T. AND G. MUTUAL LIFE SOCIETY.

New Zealand Herald, Volume LXIII, Issue 19508, 11 December 1926, Page 8

T. AND G. MUTUAL LIFE SOCIETY.

ANNUAL MEETING. SUBSTANTIAL PROGRESS. MELBOURNE, Dec. 10. The annual meeting of the Australasian Temperance and General Mutual Life Assurance Society was held at the head office of the society this afternoon. The chairman and managing director, Mr. J. T. Thompson, who presided, said: — 1 have very great pleasure in submitting: to you the accounts for the past year which completes the first 50 years of the society's existence. I do not propose to dwell for any length of time on the society's operations during that period. A mutual society without capital subscribed by shareholders can only be developed gradually in the early stages of its operations, rely at first entirely on a small premium revenue with interest accumulations thereon to build up its organisation. As only a certain percentage of its income can be spent with perfect safety it follows that the building tip of a mutual life society is necessarily comparatively slow in the early years and requires the exercise' of patience, wisdom and foresight by its founders. We aro indebted to the pioneer directors of this society for the solid foundation laid by them during the early years of this great societv which now stands in the forefront of mutual life assurance societies in Australia. Unlike other parts of the world Australia is fortunate in having such splendid mutual societies, all thoroughly well established with onlv policyholders to participate in the profits of and the service rendered by the institutions of thrift. Your directors are proud of the report and balance-sheet which are now before you. To have reached such figures in the fiftieth year of thy society's existence must bo a source of gratification to all policyholders. If you will now kindly turn your attention to the ac-. counts I will, "as briefly as possible, draw your attention to the more salient features. »

Dealing first with the NEW BUSINESS, you will note another record for the society. It consisted of 139,607 policies, assuring £10.471.329. of which 20,573 policies, assuring. -£5,717,574 were issued in the ordinary department and' 119,034 policies, assuring £5,753,748. in the industrial department. No society or company in Australia or New Zealand has vet attained such a record of new Business writing its fiftieth year, and, despite tliis increased new business, and the necessarily attendant increased cost, I am glad to he able to report that the expense ratio shows a satisfactory reduction on last year. As a proof of the society's popularity and evidence of the satisfaction that it is giving to its policyholders, I can tell yon that, out of the total of 139,607 policies, no fewer than 41,559 or 30 pet cent.., were issued on lives already assured with the society.

The TOTAL INCOME for the year was £2.701,156, an increase of £285.959: the largest increase yet made. This income is comprised of (a) premiums in the ordinary department, £820.948: (M premiums in the industrial department, £1.364.369; and fc) interest, £515.839. On the opposite side of tlje revenue account the item, PAYMENTS 10 POLICYHOLDERS, calls for a passing remark. Of the total £778,525 no loss than £333,964 was paid out for endowments matured. This item must necessarily increase with tho increasing age of the society as move and more policies become due for payment. Tho death claims, £206,335. althoucrh_ heavier than last year, are yet well within the actunal expectation. The society exists to pnv claims and they naturally increase with the society's growth. The ASSURANCE FUNDS have increased by £1.232,586, again the largest increase ever made by the society, and now amount to £9,902,987. The fidelity and contingency funds have increased by £15,000, arising from capital profits made on the realisation of certain securities during the year. Against the various funds and other liabilities, ASSETS are held totalling £10,354,583. Your board has pursued the same prudent policy of investing tho society s asseta in gilt-edged securities and no less than £8,262,380, or almost 80 per cent., is in the form of Government and municipal securities. Although termed " securities," most of these represent) direct loans to the Commonwealth, New Zealand, and State Governments and also to various municipal and other public bodies in Australia and New. Zealand. When lent out in this way the society's fundsi, in addition to earning interest for the society's policyholders, are helping to develop the great Commonwealth of Australia and the Dominion of New Zealand. When I addressed you last year I directed vour attention to the society's FREEHOLD PREMISES, and told you of the necessity for enlarged homes for our Overgrowing staff, due to our rapidly increasing business. To cope with this your board has entered into contracts for the erection of a fine eight-stor'eyed building at the corner of Lambton Quav and Grey Street, Wellington, as a chief office for New Zealand, and also for the erection of a new head office of 10 storeys in Melbourne at the corner of Collins and Russell Streets. These sites were acquired some time ago in anticipation of our meeds at prices much below present market values. Generally, our buildings are (showing results to the entire satisfaction of the board. The INTEREST RATE has increased by I:? Id per cent, to £5 lis Id per cent, on the mean funds for the year, which is entirely satisfactory in view of the gilt-edged nature of the society's investments. ,

