SOUTHERN CROSS ASSURANCE

Dominion, Volume 31, Issue 89, 10 January 1938, Page 13

SOUTHERN CROSS ASSURANCE

Review Of Year’s Operations

In presenting the sixteenth annual report and balance-sheet of the Southern Cross Assurance Company, Limited, at the annual meeting of shareholders, the chairman, Dr. Donald McLean, said THAT HE HAD GREAT PLEASURE IN BRINGING BEFORE SHAREHOLDERS’ ATTENTION THE IMPROVED POSITION OF THE COMPANY SINCE THE REORGANISATION OF THE BOARD AND CHANGE OF MANAGEMENT.

1 “Your new managing director, A. (Aubrey, Esq., F.A.1.5., F.C.C.S., wholeheartedly supported by both the outside and indoor staffs, has been responsible for all-found improved returns in tevery department,” Dr. McLean said.

“Your attention is drawn to the following improvements:— “NEW BUSINESS IN THE ORDI'NARY DEPARTMENT HAS INCREASED BY 30 PER CENT. FROM £604,043/10/- TO £790,286/15/-. “As to the premium income in the ordinary department, for so'me years 3>ast th* company had been experiencing a decrease in its premium income; however, during the year under .review this ceased, and an increase jwas shown, as follows: —New business and renewals—l 934, decrease £8697 : 1935, decrease £10,332; 1936, decrease £.10,237; 1937, increase £3912. "From this you will see that a •jgreat change has occurred in this particular item, and from the results of • the current year to date it appears (certain that even’ greater improvement (will be shown in the next returns to be submitted. “In the accident department pre: Ijniutn income increased by 18 per cent. '•—£3ol7. “THE NET INTEREST RATE INICREASED FROM £4/11/4 PER CENT. |TO £4/13/2 PER CENT. It is assumed • that the company will earn £4 per I cent, on its invested funds, so the tactual return under this particular (item is a very satisfactory one indeed. I Since June 30, 1934, the interest earn(ed has increased from £19,603 to £30,008. “Oflice salaries and managerial expenses have been reduced, although the business of the company has increased. When an increase in new business written is shown, the expenses of obtaining such an increase are generally very heavy, but on this occasion, although the new business increased by over 30 per cent., the cost ratio was practically the same. Claims—Ordinary Dept. Cj“Death claims show a substantial decrease as compared with the previous year, and actually were only 60.6 per cent, of the expectancy. Every care is exercised by your directors in the -selection of lives assured. “As was expected, payments in respect to endowment maturies increased from £5480/16/- to £32.124/1/8, but provision had been made in the funds for this. Claims under this heading will increase from now on. “That the company has proved itself of value to the insuring public is shown by its payments to policy-

holders, both ordinary and accident departments, which now amount to £697,078, since the inception of the company. “It is pleasing to report that the freehold properties are included in the accounts at a greatly reduced figure as compared with their present market value. Substantial reserves have been created against freehold properties, debentures, and other securities, and as the net interest still continues to improve it clearly shows that the directors are carefully watching all investments. “The results of the third Quinquennial Investigation have already been made known to you, and it was disclosed that the company for the first time showed a surplus of funds over liabilities. The actuary again reports that, the company has continued to i make progress, and its actuarial position has been maintained. Life assurance, special actuarial reserve, and accident funds are in excess of all policy liabilities.

“The directors are satisfied with the steady progress that has been shown in the Union of South Africa, and congratulate the chairman there, Professor M. R. Drennan, M.A., M. 8., F.R.C.S.E., all local directors, and the general manager, G. A. Vander, Esq., and his staff.

The Hon. Vincent A. Ward, M.L.C., local director in New Zealand, pays great attention to the affairs of the company, and the directors wish to express their appreciation of his efforts, and also to thank Mr. C. J. Pugsley, the manager there, who continues to obtain satisfactory results. “It has been a pleasure for me to work with my co-directors on the head oflice board, and I can assure shareholders that all care and attention is given to every matter appertaining to the company's welfare. “I wish to convey to the members of the staff of the company, both inside and outside, the board’s appreciation of the good work performed by them. “In conclusion,” Dr. McLean added, “and judging from the further progress that has been made since the commencement of the present financial year, I have no hesitation in informing shareholders that the position of the company will keep improving from now on.” Dr. D. McLean and John K. Cannan, Esq., retiring directors, and Messrs. Anderson. Hodgson and Lithgow’, retiring auditors, offered themselves for re-election. No other nominations having been received, they were consequently elected unopposed.—P.B.A.