NATIONAL MUTUAL LIFE

Evening Star, Issue 17324, 12 April 1920, Page 7

NATIONAL MUTUAL LIFE

. "' GENERAL SHEETING. SATISFACTORY GROWTH OF BUSINESS. 'An extraordinary general meeting of members of the National Mutual Life Association of Ltd, was held at Melbourne on 34th ultimo. The report of the actuary, which was submitted by the directors.* stated : "In the last three years the growth of the association's business was verv satisfactory. The amount of new policies issued —£13.456.083 2s 6d—and the amount received for premiums- and interest—£s.Boß.2Bl 0s 3d—during the period, were much in excess of the corresponding amounts in any previous report. Although the claims under policies were exceptionally he'avy, £2,396,795 8s 3d was added to the assurance fund, which was thus increased to £12,524,368 15s. The directors have decided that the surplus of £789.487 15a shall he divided amongst the policy-holders entitled to participate. It will reversionary bonuses amounting to £1,450,000." THE CHAIRMAN'S SPEECH. The chairman of directors (Mr Andrew Newell). in moving the adoption of the rp.nnrt, said: Gentlemen—l will ask you to take the report of the directors on the 16th investigation of the affairs of the association, which you have in vour hands as rend, " ' Tfc contains a very brief statement of the results of our business for the last three years; the actuary's reaort. upon which it is based, with' the usual schedules civ-ins details of. the valuation of the liabilities, will be-circulated smrfnerst members as soon as we can zet them printed. But in order that tTie shmifi- ' f-ance of the results may be appreciated. I propose, if yon will allow me. to com- j pare some of them with the results shown in previous repjprts. NEW BUSINESS. n£ h !r-L ,J mou " fc of new business. ±.1.-..v06,089. exceeds what had he en our best record by £2,771,645. Before this tr-ennuim we had reached our r>he--t nomtnn 1910-13, which i s the last inve«tisration period that was free from 'the effects of war. During 1913-16 the total tell to the extent of over £743,000, and this seemed to be attributable to "the war conditions. But now, for the years 191519. when we might have expected tint the. influence of those conditions would be most-severely felt, there is a rise of over 3j millions. Our experience in this respect, is not singular, 'for most of th«companies are reporting an increased new'' business, particularly during the Inst vear ot the period. -The reasons for this" are not apparent. Pome have availed themselves of the facilities offered by life companies for subscribing to the ovar loans others have realised 'that a life policy "i* •the best way to provide for the higher probate duties; but these are not slifli-<-ient -to- account for the general increase i in business. Whatever the reason* may i be. it is a .rood thing for the community I that at a time when there is such urgent I necessity to husband our resource--people are recognising the benefits of life assurance. INTEREST. The amount of interest earned hv the funds, £1.704,555. is £376.100 more than the amount earned in 1913-16 : it is equal to the average rate of £5 3s Id per cent per annum. The rate for 1913-16 was £5 0s od per cent, per annum. The higher rate accounts for nearly £47.000 of'the total amount earned. The tot-.i receipts | /for the period were £5,808 981 or fmPJr 83 more t,l!m {he 'receipts for 1913-16. - Amongst our disbursements the most prominent item is the amount paid for claims under policies. This, I refret was increased to £1,581.108, or £5§2,502 'more than the amount paid in the last triennium. Of this amount no less than £455.332 represents war claims—a term which has become too familiar, but we hope it will now disappear— and £232.458 was due to deaths from the influenza epidemic, the effects of which were actually'more severe for the period of the visitation than the effects of the war for anv period of similar duration. The total 1 of these two amounts, £677.790, is equal to 42 per cent, of the total claims.' If they were deducted, what we may call the normal claims would be onlv some £9.0C0 more than those for 1913-16. The expense ratios' I of both new and renewal business are lower, and although the new business is notionly so much larger in itself, but is a larger proportion of the total than it was in the last period, the acrgregrate expense ratio also is lower. The reduction of the ratios is equivalent to a saving of nearlv £51,000. SURPLUS. The net result of our transactions in the three year s is an-addition to the assurance fund of £2,296,795, which is some £269.000 more than the amount added in 1913-16. The surplus available for distribution, £789.487, is £29.954 more than the amount distributed three years ago; but ass the number of members entitled to participate is so much larger, the bonus will in some cases be a little less than the amount allotted at the last distribution. But when we consider the extraordinarily heavy claims that have been met, and the singularly unfavorable conditions that have prevailed durinsr the last five years, the results disclosed in the report are very gratifying, and arc a tribute to the good work of the officers of the association at head office and the branches, including our field staff, through whose unceasing efforts the. large new business has ' been obtained. This finishes my comments on the figures that are now before you, but before I conclude may I indulge in some, reminiscences, and give you some facts resarding the history of the association and the work it has accomplished? The report of the first investigation of the association, which was made on 30th September, 1874, five years after its fcundation, showed that the income for the five years was £31,124: the funds at the end of the period amounted to £15,464, and £3,098 was distributed amongst the members. These figures look small when compared with those now presented, but the work that was then being done was of the utmost importance;; our founders Were men of wide vision, and they were laying the foundation which made it possible to build safely the structure that we have today. PERSONAL. T been me a member of the board in 1880, when the association was in its eleventh year: beginning to feel its strength, it had then begun to extend its I activities by the establishment of branches; its annual income was something over £65,000, and its funds had reached the respectable sum of £IOO.OOO. The policy of expansion which had been adopted produced #n immediate effect; at the. end of three years the income was £144.500, and the funds were £304,000; at the end of ten years the income v;as £269,000. and the funds had reached £1.000,000. and .so the growth has continued until now, at the end of its 50th year—the 40th year of my directorshiri— J the association is amongst the leading' institutions of the Empire, with an annuai income of £2.116,000, and funds exceedjing £12,600,009. Since its foundation it has paid in death cL aims, under 17,914 J policies, the sum of £6,040,061; to members whose policies have matured it has paid £3,691.306, and to annuitants £455,219. The cash surpluses that have been divided amongst* the members amount to £4,019,003. These figures indicate the important place the association occupies in the social organism; and as its latest achievements are its best, wc are justified in looking v.yth hope and confidence to a still greater extension of its usefulness. The motion for the adoption of the re port was seconded by Mr Walter Madden, and agreed to. It is expected that the bonus certificates will be issued to members in the Course of a few days. District Office, Liverpool street. W. ANDERSON, (12320JT* District Manager.