PROPOSED AMALGAMATION OF LIFE INSURANCE SOCIETIES.

Otago Witness, Issue 2231, 3 December 1896, Page 40

PROPOSED AMALGAMATION OF LIFE INSURANCE SOCIETIES.

ffHB NATIONAL MUTUAL OF AUSTRALASIA AND THE MUTUAL OF VIOTOfUA. The members and policyholderfl of, the JJlntnal Assuranoe Sooiety of Victoria (Limited) and the National Mutual Life Association of Australasia (Limited) have a Very important proposal to consider daring nezb month — viz., the union or amalgamation of the two institutions into one association. With this view an agreement Was entered into in April last between the boards of directors ot each body providing for an investigation of the affairs of the two institutions by a goint committee of ■ the chairman and a director from each board, assisted by the principal officer managing the business of each of the companies, and if this proved Satisfactory to draft an agreement for the Adoption of the respective boards. It must be a matter of extreme gratification to the members and policj holders of both institutions to learn that after a most eearohing jmd impartial . examination of their concerns over a period of some six months, the position of each as disclosed in their last actuarial reports was not altered one -iota, and this, it is well to note, was after the actuary of each examined the valuations of , the- other— Mr Stock, actuary of the National if utual, certifying to the correctness of the Mutual Assurance and Mt Gillison, actuary ior the latter, verifying the valuation of the aiational Mutual ;— to use their own words, 'each "is satisfied that the results as shown in the last investigation reports may safely ;be taken as correct." The basis, then, of the proposed amalgamation Is the last actuarial report of each company—the National Mutual's of 30th SeptemJwr, 1895, and the Mutual Assurance of 31st December, 1895. At period mentioned the National Mutual Association had in force 28,363 policies. 3?he sums assured were ... £6,305,632 1 11 She net liability under its contracts was shown to be « 1,390,528 18 6 She assurance fund was ... 1,525,223 10 0 Showing a surplus in the assurance fund of M 134,691 11 6 taie corresponding items of the Matual 'Assurance were 14,048 polioies, Assuring -w. ... ... £3,336,756 14 1 Net liability ... ... 795.170 6 0 Insurance fund . ...' ... 865,872 7 1 ... — „. 70.702 1 1 So that should the amalgamation be approved the new concern will start with 42,411 policies in force on its books, Assuring ... ... - .„ £9,642,388 16 0 Net liability.of ..« 2,185,699 4 6 yunds fco'meefc latter , .., - 2,391,099 17' 1 4Fhtiß showing a surplus of 205,396 12 7 And a combined annual in- . come of ... v w x .... 433,034, 0 0, 7~a truly magnificent beginning, besides' which there is the business, to be added that fcas been done since the Jast statement of accounts of each of them. It is pleasiDg to note " that there are no Circumstances connected with the business and financial condition of either of the two .institutions which would be prejudicial to the members of , the other if they were tuiited and consolidated in one association." v . For convenience' sake and expedition the (method of consolidation will be effected by *he transfer of the business and the possets and liabilities of the Mutual Assurance Sooiety of Victoria as a going concern to (the National Mutual Life Association ♦of jAaßtralaeia, as the latter is the older and jcbnsequently larger institution, and for the (Obvious reason that the title of The National 'Mutual Life is the more distinctive and comprehensive of the two. Both societies were known to be very Strong, and under a strict investigation have 'proved sound, but it. goes without saying Jthe union proposed will render each stronger land more beneficial to the members of both by reason — ■ • 1. Of the saving which can be effected by £ redaction in the expenses of management. 2. Of the more extended influence which jjthe associated members can bring to bear on jbbe extension of the business, and n\any Dtber obvious reasons. The directors, although having full powers Under the articles of association to act for >ishe members in completing the amalgamation, have resolved not to exercise this power, '{>referriDg to put it before members to approve of it by special resolution, and we jure of opinion the directors may have every confidence that such a proposal cannot but meet with the full approval of all concerned, as it is calculated to be of benefit to each and all of them, and to in every way Strengthen their position and give them a *bare in what must prove under the joint experience of both boards a progressive and profitable business combined with absolute jsafety.^ The proposed agreement is an admirable one, and fair in every particular Jas between the members and policyholders pt each company, and we oommend its Adoption to those concerned.