advances being made in all areas of business and industry, the Society has made a determined drive to develop and expand the already voluminous list of contracts and services it is able to offer to clients to meet their changing needs.

“The continued confidence of the Publie in the handling of its Life Assurance requirements by the C.M.L. is amply illustrated by the issue of new Life Department Sums Assured in excess of $463 million during 1966. This represents an increase of almost 7 per cent over the figure for the previous year. New Annual Premiums for the year also increased significantly to a figure in excess of $l2 million and these new savings of the community play a major part in financing the social and economic development of the respective countries in which we operate. TOTAL INCOME

“The Society’s total income for the year, represented by Premiums $73 million, and Investment Income $32 million, was increased to $lO5 million from the figure of $96 million the previous year. This represented cash income in excess of $420,000 for each business day of the year, which, even with the Society’s international/connections, is an almost unbelievably vast sum of money.

“As may be expected, these outstanding advances have been fully kept pace with by payments to policyholders, such payments indeed being the prime reason for the existence of each policy. In the year under review policyholders received more than $4l million. INVESTMENTS

“The investment of the Society’s funds is designed to achieve two major purposes. The first of these is to store funds in such a manner that the risk of their being reduced in value is minimised, until such time as they are required to meet obligations under policies. The second is to supplement the income of the Society with the highest rate of interest possible without, however, subjecting the funds to any undue risk. The success of our investment policy in general is illustrated by the fact that the rate of interest earned on total Insurance Funds showed a very satisfactory Increase of 0.15 per cent to 6.36 per cent during 1966. C.M.L. FIRE AND GENERAL INSURANCE COMPANY, LTD. “The Society’s wholly owned subsidiary was formed in 1958 to meet the needs of the vast number of life policyholders desiring to arrange all their insurance requirements through the same organisation. The support given to this branch of our business by both life policyholders and others is illustrated by the increase in premium income from $1,092,000 in 1965 to $1,415,000 in 1966, nearly a 30 per cent increase in one year. “Profits from this subsidiary are passed over to the Society for the benefit of members in the form of increased bonus distributions.

NEW ZEALAND PROGRESS “On the New Zealand scene,” added Mr Martell, “our progress has compared favourably with that for the Society as a whole. New Sums Assured written in 1966 show an increase of over $lO million to almost $73 million. With substantial new premiums received during the year the total income of the Society in this country, including investment income of over $4 million, reached a figure approaching $l5 million. “The New Zealand Branch continued to give very substantial support to industry, to the houseowner and to the farmer by means of new mortgage and debenture investments, whilst at the same time the traditional investment avenues of government and local government securities were fully supported. Investments in selected company shares continued at a prudent rate, the directors finding in the somewhat depressed state of the stock market in the latter part of the year, opportunities to purchase parcels of shares quite advantageously. “The whole of the New Zealand policy-holders’ assets now totalling over $75 million, are invested in this country and it will be of interest to the public generally to note the investments held under various headings: Millions $ Mortgages ' Home finance .... 17.1 Commercial and industrial properties, and farms 13.4 Debentures 5.5 Property 7.8 Government Stock ~, 16.0 Local Government, Harbour Boards, Hospital Boards, etc. 5.7 Company Shares .. 6.0 Loans on Society’s policies 2.0 Other 1.7 75.2 BONUSES “Operations for the last year have permitted bonus rates to be maintained at the same substantial rate as for 1965 for Ordinary Department and Accident Department policies and have allowed some increases in Collector Department rates. This has resulted in an appropriation to bonuses of over $2.4 million from N.Z. surplus which has had the effect of substantially increasing the value of the benefits secured by the Ordinary Department and Collector Department policies. “There has been continued sound growth of C.M.L. new business, premium income and policyholder funds in New Zealand in spite of the somewhat difficult damping down process which the economy is undergoing.” Mr Martell concluded with the view that in times of economic difficulty the benefits of life assurance investments become more real to the average member of the public. Life insurance companies in general and C.M.L. in particular have an unparalleled record of stability through war and economic crises. —P.B.A