THE NATIONAL MUTUAL LIFE ASSOCIATION OF AUSTRALASIA (LTD.).

Otago Witness, Issue 2914, 19 January 1910, Page 71

THE NATIONAL MUTUAL LIFE ASSOCIATION OF AUSTRALASIA (LTD.).

FORTIETH ANNUAL MEETING

The fortieth annual meeting of the National Mutual Life Association of Australasia (Ltd.) was held at the offices of the company, Melbourne, on 20th December, when, the chairman (Mr Andrew Newell) presented to' its members the annual report and balance sheet for the year ended 30th September, 1909. Mr Newell, in moving its adoption, said: “ I have again to congratulate, the members on the very satisfactory progress of the association, as shown by the report and balance sheet for the fortieth year of its existence. The completed new bueines for the year has again exceeded three millions sterling, but in this we have been helped by a special transaction with the Australian Alliance Assurance Company,, referred to in the report. We have, however, established a new record, as, for the first time the revenue account shows an annual income of over a million sterling, the exact amount being £1,219,980, of which premiums produced £918,007, and interest and rents £257,723, and you will be pleased to hear that this largely increased business lias been effected at smaller expense than the business of the preceding year. We have spent actually £5195 less than in 1908, and, indeed, the expenses are less than they were in 1907, although the income is now £500.000 more than in that year. The interest earned by the funds, omitting the amount to be received from the Australian. Alliance Company, which had not come into our hands for investment during the year, is equal to £4 14s 3d per cent, of the average amount of the assurance fund, against £4 13s 3d per cent, earned last year. The amount of claims paid through death was about £2OOO less than the preceding year. Although more might have been expected, as owing to the 'increasing business we were covering larger risks, there is not much importance to be attached to this fluctuation, which, . considering the large figures involved, is small. The claims under endowment policies were about £16,000 more, but that is a natural condition to be expected as the association grows older. The result of the year’s business is all addition to the funds of £612,876, or £211,7(6 (about 53 per cent.) more than was added last year, and bringing the total up to £5,857,978, or very nearly six millions .sterling. Referring to the credit side of the balance sheet, the investment in Government securities shows a reduction of £56,000. This arises mainly through Treasury bonds of about that amount held by the association having matured during the year and been paid off. There is practically no change in municipal securities, while loans on mortgage have increased £502,000, and other loans in lesser proportions. Properties acquired by foreclosure have been reduced by £21,000, owing to several properties having been sold during the year, without loss to th,e association. You may have noticed a large increase in freehold properties, and decrease in leasehold. This is mostly accounted for through our having during the year acquired for a .merely nominal sum the freehold of cur valuable office building in Johannesburg that was built on land leased for 99 years. The abnormally large amount of outstanding premiums arises through the transaction with the Australian Alliance Company being incomplete when the books were closed. I think I have touched on all the items requiring comment, and need only add that the actuary assured me that the present is the most satisfactory balance sheet ever issued by the association, and the thanks of the members are due to the staff at the head office and branches, whose efforts have brought- about such a briilant result. The members will have read the newspaper report of the action brought by the Mutual Life and Citizens’ Company against this association for libel resulting from the act of a local manager and of several canvassers. The board regret that no intimation of any such complaint was conveyed to them, or to tire general manager, prior to- the institution of legal proceedings. When the writ was served the board inquired into the matter, and advised the Mutual Life and

Citizens’ Company that they disclaimed all knowledge of, or sympathy with, such attacks, and inflicted, a substantial penalty on the offending local manager. The judge at the trial decided that, in his opinion, the association was not liable for the unauthorised acts of the offenders, but in case his view of the law was wrong ho reduced the damages claimed from £20,000 to £7OO, and gafe the association a week to elect which part of his decision it should lake. Acting on the advice of our counsel, and to avoid the possibility of the cost of a new trial, the board elected to accept a verdict against the association. In the course of his decision, the judge commented on the action of the general manager in reference to hits answers to certain interrogatories. The board desire to say that the general manager is not to blame for what was done, and did not merit the censure cast on him. All the facts and documents necessary to answer the interrogatories properly were put before counsel, and the latter in open court on the 13th inst. informed the judge that h? accepted the full responsibility for the answers as they were drawn; that he believed the same were strictly correct, and that on his advice the general manager signed the same. It is to be regretted that the press omitted this statement by counsel from the report of the proceeding's, hut, in justice to the general manager, I mention the fact, and I can assure the members that nothing has occurred in connection with this case which would in any way lessen the board’s entire confidence in him.” —(Ap-. pi raise). The report and balance sheet were adopted unanimously. The retiring directors, Messrs Walter Madden and Edward Trenchard, were re-elected to the board. Mr Madden, in thanking members for this evidence of their continued confidence in their direcremarked that there were two sets of figures disclosed by the committee's report and balance sheet which were strikingly significant. At the time of the amalgamation of the National Mutual Life Association with the Mutual Life Assurance Society in 1896 the amount of the combined funds was £2,563,469, whereas to-day they stood ah £5,857,469, or a million pounds better than double the amount the company had started with 13 years ago. The second point he desired to refer to was that the association had now joined the ranks of the millionaire companies of the world. The revenue account for the year showed their income was now £1.219,980, which showed plainly the prosperity and progress of the association. He hoped that the result of the next year’s business would give the members the same cause lor retaining their confidence in their directors. 15110