COMPANY REPORT Continued Growth Of Colonial Mutual

Press, Volume CVIII, Issue 31761, 19 August 1968, Page 10

COMPANY REPORT Continued Growth Of Colonial Mutual

“It is pleasing to record that whilst devaluation posed potential difficulties both in the growth of life assurance business and in the selection of investments, the Society’s rate of expansion has been most satisfactory,” said Mr R. P. Martell, Manager for New Zealand and Fiji of the Colonial Mutual Life Assurance Society, Ltd, when commenting on the Society’s accounts for the year ended December 31, 1967. “In no way had the devaluation of sterling in late 1967 affected the stability of the Society.

"At $574 million there is a 6.1 per cent increase in new sums assured over the previous year’s result, with allowance made for devaluation so as to retain valid comparisons. This increase amply illustrates the continuing confidence of the public in the Society and in the many forms of life assurance offered, tailored to meet individual needs. It Is our aim to be unsurpassed in the quality of service offered to policyholders. “New annual premiums at $15.2 million showed a satisfactory gain on last year’s figure. INCOME GROWTH “With the Society’s total income being in excess of $133.6 million, and now running at $2.5 million per week, an increase of almost $ll million is recorded over the previous year. Premium income amounted to $91.5 million, almost $250,000 per day, and investment income totalled a further $42.1 million. Compared with 1966, premium income rose by 7.9 per cent and investment income by 10.9 per cent “Matching the Society’s income growth, payments to policyholders for the year increased substantially to $50.3 million. INVESTMENTS “In securing the wide distribution of investment monies with safety and high interest yields, the Society adopts an extremely active investment policy. The investment acumen of life assurance offices is widely recognised. The fact that the rate of interest earned on total funds has again increased to 6.46 per cent, a rise of 0.10 per cent following last year’s rise of 0.15 per cent, might be seen as some evidence of the validity of this statement It will be obvious that the task of keeping such large sums of money (total funds now exceed $7OO million) well and fully invested is no small one. SUBSIDIARY COMPANY “Our wholly owned subsidiary, C.M.L. Fire and General, complements the Society’s activities and continues, in its task of providing life policyholders with additional services, to show a substantial increase in premium income which for the year ended June 30, 1967, amounted to $2,308,000. “This figure is an improvement of 30.5 per cent on the previous year’s premium income and the profits earned make a direct contribution to the bonus return to life policyholders. BONUSES “The very satisfactory results for the last year have enabled the Directors to at least maintain the high 1966 rates of bonus and to increase these substantially in certain areas.

PROGRESS IN NEW ZEALAND “When one considers the vagaries of the economic climate at the present time the Society’s performance in New Zealand can be considered satisfactory,” continued Mr Martell.

“New business sums assured written in 1967 were $72 million with an annual premium income of $l.B million. These figures incorporate the Society's activities in Fiji, which are controlled from New Zealand, and it is pleasing to record continuing expansion in that country.

"Bonus rates in New Zealand and Fiji have been increased and policyholders in New Zealand will benefit from bonus additions of over $5 million in the form of a free increase to the benefits provided under their policies. This is a result of a most satisfactory year in 1967 which produced a cash surplus in excess of $3 million. Of this sum $2.8 million has been immediately allocated to provide the above bonus additions.

“The Society’s funds in New Zealand now stand at an impressive total of $B4 million with income from all sources being almost $l5 million.

“The New Zealand investment portfolio is well diversified with the principal investment being:— Housing Loans $17,400,000 Commercial and Farm Loans $15,300,000 New Zealand Government Stock $19,500,000 Local Body Securities $6,000,000

Company Debentures $6,000,000 Company Shares $6,700,000 Freehold and Leasehold Property $8,400,000 “As a counter to infiationary tendencies the Society is conscious of the need to look for capital growth and in pursuit of this aim we continue to prudently increase our investment in sound Company Shares and in property. Additionally, and partly in response to the call by Government, the Society continues to invest in fanning and housing as well as directly providing Government and the local bodies with funds for the development of the country’s resources at large.”

Mr Martell's final comment was that in his view recent indicators point to gradual • improvement in the current economy and undoubtedly with forward thinking and planning the country’s growth rate will resume on a much sounder basis.—Advt