NATIONAL MUTUAL LIFE ACCOUNTS

New Zealand Herald, Volume 81, Issue 24868, 14 April 1944, Page 5

NATIONAL MUTUAL LIFE ACCOUNTS

BEST FOR MANY YEARS ANNUAL MEETING The 74th annual meeting of the National Mutual Life Association was held in Melbourne on March 14. Sir Harold Luxton, chairman, said.: — "The report and accounts which are in your hands are very satisfactory. Indeed, having regard to the manifold difficulties with which we were beset during the year, they are in my opinion the best accounts that have been presented to us for many years. Increased New Business "Our new business of £10,439.533 (which includes £1,851,230 of new group life insurance) shows a substantial recovery from the previous year's total of £7,683,902. The increased number of staff superannuation schemes and group life insurance effected with the Association accounts for much of the increase. Total Income a Record "The Association's total net income for the year was £6,552,288, a record figure. The gross interest income represents a rate of £4 3s 6d per cent, and after deduction of rates and taxes the net rate was £3 18s 5d per cent. "On the expenditure side of the revenue account tlia main features are a moderate increase in the amount of war claims, a substantial reduction in the amounts paid for surrenders, and a further reduction in the rate of expense. The war claims amounted to £295,000, as compared with £240,000 for 1942. Altogether payments to policyholders amounted to £3,619,596 Expense Rate Remarkably Low "If for the purposes of a true comparison we exclude A.R.P. expenses and war damage insurance, the ratios of total expenses to total net income for each of the last four years are as follow: —1940, 8.93 per cent; 1941, 8.59 per cent: 1942, 8.31 per cent; 1943, 8.15 per cent. In these days of increasing costs this is a remarkable achievement. Having regard to the widely spread nature and extent of our business and of the services we render, I consider that our record in this respect is noteworthy. In considering this-question of costs it is important to bear in mind that -the Association's rates of premium arc lower in most instances than those o! other offices. Assurance Fund "The result of the year's transactions is that the sum of £2,104,559 was added to the assurance fund, which now amounts to £53,778,881. Government securities increased by £3,615,887, and £3,345,000 of this sum was subscribed directly to war loans. Triennial Investigation "The total business in force at the date of the valuation consisted of 321,419 policies, having a total sum assured and bonus additions of £140.897.720. and providing annuities of £240,951 per annum. The actuarial liability under these policy contracts was ascertained on the same basis ,as to mortality and interest as was used in 1940. To this figure there was added a sum of £300.000 as a special reserve against future excess war mortality (the net loss experienced under War claims during the triennium was £523,000) The net liability so calculated name to £50.510,975. and as the amount of assurance fund was 553.77H.880. the net surplus for the triennium on this basis amounted to £3.267.905 Our Actuary, however, has recommended that in pursuance of the Association's policy of maintaining a desirable margin in the Association's future interest rate, the actuarial reserve should be increased by a sum of fil .300.000. this being the additional amount required to permit of all the Association's assurance liabilities being valued on a '2l per cent interest basis under the A 1924-1929 table.