Capital Life fund at new high
PA Auckland 1 ’ Capital Life ' Assurance Ltd’s cost difficulties are now substantially under con- i trol, and the profitability of its life fund is at a new high, : the directors . said in their < annual review. . : . • ‘The company is well ; placed to take advantage of < rapidly changing market ’ conditions,” they said. As.reported, the company i earned a net profit under tax < of $177,244 in the 16-month 1 accounting period to January i 31. Adjusted to an annual i basis this represents a profit
of $132,933, which compares with the- $79,822 earned in 1979. During the 16 months the company’s net investments increased by $2,388,223 to $9,962,232. Investment income rose $744,558 to $1,374,014, representing a yield on average investments of 11.7 per cent compared with 9.4 per cent in 1979. The directors say this improvement was despite the continued support of policy holders by way of loans and mortgages at modest interest rates. The dividend, up from 10
per cent to 16 per cent (equal to an annual 12 per cent) takes $lOO,OOO. It is covered by an earning rate on capital up from 12.8 per cent to 21.3 per cent (using the adjusted profit) while the return on average shareholders’ funds has gained from 12.8 per cent to 21.3 per cent. The balance sheet shows total shareholders’ and policyholders funds $2,329,502 up at $9,809,815. Current liabilities are $131,622 greater at $711,595.
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Press, 19 May 1981, Page 30
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236Capital Life fund at new high Press, 19 May 1981, Page 30
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