T. AND G. LIFE SOCIETY

Evening Post, Volume CXII, Issue 141, 11 December 1926, Page 11

T. AND G. LIFE SOCIETY

ANNUAL MEETING

SUBSTANTIAL PROGRESS,

MELBOURNE, 10th December

The annual meeting of the Australasian Temperance and General Mutual Life Assurance Society was held at tho head office of the society this afternoon. The chairman and managing director, Mr. J. T. Thompson, who presided, said: —

I have very great pleasure in submitting to you the accounts for the -past year, which con^pletes the first fifty years of the society's existence. I do not propose* to dwell for any length of lime^n the society's operations during that period. A Mutual Society without capital subscribed by shareholders can only be developed gradually in the early stages of its operations. It must rely at first entirely on a small premium revenue with interest accumulations there to build up its organisation. As only a certain percentage of its income can, be spent with perfect safety it follows that the building up of a mutual life society is necessarily comparatively slow in the early, years, and requires the exercise of patience, wisdom, and foresight by its founders. We ari indebted to the pi- aer directors of this society for the solid foundation laid by them during the early iars of this great society, which now stands in the forefront of Mutual Life Assurance -Societies in Australia. Unlike other parts of the world, Australia is fortunate in having sueh1 splendid mutual societies, all thoroughly well established, with only policy-holders to participate in the profits of and the service rendered by these institutions of thrift.

Your directors are proud of the report and balance-sheet which is now before you. To have reached such figures in the fiftieth year of the society's existence must be a source of gratification to all policy-holders. If you will now kindly turn your attention to the accounts I will, as briefly as possible, draw your attention to the more salient features.

Dealing first with the New Business, you will note another record for the society. It consisted of 139,607 policies, assuring £10,471,322, of which 20,573 policies, assuring £4,717,574, were issued in the Ordinary Department and 119,034 policies, assuring £5,753,----748, in the Industrial Department. No society or company in Australia or New Zealand has yet attained such a record of new business writing in its fiftieth year, and, despite this increased new business and the necessarily attendant increased cost, I am glad to be able to report that the expense ratio shows a satisfactory reduction on last year. As a proof of tin society's popularity and evidence of the satisfaction that it is giving to its policy-holders, X can tell you that, out of the total of 139,----607 policies, no fewer than 41,559, or 30 per cent., were issued on lives already assured wi'h the society. The Total Income for the year was £2,701,156, an increase of £285,959; the largest increase yet made. This income is comprised of (a) premiums in the Ordinary Department, £820,948; (b) premiums in the Industrial Department, £1,364,369; and (c) interest, £515,839. *

On the opposite side of the revenue account the item Payments to Policyholders calls for a passing remark. Of the total £778,525 no less than £333,----964: was paid .out for,endowments matured. This item must necessarily increase with the increasing age of the society as more and more policies become due for payment. The death claims, £206,335, although heavier than last year, are yet well within the actuarial expectation. The society exists to pay claims, and they naturally increase with the society's growth.

The Assurance Funds have increased by £1,232,586, again the largest increase ever made by the society, and now amount to £9,902,987. The fidelity and contingency funds .uave increased by £15,000, arising from capital profits made on the realisation of certain securities during the year. Against the varions funds and other liabilities, Assets are held totalling £10,354,583.

Your board has pursued the same prudent policy of investing the society's assets in gilt-edged securities,, and no less than £8,262,380, or almost 80 per cent., •is in the form of Government and municipal securities. Although termed "securities," most of these represent direct loans to the Commonwealth, New Zealand, and State Governments, and also to various municipal and other puDlic bodies in Australia and Now Zealand. When lent out in this way the society's funds, in addition to earning interest for the society's policy-holders, are helping to develop the great Commonwealth of Australia and the Dominion of New Zealand.

When I addressed you last year I directed your attention to the society's Freehold Premises, and told you of the necessity for enlarged homes for our evergrowing- staff, due to our rapidlyincreasing business. To cope with this your board has entered into contracts for the erection of a fine, eight-storied building at the corner of Lamb' i quay and Grey street, Wellington, as a chief office for New Zealand, and also for the erection of a new head office of ten stories in Melbourne at the corner of Collins and Russell streets. These sites were acquired some time ago in anticipation of our needs at prices much below present market values. Generally our buildings are showing results to the entire satisfaction of the board.

