LIFE INSURANCE PROGRESS

Hawera Star, Volume XLVIII, 10 January 1925, Page 6

LIFE INSURANCE PROGRESS

NATIONAL MUTUAL'S INCREASE. VALUE OF THE MUTUAL LIFE COMPANIES. A substantial increase in the past vear’s business was reporLcd at the 55th annual, general meeting of the National Mutual Life Association of Australasia. Ltd., held at Melbourne on 19th December. Since the company commenced business in 1869 over £14,829,099 has been paid in claims, and the assurance funds at 30th September amounted to £20,365,160.

Mr. Andrew Newall. chairman, in moving the adoption of the annual report, said : ••The report which we submit to you to-day shows that the rate of progress of the association has been well maintained during the past year. New Business, £6,279,105. ‘•The amount of new business transacted, £6.279,105, is £394,319 greater than the amount transacted"during the previous year. “If wo deduct from the 1923 receipts the amount that was received in connection with the re-assurance of the Australasian business of the Equitable Life Assurance Society of the United States; the amount of premiums is £184,931 greater than the amount received in that year; the interest received is £84,900 greater, and the total income. £3,260,737, is £270,072 greater. The interest after deducting £51,090 paid rates and taxes is equal to £5 9s 4d pci - emit, of the mean amount of the assurance fund during the year. This rate is 8d per cent, less than the rate obtained in 1923; in that year wo received an extra amount of interest owing to the premature redemption ol a, parcel of Government debentures that we had purchased. The amount of claims that were paid or became payable through the death of policy holders during the year, £507.316, was £18,923 less than the amount shown in our 1923 accounts. In view of the fact that the amount at risk had been largely increased, this indicates a very favourable rate of mortality amongst our members. Other payments to members principally on account of policies that had matured amounted to £953,167, making the total payments under policies £1,460,483, of which £200,769 represents payments under Equitable policies.

Lower Expenses. Notwithstanding the large amount of new business transacted, the total expenses are a lower ratio of the income than they were in 1923. The principal changes during the year in the Association’s investments, as shown in the balance-sheet, are an increase of £735,376 in Government securities, which now amount to £8,389,961 ; in municipal and other debentures of £239,036; in loans on mortgage of £309,079, and of loans' on the association’s policies of £413,704. For a considerable proportion of this last item wc hold freehold property as collateral security. Cash on deposit, £1.137,196, is £438,726 greater than it was a ye*' r ago. This is due principally to a temporary deposit, with one of tile Australain Governments. Tlie total of the assets side of the balance-sheet is £21,470,155, and deducting items on the liabilities side, there remains an assurance fund of £20,365.160. The growth of life insurance funds has excited the cupidity of the politicians who have not yet been made to understand the nature of these funds and the character of our business. Here is a large amount of money, let us tax it, they say, and so we have been called upon to pay over £51,000 ■out of this year’s revenue. Fro,in the beginning wc have paid over £450.(X10 in this way. The fact that the whole of Hie funds of a miitini! company belong to its policy-holders, that the funds are used solely for their benefit, and there is no body of shareholders who can draw anv advantage therefrom, is .overlooked.

Policies in Force. At the close of the hooks we had 169.589 policies in force, the average amount assured was £330, and it is the holders of those policies who are actually taxed individually when a levy is made upon the- association’s funds. This is, of course, in addition to any tax the policy-holders may have to pay in any other capacity than as a- policyholder. An insurance authority has claimed I recently that mutual life companies are amongst the most important educational institutions of the present time, and I think he is right. They teach the lessons of individual resonsibility, self-respect and good citizenship; they show* in » very practical way what can be attained by combining for the common good. Our policy-holders belong to’ all classes in the community, and each gets from the association the exact value of what he contributes, no more and no less. The total amount of the declared assets in Australia of companies, mostly mutual, transacting life assurance business, exceeds £80,000,(KM), and practically the whole of this amount is being used in the development of the country. In these days of Government subsidies and grants fur the encouragement of all sorts of enterprises, it is not too much in ask. I think, that wo at least .should not bo taxed. Tlic position of onr association is an extremely strong one, and its business has grown to very large dimensions. I think J am rigid in saying that weave now the largest British Life Office established during the last 55 years. The practice of alloting bonuses annually, which wc adopted two years ago, lias gievn satisfaction to our members. The certificates for the year just closed will, be distributed on Ist March next. The motion was seconded bv the Hon. W alter Maddon and carried unanimously The three retiring directors, the Hon. Walter Madden, ’Mr. Edward Trencharil, and the Hon. George Swinburne, were re-elected, and Messrs. H. 33. Tudeho.pe and Mr. M. J'airvie were again elected as auditors.—.l. R. M. Stewart,, District Manager.