T. AND G. MUTUAL LIFE SOCIETY.

Otago Daily Times, Issue 19970, 11 December 1926, Page 24

T. AND G. MUTUAL LIFE SOCIETY.

ANNUAL MEETING. SUBSTANTIAL PROGRESS. MELBOURNE, December 10. The annual meeting of the Australasian Temperance and Genera) Mutual Life As suranco Society was held at the head office of the society this afternoon. The chairman and managing director (Mr J. 1. Thompson), who presided, said: I have very groat pleasure in submitting to you the accounts for the past yeai, which completes the first fifty years of the society’s existence. I do not propose to dwell for any length of time on the society s operations during that period. A mutual society without capital subscribed by shareholders can only be developed gradually in the early stages of its operations. It must roly at first entirely on a small premium revenue with interest accumulations thereon to build up its organisation. As only a certain percentage of its income can be spent with perfect safety, it follows that the building up of a mutual life society is necessarily comparatively slow in the early years, and requires the exercise of patience, wisdom, and foresight by its founders. VVe are indebted to the pioneer directors of this society for the solid foundation laid by them during the early years of this groat society, which _ now stands in the forefront of mutual life assurance societies in Australia. Unlike other parts of the world, Australia is fortunate in having such splendid mutual societies, all thoroughly well established, with only policyholders to participate in the profits of and the service rendered by these institutions of thrift. Your directors are proud of the report and balance sheet which is now before you. To have reached such , figures in the fiftieth year of the society’s' existence must be a source of gratification to all policyholders. If you will now kindly turn your attention to the accounts, I will, as briefly as possible, draw your attention to the more salient features. Dealing first with the new business, you will note it constituted another record for the society. It consisted of 139,607 policies, assuring £10.471,522, of which 20,573 poli oies, assuring £4,717,574 were issued in the ordinary department, and 119,034 policies, assuring £5,753,748, in the industrial department. No society or company in Australia or New Zealand has yet attained such a record of new business _ writing in its fiftieth year, and, despite this increased new business and the necessarily attendant increased cost, I am glad to be able ro report that the expense ratio shows a satis factory reduction on last year. As a proof of the society’s popularity and evidence of the satisfaction that it is giving to its policyholders, I can tell you that out of the total of 139,607 policies, ■ no fewer than 41,559, or 30 per cent., were issued on lives already assured with the society The total income for the year was £2,701,155, an increase of £285,959, the largest increase yet made. This income is comprised of (a) premiums in the ordinary department £820,948. (b) premiums in the industrial department £1,364,369, and (c) interest £515,839 On the opposite side of the revenue account the item payments to policyholders calls for a passing remark. Of the total £778,525, no less than £333,964 was paid out for endowments matured. This item must necessarily increase with the increasing age of the society as more and more policies become due for payment. The death claims, £206,335, although heavier than last year, are yet well within the actuarial_ expectation. The society exists to pay claims, and they naturally increase with the society’s growth. The assurance funds have increased by £1,232,586, again the largest increase ever made by the society, and now amount to £9,902,987. The fidelity and contingency funds have increased by £15,000, arising from capital profits made on the realisation of certain securities during the year. Against the various funds and other liabilities, assets are held totalling £10,354,583 Your board has pursued the sain© prudent policy of investing the society’s assets in gilt-edged securities, and no less than £8,262,380, or almost 80 per cent., is in the form of Government and municipal securities. Although termed “securities,” most of these represent direct loans to the Commonwealth, New Zealand, and State Governments and also to various municipal and other public bodies in Australia and New Zealand. When lent out in this way the society’s funds, in addition to earning interest for the society’s policyholders, are helping to develop the great Commonwealth of Australia and the Dominion of New Zealand. » When I addressed you last year, I directed your attention to the society s freehold premises, and told you of the necessity for enlarged homes for our evergrowing staff, due to our rapidly-increasing business. To cope with this, your board has entered into contracts for the erection of a fine eightstoried building at the of Lambton quay and Grey street, Wellington, as a chief office for New Zealand, and also for the erection of a new head office of 10 storeys in Melbourne at the corner of Collins and Russell streets. These site.s i were acquired some time ago in anticipation of our needs at prices much below presentmarket values. Generally, our buildings are showing rbsults to the entire satisfaction of the board. The interest rate has increased by Is Id per cent, to £5 Us Id per cent, on _ the mean funds for the year, which is entirely satisfactory in view of the gilt-edged nature of the society’s investments. The actuary’s report shows that the reserves, which have oeen built up to meet the future claims, have been assessed on the same conservative basis as hitherto: no safer bases have been adapted by any other society or company in Australia. A strong valuation makes _ for stability, and portrays the true financial position of any society. Even with'such a strong valuation as that adopted by the society, a record surplus of £336,304 is disclosed. In the ordinary department, the actuary again recommends increasing the bonus scale for whole life and endowment assurance policies, which will enable the society to maintain its rank among the best bonusearning offices in the Southern Hemisphere. A further provision is made for old policyholders by granting all those who have attained the age of 80 years, and whose policies have been 25 years in force, the privilege of a fully paid-up policy for the full amount assured, free of all future premiums despite the fact that their contracts call for payment throughout the whole of life. In the industrial department, the previous liberal scale has been increased by extending the maximum bonus of 40 weeks’ premiums in the case of policies over 30 years in force. Measuring our bonus results in this department as a percentage of the sum assured, I can tell you that on all participating industrial department policies which matured last year, total bonuses were paid which average £2 12s per £IOO per annum for the whole period during which bonuses were allotted to such policies. These excellent results should be very gratifying to all participants, and compare favourably with those of any other society in the world. Services to Policyholders.—Last year I alluded to some of the services voluntarily rendered to policyholders, which were not provided for in their contracts, but which have been of great help to them. The lien revival system, which was first introduced into Australia and New Zealand by our - society, has to its credit the bringing back into benefit of no less than 28,000 policies during the past year. Such a system helps the policyholder who, falling into arrears through causes over which ho has no control, such as unemployment or sickness in the home, would otherwise stand to lose entirely the very necessary protection of his assurance. The nursing service has grown still further. 15,000 visits being paid during last year—one policyholder in every 94 calling for the services of the nurses where they are available; the total number of visits paid since the inception of the servise is now over 106,000. The free periodical medical examination is being availed of by policyholders in the ordinary department, and several instances have come under our notice where examination has disclosed some defect capable of being remedied hi’ prompt medical attention. The cost of these services is willingly spent as the gain to the society, though indirect, is distinctly noticeable: in fact, wo believe that our policyholders are recouped many times over. The prosperity of the society has enabled the board to render these services, and we trust that circumtanccs will always permit their continuance. I have now dealt briefly with the main ‘ features of the report, and I think you will agree with me that I am justified in the statement that our society is one of the most progressive life assurance offices in tha British Empire. I do not think I can he accused of undue optimism when I say that out prospects have never bean brighter.

