PROVIDENT LIFE ASSURANCE COMPANY.

Otago Daily Times, Issue 14499, 16 April 1909, Page 3

PROVIDENT LIFE ASSURANCE COMPANY.

The fifih annual' UKOliiig of shareholders <if the I'rovideul Life Assurance Company was held on April 15. in the company's ollices. Dimedin, at 3 p.m. l)r W. S. Kolrm-Is. chairman of the company, presided. The report was taken as read: —

''The directors have the pleasure to submit lo tho shareholders their report, together with the balance sheet anil revenue account of the company lor the year ending December 31, 190-3. Tim premiums received during, the ;,<\i.r amounted to £22,747 10s, being an iiicrea.-e of £3415 7s ftl over Ibe premium income of tho preceding 12 months, 'there has also been received ibe sum of £10.415 6s Id. considers-!ion for annuities granted, the directors having decided to toiiiineuo: the i : _>'.ie of annuity bonds. The new policies issued during the year number 9:85 for total assurances, atnounfing to £240,81?. 5s 2d. Claims and surrenders aggregate £4530 13s Id (against £4375 2s 3d bust your). The cost of collecting premiums was £2940 7s 7d, or 12.82 per cent., and expenses of management £3117 ss, or 15.70 per cent. The whole of the new business expellees (i.e., co-t of introducing 9385 new policies, siiperiivtendoucy charges, and travelling expenses, also outlay consequent upon the establishment of tihe ordinary branch and special expenses in connection with the opening up of new agencies and extension j»f the bueincss in Australia), have lieeu written oil'. The sum of £312 7e 9d ha.s been writ ion off the stationery and office furniture account. Ordinary lirnnch.— Now that the industrial branch is so -well established, tho directors, after full consideration, have decided that it is now lioth advisable and nevessary io extend the scope of the company's operations and commence and develop the ordinary life branch, in addition to the industrial business at present transacted. They have accordingly taken the necessary slew to this .end, as referred lo above. New Cap!l<tl.—TJie directors nre pleased to announce that during the year tho snbscrilied and tho. capital have been increased by the issue of 9500 new shares at a satisfactory preiniinn. the addition to tho funds from this sourco being £6078 6s Id. All the calls and the premium upon tlicso new shares have b«n paid. The subscribed capital now stands at £40,000. Tho fundx of the company amount to £47.142 10s 4d, of which iho Assuranc« lAmd is £37,142 10s 4d. The stint of £42 15s has been written off tho wcurilies to bring them down to present, market prices. The directors recommend tho usual payment of interest by wuy of dividend at the rote of 5 per cent, upon the pa el-up capital of ibe company. The retiring director is Dr \V. S. Roberts, who is elisrible and offers hinwolf for rc-oleci-loa. The auditor, ulr George Blytli, retires, and offers himself for re-election. Tho directors desire lo thank flie daff most._ hcavfcily for tlioir excellent seniors during tho vear."

Tim Chairman said, in moving tho adoption of tho balance tjhre.t, aaid sic- | counts: '* I should lik<\ as k etLstouiary, to offer some remarks upon tho resu'lt ot the .year's operations. I am m | t-ay fha4. thce-o remarks will l;c of a.u ontirely Javourablo cliaracter, ami I think you "«ilt jijfnw with me thffll t.lie iigiu'cs you have Iwforo yon afford ground for congratulation, showing, as they undoubtedly do, tho vigorous extension of tho company's busincefi during the past year. You will boo that our premium income tunouirlsd to £22,747 life, being the eubstantial increase of £3415 7s &d over the premiums for 1907, and this inc-r«u;e has been obtained at a very moderates ccst. Our aHuranoe funds Ihto been augiiientcil hv llio sum of £16,003 8s 4<l, £10.415 bi lid of this amount consideration for annuities granted, which shows considerable confidence in the comptuiy and itb managoment. Net rents and .arncunt io £1503 6s, as compared with £1020 19s for tho previous year. On tho othcT side of the amount, claims aixl surpcndei-s £45£6 ]<>s Id, onlv £211 in excess of the corresponding total for 1907, although we have now a muoli larger business c-i the books, 'fliis fil'caks woll for the quality of our business. The cost of collecting premiums was £2940 7s 7d. t.bc perocirftwjo to premiums bein# ia.92. agu'inst 13.25 for the precctlinjr iIZ lnontibs, and cspensos of manag«ment, £3117 s s , aleo show a reduction in tho perccntase, tiw figuro' bring 12.92 as compared with 15.03 for last year. The securities, you will obstrvc have teen w.riti«n down by the sum of £12 15s, and now stand at, present, market pi-icss in the books of tho company. As specially mentioned in the report, the whole of tho new business expanses ajvd Gupcrintondcney charges, amounting to £?671 14s 9d, 'have' been \n-itlen off, and £312 7s 9d written off office furuiture and stationery. Our tota.l funds at the end of the vear .nmounted to £47.142 10.5 4d, and the Assurance Fund to £37,1*2 10s 4d. Tliore would appear to bo a reduction in ibe rate of interest earned cji the funds, but this is not actually so. The explanation being that the 'bulk of the increase to Iho funds war. received towards the end of the year. Turning now to matters of rnoro general interest, come lime ajo the directors decided it was highly desirable that tho busing the company was transacting in Australia, where our operations wero confined lo Sydney, should be largely cxicndcd and agen'eies openrd up ill ctlier parts of New South Wales and the other States of the Commonwealth; and it was also determined upon that, as soon as the licccisa rv arrangements eouVl be made, the ordinary life branoli ehotild Lx> comme-iiccd. To provide funds for tlicse developincinls and nnkc tlie required depo;its witli the Australian State*, it- kecano neoe>isa,ry that the capital of the company should bo increased. With those objects in view, and to secure the n«Kesn.ry trained super-