THE COLONIAL MUTUAL LIFE ASSURANCE SOCIETY, LIMITED.

Lyttelton Times, Volume XCIV, Issue 10786, 25 October 1895, Page 2

THE COLONIAL MUTUAL LIFE ASSURANCE SOCIETY, LIMITED.

NARRATIVE OF THE PROGRESS OF THE SOCIETY. The presentation of the fourth quinquennial report regarding the actuarial investigation into the affairs of the society affords an opportunity to bring before the members a brief retrospect of tbe history of its progress. Establishment of the Soeiety.--The society was established in 1873 in Melbourne, and almost simultaneously offices were opened iu each of the centres of Australia— Sydney, Brisbane, Adelaide, Perth and also in Hobart. In 1883 offices were opened in the provincial capitals of New Zealand, viz., Auckland, Christchurch, Dunedin and Wellington; a branch office had in the meantime been opened in Fiji. In 1883 the organisation was also extended to South Africa, and an office was opened in Cape Town, followed in 1885 by an office in Durban, and iu 1890 by an office iu Johannesburg. Extension to Great Britain and Ireland was made in 188 G, with offices in London at 33, Poultry, .nearly opposite the Mansion House. Since then district offices have been established at Aberdeen, Belfast, Birmingham, Bradford, Bristol, Cardiff, Cork, Dublin, Dundee,Edinburgh, Glasgow, Hull, Liverpool, Manchester, Newcastle, Nottingham, Sheffield and Stoke-on-Trent. The figures of the society for the whole of the twenty-one years of its existence have been collated for the purpose of exhibiting to the members what has been done, and the extent to which they have benefited. Policies Issued—During the twenty-one years there have been issued 63,447 policies, for .£21,743,351, whilst the premiums received during the period mentioned have amounted to no less a sum than £3,619,521, which, with interest amounting to £766,017, makes the total receipts for the period £4,385,538, Amounts Paid to Policy - holders.— During the period under review the sum paid to policy-holders or their representatives under claims has amounted ■ to £1,089,350, in addition to which the Society has paid in the shape of surrenders, annuities and bonuses in cash a further sum of £316,601, representing in all £1,405,951 paid to policy-holders or their representatives during the twentyone years. In connection with the item “ surrenders,” it is appropriate to refer to the great benefit that has been derived by members as tbe result of the provision attaching to policies in the Colonial Mutual, whereby, in the event of non-payment of premium, they are maintained in force lor the full amount assured so long as there is enough surrender value to pay even one quarter’s premium. By the operation of this provision, more than 15,000 policies have been kept ia force when payment of premiums has been omitted through neglect or want of means, and all of which would under conditions formerly attaching to life policies have become void. To illustrate forcibly the beneficent effect of the provision referred to, it may be mentioned that in some one hundred cases policies have become claims whilst being sustained iu force out of surrender value in the , manner alluded to, and the amounts have been paid to tbe representatives of the policyholders, notwithstanding the failure to pay premiums. Under the old condition of things, in every one of these hundred cases the representatives of the deceased

would have been deprived o£ all the benefits attaching to the policies.

The last quinquennium has embraced a period which has been noted in all parts of the world as a time of financial pressure and general depression. It hae consequently been a time during which many holders of life policies must have experienced difficulty in paying their premiums. In the case of policy-holders of this society, much assistance has been given owing to the regulation regarding the automatic application of the surrender value above referred to and owing to the facilities granted to policy-holders for obtaining loans on the securities of their policies. Even with thesa aids it must have been necessary for many policyholders to make sacrifices in order to produce such a record , of perseverance and constancy as is evidenced by the society’s figures, showing at the end of the quinquennium a membership roll of nearly 33,000, with a total insurance in force of over ten millions and a half. It may further be mentioned that of the bonuses added to policies at the end of the preceding quinquennium there remained in force at the end of 1894, attached to the policies, no leas than 75 per cent of the total bonuses added in 1889. It would be difficult to find a more convincing proof then this of the confidence which the members have in the society. As announced in the Directors’ report, the cash surplus amounts to £223,198 7s 10d, making with intermediate bonuses paid during the quinquennium a total of .£233,870 9s lOd. The funds at the end of .the previous quinquennium amounted to £1,050,573 11a 9d. At the end of the quinquennium now under review they amounted to i 11,793,028 19s lOd, an increase for the period of over 70 per cent. Figures such as these can be allowed to speak for themselves. Investment of the funds of life assurance institutions is always a matter demanding careful and anxious attention on the part of the Directors. The events of the past five years have certainly not lessened the need for exercising these qualities. At the close of the quinquennial period under review the Directors caused a searching and complete investigation to be made into each and all of the investments of the society. After careful review, and in which they were aided by

expert assistanco, they decided as announced in their report to set aside a sum of £51,311 7s lOd, which they regard as ample provision for any contingency that can possibly arise.

It has been, and is, the practice of the society to avoid and discourage comparisons in any way disparaging N otber offices, and it may be that owing to the policy adopted in this regard there _ are some members who do not realise how rapid and well-sustained has been the progress of the Colonial Mutual in comparison with other institutions of a cognate character. As a simple way of bringing home this fact, a table is hereto appended showing the total business transacted by each other Australian V life office during the first twanty-one yeara of, its existence eider by side .Jwith the business of this society, figures indicate that the Colonial Mutual has transacted a much larger : busipeas than any of the others in the first twahtyone years}_ and, while by refraining frqm mentioning the names of the other offices, the policy referred to is maintained, it is felt to be due to the members themselves that the simple fact should ba recorded at this so important an epoch in the society’s existence. The Directors may be pardoned for feeling some degree of pride in being in the position to. announce that this the youngest office is able on completing its twenty-first year to show a record of business 73 per cent more than the office which transacted the next largest business, and over two and a quarter times as much as the average amount of all the other offices, whilst in premiums and interest the Colonial Mutual has, during its first twenty-one years, received more than in a similar period of their existence any other two of the Australian offices put together. Business transacted by Australian Life Offices daring the first twenty-one years of their existence ;

Office. Sum assured. Total-receipts. £ £ A 5,690,072 1,172,506 B 9,022,195 1,730,040 C 12,526,273 2,129,214 ' 1) 8,726,358 1,751,325 ■ E 11,177,866. 2,023;4sn . The Colonial Mutual 21,743,351 4,355,533