THE MUTUAL LIFE & CITIZENS’ ASSURANCE CO., LTD.

Otago Daily Times, Issue 27080, 14 May 1949, Page 3

THE MUTUAL LIFE & CITIZENS’ ASSURANCE CO., LTD.

Life Assurance More Than Ever Necessary The sixty-second annual meeting of the company was held in Sydney on May 12, 1949. The chairman, Sir Henry Manning, in moving the adoption of the report, balance sheet and accounts, said: — “With your concurrence, I shall take the annual report, balance sheet and accounts as read. “In 1948 the company's tradition of service to the public was maintained, and the high rate of progress in recent years was accelerated. The fact that ’life assurance is a means of guaranteeing future income in face of high taxation, low interest rates and high living costs, is probably more fully appreciated now than ever before. Our rapid growth in recent years has been due in no small part to the universal , desire for security which has become more pronounced in our national life. “ Since I addressed you last year, we are pleased to announce that Sir Alexander Stewart, of Melbourne, has accepted a seat on our board. His wide knowledge of business affairs has already been of great value to the company. “In the last few months the company has been successful in acquiring suitable sites for office accommodation in Brisbane, Perth and Hobart. Your directors intend to erect modern buildings for the purpose in those centres as soon as circumstances will permit. Increased New Business “ The increase in busines during the year has been striking. At the close of 1948 we had in force in Australia, New Zealand, Canada, and Great .Britain more than 1,156,000 policies assuring with bonuses nearly £200,000,000. This large sum represents the amount the company is committed to pay at some time in the future under the individual policies which in the aggregate make up the total. “ The new assurances effected during the year were £31,347,922. In the ordinary branch there were 59,569 new policies assuring £23.008.990, and in the industrial branch 85,567 new policies assuring £8,338.932. These figures constitute a record for the company and the members f our field staff are to be congratulated on their performance. “ Our funds and reserves increased by £4,632,083. This increase enabled the company to add to its holding of Government securities, municipal loans and loans to public bodies by £1,697,801. These investments now represents in the aggregate nearly 78 per cent, of our total assets. Assisting Home Ownership “Since.the end of the war our resources have been used according to the peace-time requirements of an expanding economy by supplying not only the present-day needs of industry and commerce, but also by making a noteworthy contribution to tne problem of housing. The amount of our investments in loans on mortgage, largely as a result of an active policy of accisting policy-holders in Australia and New Zealand to buy or build their own homes, increased during the year by over 27 per cent. Closely allied is the finance made available through the , co-operative building societies in New South Wales. In addition to the amounts already advanced to these societies, the company has approved further substantial loans to them, and at the end of 1948 these amounted to £1,834,000. “With building costs at their present high levels, your directors are conscious of the need for care in their selection of these mortgage loan investments, and are following the policy that safety must be the first consideration. Care is being taken also to see that prospective mortgagors do not load themselves with debts which they would probably be unable to pay. “ We have made further investments in the ordinary and preference shares in Australian companies, although out holding of this type of security represents less than 3 per cent, of our assets. . I Need for Increased Production “ I feel that I must make some reference to the evil effect of inflation on our business. It is important to the holders of life assurance policies, as to all thrifty people, that inflation be curbed, because inflation of the currency and consequent increase in prices reduces the real value of their savings. Increased production must be obtained if we are to overcome the erosive effects of inflation. Life Assurance a Necessity “I am sure you would all like me, before concluding, to refer to the fact that this year is the centenary of the Australian Mutual Provident Society, and take this opportunity of congratulating them on the completion of their first hundred years of service to the community. The society has played its full part with the other life offices, in Australia in giving a measure of independence to those thoughtful members of the community who have wished to make provision for themselves and for members of their families. There is no finer story in the history of free enterprise. This is another illustration of the dictum of the late Profesor Do Morgan, the eminent mathematician—‘ There is nothing in the commercial world which approaches even remotely the security of a well-established life office.’ “ The primary object of my comments to-day has been to give you some details of the company's activities and progres, and to emphasise the importance to policy-holders of allowing nothing to stand in the way of keeping their policies intact until their natural termination. In the English-speaking world, life assurance is a necessity for which proper provision should be made in every household budget. Fills Public Need

“ I have also attempted to emphasise briefly the importance of life assurance to the social and economic welfare of the nation. It is an organisation made possible only by public cooperation and confidence, and has prospered only because it fills an urgent public co-operation and confidence, and has prospered only because it fills an urgent public need. Size is never the test of quality, but the growth ot our company, is nevertheless some measure of the service it is performing and is evidence of the extent to which it is achieving the purpose for which it was established." In seconding the motion, Mr Eedy said: — , , “ I sometimes wonder if those lor whom the tragedy of early loss is somewhat lightened by the sgnse of independence provided, by life assurance ever realise that this financial wellbeing is probably due to the initiative and persistence of some trained and competent salesman. Such men are an importune part of the institution of life assurance and deserve much credit for the growth of security and proctection recorded year by year in Englishspeaking countries. “ Ours is a great co-operative institution. <and each of us, whether shareholder. policy-holder, or member of the office or field staffs, may wel be proud to play a part in it. "I take great personal pleasure, on behalf of my fellow directors, in expressing appreciation of the efficient and courteous service rendered by the staff. We are proud of the ability and competence of our staff, whose personal qualities contribute so much to the smooth conduct of the business entrusted to us. " In the long run, under a system of free competition, the efficiency of its organisation must determine the success of any business undertaking, and the company's staff is one of its most valuable assets." —P.B.A.