The Evening Star. MONDAY, MAY 25, 1903.

Evening Star, Issue 11895, 25 May 1903, Page 4

The Evening Star. MONDAY, MAY 25, 1903.

Tme fifty-fourth annual report of the A.M.P. Society famishes On Top very agreeable reading for a k* Jb - the policy-holders therein, showing as it does another year of unexampled prosperity, despite the fact that the major part of Australia is still suffering from the drought, the effects of which must have made some prejudicial impression on the finances of this great institution. It appears that during 1902 no less than 15,346 new proposals were received, insuring over 5i millions sterling, and as 245 policies held over from the previous year have since been completed the actual new business transacted daring the twelve months under review represents £3,702,576. The number of policies put through is slightly larger than those in 1901, but for the reason already stated there is, as might have been expected, a slight shrinkage (£51,488) in the volume o' business transacted, compared with the gross assurances of 1901. The new premiums received in 1902 totalled £174.133, of which £45,261 represented single payments. During the past year £643,203 was paid away in death claims, and £297,434 (including £90,477 as bonus additions) in respect to 738 endowment assurances that had matured. The two succeeding paragraphs have vital interest for policy-holders, as they constitute the best indices of the success ot the management of the society. The amount of the year’s surplus is £614,840; but the directors, acting on the advice of their responsible officers, will recommend for appropriation by way of bonuses the sum of £558,867, which is the largest sum that has been distributed among the members since the society have been in existence, and the records of the institution show that there have been some very “fat” years during that period. The sum so appropriated will provide reversionary bonuses equal to over one million sterling! On reviewing securities the Board have been able to set aside £lO,Bll as a reserve against possible further depreciation of these securities, while the value of office premises has been further written down by £B,BOO Tho reserve fund now stands at £256,039. Turning to the balance-sheet, it will bo found that the directors continue their policy of investing Iheir surplus funds to a large extent in the securities of the States and colonies from which the bulk of the society’s business is drawn. The sum of £6,562,966 is thus invested, of which over half a million represents New South Wales Treasury bills, and £365,000 New South Wales Funded Stock, £368,945 South Australian Inscribed Stock, £505,058 Westralian Inscribed Stock, and £631,048 Queensland Stocks, while £561,676 is invested in New Zealand securities, of which over £IOO,OOO worth was obtained last year. In municipal bonds of various kinds no less £ sum than £1,168,398 is invested, and the freehold and other properties that fell into tfie society’s hands last year by foreclosure represent £558,245. The soundness of this branch of the society’s business is evidenced "by the pregnant fact that the average rate of interest earned last year was £4 9s 2d per cent., which is only a fraction below the interest earned in 1901. On the whole, tho A.M.P. has had a year of unequalled prosperity, in the face of acknowledged depression covering a huge area of its field of operations, and retains its pride of place among the foremost insurance companies of the world.