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The A.M.P. Society., Issue 7915, 24 May 1889
The A.M.P. Society.
Once more that phenomenally successful colonial institution, the Australian Mutual Provident Society—whose abbreviated title, the“A.M.P.,” has become quite a household word throughout the length and breadth of the Australasian colonies—comes before us with a record of continued prosperity. The fortieth annual report has been courteously forwarded to us by the resident secretary. The plain unadorned fact that the year’s new business exceeded three millions sterling (L 3,047,541), and that the new policies issued numbered 9,619, speaks for itself. Claims amounting to the largo sum of L 334.494 arose during the year through the death of 590 policy holders. But notwithstanding tliia seemingly heavy demand upon the society’s resources the accumulated fund actually increased by much more than double the sum thus paid away, the year’s increase amounting to L 726,064, which brings up the total accumulated fund to the enormous sum of over tight millions sterling (L 8,169,310). The year’s new premiums amounted to L12G.993, making the society’s total premium-income L 1,016,542 ss. To this has to be added L 495,737 16s — the income from interest accruing on the society’s invested accumulations, raising the total annual revenue to no less a sum than L 1,512,280 more than a million and a-half per annum ! The surplus of funds over liabilities is declared by the actuary to be L 599,568, of which L 400.893 will be distributed among the members as a cash bonus. Such figures as these we are justified in characterising as phenomenal. The expenses of management have steadily diminished year by year from 16.09 per cent, in 1884 to 13 55 in 1887, and were only 12.83 per cent, last year. On the other hand the rate of profit divided on premium received, which was only 20.5 per cent, in 1869 and 29.1 per cent, in 1878, had increased to 36.3 per cent, in 1883, and was as high as 39.3 per cent, last year. At the same time the actuary in his special report offers a few words of caution against the expectation of a continuance of increase at so remarkable a rate. Mr Black, after impliedly condemning the decision of tho members that the society’s business should be restricted to the Australasian colonies, expresses his opinion that the rate of bonus may be kept up for years to come, provided the rate of interest remains as high as that realised during the last five years, which was an average of LG Is lOd per cent., but he impresses on the members the fact that further increases in the ratio of profit divided to premiums received can hardly be looked for in the future, and that in his opinion the rate of bonus has now practically reached its maximum. Mr Black asserts that “the Australian Mutual Provident Society at forty years of age stands before the world as a life assurance institution that has achieved unparalleled success. For stability it is unsurpassed, for the profit it has realised and divided it is unexcelled, and for the liberality of its business arrangements it is matchless.”— 1 New Zealand Times.’
The A.M.P. Society., Issue 7915, 24 May 1889
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