The Mutual Life and Citizens' Assurance Company, Limited.

Evening Post, Volume CXV, Issue 135, 10 June 1933, Page 16

The Mutual Life and Citizens' Assurance Company, Limited.

BONUSES MAINTAINED,

At the forthy-sixth annual meeting of the company held recently the chairman (the Hon. James Ashton, M.L.C.), in, moving the adoption of the report and balance-sheet, said:— ' The company during the past year has maintained its business and- increased the solidity of its financial structure-an accomplishment of which I think in these \times of stress and strain wd may fed justly proud. A BAROMETER OF GENERAL "^ CONDITIONS. toie business of life assurance is probably as: good a barometer of general conditions as it is possible to have.;,Tho progress in the industrial branch tells' W;how matters are faring, with the wage-earning classes, while that in the ordinary branch is a good indication of the' State of affairs with the rest of the community. In both branches, I am glad to say, there is evidence of improvement, particularly in the. industrial branch. Not only did we. write more business in 1932, compared with the previous year, but thousands of our policy holders availed themselves of the; company's plans for helping those who had been out of work by applying for revival of their lapsed policies. We more than made up the leeway of 1931; and. in the new year thus far we have made an excellent start. LARGE NEW BUSINESS FIGURES. In the. ordinary branch also premiums were in; excess of last year's figures.The new business in this branch again exceeded £4,000,000, and in addition we wrote term assurances for no less than. £2,071,500, a proof of the deserved popularity of the family income and other new tables, and of the energy and ability of our field representatives. Prom Australia and New Zealand came a full share of the results. I_t is an.achievement that under the anxious conditions for the community prevailing throughout the last three years our business—sums assured and bonuses of £56,455,058 —has gone ahead, not perhaps at the rapid' pace of more prosperous years, but steadily and appreciably. POWERFUL ACTUARIAL RESERVES The wisdom of our practice for many years in valuing the policy liabilities of the ordinary branch on a 3 per cent, basis is: more than ever apparent in times when rates of interest have been so reduced by legislation and taxation that the margin earned over the 3 per cent, assumed is narrowed considerably. The net rates of interest actually earned are £.4 2s, 4d in the ordinary branch and £3 19s lid in the industrial branch, and I think I can confidently affirm that no other Australian life officd has made a better showing in interest earnings for the past'year. \Ve have provided for the same rates of reversionary bonuses to participating policy holders as were allotted for 1931. HIGH QUALITY ASSETS. Our assets are invested principally in Government and public securities, and these with loans-on-our-policies account for 93 per cent, of the total of £21,000,000. In view; of the distinct recovery in assets-values within the Empire since we gave the book-values of pur securities consideration (at the. time of our last report) , the provision made in 1931 needs no further addition. We have written' off from interest revenue the interest due-and uncollected since the year closed, £4743.. * Our expense rates to premium income have been steady during the last three years, with the tendency downwards, which we strive for in the interests of the economical management characteristic of the company. UNRIVALLED FINANCIAL STRENGTH. In every respect, therefore, the financialstructure of the company has been strengthened;- and - safeguarded;-, so; that not only is' the position of the company at the present unchallengeably secure, but the possibilities of the future, so far as they can be, have been foreseen and anticipated.