NATIONAL MUTUAL LIFE

New Zealand Herald, Volume LXXI, Issue 21698, 13 January 1934, Page 7

NATIONAL MUTUAL LIFE

INCREASED VOLUME OF NEW BUSINESS Accounts of the National '■ Mutual Life Association of Australasia, Limited; for the year ended September 30, 1933, were presented at the annual meeting held recently. New Business Figures TJp

During the year 18,067, policies were issued, assuring . £7,577,445. ; ' This amount assured is £1,027,000 more than the amount for the previous year. The amount of premiums received, including consideration for annuities, but deducting the amount paid away as reassurance premiums, was £113,000 more than the amount received the previous year. Interest showed a small improvement, tho'amount received, £1,716,299, being equal to £4 16s 4d per cent of the mean assurance fund. After deducting taxes amounting to £292,090, the net return was £3 19s lid per cent, or Is lid per cent better than the net rate for 1932. j • The claims by death accrued during the year were £982,078, or about £113,000 more than in 1932. The in r crease is due partly to the larger amount at risk and to the older ago of the members, but also to the fact that it so happened that the claims fell amongst policies with a larger amount assured. The average amount per claim was some £6O higher. Fewer Policies Surrendered

The amount paid to members for the surrender of their policies was £695,675, or £58,241: less than in 1932. As it may be assumed that a life policy is surrendered only under the stress, of circumstances, this can be taken as a healthy sign. Tho cost of conducting the business is practically unchanged; tho ratio of expenses to total income -js 9.04 per cent, as compared with 8.97 per cent in tho previous year. Heavy Taxation Burden

During the last five years the Association has paid taxes amounting to £790,658. This means that the amounts of tho assurance policies hold by tho members are £1,275,000 less than they would have been if these taxes had not been imposed. It lias been pointed out frequently that, no part of the revenue of a mutual life assuranco company is income that should bo taxed. Tho sol« object of such a company is to provide the benefits of life assurance at cost price, and yet they are taxed more severely than any trading conipany. Sound Investment Policy Tho assuranco fund at the beginning of the year amounted to £35,028,282, and at the end of the year reached the splendid total of £36,243,174 —an increase of £1,214,892 for the year. In addition, the investment fluctuation reservo was strengthened still further by tho transfer of £153,145, and now stands at £776,2-14. Tho principal changes in investments are an increase of £574,495 in Government securities, which now amount to £10,136,584; an increase of £480,755 in municipal debentures; a decrease of £103,104 in loans on mortgage; an increase of £55,936 in house property du« to a further expenditure on our Capetown building, and an increase -of £154,314 in cash in hand a'nd on deposit. Future Prospects Bright In presenting the Annual Report, the chairman, Sir J. H. MacFarland, said: "The Association has made good progress, and has extended its influence in many directions. There arc signs of a distinct improvement in tho business of life assurance, and this can be taken as an indication of a general improvement in tho welfare of the community; also it seems that many people now realise that the best, and surest investment they can find is a life assurance policy."—(Advt.).