NATIONAL MUTUAL LIFE

Otago Daily Times, Issue 18760, 13 January 1923, Page 6

NATIONAL MUTUAL LIFE

CHAIRMAN REVIEWS PROGRESS. In his address to members at the 53rd annual general meeting of the National Mutual Life Association of Australasia, Limited, held in Melbourne on December 20, the chairman of directors (Mr Andrew Newell) said : “Before I ask you to adopt the report of the year's business, I propose to submit some comparisons, which will enable you to appreciate, the significance of the figures contained in the report. “Although the amount of new business transacted during tho year was about 10 per cent, less than the amount for 1921, onr income was £204,310 greater than in 1921. The interest received is equal to £5 8s 2d per cent, of the net funds. This is the highest rate we have earned for many years. Tho death claims are £27,880 lesS than they were in 1921, and, indeed, they are less than they have been in any year.since 1915, and 58 per cent, of the

amount paid in 1919. As even in that year of our worst experience the claims were below tho expectation, and as we have now nearly 40 per cent, more at risk than we had then, it will be seen that the rate of mortality amongst our members this year was remarkably low. The other payments under policies, which consist of annuities, maturities, surrenders, etc., are £597,900, which is the largest amount we have ever paid in a year under this head. EXPENSES. “Tho total expenses of obtaining and conducting the business as shown in the revenue account are £4138 greater than tho expenses for 1921, but when you remember that while our expenses increased by this sum of £4138 our revenue increased by £204,310, yon will see that the expenditure is fully justified. The amount added

to tho funds as tho result of the year’s transactions, £1,486,304, is £143,348 more than the amount added in 1921, and is more than the total amount added during the first 25 years of the association. So much for the items in the revenue account. “The principal changes in our balance sheet are: (1) An increase of £462,500 in

Government securities, which are now the principal item in our assets. We have completed the payments on commonwealth bonds for which we had subscribed at September 30, 1921; the amount outstanding £314,000, was shown as a liability at that date, and has now disappeared. (2) An increase of £195,800 in loans on mortgage. (3) An increase of £205,000 in loans to members on the security of their policies. (4) An increase of £95,000 in building society shares. (5) An increase of £32,000 in house property or association's premises, due to iho purchase of a site for a branch office in Durban, A SUCCESSFUL YEAR. , •- “I have sketched for you in very brief outline the principal features of the report, and I think you will agree with me

when I say that we have had a very successful year indeed—on -the whole, the best we have ever had. It.is a matter for congratulation not only to the members but to the whole community, when the association and all similar associations and societies arc prosperous. I believe that mutual life assurance societies are the most beneficent institutions that the. wit of man has ever devised. They are monuments of thrift and unselfishness, and enable their members to make what could not be made by any other means—sure provision for times of distress. TOTAL FUNDS. “As you know, the whole of our funds, amounting now to over £16,500,000, belong entirely to the members, who numbered

at the close of the hooks over 157,000. There is no body of shareholders to derive any benefit from the transactions of the association. Our members are drawn from all classes of society, hut. although wc do not transact what is called industrial business, the bulk of our members are people of comparativelv small means. Tin’s is shown by the fact that the average amount paid 'under the 2700 claims during the year is less than £3OO. This is smaller than usual, but the average amount assured under new policies, issued during the veal* is less than £3SO. The bringing together of the hundreds of thousands of small amounts contributed by tile members makes it -nossible to use them for the general welfare, whereas if they had remained in the hands of the individual members they would have been practically unproductive. By the combination of these atoms into one mass we have been able to lend to the Government for national purposes over £6,500,000. We have lent to members and others on the security of freehold property nearly £5,250.000. Most of this amount is lent on broad acres, and so has assisted in developing our pastoral and fanning industries. We have lent through the medium of a building society on carefully selected security over £250,000. and have in this way helped in the solution of the housing problem. We have lent to members on the security of their policies over £1,500.000. ' Thus you will see that all classes in the community have derived benefit from our operations, and it' is not necessary for me to say anything more to nrnve that we are indeed a national institution.

BONUS YEAR. “The periodical actuarial investigation, which will disclose the net result of our operations for the last three vears, is nearly completed, and you will be called together early in the New Year to receive the report. lam able to inform you that the bonuses that will be declared will bo very satisfactory. . . . “Members will no doubt be pleased to learn that bonuses will be declared annually in future.

“Before I sit, down I would like to acknowledge on behalf of the directors the valuable assistance we have received in the administration of the association's business from the agents and officers at the different branches and at head office. Without-, their loyal and zealous services we could not have attained the splendid position we mow occupy.” The report and balance sheet were adopted, and the ■ retirin'* director (Mr Andrew Newell) was re-elected. District Office; Liverpool street. W. Axpkusox, District Manager.