NATIONAL MUTUAL LIFE

Evening Post, Volume XCIX, Issue 83, 8 April 1920, Page 3

NATIONAL MUTUAL LIFE

GENERAL MEETING.

SATISFACTORY GROWTH OP ■ • BUSINESS. j "'

(POBMSHSD BI /.KItANaSHENT.)

An extraordinary general meeting of members of the National Mutual Life Association of Australasia, Ltd., was held at Melbourne on 24th ultimo.

The report of the actuary, which was submitted by the directors, stated:—"ln the last three years the growth of the association's business was very satisfactory. The amount of new policies issued —£13,456,089 2s 6d—and the amount received for -premiums and' interest— £5,808,281 0s 3d—during the period, were much in excess of the corresponding amounts in any previous, report. ■• Although the claims under policies were exceptionally heavy; £2,396,795 8s 3d was added to the assurance fund, which, was thus increased to £12,524,368 15s". The directors have decided that, the surplus of £789,487 15s shall be divided amongst the policy-holders entitled to participate. It will provide reversionary bonuses amounting to £1,450,000." THE CHAIRMAN'S SPEECH. The chairman of directors (Mr. Andrew Newell), in, moving the adoption of the report,- said;—Gentlemen, —I will ask you to take the report of the directors on the 16th investigation of the affairs of the association, which you have in your hands, as read. . . . . It contains a very brief statement of the results of our business for the last three years; the actuary's report, upon which, it is based, with the usual schedules giving details of the valuation of the liabilities, will be circulated amongst members as soon as we can get them printed. But in order that the significance of the results may be appreciated, I propose, if you-will allow me, to compare gome of them with the results shown in previous reports. NEW BUSINESS. . . : The amount of new business, £13,456,089, exceeds what had been our best record by £2,771,643. Before this triennium we had reached our highest point in 1910-13, which is the last investigation period that was free from the effects of war. During 1913-16 the total fell to the extent of over £743,000, and this seemed to be attributable to the. war conditions. But now, for the years 191619, when we might have expected that the influence of those conditions would be most severely felt, there is a. rice of over 3i millions. Char experience in this respect is no* singular, for most of the companies are reporting an increased new business, particularly during the last year of the period. The reasons for this are not apparent. Some have availed themselves of .the facilities offered by life companies for subscribing to the war loans, others have realised that a life policy is the best way to provide for the higher probate duties; but these are not sufficient to account for the general increase in' business. Whatever the reasons may be, it is a good thing for the community that at. a time when there is such urgent necessity to husband our resources, the people are recognising the benefits of life assurance. INTEREST. c

The amount of interest earned by the funds, £1,704,555, is £376,100 more than the amount earned in 1913-16 ; it is equal to the average rate of £5 3s Id per cent, wer annum. The rate for 1913-16 was £5 Qs 3d per cent, per annum. Xho higher r*t« ucqunts for newly £47,000

of the total amount earned The total receipts for the period were £5,808,281. or £1,117,983 more than the receipts for L 1913-16. . Amongst our disbursements, the rnor. prominent item is the amount paid for claims under policies. This, I regret, was increased to £1,581,108, or £552,202 more than the amount paid in the la?.! triennium. Of this amount, no less than £455,332 represents war claims—a term whjeh has become too ■ familiar, but we hope it will now disappear—and £232,458 was due to deaths from the influenza epidemic, the effects of which were actually more severe for the period of the visitation than the effects of the war, for any period of similar duration. The total 1 of these two amounts, £677,790, is equal j to 42 per cent, of the total claims;, if they were deducted, what -we may call t the normal claims would be only some £9000 more than those for 1913-16. The expense ratios of both, new and renewal business are lower, and, although the. new business is not only so much larger in itself, but is a larger proportion of the total than it was in the last.period, the aggregate expense ratio also is lower. The reduction of the ratios is 0 equivalent to a saving of nearly £51,000. « SURPLUS. , The net result of our transactions in the three years is an addition to the assurance fund of £2,396,795, which is some £269,000 more than the amount added in 1913-16. The surplus available- for distribution, £789,487, is £29,954 more than the amount distributed three years j ago j but as the number of members entitled to participate is so much ' larger, the bonus ■will, in some cases, be a little leas than the amount allotted at the last distribution. But when we consider the extraordinarily heavy claims that have been met, and the singularly unfavourable conditions •that have prevailed during the last five years, the results disclosed in the report are very gratifying, and are a tribute to the good work of the officers of the association at head, office and the branches, including our field staff, through whose unceasing efforts the large new business has-been obtained. This finishes my comments on the figures that are now before you, but before I conclude, may I indulge in some reminiscences, and give you some facts regarding the history of the association and the work it has accomplished' The report of the first investigation of the association, which was made on 30th September, 1874, five ye"ars. after its foundation; showed that the income for the five years was £3-1,124; the fund© at the end of the period amounted to £15.464, and £3098 was distributed amongst the members. These figures look small when compared with those now presented, but the work that was then being done was of the utmost importance; our founders were men of wide vision, and they were laying the founda- i tion which made it possible to build safely the structure that we haye to-day. .PERSONAL. I became a member of the board in 1880, when the association was in its eleventh year; beginning to feel itsl strength, it had then begun to extend its activities. by the- establishment; of.! branches; its annual income was something over £63,000; and its funds had .reached the respectable sum of £100,000: The policy of expansion which had beenadopted produced an immediate effect; at the end of three years the income was £144,500, and the funds were £304,000; at the end of ten years the income was £269,000, and the funds had reached £1,000,000, and so the growth, has continued until now, at the end of its 50th year—the 40th year of my directorship— the association is amongst the leading institutions of the Empire, with an annual,., income' of '£2,116,000, and funds exceed--ing £12,600,000 Since its foundation it has paid in death claims, under 17,914 policies, the sum of £6,040,061; to members whose policies have matured it has paid £3,691,306, and to .annuitants, £435,219. The cash surpluses that^havo been divided amongst the; " members amount to £4,019,003 These figures indicate the important place the association occupies in the social organism ; andas its latest achievements are its best, we are justified in looking with hope arid confidence to a still greater, extension of its usefulness. \ ' , The motion for the adoption of the report was seconded by Mr Walter Madden, and agreed to. . It is expected that the bonus certificates will be- issued to members in the course of a few days. ,