NATIONAL MUTUAL LIFE ASSOCIATION

New Zealand Herald, Volume LXXII, Issue 22004, 10 January 1935, Page 5

NATIONAL MUTUAL LIFE ASSOCIATION

GREAT INCREASE IN POLICIES The 6oth annual general meeting of members of the National Mutual Life Association of Australasia, Limited, was held in Melbourne recently. In the absence of the chairman of directors (Sir John MacFarla.nd) through illness, the vice-chairman (Sir David Orme Masson) presided. Presenting the annual report, the chairman said:—"The number of new policies issued, 23,056, is larger than the number issued in any previous vear. The amount assured under these policies, £9,119,607, is £1,542,162, or more than 20 per cent, greater than the new amounts assured in 1933. Our total income for the year frompremiums, interest, and rents was £5.107,949, but. following onr usual practice the revenue account shows tlio amounts paid to otber life companies for reassurance premiums and to various Governments for taxes as deductions from the total income, leaving a remainder of £4,902,114." Fewer Surrendered Policies " The amount paid to policy-holders for death claims, matured policies, surrenders, annuities and cash bonuses —£2,857,242 —is £186,466 less than the amount so paid in 1933. Death claims were £19,200 less; maturities £65,800 less; surrenders £91,900 less; cash bonuses paid £10,400 less. The most significant of these figures is the reduction of the amount paid to members for the surrender of their policies. This, following the reduction reported at our last meeting, may be taken as an indication that the general conditions are improving, and that our members are not being driven to realise what is in most cases their most valuable asset. The total expenses of management were £32,800 more than in 1933. This increase is due mainly to the increase in the amount of new business transacted, the cost of which is in direct proportion to the new premiums received." " Tlio result of the year's transactions is that the assurance fund has been increased by £1,607.832, and it jtow sta mis at £37,851,006. If to this is added the amount of the investment fluctuation reserve and tho staff superannuation fund the total funds of the association are £38,695,729." " The distribution of the assets is shown in the balance-sheet. Government securities are £965,500 more than they were a year ago; Melbourne and Metropolitan Board of Works stock is £30,600 more: municipal debentures are £38,000 less; loans on mortgage are £20,000 less;_ loans on policies issued by the association with collateral security are £148,000 more; house property is £30,000 more." Referring to the increases of £160,000 in the amount of cash in hand and £269,000 in cash on deposit the vice-chairman drew attention to tlie prevailing condition of tho investment market aud pointed out _ that every institution with funds to invest lias difficuly in finding an outlet for them. This condition affected interest income and it was doubtful if improvement could be expected until tho facilities for trade and intercourse between the nations of tho world were improved. In concluding, Sir David Orme Masson said: "This, as I have said, completes the 65th year of the association; it is yet in its infancy. But it is interesting to see what lias been accomplished so far. During the < 6o years tho association _ has received from its members in premiums £61.221,000, and interest received amounts to £26.592,000. It has distributed as bonuses among its me in hers £16,200.000. It. has paid to its members £42,122,000 and it has in hand belonging to its members funds amounting to £38,695,000.