National Mutual Life

Manawatu Times, Volume LV, Issue 6747, 4 January 1932, Page 7

National Mutual Life

t NEW BUSINESS STILL LARGE 1 1 HEAVY TAXATIONS ON INTEREST A sound financial position, despite general adverse conditions, is f inclosed r in tho report of the directors of tho j National Mutual Life Association of i Australasia Ltd., which was presented at the annual meeting of members on ■ 22nd. December. 193.1. Presenting the report, the chairman of directors (Sir John MaeFarlane) said:— “The affairs of established life ass suranee companies can be taken as a reliable barometer of the financial and j economic conditions of the communities l in which they do business. Their . members are a large proportion of tho , people, and they belong to all classes; ' the companies’ affairs are identical ’ with their affairs, everything that r affects their welfare affects the companies. it is to be expected, therefore, that the difficult conditions which have prevailed in all parts of the world during tho last year will somewhat check ; the progress of life assurance business. ' “The new business transacted by the. , association during the year consists of ' 15,849 policies, assuring £6,113,517. Tho average amount assured under the > 15,849 policies is only £3S7, which is I lower than the average for many years, i past. This is tho principal item in i the report which shows the effect of i the prevailing conditions, j “The amount paid to the policyholders during the year is £3,317,599, or £758,490 more than the amount 1 paid in 1930. Of this increase £410,216 ■ is due to the surrender of policies and i bonuses. The surrender of a policy is generally an indication of the monetary need of tho holder, and a largo increase in the amount paid might bo expected under present conditions, but it is gratifying to find that after allowing for some expeetional cases the ordinary surrenders are less than in the previous year. Four policies for large amounts—£s2o,ooo in all—one of them for £4oo,ooo—which had been taken out for special purposes, but owing to business developments were no longer required, were surrendered during the year. The amount paid in respect to tho surrender of these policies was £477,289, so that allowing for exceptional eases the amount paid this year for the surrender of policies and bonuses is £57,073 less than in 1930. This may bo taken as an indication that members realise the importance of retaining in spite of hard times the valuable investments that their policies represent. “Tho total expenses of managing the business of the association for tho year arc £50,837 less than they were in 1930. “Tho amount added to the funds as the result of the year ’s transactions is £1,037,046.” The retiring directors, Sir Robert Gibson, Sir David Orme Mason, Sir Brudenall White and Mr. Herbert Brookes were re-elected, and the auditors, Messrs. W. M. Jarvis and H. G. Tudehope, were re-appointed.*