PROVIDENT LIFE ASSURANCE COMPANY.

Evening Star, Issue 14035, 16 April 1909, Page 7

PROVIDENT LIFE ASSURANCE COMPANY.

. The fifth annual meeting of shareholders of the Provident Life Assurance Company was held en the 15th April, 1909, in the company's offices, Diuiedin, at 3 p.m. Dr W. S. Roberts, the chairman of the company, presided. The report was taken as read. "The directors have the pleasure to submit to the shareholders their report, together with the balance-sheet and revenue account of the company for the year ended 31st December, 1908. The premiums received during the year amounted to £22,747 10s. being an "increase of £3,415 7s 8d over the premium income of the preceding twelve months. There has also been received the sum of £10,415 6s Id. consideration for annuities granted, the directors having decided to commence the issue of annuity bonds. . The new policies issued during the year number 9,885 for total assurances amounting to £240,812 5s 2d. Claims and surrenders aggregate £4,586. 13s Id. against £4,575 2s 5d 'lastyear. The cost of collecting premiums was £2,940 7s 7d, or 12.92 per cent., and expenses of management £3.117 ss, or 15.70 per cent. Ihe whole of the new business expenses (i.e., cost of introducing 9,885 new policies, supetintendency charges, and travelling expenses, also outlay consequent upon tho establishment of the ordinary branch and Kreci.il expenses in connection with the opening up of new agencies an-1 extension of the business in' Australia) have been written off. The sum of £312

'. 7s 9d has been written off the stationery and office furniture account. Ordinary branch • Now that the industrial branc i is so well -?st,..blished, the directors, after full consideration, have decided that it is now both advisable and necessary to extend the scope of the company's op'erations. and commence- and develop'the ordinary life. branch, in addition to the industrial business at present transacted. New capita! : The directors are pleased to announce that during the year the subscribed and ilm paid-up capital have been increased "r..v the issue of 9,500 new shares at a satisia---toiy premium, the addition to the lands from this source being £6,078 6s 4d. A'l the calls and the premium upon these new shares have been paid. The subsc-ibed capital now stands at £40,000. The funds of the company amount to £47,142 10s 4d. of which the" assurance fund is £57142 10s 4d. The sum of £42 15s has been written off tho securities to bring ihein down to present market prices. The directors recommend tho usual payment of interest by way of dividend at "the rate of 5 per cent. imon the paid-up capital of the company. The retiring director is Dr W. S. Roberts, who is eligible and offer* Iv-n----self for re-election. The auditor. Mr Geo. Btyth, retires, and offers himself r or icelection. The directors desire to thank, the staff most heartilv for their excellent services during the year." The Chairman said : Tn moving the adootion of the report, balance-sheet, and alcounts. I should like, as is customa-v, to offer some remarks upon the result of the years operations. T am pleased to say that these remarks will he of an favorable character,- and I think you will agree with me that the figures von hava before you afford ground for c6h*::iti:iation, showing, as thev undoubtedly do the vigorous extension of tho compc.nv- fi business during the past year. You wit! n e oo t,hat ' OUI l iremium income amounted to £22 747 10s, being the substantial incr laso 0 ' 41 ? 7s Bd over the premiums for 1907, and this increase has been obtcrej at a very moderate cost. Our ass ~ancs funds have, been augmented by the suui of £16,009 8s 4d, £10,415 6s ild .»f tins amount being consideration for annul '"s granted, which shows considerable confidence in the company arid its management Net rents and interest amount to £1,503 6s, as compared with £1,020 19s for the previous year. On the other side of the account, claims and surrenders ac<r r ~r :i t° £4,586 13s Id, only £2ll in excesToi *hl corresponding total for 1907, although we nave now a much larger business ou'uip books. This speaks well for the quality ot our business. The cost of collecting premiums and management expenses both show a substantial reduction, Uur total funds at the end of the rear amounted to £47,142 10s 4d, and the assurance fund to £37,142 10s 4d. There would appear to be a reduction in the rate of interest earned on the funds, but this is not actually so, the explanation being that t.ne bulk of the increase to the funds was , received towards the end of the vear turning now to. matters of more gelier-ii interest some-time ago the directors decided it to highly desirable that the business the company was in Australia, where our operations were routined to Sydney, should be largelv extended, and agencies opened up m "other Ship f n° nth Wa,es and the [state* of the Commonwealth, and it was also determined upon that as soon as the necessary arrangements could be made, the ordinary hte branch should be commenced! io provide funds for these develonments and make the required deposits with the Australian States, it became necessarv that the capital ot the company should be in creased. With these object, in "and to secure the necessary trained superintendents and assistants for this further « te . aion of the- business, the directors authored he general manager to proceed on a specia mission to England. You wll 4 n.om the accounts, that Mr Kirkcaldy has been completely- successful in what he wa b a e ofTs n 00 O , Cja ? ew sh ?«* t0 the nmbei of 9,500 have been taken up through Ins instrumentality, and upon these shares premiums amounting to £1„328 have bee, paid. In addition to this, Mr KM r- rK -hile in England making the se td "hj r arrangements, in connection with the emit mencemen ot the ordinary branch, person, illy selected and engaged a number of rained.superintendents and assistants who rehnqmshed good positions with leading Home offices to join our staff; and here I jtould l, ke , on behalf of the directors"and ?ft ?ffnJ? Mr hi « h a PFeeiation of the efforts of the general manager (Mr Kirkcaldy), and of the skill and ability he has shown m the affairs of the company. -Mr A. Bathgate had much pleasure in seconding the adoption of -the report and balance-sheet. The accounts bespoke decided progress. A company of this kind • TtT ID .A S earli ? r y ears 6e likened to a child, which required great attention and nursing until it attained an age when itcould walk well and sturdily. That was now the position of the' company—a position that was most satisfactory He heartily congratulated the directors and management upon the results of the year Ihe General Manager, in returning thanks, said : Ihe continued growth of the business.necessarily increases the work and , responstbihty of the whole staff. I am pleased to testify to their loyalty and effi ciency and in this connection I must specially recognise the excellent services rendered by our actuary, Mr M'Arthur who is now busily engaged upon the quinquennial valuation. I would like to point out that, although an excellent increase was made in the premium income, it does not tuily represent the progress made by the company during the year. The true test of progress is the increase made in the collectable debit. The following figures, comparing the results of 1907 and 1908, are interesting:-In 1908 the new business charges increased by 52 per cent., the increase in .income by 80 per cent., and the increase u collectable debit bv 166 per T ;:°" r .. the fig»r«'for 1907. 'The value that for the first quarter of 1909 the increase in income is more than 100 per cent. of? 908. m corres P°nding quarter Dr Roberts was unanimously re-elected director, and Mr George Blyth auditor, [1125