CITIZENS' LIFE ASSURANCE COMPANY, LIMITED.

Dominion, Volume 1, Issue 146, 14 March 1908, Page 6

CITIZENS' LIFE ASSURANCE COMPANY, LIMITED.

EXCELLENT PROGRESS. ■ The annual general meeting of the Citizens' Life Assurance Company, Limited, was held at tbo'head office on February 28. . - .ACCUMULATED FUNDS, . , ' Tlie funds at December 31, 1907, amounted to £2,077,18S 13s. 10d;, the increase for'the yoar • being £274,579-4s. Bd., the largest yet recorded. ' ; , . The Citizens' is the only Australian Life Office which has accumulated in' 21 ■ years funds amounting to £2,000,000. : INVESTMENTS AND INTEREST ; . Fifty-nine' per cent, of tho assets are now invested' in- Government securities; municipal loans, and debentures, and loans \ - local, governing-bodies.. Every penny of interest due has again been actually!collected. . . NEW BUSINESS. In the ordinary branch the number of new policies was 7844, assuring the sum of £1'i211i.405, and producing a,new annual premium income, of £41,950 17s. sd. The new sums assured exceed those for 1906 by 16 per 'cent.,- viz., £170,701. . No new business was. transacted outside Australasia; , EXPENSE RATES. Tho expenso rates for the year 1907 were:—-

Tho expense rate of the' ordinary. branch, viz., 10 per cent, of, the premium income, is 5.4 per cent, less than the; rate for the previous yeaf, and creates a record, for Aus--tralasia in the matter of low-expense rates; The industrial branch expenso rate •is the, lowest in Australasia. The reduced ratio of, expenses to the total income of the company means a saving of' £9000 for the year. ■ Tho claims were'■./

; . STABILITY OF THE BUSINESS.

Tho .average .duration •,of -tho- industrial branch policies in force' at the. end' of the 'year was 8.5 years, : as. compared-with l 8.1 -years at- the. end of 1906. Tho. Prudential of London was-50 years old-before it secured such' a result. 7 ' -' v '" '. •.In the ordinary branch, the, .percentage-; of cancelments (lapses, deaths, maturities, etc.) to number of policies in- force' at the end of the. year was 9.0, and in the industrial branch 9.8. A-further proof of tho stability of: the' industrial branch business will bo. found in-the fact that the average duration of all the contracts in force is now 8:5 .years,'' as compared with 8.1 years at the end of -1906. • The significance of these figures, lies in the fact that we have taken only 21 years to secure this .result, whereas the Prudential of London occupied 50 years in accomplishing it.: ' '. ..' ' | VALUATION REPORT." •'/ The valuation of tho ordinary branch of the' Company disclosed a net •> surplus of £60,247, of which £58,654 has been divided in 1 accordance with the Articles of Association. ■ \ • ' . BONUSES ON WHOLE OF LIFE POLICIES , - IN FORCE. ,

To the Directors of-the -, '. Citizens' Life! Assurance Company, Limited. Gentlemen,—l bav.e considered, the. above -valuation, and .a'nv.of opinion that the rate of bonus as recommended can bo fully maintained. in the - future —Your obedient servant, ' ' ' 'R. D. MILLER. .. ; Fellow of Faculty of Actuaries in Scotland. Sydney, February .17, 1908. . SUMMARY. ' The most' important. result; for tho year just 'closqd wag the attainment of ;a •10 per' cent.' ratio of- expense to premium, income, a;rate, of, 5.4 per cent..lower than that for the' year 1906. ',-Tliis, mark's' an epoch in the history '•'•ofc..Australasian, "life - assurance, as rto other . company has. hitterto succeeded'in bringing its expense rate down to tho figure sliown. '-The company"''h'as : 'created '.a'"'now standard of excellence in the,matter of expense rates for ! ordinary.'''life "assurance! offices. So far; as, the industrial .brancli' ife concerned,':the rate.'shown is,"still:the_lowest! in Aus'tralasia;. '

. . i-' 'Ordinary Industrial Both . . Year .Branch. •• Branchos. Prom'ml Total lucomoj Total- Prem-1 Total Income 'Income Prom'm|[ncome Iacomollncome 1C07-110 p.c.,13.1 p.c.141.7p.c.13fc.6p.c. 123.6p.c.ll9.9p.c.

■ - - By Death. ■ Total. Ordinary • : - • ' Branch . . £32,078.; 2 4 il5,834'13 7 £48,5i2 Ull Industrin.1 _ t ' , Branoh.v. . '28,433.10 8 ' 24,278 17 C 50.777 8 3 : Total. . .... £59,l7G 11 0 £10.113 11 :i mSW 4' ~ ' ~~ —•——i

20 Years. 1 15 Years. 1 10 Years.- 1 5 Years. i'$ ' ■ "■ f ' & ■" -C d . a-, - ■ ■ d . • • d , ' . c a ® i «flm fl« ;cc ;K .2 § ./.••• " ; sg -S : g - <l 'Sg ; "$2 5 _o. 2 O ©:' *0 - - m' So fi - gp •§J , . -g3 • •. •% S ,§§ U © «J ' O d ,d O d "3 o d d . :<«• « Or*. •' « " Ot>. 20 JB3 £1- 0 7 £3 £0 18 2 £3 £Q 16 T £2 5X0 10 9 30 3 1.6 7 3 '1 3 5 3 1 0 7 : • 2 5 0 13 8 '40 3 11311 3 llO'l 3 \l-iG 7 ; 2,5 0 17 7 50 3 2, 1 ;7 -3 '1 17 0 3 113 11 2 5 1 9 7