INSURANCE COMBINE

New Zealand Times, Volume XXXII, Issue 7110, 23 April 1910, Page 1

INSURANCE COMBINE

UNION IS STRENGTH

PROPOSED AMALGAMATION OT LARGE CONCERNS.

Whartr should prove to be one of the largest insurance combines in Australasia is non* receiving serious attention, and impoitunt developments aro oxpcLitod shortly. The proposal is that the iuu.tuai Life and Oit-i/.eus’ Assurance Conxxmny, .Ltd., formed two years ago by the amalgamation of two previously distinct concerns, should combine its business with that of the Australian Widows’ Fund -Life Assurance Society, Ltd. economy of wo riving and increase of strength are confidently anticipated if the proposals made ,to the Widows’ Tuna bu-cie-ty are accepted. The first overtures were made by the directors of the Mutual Life and Citizens about six weeks ago, and a-ro to be considered at a apccuai meeting of the .'Widows’ Fund Society in Melbourne on Mny 20th next. It is proposed that the date of union of business shall bo as at -March 31st last. In addition to other advantages, the offer, uf accepted, would result in the reduction' of the society's expense rate to a point which, in the opinion of its directors, could not bo reached in any other way, if at all, for many years to come. The benefit of such a reduction would be so great that the directors have already entered into a conditional preliminary agreement. The Mutual Life and Citizens* Assurance Company, Ltd., has provisionally agreed to take such steps as may be found necessary to change its name jwid to adopt the society's device, with the motto ‘‘Union is Strength.” The figures of the life assurances business of the ordinary branch of the Mutual Life and Citizens’ Company and of the society, as at the close of their last financial years, were as follows :

jr tile proposals are approved the ordinary branch of the combined offices will thus have—. £ An annual income of 983,581 Funds of 5,970,533 111.374 policies in force assuring ... 21,929,484 Annuities ;,..l , ... 14,232 . The combined company will thus take a .very high position among the loading British life assurance offices. It may be added that these figures are exclusive of the industrial business of the Mutual Life and Citizens’ Company, which adds £196,43h to the premium income, £30,849 to the income from interest, £227,299 to-the total income, £721,849 to the total funds, and 214,065 policies, assuring £4,087,968 to the ' business in force.

Mutual Life "Widows* and Citizens. Fund. £ • £ . Premium income ... 522,427 202,648 167.822 83.746 Total income Total assurance and : 692,039 291,892 annuity funds ... 4,047,307 1,923.226 Assurances in force 15.674.695 6,254,709 Annuities payable ... Number of policies in • 11,455 2.779 force 83,793 27,531