NATIONAL MUTUAL LIFE ASSOCIATION.

Taranaki Daily News, 14 January 1920, Page 6

NATIONAL MUTUAL LIFE ASSOCIATION.

• 50th ANNUAL MEETING. (Published by Arrangement). The 50th annual meeting of; the National Mutual Life Association of Australasia, Limited, was held at Melbourne 'on 23rd December, Mr. Andrew Newell presiding. In moving the adoption of the annual report, which was adopted unanimously, the Chairman said:—

"Since our last meeting the association has lost a good friend 'uid a wise counsellor through the a l;ul ,h of Mr. James Cooper Stewart. As one of its solicitors from the foundation of the association, and as a director for the last six years, Mr. Stewart was closely identified with its welfare, his wide experience in business affairs and his sound judgment being highly valued by bis colleagues on the board.

"The report of our last year's business, which is now presented, is chiefly remarkable for the large amount of new policies we have issued. They represent assurances for £5,030,415, or £1,309,903 more than the amount issued in the previous year. This increase of our new business indicates that the value of life assurances ib beginning to be appreciated in British communities. After four years of the most devastating war the world has ever seen, which tested the stability and resources of life assurance institutions more severely than those of any other financial institutions, followed by a year of deadly epidemic, their position is stronger than it ever was. A writer in a leading journal has recently described life assurance companies as a sheet anchor of the nation. PREMIUMS.

Compared with the previous year, the premiums received, as shown in "the revenue account— £1,489,555—were £130,938 larger; the interest and fee 5—£626,953 —were £63,977 larger; and so the total income, £2,110,509, waß £194,035 larger. The interest is equal to £5 3s 3d per cent, of the average funds. "On the expenditure side of the revenue account you will find that the amounts paid to policy-holders totalled £1,063,274, or £186,285 in excels of the total for the previous year; of this the very large amount of £635,315 was paid under claims due to the deaths of policyholders, which is £145,454 laiger than the claims pf .the previous year. The increase in this item Only partly represents the effect of the influenza epidemic on the funds of the association. ■

"The rest of the expenditure is the cost of conducting the business, which, in relation to the premium income, is about 1 per cent, higher than it was in the previous year. This increase in the ratio is accounted for by the larger proportion of new premiums, the collection of which, of course, involves a much higher rate of expense than the collection of renewal premiums.

THE FUNDS. The amount added to the funds was £815,518. Although this is 1 £"24,330 less than the amount added in 1918, this result of the year's transactions mu?t be accepted as very satisfactory when' the large increase in the payments to policyholders is considered. The principal alterations in the amounts shown in the balance-sheet are an increase of about £1,000,000 in Government securities, and a decrease of ;£1 S3,(100 in loan? on mortgage. Since 1914 our Government securities have increased by more than £3,00i),000. All the available funds have beeh lent to the Government, to help it to meet the heavy war expenditure—the directors are sure tb>>t this was in accordance with the wishes of the members. Now that the war expenditure has ceased, It is hoped that the demands of the Gov* eminent will be restricted to the amount actually required for carrying on the ordinary affairs of the country, and so that our funds may again be available to help in developing the productive industries. The numerous borrowings of the lash few vcars, whi?h have been correctly described as drafts on the future earnings and nroduction of the country, have produced a dangerous inflation of credit, both public and private, with a false feeling of prosperity, high prices, and erjtr&vagant expenditure. To bring the country hack to normal conditions the utmost economy and industry are necessary.

FIFTY, YEARS. "During the year that has just closed the association completed the fiftieth of its existence. It was founded on 12th August, 1869, for life assurance on the mutual principle; the capital required consisted only of the premiums paid, by policy-holders, amongst whom there was no privileged class; all were on the same footing. It was claimed that the conditions of the policies were the most liberal that had ever been offered to the I)ublic-+-they included what is now known throughout the insurance world as the non-forfeiture principle, which is the most beneficial principle of assurance contracts. Those conditions have been strictly adhered <to, and I can safely claim that durin? the 50 years no company has been able to offer more liberal or more equitable conditions. The venture was looked upon as a risky experiment by the insurance world; the times were unfavorable for all insurance companies, owing to the failure of two large companies with a tvorld-wide business, but still the foundejs, chief amongst whom was Colonel J. N. Templeton, who controlled the management of the association for many years, and to whom, more than to atiy other man, the credit for its present position is due, persevered. Their faith in the venture has been fully justified.

GROWTH OF tfHE OFFICE. "At first the growth was slow; in December, 1870, after more than a year's work, the funds amounted to £2156; at the end of ten years the funds were £95,201; at the end of 20 years they had increased to £898,452; at the end of 30 years they were £3,035,232; at thS end of 40 years they were £5,937,275; and now, at the end of the fiftieth year, they are £12,601,509. "During the 50 years the association has received from its' members £21,739,394—it has paid to its members under their policies £12,285,692, and, as.l have just stated, it holds funds amounting to £12,601,509, which belong to the members. "The figures I have quoted speak eloquently of the success of the association, and of the good work it has been able to perform. They require no further comment from, me." Mr. Andrew Newell and Captain S. M. Bruce were re-elected directors, and Messrs. H. C. Tudehope and W. M. .fT'viiie were re-elected auditors. * R. M. STEWART, District Manager.