The ACTUARY'S REPORT shows J.hat the reserves which have been built up to meet the future claims have been assessed on the same conservative basest as hitherto; no safer bases have been adopted by any other society or company in Australia. A strong valuation makes for stability, and portrays the true financial position of any society. Even with such a strong valuation as that adopted by the society, a record surplus of' £336,304 is disclosed, *

In the ordinary department, the actuary again recommends increasing the bonus scale for whole life and endowment assurance policies, which will enable the society to maintain its rank among the best bonus-earning offices in the Southern Hemisphere. A further provision is made for old policyholders by granting all those who have attained the age of 80 years, and whose policies have been 25 years in force, the privilege of a fully paid-up policy for the full amount assured, free of all future premiums despite the fact that their contracts call for payment throughout the whole of life.

,In the industrial department, the previous liberal scale has been increased bv extending the maximum bonus to 40 weeks' premiums in the case of policies over 30 years in force. Measuring our bonus results *in this department as a percentage of the sum assured. I can lid' you that on all' participating industrial department policies which matured last year, total bonuses were paid which averaged £2 12s per £IOO per annum for the whole period during which bonuses were allotted to such policies. These excellent results should be very gratifying to all participants, and compare favourably with those of any other societv in the world. SERVICES TO POLICYHOLDERS.— Last year I alluded to some of the services voluntarily rendered to policyholders. which wore not provided for in their contracts, but which have been of treat help to them. The Lien Revival System, which was first introduced into Australia and New Zealand by our society. has to its credit the I>nn«*incr back into benefit of no less than 28.000 policies during the past year. Such a system helps the policyholder who, falling into arrears through causes over which he has no control, such as unemployment or sickness in the home, wouM otherwise stand to lose entirely th« very necessary protection of his assurance.

The nursing service has grown. still 1 further, 15,000 visits being paid during last, year—one policyholder in every 94 calling for the services of the nurses whero - they are available; the total number of visits paid since the inception of the service is now over 106,000. The free periodical medical examination is being availed of by policyholders in the ordinary department, and several instances have come under our notice where examination has disclosed some defect capable of being remedied by prompt medical attention.

The cost of these services is willingly spent as the gain to the society, thoi.ieh indirect, is distinctly noticeable'; in fact we believe that our policyholders are recouped many times over. The prosperity of the society has enabled the board to render these services, and wc trust that circumstances will ahvavs permit their continuance.

I have now dealt briefly with the main features of the report, and I think you will agree with me that I am justified in the statement that our society is one of the most progressive life assurance offices in the British Empire. I do not think I can bo accused of undue optimism when I say that our prospects have never been brighter. We can - certaiulv look forward to the future with the utmost confidence. Before 1 conclude, I would like to mention that there is one great asset, possessed by the society which does not appear in its account and which cannot be expressed iti terms of sterling. 1 refer to the great lova'ity displayed by every member of the society's staff throughout Australia and New Zealand, Without the great enthusiasm and loyal and strenuous work on the part of the field organisation, such figures as I have put forward to-day would have been impossible and without the zealoustiess and activities of the indoor staff, the field organisation could riot labour as it has done, nor could the results of the year's work have been put in your hands as promptly as 'they have been. Undoubtedly, this great asset is of immeasurable value to tlie society and with such enthusiastic and zealous co-workers, there are no limits to the size which our great society must attain. Gentlemen, 1 now formally beg to move, the adoption of the annual report, revenue iceouul:, balance-sheet and actuarial report. R. McDonald, in seconding (ho motion, stated that, in his opinion, a lifeassurance policy was one of the most sacred contracts that can he entered into and the funds entrusted to the, society's keeping for the payment of claims under theso contracts must bo very carefully safeguarded. The safety of the society's investment policy and the soundness of the methods adopted in the. valuation enSure the fulfilment of all obligations to policyholders. The motion for the adoption of the annual report, revenue account and bal-ance-sheet, together with the actuarial report was carried unanimously. The retiring directors, Messrs. Robert McDonald and P. Tt. Sutherland, and the retiring auditors, Messrs. A. MeK. Hi si o)i and C. A. Holmes, were reelected. The meeting closed with the usual vole of thanks. _____