ASSURANCE BUSINESS

Waikato Times, Volume 128, Issue 21409, 1 May 1941, Page 10

ASSURANCE BUSINESS

MUTUAL LIFE AND CITIZENS Discussing a successful year’s operations, the annual report of the Mutual Life and Citizens’ Assurance Company, Limited, states:— The number of life assurance policies in force at the end of the year was 707,740, assuring (with bonuses) the sum of £93,324,084. All policy liabilities have been valued on a net premium basis, the rate of interest assumed being 21 per cent for both the ordinary and the industrial branches—the most stringent basis in use in Australia. Payments to policyholders during the year amounted to £2,033,367. Since its inception 54 years ago the company has paid £40,388,915 to policyholders. The increase in funds was 1.751,524. The increase is the largest in the history of the company. During the year over £1,500,000 was subscribed to war loans. Military pay has been subsidised for 144 members of the staff on service. All limitations on risk during war included in pre-war policies have been waived. A superannuation plan for members of the general field force was introduced. Provision has now been made for the superannuation at the age of 65 of all members of the clerical and field staffs. The new business written in the ordinary branch, excluding term assurances in connection with family income and other policies, was 18,980 policies for £6,643,702. The figures are smaller than those for 1939, but, m view of prevailing conditions, excellent. The premium income amounted to 2,258,241, the total income being £3,311,946. The expense rate was 13.26 per cent of the premium income. Calculated on the total income, the rate was 9.06 per cent. The effective rate of interest earned on the funds and reserves was £4 16s 2d per cent; after the deduction of taxes it was £4 5s 9d per cent. In the industrial branch the new business written was 79,293 policies for £3,872,897. The amount written in Australia and New Zealand was almost as large as the record figures established in 1939. The premium income amounted to £1,183,761, the total income being £1,477,832. The expense rate was 29.66 per cent of the premium income. Calculated on the total income, the rate was 23.76 per cent. The effective rate of interest eai ned on the funds and reserves was £4 17s lid per cent; after the deduction of taxes it was £4 9s 2d per cent. The sum of £IOO,OOO has been added to general reserves, making the total under this heading £200,000.