NATIONAL MUTUAL LIFE.

New Zealand Herald, Volume LX, Issue 18298, 15 January 1923, Page 9

NATIONAL MUTUAL LIFE.

CHAIRMAN REVIEWS PROGRESS. .In his address,to members• at the 63rd % annual general; meeting- of : the National '% Mutual ;|Life Association of Australasia, Limited, held in Melbourne on .December ■'■ 20, '..< the chairman : of directors (Mr. : A»i--; ' ; drew; Newell) said :—- : { ; ' ' ■ ,'* Before I ask. you to adopt the report of the year's business I propose to submit : some { comparisons, which {will: enable you ..'^ i to appreciate the significance at the figures ',- ■ .in the report. I, ■.» Although the amount of new business .\ .« transacted, during the year was . about 10 i per cent, less than the amount for 1921, • our income was £204,310 greater than in :' 1921. The interest- received is equal to !. £5 8s 2d per cent, of the net funds. This { 1 is the highest rate we { have earned for •' many years. The death claims are. £27,880 { { less than they were in 1921, arid indeed,> they are- less than. they* have been in any r;' year since 1915, and 58 per cent, of the amount paid in 1919. As even in that year, of our worst experience the claims we're: below the expectation, and as we. have ' now nearly 40 pej::. cent, more at risk than We had then, ifc will be seen {that tho. rate ' of mortality among our members this year :'-.{' was remarkably low. The other payments ■ under : policies, which, consist of annuities, , : maturities, 'surrenders, etc., are £597,900, which is the largest amount (we have "ever paid in a year under this, head. .i ■ " . - EXPENSES. " The total expenses of obtaining and conducting the business as shown -in the . revenue account are £4138 greater.' than, - ', the expenses for 1921, but when you remember that while our expenses increased by this sum of £4138 our revenue in creased by £204,310, you will see t'na'fc the expenditure- is : fully' justified., S'ha }';■; amount added to the funds, 1 the result'-. of 'theyear's, ;transactions, £1,486,304, >is ' £143,348 more than the amount • added "■'■ in 1921; and is more than the total amount . added during, the.first 25 years of the association. So much for, the items: in the ; ', . revenue account., • *-.- "Theiprincipal;changes in our balance-' ;; sheet are:-7-l. An increase .' of ; £462-,5C0;: ' in ; Government; securities, which are {now the. principal item in our . assets. -Wo / have completed v the payments on ; Com- .■■■■'. monwealth bonds ■ for which we had subscribed ..at- September 30, 1921; the amount outstanding, £314,000, was shown; ,-;'■ •as a liability at that dak, and has now disappeared. 2; An increase of £195,800 in loans on mortgage. 3. An increase of • £205,000 in,loans' to >,members on the seem- = ( ity of their policies. 4. An increase of £95,000 in building society shares. 5. An increase of £32,000 in house property or ? association's premises, due to the purchase ' .' of a site^ibr; a, branch 'office in Durban. -'■!..■. -.; '■ < A SUCCESSFUL YEAR.' - '■ ,e ,:I have .sketched for you in 'very'-brief; , ,:, .outline the principal features of the re-: ir ; port, arid I think you will agree -with me : f when I; say; that we have had,a ;rery -i'successful year indeed—on y the wholes' ; ; best'we have; ever had. It is a matter ? for congratulation not .only. to ' the momburs, but to the whole community, whan ; the'association arid all similarassociations and societies are prosperous'. 1 believe that rdutual life assurance societies a) th* : most beheficient--institutions that-;' : the wife ,'■"' of man has ever devised. They are mono-;•'.•'. ments of {thrift, and unselfishness, and enable their wemliprs to make 'what could v not- be made by an;. other ..\ffleans~sure.-.:- ; .. ;; provision for times- of distress. • . - . , TOTAL FUNDS. j " As you know, the whole of our funds, amounting now to- over £16,500,000,. belong entirely to the members, who nura- '"■./ bered at the close of - the books over 157,000. There is no body of shareholders ' to derive any benefit from the ;traiisac--tions of. the' association, Our-members are / drawn from all classes of society, but, although we do trar«;a< fc what is called industrial the bulk of '0& mem ; bers : are people of comparatively small' • 'means. This is shown,' by the fat.C, "-that the " average ■ amount psid under the'27oo .claims during the yjaar is -e&s thsn £300. This is smaller thatf usual, but the average amount assured under new policies; issued, during the year, is less than £3 < -10.jTh6 .bringing together :of Th» hundred? ; : of :.. ;, thousands of small amounts {'contributed '. by the:members makes it possible use them for the general welfare, whereas if they had remained", in. the hands of th individual members. they would have beer. :; ; -practically unproductive. '.By -, the '/ihm- .'. ■ bina^ion r of these atoms into one mas-;;:, we .. have .been able.'tb-lendto'.the' : : Govenrojent'' '•'; '■■■? for national purposes over, £6,500,000.-[We- - have lent. to members and others On- the " security of freehold .'- property ', nearly ' ; ; ■~:• ; ; £5,250 5 000. Most or this amount if-erit ■ % on broad acres, and so has assisted;.';; de- • 'velopingrour pastoral and farmaig,nidus- = . tries. We have - lent '-.throtigb-" tho';-inediuta -.■ ■ • of" a building society ■ on ? carefully-selected. -. >• security over, £250,000, and have in this*way helped in the solution {-the., housing {{ problem. We have lent to members on t'ne : " security of their policies 1 oyer '{£1;500,000; '■•- Thus you' wiil 1 see that all classes; in the t , l ' community.: have derived - benfefif." from" bur '.-..;..'■ :ope«atiohs; and,it is not necessary f.ii ,; me. :to say anything more to prove..'.vh.it' A - e , are indeed a national institution. '-'■'• : BONU3 YEAR, . "Tic periodical', actuarial investigation, : which .will disclose; tlie net result of our operations for the -last: three -years, is , nearly;completed, -: and you will be called ■ ;together; early in the New Year to re- ; ceive the report. /I am able to .inform you that the bonuses that w|ll be declared will bo" very : satisfactory..'.'■; : 7T> ; ; _ —■■ •■'■ Members will no doubt foe pleased to leara- that bonuses will be declared annually in future.; ; ; - ■'.;■'.-.■,.'-'.- " Before I sit down I \7ould like to ac- : - i: knowledge {on behalf of the directors tha , valuable assistance we have : received in- . , ? the! administration of f ; he association's business from the agent! and officers at. ; I the different branches ana at head office/ "■ ; Without -their ldyalahd^ealous, services>. { we could not have {attained the .{spl'indid ; ■ ";.-- {position we now occupy." ,:..;;:;.;,.- ' ' ■ The report and .balance-sheet were J adopted,'; arid the retiring director,'. (Mr.:"-'' ; ; Andrew NeWeli) was re-elected.; ~: { /District Office 30, Shortland' Street. 'J.; J-.; {; ;Ke\v Harty, : District' Manager.—(Ad7fc.) ;, : ;