Page 2 Advertisements Column 4

Evening Post, Volume LXXV, Issue 09, 11 January 1908, Page 2

NATIONAL MUTUAL LIFE ASSOCIATION. ♦ THIRTY-EIGHTH ANNUAL MEETING. A RECORD YEAR". THE thirty-eighth annual meeting of the members of the National Mutual Life Association of Australasia Limited was held at the association's offices, Melbourne, 19th December. The chair was occupied by the vice-president (Mr. Andew Newell), in place of tho president (Colonel Templeton), who was abSent owing to illness. The annual report showed that during the year ended September 30th no fewer than 12,673 proposals for life assurances had been rocaived, amounting to £3,496,243 3s 4d. Ofc these proposals 2410, amounting to £717,210, had been declined or not completed. In this way 10,263 policies, amounting to £2,779,033, 3s 4d, had been issued. Sixty-nine annuity policies had been issued for £3214 2s 2d per annum, and 1577 endowment policies, amounting to £301,094 14s 4d. In all there were 11,909 new policies assuring £3,D80,127 17s Bd, and yielding new annual premiums of £110.070 lls Id, single premiums of £16,431 18s lOd, and considerations lor annuities £31,174 13s sd. The mortality list showed that 519 deaths had occurred, involving claims under 538 policies, amounting, with bonus additions, to £166,011 9b lOd. Also, during the year 673 endowment assurances, amounting to £135,447 0s 3d, and 74 endowments, amounting to £10,282 18k, had matured. Six annuitants, whose annuities amounted . to £741 0s 8d per annum, had diod. The directors were satisfied that the business of the association had increased satisfactorily during . the year, having resulted m a total income of £898,253 6s lOd, of which £681,052 0s 4d represented premiums on policies and £217,142 18s 6d represented interest on investments. For the first time during the history of the association the amount of the new business, which was greater than the amount of tho previous year by -£229,308 16s, had exceeded three mil-, lions. The total expenditure for the I year, whicJh included £374,808 I3s 6d I paid toi policy-holders or their representatives, amounted to £532,320 13s 9d. Notwithstanding the large increase in the amount at risk, claims under policies in consequence of the death of members had been fewer than in 1906, and the amounts paid in respect of matured * policies had also been less. The sum of £365,932 d3s Id had been added to the assurance fund as the result of the gear's transactions. The reventoe account showed that during the year the association had paid ! £26,845 lls lid expenses of travelling agents and only £415 16s 5d for law 1 costs. The expenses of management j \ amounted to £52,098 ]2s 4d, including salaries £30,06.5 >aud directors' fees ,£3851 13s N 4d. Mr. Andrew Ntewell congratulated members on tjie magnificent results shown in the report and statement of ■accounts. When /addressing the mem,,bers 12 months ago'hQ announced a record in the history of the association, and had wondered how tho chairman of . thol9u/ meeting would account for the falling off that appeared inevitable. Instead, however, of having to explain away a declension, he had the pleasing duty of announcing that the present year had established a new record, • inasmuch as tho 'amount of completed .new business exceeded lliree millions, ■ while the total income for the year was £898,263, an increase over that of I^hc proceeding one of £74,465. (Applause). Tho sum of £365,932 had been, added to the funds, or £82,713 more than tho amount fdded in the previous The income from premiums had 'Deon £649,407, and the income from interest and rents £217,142— respectively £69,051 and £12,106 more fhan the previous year's incomes. ,It was of the utmost importance to a life insurance company that its v funds should be kept 'constantly and profitably invested. (Hear, hoar). The amount the association had received ' from its investments represented £4 16s 6d per centum of the mean funds for the year. After having ' deducted £7694 for, rates and ■taxes paid during' the year, the net amount so received represented £4 13s 2d per centum of. the mean funds. (Applriuse). Turning to the other side of the account, members would find that the first eight items represented the ,'amount paid to members or their representatives. Those eight items aggregated £374,808 ,or less than tho previous year •by £20,924. The decrease had been due partly to a more than usually favourable mortality amongst the lives' ast sured. As compared' with tho previous year, tiie. expenses were a lower percen-" tage ot the premium income, and more than half of the expenditure had been incurred directly in obtaining new business. It would be &een that expenditure o£ the sort was really of the nature of pn investment, as it was incurred with ihe object of extending the business of the association and to increase its revenue. Once the business was obtained the expense did not recur, but was entirely paid out of the first year's premium. (Hear, hear). In considering the expenses of a life company regard must bo given to the amount of new business contained in the transactions of the year, as it n-as generally conceded that new business costs were about j.O times as great as the ordinary expenses of .management. The new premiums were more than 16 per cent cent, of tho total premiums received during the year. If they considered the new business as costing 10 times as much as the old, then the ordinary expenses of management had only slightly' exceeded 9£ per cent, of the renewal premiums received. The assurance fund amounted at the end of the year to £4,844.002, or £365,932 more than it had been 12 months ago, and £2,000,000 more than tho amount of 10 yeais ago. The investment fluctuation fund, which had been put' aside more than 10 years 'ago to provide for possible fluctuations' in the investments now tood at £84,144. Some of tho funds had been appropriated for specific investments, many of which had since been realised so "favourably that it had not been necessary to draw on the fund to any extent. Turning, again, to the credit -side, he would draw attention to the liquid assets held in the form of Government and municipal secuiities, which amounted to £378,323, as compared with £237,151 for tho previous year. The directors had taken advantage of the state of the London money "market to increase the association's holdiing of Government securities, principally in Australian Government debentures, which had been bought on very favourable terms. Ten years ago the item "properties acquired by foreclosure" had stood at £148,000, whereas it now stood 'at £110,639. The realisations had in most cases been very favourable, and most of the properties still held were returning good interest. Wherever there was a local board of directors the association occupied thoir own premises, as well as in other important centres. The last to be completed was at Hobart, and all yielded v fair interest.' Tho year's figures were evidence of a remarkable growth. Ten years ago the new business was little more fhan a thud of that of the year just completed, and during that ]J3> yeais the annual amount had baen increased by more than £400,000. Over