SOUTHERN CROSS ASSURANCE

Northern Advocate, 10 January 1938, Page 3

SOUTHERN CROSS ASSURANCE

Review of Year’s Operations

In presenting the sixteenth annual report and balancesheet of the Southern Cross Assurance Company. Limited, at the animal meeting of shareholders, the chairman, Dr. Donald McLean, said THAT HE HAD GREAT PLEASURE IN BRINGING .BEFORE SIIARELIOTjDEHS: ATTENTION THE IMPROVED POSITION OJf THE COMPANY SINCE THE REORGANISATION OF THE HOARD AND CHANGE OF M A NA OEM ENT.

“Your new managing director, A. Aubrey, Esq.. F.A.1.5.. F.C.C.S.. wholeheartedly supported by both the outside and indoor staffs, has been responsible for all-round improved returns in every department." Dr. McLean said. “Your attention is drawn to the fol 1 owing impro vcmen 1 s:“NEW BUSINESS IN THE ORDINARY DEPARTMENT HAS INCREASED BY 30 PER CENT. FROM £604,043/10/- TO £790.280/15/-. “As to the premium income in the ordinary department, for some years past the company had been experiencing a decrease in its premium income; however, during the year under review this ceased, and an increase was shown, as follows:—New business and renewals —1934, decrease £8697; 1935, decrease £10,332; 1936, decrease £10,237; 1937, increase £3912. “From this you will see that a great change has occurred in this particular item, and from the results of (lie current year to date it appears certain that even greater improvement will be shown in the next returns to be submitted.

holders, both ordinary and accident departments, which now amount to £697.078, since the inception of the company.

“It is pleasing to report that the freehold properties arc included in the accounts at a greatly reduced figure as compared with their present market value. Substantial reserves have been created against freehold properties. debentures, and. other securities, and as the net interest still continues to improve it clearly shows that the directors are carefully watching ail investments.

“The results of the third quinquennial investigation have already been made known to you, and it was disclosed that the company for the first time showed a surplus of funds over liabilities. The actuary agmn reports that the company has continued to make progress, and its actuarial position has been maintained. Life assurance. special actuarial reserve, and accident funds arc in excess of ail policy liabilities.

“The directors arc satisfied with the steady progress that has been shown m the Union of South Africa, and congratulate the chairman there, Professor M. R. Drennan, M.A., M. 8., F.R.C.S.E.. all local directors, and the general manager. G. A. Vender. Esq., and his staff.

“In the accident department premium income increased by 18 per cent.

“THE NET INTEREST RATE INCREASED FROM £4 11 4 PER CENT. TO £4/13/2 PER CENT. It R assumed that the company will earn £4 per cent, on its invested funds, so the actual return under this particular item is a very satisfactory one indeed. Since June 30. 1934. (he interest earned has increased from £19.603 to £30.008.

The Hen. Vincent A. Ward, M.L.C., local director in New Zealand, pays great attention to (lie affairs of the' company, and the directors wish to 1 express their appreciation of his i efforts, and also to thank Mr. C. J. ! Pugsley, the manager there, who con-; tinues to obtain satisfactory results. “It has been a pleasure for me to work with my co-directors on the head office board, and I can assure shareholders that all care and attention is given to every matter appertaining to the company's welfare. "f wish to convey to the members of the staff of the company, both in-I side and outside, the board’s apprecia- i lion of the good work performed bv I them. " '

“Office salaries and managerial expenses have been reduced, although the business of the company has increased. When an increase in new business written is shown, the expenses of obtaining such an increase are generally very heavy, but on this occasion, although the new business increased by over 30 per cent., the cost ratio was practically (he same. Claims —Ordinary Dept.

“Death claims show a substantial decrease as compared with the previous year, and actualy were only 60.6 per cent, of the expectancy. Every care is exercised by your directors in the selection of lives assured. "As was expected, payments in respect to endowment maturities increased from £ ;1480 16 - to £32,134 1/8. but provision had been m .de in the funds for tins. Claims under this heading will increase from now on “That the company lias proved itself of value to the insuring public is shown by its payments to policy'

"In conclusion.” Dr. McLean added. “and judging from the further pro-J gross that has been made since the commencement of the present finan- ■ cial year, I have tie hesitation in in- I forming shareholders that the position ■ of the company will keep improving 1 from now on/' Dr. D. McLean and John Iv, Carman, Eai. retiring directors, and Messrs'’ Anderson,. Hodgson and Lithgow. re- i tiring auditors, offered themselves for! re-election. No other nominations hav- 1 ing been received, they, were con-i sequently elected unopposed.—Pß. A. i