A.M.P. SOCIETY’S YEAR

Taranaki Daily News, 30 April 1934, Page 9

A.M.P. SOCIETY’S YEAR

MOST SATISFACTORY PROGRESS. The . 85th annual report of the .Australian Mutual Provident Society for the year ended December 31, 1933, discloses most satisfactory progress in every direction .and a marked recovery from world-wide depression conditions of the past three years. The new business completed in the ordinary department, including reassurances but excluding annuities comprised 28,548 policies, assuring £12,053,09G. In the industrial department 60,691 new policies wore issued, £3,562,993 6s. The total new assurances of £15,616,089 represent an increase of £2,005,762 as compared with the previous year. Death claims in the ordinary department after deduction of reassurances totalled £2,329,291, including £855,312 for bonus additions, whilst matured endowments and endowment assurance policies totalled £1,463,598, including oonus additions £474,162. Claims by death and maturity in the industrial department amounted to £749,829 18s lOd. The total of accumulated funds of both departments amounts to £89,598,496, an increase of £3,340,384 on the figures at December 31, 1932, and the total assets have increased from £39,681,219 to £93,073,808- The investment and contingencies reserve funds now amount to £2,266,147, and, in addition, provision of £lOO,OOO has been made for accrued taxation, whilst the book values of office premises and other assets have been further written down by £54,178. The rate of interest realised on mean funds (including the fidelity guarantee fund, the investment and contingencies reserve funds, and provision for taxation) was £4 12s 6d per .cent.. ■Policy contracts, extend over a long period of years and interest rates on investments will not always be as low as they are at the present time. Consequently, the directors may look ahead for the realisation of higher rates than 4 5-8 per cent., and the fact that the actuary, in his valuation of the liability under the assurance contracts, has assumed that only 3 per cent, will be earned in the future, indicates the 'absolute safety assured to policyholders and the impregnable security behind their policy contracts. Expenses of management, excluding taxation, as a percentage of total income were 7.37 per cent, in the ordinary department and 19.74 per cent, in the industrial department. Taxation, though still very heavy, shows a reduction on 1932 figures from £822,230 to £743,857, and more than half the increase in the cash surplus • divided is due to this decrease. The benefit of some relief of the taxation load in the Commonwealth has been passed on to the society’s mortgagors by a reduction in the rate of interest, the principal board taking a long view of this matter and realising that such a reduction must reduce the cost of production and assist in the national recovery. There is room, however, for some reduction of the taxation at present levied upon the life offices in New Zealand and all policyholders might fairly look to Parliament to reduce the present heavy impost. . .. . The surplus of funds over liabilities in the ordinary department is £2,626,322, out of which £2,566,322 is allotted for distribution amongst, participating pol-icy-holders, providing reversionary bonuses amounting to £373,000. In the industrial department £276,776 is distributed amongst participating policy-holders providing reversionary bonuses amounting to £37,000.

The individual bonuses allotted for 1933 will be generally equal to or greater than 1932 and, speaking generally, no policy will be allotted a smaller bonus than for the previous year. The New Zealand assets of the society now amount to over £17,000.000, and are nearly twice as much as those of any other life office operating in the Dominion.