NATIONAL MUTUAL LIFE ASSOCIATION

Wanganui Chronicle, Volume 72, Issue 8, 10 January 1929, Page 5

NATIONAL MUTUAL LIFE ASSOCIATION

SUCCESSFUL YEAR REPORTED NEW BUSINESS RECORD. Th.e annual general meeting of the National Mutual Life Association of Australasia, Ltd., was held at the association \s offices, Collins Street, recently. The chairman of directors (Sir J. M‘Farland) presided. In presenting he annual report and balance-sheet, the chairma. said: — “Before dealing with the ordinary business of the meeting, L . ave to refer with great regret to the loss the association has suffered since our last meeting through he death of two members of the board. Mr Stevenson Fraser had been .vith Ug for less than a year. His intimate knowledge of pastoral affairs made him a most useful director. Mr George Swinburne was an old friend of the association, and he always took a keen interest in its welfare. Not only at head office, but also at the branches which he visited, his friendliness aud enthusiasm were a great enc mragement to our offices. His wide experincc and shrewd judgment wer.e used nreservedly in the association’s interests. ‘ ‘The members : re to bo congratulated on our having obtained tho services of Mr Herbert Brookes and Sir Brudenell White io fill the vacancies on the board. A Year cf Progress. “The report which we present today shows that Yce association made very good progress during the past year. “We issued new policies assuring £9,807,845. This ex. ceds by more than a million and a-half, the largest amount issued in any previous year. New business is essential to the ..ell-bcing of a life company; it enables us to introduce selected young blood into th.e body of our members and thus to keep it healthy and vigorous. We have shown a practically continuous increase in the amount of new business in each of our annual reports. Ten years ago the amount was £4,320,000; now it is over £9,800,000. This large increase is not peculiar to our association. Throughout the English-speaking world people seem to be awakening to the benefits of life assurance, which has been described as the-only means that has yet been devised wuereby a man may become a capitalist immediately. It is estimated that during the last 20 years the amount of insurance in force per head of the population has boon trebled. New Business. “But a large new business is not in itself proof of prosperity in a life company. It must be shown that the new business is not merely ephemeral, but that it is being renewed from year to year. Our record shows that t.cn years ago the premium income was £],3sB,ol‘<J; this year it is £3,381,000. ‘‘lt must be shown also that the business has been conducted economically, that the lives assured Lave been carefully selected, and that the funds have been properly investe ’ “In the report now submitted you will find information on all these points. Allowing for the cost of the new business, which is generally assumed to be ten times the cost of renewal business, the ratio of expenses to our premium income during the year is 7.07 per cent. Our mortality experience has been very favourable. The mean amount of risk during the year was £74,968 000, and the expected .death claims according to the tables of mortality on which our premiums are based amounted to £1,265,000; our actual claims were £732,784, or only 57.9 per cent, of the amount expected and provided for. Interest on the invested funds, after deducting taxes, amounted to £1,549,048, which is equal 'to £5 10s lid per cent. the mean funds, or £2 0s lid per cent, more than the rate of interest assumed on our calculations. Funds Strengthened. “The assurance fund was increased as the result of the year’s operation by £2,441,176, and stood at the end of the year at £29,147,329. “The manner in which ;hc fuud is invested is shown in th.e balance-sheet. You will see that our holding of Government and municipal securities was increased by some £171,000, and now amounts to £11,204,000. Loans on mortgage were nereased by £BBO,OOO, and loans to members on the security of their policies and collateral security were increased by £1,015,000. These arc the principal changes in our investments.

“I think you will agree with me when I say that the year has been a most successful cne in every respect., but the association is so firmly established that we look upon the past results as only an indication of still greater things to come. When we have recovered from the effects of the catastrophe which fell upon the world in 1914, still further developments in the business of life assurance may be expected. There are many fields still unexplored, or only partially developed. The system of group insurance is still in its infancy in Australia, and there are great possibilities in this class of business. It will help to introduce a new spirit of goodwill into our industrial relations and will have an important influence on our economic conditions.

“Thg unique •. Taractcr of mutual life assurance business as conducted by the association and other mutual companies is not appreciated by or politicians. Our Svle object is to supply the benefits of insurance to our members at actual cost price. No profit accrues to anybody from our transactions, and yet our needy Governments are seeking to tax us as if we were trading companies. In its attempts to find a basis for taxation the Federal Government proposes to tax us more severely than an ordinary trading company. It intends to tax us on i r interest, which is an essential part of our revenue. It is equivalent o taxing a trader on his turnover. The Federal tax is equivalent to a deduction of about £1,000,000 per annum from ‘he amount assured under policies in Australia. Our claim for exemption is very strong, and wc do not despair of being able to convince our politicians of the error of their ways. Sound Management.

“I desire to express our best thanks to the staff for its loyal service during the year, and especially to the new business* men, who have contributed largely to the year’s results. This meeting to-day is unique in that we have with us Mr H. W. Meyers, our manager in London, and Mr N. V. de Kock, who is in charge of the association ’s business in Capetown. On my last visit to England I wa s proud,

as an Australian, to :co the position the association held alongside the large English companies and to find that we can so successfully compete with them. This is largely due to the efforts of Air Aleyers. Air de Kcwk has been in charge in Capetown only six years, but in that period he has doubled the business there. “Certificates for bonuses addeu to policies as at 30th September, which represent a return to the members of the amount of premium paid during the year in excess of the amount which was required to provide the benefits under their policies, will be distributed on the Ist Alarch rext. ’’ The report and balance-sheet were adopted on the motion of the chairman, seconded by Air T. A. Rumsley. The retiring directors, Sir Robert Gibson. Sir D. Orme Masson, Sir BrudeneJl White, and Mr Herbert Brookes, and the retiring auditors, Afessr.s W. Al. Jarvic. and H. C. Tudchopc, were reelected. New Zealand Directors: O. S. Watkins, Esq., J.P. J. AL A. Hott, Esq., .T.P.; W. S. Bennett, Esq General Alanager for New Zealand: F. AV. Nicholson, J.P. District Office: Ridgway Street; A. R. Donaldson, District Alanager; G. AlcElwain, District A dent; Dalgety and Co., New Business Agents.