A.M.P. SOCIETY

Grey River Argus, 30 April 1938, Page 8

A.M.P. SOCIETY

Investigation Report The annual investigation report by the actuary to the Board of Director of the Australian Mutual Provident Society, is as follows: — Gentlemen. —I have now the pleasure to submit the result of my valuation of the liabilities of the Society under its policy contracts as at 31st December, 1937. The rate of interest realised was £4 7s 5d per cent, on the mean funds (including Fidelity Guarantee Fund, Investment and Contingencies Reserve Funds and Provision for Accrued Taxation) and the effective rate (that is the interest on the mean funds less half the year’s interest) was £4 9s 4d per cent. In the Ordinary Department, commission, expenses of management, and taxes absorbed respectively 6.47, 7.64 and 3.82 (a total of 17.93) per cent, of the premium receipts, excluding purchase money for annuities, the corresponding percentages for 1936 being respectively 6.17, 7.85 and 3.62 (a total of 17.64) Taken as a percentage of the total income the Ordinary Department expenses as in the above paragraph, were 4.06, 4.79 and 2.41 respectively (a total of 11.26) for 1937, the corresponding percentages for 1936 being 3.87, 4.92 and 2.27 (a total of 11.06).

In the Industrial Department, commission, expenses of management,' and taxes absorbed respectively 18.87, 10.99 and 1.69 (a total of 31.55) per cent, of the premium receipts, excluding purchase money for annuities, the corresponding percentages for 1936 being respectively 18.16, 10.08 and 1.79 ( a total of 30.03). Taken as a percentage of the total income the Industrial Department expenses, as above, were 14.19, 8.27 and 1.27 respectively (a total og 23.73) for 1937, the corresponding percentages for 1936 being 13.-57, 7.53 and 1.34 (a total of 22.44). In the Ordinary Department the Claims by Death for the year amounted to £2,807,623 12s Bd, after deduction of re-assurances. This amount is 52 per cent, of that expected from the tables of mortality used in the valuation.

The stability of the business has been well maintained, over 46 per cent, of the total policies issued in' the Ordinary Department and over 51 per cent, of those issued In the liabilities I have employed the same force. In the valuation of the policy | Industrial Department bein" still in tables of mortality as were adopted last year. Policies issued as Whole Life Assurances, being now payable on attainment of age 95, have been valued as Endowment Assurances maturing at that age. The reserve | to provide for payment of claims onproof of disability consists of the pre-| miums credited with interest at 3 perj cent., less expenses. There have been no claims. The valuation balance sheet of the Ordinary Department shows a divisible surplus of £2,944,882 18s Bd., and that of the Industrial Department a divisible surplus of £327,884 12s 9d. I recommend that these amounts be now divided.

The amount of £2,944,882 18s Bd, now recommended to be divided in | the Ordinary Department, together with £31,382 4s Bd. paid in Interim bonuses during the year, represents on the average, 42.7 per cent, of the premiums received during the year on participating policies. The cash bonuses allotted by the Society since its inception now amount to 747 7s lOd in the Ordinary Department, and £3,744,791 Ils 9d in the Industrial Department. I have now the pleasure to certify,, in accordance with by-law 53, "that, according to the most correct calculation of which the case will admit, the interests of all the contributors to the Society,! and of persons having ...claims thereon] in possession or expectancy, are by, the nronosed scheme of division or distribution fairly dealt with and se-

cured. I have the honour to be, Gentlemen, Your obedient ServaiiL C. A. Elliott, (Actuary), Sydney, 23rd. March 1938. ' ' J