LIFE INSURANCE PROGRESS

Wanganui Chronicle, Volume LXXXII, Issue 19208, 10 January 1925, Page 12

LIFE INSURANCE PROGRESS

NATIONAL MUTUAL’S INCREASE, VALUE OF MUTAL LIFE COMPANIES. A substantial increase in the past year’s business was reported, at, the 55th annual general meeting of the National Mutual Life Association on Australasia, Ltd., held at Melbourne on December 19. Since tin- company conimneeed business in 1869 over £ 14,829,099 has been paid in claims, and rhe assurance funds at September 30 amounted to £ 20,365,160. Mr. Andrew Nowell, chairman, in moving the adoption of the annual report, said: “The report, which wo submit, to you to-day shows that the rate of progress 01. the association has been wall maintained during the past year. NEW BUSINESS. £6,279,1.05. “The amount of new business transacted, £ 6,279,105, is £394,319 greater than the amount transacted during the previous year. “If wo deduct from the 1923 receipts the amount that was received in connection with the re-assurance of the Australasian business of the Equitable Life, Assurance Society of the United States, thc amount, of premiums is £ 1 84,931 greater Ilian the amount ceived in that year; the interest received is £84,906 greater, and th? total income, £3,260,737, is £ 270,072 greater. The interest: after deducting £51.090 paid for rates and taxes is equal to £5 9s 4d per cent, of the men n amount of the assurance, fund during the year. This rate, is B<l per cent, less than the rate obtained in 1923; in that year we received an extra amount of interest owing to the pre mature redemption of a parcel of Government debentures that wo had purchased. The amount of claims that were paid i or became payable through Ihe death. I jof policy-holders during the year, : £ 507.316. was £ 1 8,923 less than I the amount shown in our 1923 ac counts. In view of the fact that the ■ amount at risk had been largely in- ' creased, this indicates a very favour able rate of mortality amongst our ’ members. Other payments fo members princi- i pally on account of policies that had matured amounted to £95.2.167. mak- | ing thc total payments under policies ! £1,460,483. of which £ 200.769 represents payments under Equitable policies. I.OM’ER EXPENSES. Notwithstanding the larger amount of new business transacted, the totaexpenses are a lower ratio of the income than they were in 1923. The principal changes during the year in the Association’s investments, as shown in the balance-sheet arc an increase of £ 735.376 in Government securities, which now amount to £B. 389.961; in mtinieipal and other debentures of £239.036; in loans on mortgage of £ 309,079, and of loans on the association’s policies of £413. 704. For a considerable proportion of this last item we hold freehold property as collateral security. Cash on deposit. £1.137,1 96, is £438.726 greater than it was a year ago. This is duo principally to a temporary’ deposit with one of thc Australia n Governments. The total of the assets side of the balance-sheet is £ 21.470,1 55, and deducting items on the liabilities side, there remains an assurance fund of £ 20,365.1 60. The growth of life insurance funds i has excited the cupidity of the politicians who have not yet been made to understand the nature of these funds and the character of our business. Here is a large amount of money, let us tax it. they say, and so we have been called upon to pay' over £ 51.000 out of this year's revenue. From the beginning we have paid over £ 4 50.000 in this way. The fact that, the whole of the funds of a mutual company be- ' long to its policy-holders, that th' I funds are used solely for their benefit, and there is no body of shareholders ] who can draw any advantage there- ' from, is overlooked. POLICIES IN FORCE. At the dose of the books we liad 169.589 policies in force, the average amount assured was £330, and it is the holders of these policies w’ho are actually taxed individually when a levy is made, upon the association’s funds. This is, of course, in addition to any tax the jmlicy-holders mav hare to pay in any other capacity than as a policy-holder. Au insurance authority has claimed recently that mutual life companies are amongst the most important educational institutions of the present time, and I think he is right. They teach the lessons of individual responsibility, self-respect, and good citizenship; they show in a very practical way what can be attained by combining for the common good. Our policy holders belong to all classes in the community, ami each gets from the. association the exact value of what he contributes, no more and no less. The total amount of the declared assets in Australia of companies, mostly mutual, transacting life assurance business, exceeds £ 80,000,000, and practically the whole of this amount is being use 1 in the development of the country. In these days of Government subsidies and grants for the encouragement of all sorts of enterprises, it is not too much fo ask, I think, that we at least should not be taxed. The position of our association is-an extremely strong one, and its business has grown to very large dimensions. I think I am right in saying that we are now the largest British Life Office established during the last 55 years. The practice of allotting bonuses annually, which we adopted two years ago, has given satisfaction to our members. The certificates for the year just closed will be. distributed" on March 1 next. The motion was seconded bv the Hon. Walter Madden and carried unanimously. ’ ’ The three retiring directors, the Hon. Walter Madden, Mr. Edward Trenchard, and the Hon. George Swin- I burne, were re-elected, and Messrs. 11. ! E. Tndehope and Mr. M. Jarvie were again elected as auditors. District Office: Ridgway Street, A. R. Donaldson, district manager.*