can certainly look forward to the future with the utmost confidence. Before I conclude 1 would like to mention that there is one great asset possessed by the society which does not appear in its accounts and which cannot be oxpresesd in terms of sterling. I refer to the great loyalty diplayed by every member of the society’s staff throughout Australia and Now Zealand. Without the oreat enthusiasm and loyal and strenuous work on the part of the field organisation, such figures '•? I have put forward would have been imposible, and without the zealousness and activities of the indoor staff, the field organisation could not labour as it had done, nor could the results of the year’s work have oeen put in your hands as promptly as they have been. Undoubtedly, this great asset is of immeasurable value to the society and with such enthusiastic and zealous coworkers, there are no limits to their size which our great society must attain. Gentleman, I now formally beg to move the adoption of the annual report, revenue account, balance sheet and actuarial reP °Mr R. M’Donald, in seconding the motion, stated that in his opinion, a life assurance policy was one of the most sacred contracts that can be entered uuo and the funds entrusted to the society s keeping for the payment of claims under these contracts must be very carefully safeguarded. The safety of the society s investment policy and the soundness of the methods adopted m the valuation ensure the fulfilment of all obligations to policyholders. , The motion for the adoption of the annual report, revenue account and balance sheet, together with the actuarial report was carried unanimously. The retiring directors, Messrs Robert M'Donald and P. R. Sutherland and the retiring auditors, Messrs A. MK. Hislop and C. A. Holmes, were re-elected. The meeting closed with the usual vote of thanks.