MUTUAL LIFE ASSOCIATION OF AUSTRALASIA.

Otago Witness, Issue 2202, 14 May 1896, Page 26

MUTUAL LIFE ASSOCIATION OF AUSTRALASIA.

The "Australasian Insurance and Banking Record" coin merits as follows on the Mutual Life Association's annual report :— The new business is as follows : Policies. Amount. 3804 • 1,585 £407,202 1895 1,514 508,163 1892. 1893. 1894. 1895. Average amount per new policy issued £249 £243 £257 £335 Average pre mium per £100 ... 3-425 3513 2834 2543 The reiaaikable increase of £78 which has taken place iv the average amounb of ussuiauce per policy during the year is doubtless to bo understood by the help of the followiug extract ftom the chairman's address 12 months ago :— It is a significant ft-atin 1 -, duo probably i<t recent fiu-tnciul pressure iv lh-ro colnitira, th*l while the sums assured uuilei ihu new politics are larger this year, the annual premium* ncciuiitg therefrom are less in amount us well us in proportion to the number of lives, although the averngo amount 'assured on each is larger than heretofore. The reason is that the public, while (Wiring sound life assurance to the fullcat extent their circumstances demand, appear to be compelled to seek for it ill its cheaper forms. Hmce those who in former times would have chosen endowment assurance under table E now select our popular table AR; while whole-life assjirance, formerly

[ almost confined to table A, is now largely effected under table F, tho object in both [ instances being the lower rate of premium. The average rate on the mean amount of funds for the year is 5"01 (5*19 par cent). The collection of interest has been closely effected, aa will b» seen from the following statement :— 1894. 1895. Interest taken : into credit .M. M £53,229 17 1 £53,635 18 2 Of which in " course of collection amount ... 2,827 17 5 1,116 19 8 Proportion... 53i per cent. 2#OS2 # 0S per cent. That only 2 per cent, of the interest due for tho year should remain uncollected as it- close speaks highly for both the quality of tV moiety's securities and the ale<tnes3 oi iti ttirrrnistra- | tion :—: — ! Claims by death, with bonuses added ... £38.870 (£17,231) Claims by maturity, with bonuses added ... «... 14,834 (£15,786) Endowments matured ... 3,450 (£3.900) Returns under endowments 116 (£132) The claims by death are the smallest for flra yews, and the directors report that the mortality experience has been singularly favourable. Tho ratios of expenses to primium, income, and total income for the last four years are stated as follow :— """ 1892. 1893. 1894. 1895. Ratio of expenses Per Per Per Pet .cent. cent. cent. cent. To premium income 2973 ,~2503 2867 2687 To gross income 2213 20 55 £084 1051 The reduction in the xa'i'-s cnuiug the past year are substantial. In the increase in the volume of its new business, in .the substantial rate of interest which it receives upon its investments, after taking the closest precaution, and in tho considerable reductions effected iv the expenses ratio.the Mutual Life AFBociation Is fortunate. The report is one well calculated to cause gratiflc»tidti »o the members of tho association, which, under Afr Remington's management, is always live and energetic.