NATIONAL MUTUAL LIFE.

Wairarapa Daily Times, Volume 46, Issue 14098, 15 April 1920, Page 6

NATIONAL MUTUAL LIFE.

general meeting. SATISFACTORY GROWTH OF BUSINESS. An extraordinary general meeting of members of the National Mutual Lite Association of Australasia Ltd., was held at Melbourne on 24th ultimo. Tlfe report of the actuary, which was submitted by the directors, Mated ‘'•lii the last three years the giouth ot the association’s business Jwas verysatisfactory. The amount of new policies issued —£13,456,089 2s bd-and the amount received for premiums and interest —£5,805.251 Os yd—during the period, were much in excess ot the corresponding amounts in any previous report! Although the claims under policies were exceptionally heavy, i_,, r OS Ss 3d was added to Hie assurance fund, which was thus increased to £,9 .524,308 liis. The directors have decided that the surplus of 15s shall be divided amongst the po icv-holders entitled to participate, it will provide reversionary bonuses amounting to £1,450,000. THE CHAIRMAN’S SPEECH. The chairman of directors (Mr Andrew Newell), in moving the adoption of the report, said:— Gentlemen,— I will ash you to take the report of the directors on the 16th investigation of the affairs ot the association, which jiou have m yom hands, as read. , « It contains a very brief statement of the results of our business for the last three years: the actuary’s report, upon which "it is based, with the usual schedules giving details of the valuation of the liabilities, will be circulated amongst members as soon as we can get them printed. But m order that the significance of the results maj be appreciated, I propose, if you will allow' me, to compare some ot them with the Jesuits shown jin pre\ ions reports. BUSINESS. The amount of new business, £13,456,089, exceeds what had been our best record by £2,771,643. Before Hus triennium we had reached our highest point in 1910-13, which is the last investigation period that was ±1 from the effects 0 f war. During 191316 the total fell to the extent of oiei £743,000,. and this seemed to be attributable to the war conditions. But now for the years 1916-19, when, we St have expected that the influence of those conditions would be most severely felt, there As a rise of over it millions. Our experience m this respect- is not singular, for most of the companies are reporting an increased new business, particularly J-urin tk last year of the period. The leasons for this are not apparent. Some have availed themselves of the facilities ot fered bv life companies tor subscribing to the war loans, others have realised that a life policy is the best waj to provide for the higher probate duties; but these are not sufficient to account for the general increase m business Whatever the reasons may be, it 4t a good thing for the community that at a time when there is such lucent necessity to husband our resources, the people are recognising the Jienefits of life assurance. INTEREST.

The amounts of interest earned b> the funds, £1,704,555, is £3j6loom°re than the amount earned in 1913-16, is equal to the average rate of £o 3s Id per cent, per annum. The rate f oi 1913 16 was £5 03 3d per cent, per annum. The higher rate accounts for nearly £47 000 of the total amount earned, me total receipts for the period were £5,808,281, or £1,117,983 more than the receipts for. 1913-16. Amongst our disbursements, the most prominent item is the amount paid for claims under poHdes. This I re Q t was increased to £1,581,108, oi more than the amount paid m the past triennium. Of this amount up less than £455,332 represents wal „™“__ a term which has become too- familial and £232,458 was due to deaths from the influenza epidemic, the effects o which were actually more severe foi the period of the visitation than the effects of the war, for. any period of similar duration. The total of these two amounts, £677,790, L 42 per cent, of the total claims; if they were deducted, what we may call the normal claims would bejpnfr Bj>me £9OOO • more than those for lJlo 1 - The expense ratios of both new and renewal business are lower, and, although the new business is not only so mne larger in itself, but is a larger proportion of the total than it was in the last period, the aggregate expense ratio is also lower. The reduction of the ratios is equivalent to a saving of nearly £51,000. /. SURPLUS. The net result of our transactions in the three years is an ad-ditiqn to assurance fund of £2,396,790 which is some £269,000 more than the amount added in 1913-16. The surplus available for distribution, £789,48/, is £s*9 954 more-than the amount distributed thr“e vears ago; but as the number of members entitled to participate is so much, larger, the bonus will, in some cases, be a little lesss than the amount allotted at the last distnlffition. But when we consider the e traordinarilv heavy claims that have been met, and the singularly unfavour- £ conditions that Ihanis during the last five years, the results disclosed in the report very gratifying and are a tribute to the. good work of the officers of the association at head office and the branches, mcludfn" our field staff, through whose unceasing efforts the large new business finishes my comments on the figures that are now before you, but before I conclude, may I indulge some feminiscences, and give you some facts regarding the history of the as

sociation and the work it has accomplished! The report, of the first investigation of the association,- which was made on 30th September, 18/4, five years after its foundation, showed that the income for the five years was £31.124; the funds at the end of the period amounted to £15,464, and £3OS9 was distributed amongst the members. These figures look small when compared with those now presented, but. the work that was then being done was of the utmost importance; our founders were men of wide vision, and they were laying the foundation which made it possible to build safely the structure that we have to-day. PERSONAL. j became a member of the board in 38S0. when the association was in its eleventh year; beginning to tool its strength, it had then begun to ex end its activities by the establishment ot branches; its annual income was something over £63,000, and its funds had reached the respectable sum of£100,00(. The policy of expansion which had been adopted produced an immediate effect; at the end of three years the income was £144,500, and the funds were £304,000; at the end of ten year, the income was £269,000, and the funds had reached £1,000,000, and so the orowtli has continued until now, at the end of its 50th year—the 40th year ot mv directorship—the association is amongst the leading institutions ot the Empire, with an annual income ot £2,116,000, and funds exceeding £12,000,000. Since its foundation it has paid in death claims, under 1/,914 policies, the sum of £6,040,061; to members whose policies have matured it has paid £3,691,306. and to annuitants, £435,219. The cash surpluses that have been divided amongst the members amount to £4,019,003. Those figures indicate the important place the association occupies in the social oigauisi , and as its latest achievements are its best, we arc justified m loohuig wih hope and confidence to a still gieatci extension of its usefulness. The motion for the adoption of the report was seconded by Mr Walter Madden, and agreed to. It is expected that the bonus cc.iti fieates will be issued to members in tlie course of a few days. . - j j>_ y[. Stewart, District Managci.