NATIONAL MUTUAL LIFE ASSOCIATION

Manawatu Times, Volume LIV, Issue 6815, 19 January 1929, Page 10

NATIONAL MUTUAL LIFE ASSOCIATION

Successful Year Reported

NEW BUSINESS RECORD

The annual general meeting of the National Mutual Life Association of Australasia Ltd., was held at the association’s offices, Collins street, yesterday. The chairman of directors (Sir J. M'Farland) presided. In presenting the annual report and balance-sheet, the chairman said*‘‘Before dealing with the ordinary business of the meeting, I have to refer with great Tegret to the loss the association has suffered since our last meeting through the death of two members of the board. Mr. Stevenson Fraser had been with ns for less than a year. His intimato knowledge of pastoral affairs made him a most useful director. Mr. George Swinburne was an old friend of the association, and he always took a keen interest in its welfare. Not only at head office, but also at the branches which he visited, his friendliness and gpthusiasm were a great encouragement to our officers. Hi# wide experience and shrewd judgment were used unreservedly in the associa tion’s interests.

“The members are to be congratulated on our having obtained the services of Mr. Herbert Brookes and Sir Brudenell White to fill the vacancies on the board. A Year of Progress. “The Tcport which we present today shows that the association made very good progress during the past year. “We issued new policies assuring £9,807,845. This exceeds by more than a million and a half the largestamount 'issued in any previous year. Now business is essential to tho well-being of a life company; it enables us to introduce selected young blood into tho body iof our members and thus to keep it healthy and vigorous. We have shown a practically continuous increase in the amount of new business in each of our annual reports. Ten years ago the amount was £4,320,000; now it is over. £9,800,000. This large increase is not peculiar to our association. Throughout the English-speaking wfcrld people seem to bo awakening to the benefits of life assurance, which has been.described as the only means that has yet been devised whereby a man may become a capitalist immediately. It is estimated that during the last 20 years the amount of insurance in force per head of the population has been trebled.

New Business. “But a large new business is not in itself proof of prosperity in a life company. It must be shown that the now business is not merely ephemeral, but that it is being renewed from year to year. Our record shows that ten years ago the premium income was £1,358,000; this year it is £3,381,000. “It must be shown also that the business has been conducted economically, that the lives assured have been carefully selected, and that the funds have been properly invested. “In the report now submitted you will find information on all these points. Allowing for the cost of the new lousiness, which is generally assumed to be ten times the cost of renewal business, the ratio of. expenses to our premium income during the year is. 7.07 per cent; Our mortality experiment has been very favourable., The mean amount of risk during: tho year was £74,968,000, and the expected death claims according to the tables of mortality on which our premiums are based amounted to £1,265,000; our actual claims were £732,784, or . only 57.9 per cent, of Kho amount expected and provided for. Interest on the invested funds, after deducting taxes, amounted to £1,549,048 which is equal to £5 10s lid per cent! of tho mean funds, or £2 0s lid per cent, more than the rate of interest assumed on our calculations. , L 3

Funds Strengthened. “The assurance fund was increased as the result of the year’s operation by £2,441)176, and stood at the end of the year at £29,147,329. “The'manner in which the fund is invested is shown in the balance-sheet. You will seo that our holding of Government and municipal securities was increased by some £171,000, and now amounts to £11,204,000. Loans on mortgage were increased by- £BBO,OOO, and loans' to members on tho security of their policies and collateral security were increased by , £1,015,000. These are the principal changes in our investments.

“I think you will agree, with mo when I say that the year has been a most successful one in every respect but tho association is so firmly established that wo look upon the. past results as only an indication of still greater th\gs to come. When we have recovered from the effects of the catastrophe which fell upon the world in 1914, still further developments in the business of life assurance may be expected. There are many fields still unexplored, or only partially, developed. The system of group insurance is still in its infancy in Australia, and there are great possibilities in this class of business. . It will help to introduce a new spirit of goodwill into our industrial relations and will have au important influence on our economis conditions.

‘ Tho unique character of mutual lif* assurance business as conducted by tht association and other mutual companies is not appreciated by our politicians. Our sole object is to supply the benefits of insurance to our members at actual cost price. No profit accrues to anybody from our transactions, and yet our needy Governments'arc seeking to tax us as if wo wero trading companies. In its attempts to find a basil for taxation the Federal Government pioposcs to tax us more severely than an ordinary trading company. It intends to tax us on our interest, which is an essential, part of our revenue It is equivalent to taxing a trader on his turnover. The Federal tax is equivalent to a deduction of about £1,090.-

000 per annum ffbm the amount assured under policies in Australia. Our claim for exemption is very strong, and we : do not despair of being able to convince our politicians; of tho error of their ways. Sound Management. "I desiro to express our best thanks to the staff for its loyal service during the year, and especially to the new business men, who have contributed largely to the year’s results. This meeting to-day is unique in that wo have with us Mr. H. W. Meyers, our manager in London, and Mr. N. V. de Kock, who is in charge of the assoliation’s business in Capetown. On my last visit to England I was proud, as an Australian, to see the position the association held alongside the largo English companies and to find that we can so successfully compete with them. This is largely due to the efforts of Mr. Meyers. Mr. de Kock ha 3 been in charge in Capetown only six years, but in that period he has doubled the business there. “Certificates for bonuses added to policies as at 30th September, which represent a return to the members of the amount of premium paid during tli3 year in excess of the amount which was required to provide the benefits under their policies, will be distributed on the Ist March next.” Tho report and balance-sheet wero adopted on the motion of the chairman, seconded , by Mr. T. A. Kumsley. The retiring directors, Sir Robert Gibson, Sir D. Ormc Masson, Sir Brudnell White, and Mr. Herbert Brookes, and the retiring auditors, Messrs. W. M'. Jarvie and H. C. Tudehope, wore reelected. New Zealand directors: O. S. Watkins, Esq., J.P., J. M. A. Ilott, Esq., J.P., W. S. Bennett, Esq.; General Manager for New Zealand, F. W. Nicholson, J.P. District Office, Bangitikei Street, W. Grey, District Manager. Dalgety & Co., New Business Agents. Travelling Agents throughout the district.* J -