NATIONAL MUTUAL LIFE

New Zealand Times, Volume XLVI, Issue 10560, 10 April 1920, Page 9

NATIONAL MUTUAL LIFE

GENERAL MEETING SATISFACTORY -GROWTH OF BUSINESS. (Published by Arrangement.) An extraordinary general meeting of members of the National Mutual Life Association of Australasia, Ltd., was held at Melbourne on 24th ultimo. The report of the actuary, -which was submitted by tho directors, stated;—“ln the last three years the growth of tho association's business was very; satisfactory. Tho amount of new policies issued —.£13,1-56,039 2s (kl—and the amount received lor premiums and interest—£s,Boß,2Bl Os 3d—during the period, were much in excess of the corresponding amounts in any previous report. Although tho claims under policies were exceptionally heavy, £2,886,795 8s 3d was added to tho assurance fund, which was thus increased to £12,531,368 15s. The directors have decided that the surplus of £789,437 15s shall be divided amongst tho policy-holders entitled to participate. It will provide reversionary bonuses amounting to £1.450,009.” THE CHAIRMAN’S -SPEECH.

The chairman of directors (Mr Andrew Nowell), in moving the adoption of the report, said : Gentlemen,—l will ask you to take the ronort of tho directors on the ICth investigation of the affairs of the association, which you have in your hands, as read.

It contains a very brief statement of tho results of our business for the last throe years; the actuary’s report, upon which it is based, with the usual schedules giving details of the valuation of the liabilities, will be circulated amongst members as soon as we can get them printed. But in order that the significance of the results may be appreciated, I propose, if you will allow me, to compare some of them with the results shown in previous reports. NEW BUSINESS.

The amount of new business, .213,456,039, exceeds what had been qur best record by .£2,771,613. Before this trjennium we had reached our highest point in 1010-13, which is the last investigation period that was free from the effects of war. During 1913-16 the total fell to the extent of over JBTIS.OOO, and tliis seemed to bo attributable to tho war conditions. But now, for tbo years 1916-19, when we might have expected that the influence of those conditions would be most severely felt, there is a rise of over 3i millions. Our experience in this respect is not singular, for most of the companies are reporting, an increased now business, particularly dur. ing the last -rear of the period. ' The reasons for this are not apparent. Some have availed themselves of the facilities offered by life companies for subscribing to the war Joans, others have realised that a life policy is the best way to provide for the higher probate duties; but those are not sufficient to account for the general increase in business. Whatever the reasons may be, it is a good thing for the community that at a time when there is such urgent necessity to husband our resources, the people are recognising the benefits of life assurance. INTEREST.

The amount of interest earned by the funds, ,£1,701,553. is 35376,100 more than tho amount earned .in 1913-16; it is equal to the average .rate of .£3 3s Id per cent, per annum. The rate for' 1913-16 was A 3 Os 3d per cent, per annum. The higher rate accounts for nearly 4547,000 of the total amount earned. The total receipts Jor tho period were -£5.808,231, or ,£1,117,983 more than the receipts for 1913-16.

Amongst our disbursements, the most prominent item is the amount paid for claims under policies. .j.Tlub, I'regret, was increased to £1,581,108; or £552,202 more than, the amount paid in the last triennium. Of this amount, no less than £455.332 represents war claims—a term which has become too familiar, but wo hope it will now disappear—and .£232,458 was duo to deaths from the influenza epidemic, the effects of which wore actually more sever© for the period of the visitation than the effects of the war, for any period of similar duration. The total of these tw 0 amounts. 28677,700, is equal to 42 per cent, of the total claimsj if they were deducted, what wo may call the normal claims would bo only some .£5)000 more,than those for 1913-16. The expense ratios of both new and renewal business are lower, and, although the new business is not only so much larger in itself, but is a larger proportion of the total than it was in the last period, the aggregate expense ratio also is lower. The reduction of tho ratios is equivalent to a saving of nearly .£51,000. SURPLUS. The net result of our transactions in the three years is an addition to tho assurance fund of £2,396.795, which is some .6269,000 more ■ than tho amount added in 1813-16. The surplus available for distribution, £783.487, is £29,954 more than the amount distributed three years ago; but as tho number of members entitled to participate is so much larger, the bonus will, in some cases, be a little less than the amount allotted at tho last distribution. But when wo consider the extraordinarily heavy claims that have been met, and tho singularly unfavourable conditions that have prevailed during tho last fire years, tho results disclosed in the report are very gratifying, and arc a tribute to the good work of the officers of the association at head office and the branches, including our field staff, through whose unceasing efforts the largo now business has boon obtained. This finishes my -comments on the figures that are now before you, but before 1 conclude, may I indulge in some reminiscences, and'giro you some facts regarding tho history of the association and the work it lias accomplished ? The report of the first investigation of the association, which was made on September 30th, 1874., five yearn after its foundation, showed that the income for the five years was £31,124; the funds at tire end of the period amounted to £15,464, and £3093 was distributed amongst tho members. These ‘ figures look small when compared with those now presented, but tho work that was then being clone was of the utmost im-. portance; our founders wore men of wide vision, and they were laying the foundation which made it possible to build safely the structure that we have to-day. PERSONAL. I became a member of the board in ISSO, when the association was in its eleventh year; beginning to feel its strength, it had then begun to extend its activities by the establishment of branches; its annual income was something over £63,030, and its fund* had reached the respectable sum of £IOO.OOO. The policy of expansion which had been adopted produced an immediate effect; at the end of throe rears the income was £144.500, and the funds were £304.000; at the end of ten years the income was £269.000. and tho funds had reached £1,000,000, and so the growth has continued until now, at the end of its 50th year—the 40th year of mv directorship—tho association da amongst tho loading institutions of tho Empire, with on annual income of £3,116,000, and funds exceeding £12,600.000. Since its foundation it hns_ paid in death claims, under 17,914 policies, tho sura of £6.040,061; to members whoso policies have matured it has paid £3,691,306, and the annuitants, £435,219. Tho cash surpluses that have been divided amongst tho members .amount to £4,019,003. These figures indicate tho important place the association occupies in the social organism; and ns its latest achievements are its best, wb are justified in looking with hope and confidence to a still greater extension of its usefulness. Tho motion for tho adoption of the report was seconded by MV Walter Madden. and agreed to. • It is expected that, tho bonus certificates will he issued to members in tho course of a fow day*.