The Interest Bate has increased by Is Id per cent, to £5 lis Id per cent. on the mean funds for the year, which is entirely satisfactory in view of the gilt-edged nature of the society's investments.

The Actuary's Report shows that the reserves which have been built up to meet the future claims have been assessed on the same conservative basis as hitherto: no _afer bases have been adopted by any other society or company in Australia. A strong valuation makes for stability, and portrays the true financial position of any society. Even with such a strong valuation as that adopted by the society, a record surplutr of £336,304 ib disclosed.

In the Ordinary Department, the actuary again recommends increasing the bonus scale for whole life and endowment assurance policies, which will enable the society to maintair its rank among the best bonus-earning offices in the Southern Hemisphere. A further provision is made for old policy-holders by granting all those who have attained the age of 80 years, and whose policies have been'2s years in force, the privilege of a fully paid-up policy for the full amount assured, free of all future premiums, despite the fact that their contracts call for payment throughout the whole of life. •

In the Industrial Department, the previous liberal scale has been increase ed by extending the maximum bonus to forty weeks' premiums in the case of policies over thirty years in force. Measuring our bonus results in this department as a percentage of the sum assured, I can tell you that on all participating Industrial Department policies which matured last year, total bonuses were paid which averaged £2 12s per £100 per annum for the whole period during which bonuses were allotted to such policies. These excellent resuttfl should be yerjr gratifying to all

participants, and compare favourably with those Ct any other society in the world.

Services to Policy-hojders.—Last year I alluded to some of the services voluntarily'rendered to policy-holders, which were not provided for in their contracts, but which have been of great help to them. The Lien Revival System, which was first introduced into Australia and New Zealand by our society, has to its credit the bringing back into benefit of no less than 28,000 policies during the past year. Such a system helps the policy-holder who, failing into arrears through causes over which he has no control, such as unemployment or sickness in the home, would otherwise stand to lose entirely the very necessary protection of his assurance.

The Nursing Service has grown still further, 15,000 visits being paid during last year—one policy-holder in every 94 calling for the services of the nurses where they are available; the total number of visits paid since the inception of the service is now over 106,----000.

The Free Periodical Medical Examination is being availed of by policyholders in the Ordinary Department, and several instances have come under ,our notice where examination has disclosed some defect capable of being remedied by prompt medical attention.

The cost of these services is willingly spent, as the gain to the society, though indirect, is distinctly noticeable; in fact, we believe that our policyholders are recouped many times over. The prosperity of the society has enabled the board to renter these services, and we trust that circumstances will always permit their continuance. I have now dealt briefly with the main features of the report, and I think you will agree with me that I am justified in the statement that our society is one of the most progressive Life Assurance Offices in the British Empire. I do not think I can be accused of undue optimism when I say that our prospects have never been brighter. We can certainly look forward to the future with the utmost confidence.

Before I conclude, I would like to mention that there is one great asset possessed by the society which does not appear in its accounts, and which cannot be expressed in terms of sterling. I refer to the great loyalty displayed by every member of the society's staff throughout Australia and Ne'v Zealand. Without the great enthusiasm and loyal and strenuous work on the part of the field organisation, such figures as I have put forward to-day would have been impossible, and without the zealousness and activities of the indoor staff, the field organisation could not labour as it has done, nor could the results of the year's work have been put in your hands as promptly as they have been. Undoubtedly, this great asset is. of immeasurable value to the society, and with such enthusiastic and zealous co-workers, there are no limits to the size which our great society must attain.

Gentlemen, I now formally beg to move the adoption of the annual report, revenue account, balance-sheet, and actuarial report. Mr. R. M'Donald, in seconding the motion, stated that in his opinion a life assurance policy was one of the most sacred contracts that can be, entered into, and the funds entrusted to the society's keeping for the payment of claims under these contracts must be very carefully safeguarded. The safety of the society's investment policy and the soundness of the methods adopted in the valuation ensure the fulfilment of all obligations to policy-hold-ers.

The motion for the adoption of the annual report, revenue account, and balance-sheet, together with the actuarial report,' was carried unanimously. The retiring directors, Messrs. Robert M'Donald and P. R. Sutherland, and the retiring auditors, Messrs. M. M'K. Hislop and C. A. Holmes, were reelected.

The meeting closed with the usual vote of thanks.

(Published by Arrangements)