T. AND G. MUTUAL LIFE SOCIETY.

Otago Daily Times, Issue 20586, 8 December 1928, Page 22

T. AND G. MUTUAL LIFE SOCIETY.

ANNUAL MEETING. STRONG FINANCIAL POSITION. ’ The .fifty-second annual meeting of the Australasian T. and G. Mutual Life Society; was held in Melbourne yesterday. The chairman, Mr J. T. Thompson, who moved the adoption of the annual report, revenue account, balance sheet, and actuarial report, said:—

Ladies and Gentleman, —I have the honour to present to you the, directors’ report and accounts for the year ending September 30, 1928, the fifty-second year of the society’s existence, and I feel sure that you will be pleased with, the' results. I now propose to offer some -comments on the salient features of the report. I will deal, in the first place, with the new business. This consisted of 148,630 policies, assuring £11,498,725, of which 21,878 policies, assuring £5,30. ,552, were issued in the ordinary department, and 126,752 policies, assuring £6,104,173,; in the industrial department. This ;total is the LARGEST VOLUME*OP NEW 1 BUSINESS

Tyritten by the society, in any one year. As I have told you on previous occasions, our operations are confined to Australia and New Zealand, which fact makes these figures all the more remarkable. As an 'indication of the appreciation of the society ■ by its owij policy holders, it is noteworthy that out of the 148,630 new policies 50,134 were . issued on the lives of persons already assured with the society. This tangible evidence of satisfaction after practical experience with the, society is very gratifying to'your directors. It is satisfactory also to know that in securing such a large volume of new business the expense rate has not been increased. Your directors will not be tempted to a campaign, of big new business writing ufiless the expenses are well within the safety margin. TfE TOTAL INCOME for the year amounted to £3,312,151, an increase of £288,473 over last year. This income is made ,up of (a) ordinary department premiums, £1,003,468; (b) industrial department premiums, £1,625,102; and (c) interest, £683,581. Ten years ago the income was only a little more than one-quarter of that received this year. Por the first time in the society’s history the

PAYMENTS TO POLICY-HOLDERS EXCEEDED £1,000,000, the exact figures being £1,050,772, this amount having been disbursed to the holders and beneficiaries under 37,156 policies; this is a striking example of the only purpose for which & mutual life assurance society exists. The contributions are ma.de b£ the' members of the common fund to pay claims to the dependents of those who have died and to the survivors at old age of. those who have lived,the allotted.term. I am proud to think that we have, in this way, such a splendid illustration of the value of the benefits of mutual life assurance. • , Although the payments to policyholders were larger, the funds have increased by £1,449,895 to £12,717,601. No greater addition to the funds has ever been made by the society in one year. .The fidelity and contingency funds have been increased by £25,000, derived ,from the realisation during the year of appreciated securities. Out of the TOTAL ASSETS OF £13,417,203 there _is invested in Government and municipal securities the sum of £9,577,923. The amount invested in first mortgages has also been increased, the society's connection m this direction having expanded still further.

Regarding the freehold premises account/the balance sheet figures show an increase, chiefly arising from the paymeats made during the year in connection with the erection.of the new Melbourne and .Wellington buildings. The new head office in Collins street is, of course, well known to all of you and to those who have had no opportunity of viewing the new premises in Wellington, I can say that it is one of the most beautiful buildings in the Dominion. As I have pointed out before, the chief objective in erecting these buildings is the provision for the future accommodation of the society's staff. In making this provision your directors have exercised proper foresight in looking a great many years ahead, so that _in the conduct of its business the staff, will not.be hampered by restricted accommodation as the society continues to grow. The space available for letting in both of these buildings has been in good .demand, and both give every promise of returning a satisfactory yield on the funds invested therein. A commencement was also made during the year with the erection of the society's new building in Sydney, and when this is finished the society's building programme will be complete as far as the capital cities are concerned. . / ■ The interest rate on the mean funds has increased from £5 13s 3d. per cent, to £5 14s per cent.,'a very satisfactory return considering the solidity of the assets and the large proportion.invested in, giltedged securities, ■

The actuary’s report shows that, after adopting the same conservative bases of valuation as heretofore, a surplus of £463,930 has been disclosed. The actuary recommends that this surplus be distributed in the usual form of reversionary bosjus additions. I would point out that this surplus arises from the experience in regard to the mortality, to the interest earned, and.to the expenses incurred proving more, favourable than that assumed in the calculation of the premiums. As the exact experience can 'never be foretold a margin is provided in the premiums for contingencies with the knowledge that, should the .whole of such margin not be required, it will, be used to increase the policy holders’ assurances by the addition of reversionary bonuses and. other benefits to tbe members. This year the actuary recommends an increase of 2s per cent, to last year’s bonus scale in- the ordinary department" and the granting of reversionary bonuses in the industrial department, ranging from the equivalent of 20 weeks’ premiums up to the equivalent of 50 weeks’ premiums. • Further, the continuance of the special disability privilege to industrial policy holders is recommended. All the other special services and privileges to policy holders, which do not form part of the contract, we have been able to continue. As an example of the growth of these services, I would tg’.l.you that the society’s nurses paid 25,173 visits in the year just closed. Two years ago, when I quoted figures, the number given was 15,00(h . All the other services, such as periodic medical examination for ordinary department policy holders, non-forfeiture regulations, lien revival privileges, fully pajd-up policies at certain ages, and other privileges, have been largely availed of, "We hope to continue these, as we believe that they are of the greatest value to policy holders and benefit the society in every way. FUTURE OUTLOOK. Ladies and gentlemen, I think I have covered practically every item of interest in the accounts. The results are right up to expectations. We have had a record new business as well as a record increase of funds, and we have presented a statement of assets showing an absolutely safe and satisfactory financial position. In conclusion, I should like to express my thanks to the staff for its efforts during the past year, which contributed in u large measure to the splendid results as revealed in the report and balance sheet. 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 R. McDonald and W. Forster Woods, and the retiring auditors, Messrs A. M*E. Hielop and C. A, Holmes, were re-elected,