NATIONAL MUTUAL LIFE.

Colonist, Volume LVII, Issue 13979, 8 January 1916, Page 3

NATIONAL MUTUAL LIFE.

A SPLENDID YEAR,

ANNUAL MEETING

The annual general meeting of the National Mutual Life Association of Australia, Limited, was held at the association'B offices, Melbourne, on December 23rd. Mr. Andrew Newell (chairman of directors) presided. In presenting the annual report, the chairman said:—

"I beg to move the adoption of the report, and I ask the members to accept it as a record of a very satisfactory year's work. If it is considered in relation to the prevailing conditions we can claim, I think, that it is tho best year's work tho association has yet been able to show. The report shows that we issued 11,287 new policies, assuring £3,128,000; this is £448,000,. or about 12 per cent., less than tho amount of new business.-transacted in 1914. This slight falling-oil' is not, I think, attributable to the war,' which'has "affected ns in. other respects but not in this.: It is attributable mainly to the'unfay.durable season that we' experienced last year, which left many of our people without the inclination to fulfil what is really a primary obligation by providing, as- it is impossible to provide in any other way, by life assurance for their dependents. ■

INCOME OVER £1,555,000.

Tlie year's income was over £l,o5.5,000; this exceeds,by £82,000 the income of any previous: year. We paid to our members or- their repTesentatives .36,69^7^179-,; and tins is/. £106,000' more than we have paid in any previous year. The effects of the war are chiefly shown Jn this, item; for the claims through the death of policy-holders increased to £352,000, or £82,000 nr.pro than in 1914. About half this increase, or nearly £40^000, is due to the death of .policy-holders who were on active service. The number who thus gave their lives for tlio. Empire during the year is 144. But I am glad to be'able to tell ,you" tliat notwithstanding the largo of the claims, our experience is still less than the expectation—that is to say. the amount paid in rosocct of the deaths is loss tluiti the amount that we had provided for in accordance with the tables of mortality upon which our premiums arc based.

THE WAI?

"The question is often asked't<> what extent, will life assurance.companies be affected by the war. Their principal business is to provide for the payments of the sums assured at tho deaths of policy-holders, and the premiums charged are -.calculated on the assumption that the rate of mortality will be the i\ito that is found to obtain amongst healthy people following' rivil occupations under normal conditions. The liability of tho coinuanies is p,reatlv increased when the policy-holders submit themselves to the terrible risks of warfare. Tt is impossible to snv what the extent of those risks is under present conditions, but f am inclined, to think that wo are ait tr> exaggerate them. Th? most complete statistics that have been .published on this subject refer to the South AfricMi War, and these show thr-t during the whole duration oF chat "war tho mtc (.J jjiort.ility ii'om al,l eaus.es-—-wounds ancNllaoss amongst 'nil rnril.'s —wah at the irate of a Tittle les than '10 pt'iv M:ou>saud-i>< jr annum.

whilst tho'ordinary rate of mortality amongst assured lives.at age 3D is less than 8 per thousand per annum. We have no means of estimating what tho mean rate will be in the present war; the published figures up to the end of April -seem to indicate a higher rate amongst officers than any previous experience, but the facts were incomplete. The effect on the life companies will, 6f course, depend on the number of their policy-holders who go toiiho front, but whatever the number may be, so sound is their position, and so strong are their reserves, it will be found 'that they can easily bear the strain. It is impossible to say how many of _ our policy holders have enlisted, for rthose who insured before the outbreak of war are free to do what they please, and we are not advised of their movements; but we do know that the number of National Mutual policy-holders who have given their services is more than sufficient to fill two battalions, and it probably is sufficient to fill the whole briaadi\ and to provide a full complement of all ranks, from officer commanding to private. The directors have offered every facility and encouragement for officers of tlie association to enlist, and I am jrlad to be able to say that officers from the bead office and from every branch are serving. Those who for^ various reasons aro unable to enlist are working at hifich pressure to keep the work from falling into arrears throueh tbf absence of their comrades, and in this Ava-y they are doing their part.

EXPENSES

"Besides the payments to members,----;GJL61,537 was spent in conducting the business of the association. This last amount represents less than 15 per cent of the amount received for premiums, and less than 101- per cent, of the total income. These figures deserve special notice. The total. expenses are nearly £13,000 less than they were in the previous year, although the income was increased by £82,000; they are £4000 less than they were, five years ago, although the income has increased by moro than £4.00,000 in that period. Regarding our invested funds, I have no special comment make; the amount added for the year, £692,000, has been invested' in the same classes of sound securities that we have adopted in previous years. A larger amount than usual, something over £220,000, has been invested in public debentures.

INTEREST,

"The amount of interest earned during the year was over £443,000, and this is equal to nearly £4 18s per cent, per annum on the average amount of the funds for the year. To obtain the results which have been submitted to you has meant hard work on'the part of the association's staff,- and it has been cheerfully done. It nwv he invidious to mention one individual, but I am asked by the general manager to specially acknowledge the work that was done by our New South Wales inspector, Mr. H. J. Cohen, which produced exceptionally good results." The motion was seconded by Mr. A. Hone, and was unanimously agreed to The retiring directors (Mr. Waltei Madden and Mr. E. Trenchard) were declared duly elected without oonosition. The auditors" (Messrs. W. P. Jarvie and 'J. Valentine) were re-ap-pointed. The New Zealand directors are Mr. A. E. Pearce (chairman). Hon. Win. Fraser. and Mr. G. F. Pearce. Mr. F. W. Nicholson is manager for Npw Zealand. The local ascents are Messrs. E. Ihixton and Co., Ltd., and Mr. R. F. Rich-ardson-is district inspector.