NATIONAL MUTUAL LIFE ASSOCIATION

Otago Daily Times, Issue 22777, 13 January 1936, Page 2

NATIONAL MUTUAL LIFE ASSOCIATION

RECORD AMOUNT OF NEW BUSINESS The 66th Annual General Meeting of the Members of the Association was held in Melbourne recently.

After referring to the great loss sustained by the deaths.of two directors (Sir John MacFarland and Sir Richard Stawellj and the General Manager and -Actuary (Mr E. J. Stock), the Chairman of the Board (Sir Harold. Luxton), in the course of his remarks when presenting the report, said: — "During the year the results of the Association have continued to be satisfactory, and they afford evidence -of the further progress of the community along the road to recovery. The total amount of the sums assured under the new policies issued during the year was £10,137,325, which was in respect of 26,841 new policies. "The amount of the new business is the largest in the history of the Association; it is £1,017,718 more than the new business of the previous year and £268,975 more than that of the year 1929, which previously held the record. The increase in the total amount assured is, however, not so remarkable as the increase in the number of policies issued, which was SBB3 greater than the number issued in the previous year and 6848 greater than the number issued for 1929.

" The large increase in the number of policies issued is the result of the growing popularity of what is known as group assurance. By group assurance people in regular employment, who previously had to rely mostly on industrial life assurance, can now, by making small weekly or fortnightly payments, obtain all the benefits of ordinary life assurance at the usual low rates of premium.

"The Association transacts only ordinary life assurance business. It is important to remember this when comparing its figures with those of Companies which transact both ordinary and industrial assurance business. INCREASE IN INCOME.

"The total income for the year was £5,233,822, of which £3,480,078 was premiums and consideration for annuities and £1,753,433 was interest and rents. An amount of £73,209 was paid away to other companies as reassurance premiums, leaving £3,406,869 as the net amount of the premium income, as shown in the revenue account. This was an increase of £106,387 over the corresponding figure of the previous year. The revenue from interest and rents has had to bear rates and taxes —mostly income to £142,318, so that the net amount of interest and rent? received was £1,611,115, which represented a return on the mean funds at the rate of £4 4s per cent._ The gross interest revenue, before deduction of the taxes and rates, was equal to £4 lis 5d per cent, of the mean funds.

NEARLY £3,000,000 PAID TO -MEMBERS DURING THE YEAR.

" The claims by death. that arose during, the year amounted to £1,005,203, and we paid under policies matured a total amount of £1,300,572. In the year ended 30/9/1931 the surrender values and cash Bonuses paid amounted to £1,214,227, a somewhat startling indication of the conditions then prevailing. Since then, year by year, the amount paid has steadily decreased until, in the year now under review, it has fallen to £573,212 or less than half of the amount at the beginning of the depression and £78,820 less than in the year ended 30/9/34. "As the result of the year's transactions £1,619,258 was added to the assurance fund, which now amounts to £39,161,123. " The amount of the investment fluctuation reserve at the close of the year was £1,115,161, a very substantial provision indeed against the vicissitudes of fortune that, notwithstanding the exercise of the greatest care, may attend the investment of large funds. In conducting the business of the Association, it has always been, and will continue to be, the policy of the. Directors to make in every respect 'Assurance doubly sure.'"