The Provident Life Assurance Coy., Ltd.

Northern Advocate, 3 April 1941, Page 2

The Provident Life Assurance Coy., Ltd.

The annual general meeting of the Provident Life Assurance Company, Limited, was held at the head office of the company, Dunedin, on Friday, March 28, 1941, Mr Andrew Todd being in the chair. The report showed that the new business for the year amounted to £938,124, while the net income had increased by £7164 5/5 and now amounted to £376,545 11/9. The sum ol £155,795 had been paid in claims during the year, and an addition of £103,148 13/- to the funds brought their total at the end of the year to £1,827,876 1/-. In reviewing the results of the year the chairman stated that, contrary to expectations, claims arising from the war had been light, but the number of trained members of the staff who had been called up for service at home and abroad created the main problem with which they had to deal. New business had naturally suffered through the war as so many men of insurable age were on active service; in the ordinary branch, however, the drop in new business was less than 6 per cent, of the previous year’s total. Interest receipts had increased by £3360, but the general fall in the rates of interest obtainable on gilt edged securities, together with higher taxation, had reduced the net effective rate yielded by the funds by nearly 1/6 per cent.

While the income had increased, there had been a most satisfactory reduction in the outgo. Claims and surrenders were less by some £15,000, due chiefly to a reduction of £IO,OOO in claims by maturity. Expenses were also lower in all departments and the ratio to premium income had been reduced by 1 per cent, in the ordinary branch and 0.8 per cent, in the industrial branch: as a result the addition to the funds was larger than had been made in any previous year. The chairman expressed appreciation for the work of the staff during a year of considerable difficulty and after the reelection of directors and auditors the meeting closed.