NATIONAL MUTUAL LIFE ASSOCIATION, Ltd

Gisborne Times, Volume LXV, Issue 10302, 11 January 1927, Page 3

NATIONAL MUTUAL LIFE ASSOCIATION, Ltd

—■<?& GOOD PROGRESS- REPORTED. Tiie 57rh annual general meeting* of - the National Mutual Life Association of Australasia, Ltd., was held today. "We have again to'submit to you a report of a most satisfactory year’s, business,” said the chairman (Mr. Edward Trenchard). “During the year which ended 30th September the Association issued new policies assuring £7,763,910, and providing for annuities of £3431. NEW .BUSINESS'. “The amount of new business is £712,000 more than the previous year’s total, and is the largest that wo have reported in any year. At our last annual meeting the system of what is known as group insurance was referred to ; this is comparatively new to Australia, but I am glad to see that the great advantages of the system are gradually coming to be recognised by both employers and employed. Several group insurances are included in our year's business. ‘The premium income of £2,758,068, which includes an even larger amount of single premiums than we reported last year, shows an increase of £320,000. • ■

HIGH RATE OF INTEREST. “The interest income of £1,315,162 is £119,000- -greater than last year’s amount, and it is equal to £5 11s 6d per cent, of the mean funds. This is the "highest rate of interest earned by the Association’s funds in any year during the last 34 years. We assume in our calculations that the funds will earn 31 per cent, per annum. The amount received this year in excess of the assumed rate is some £120,000 larger than the total expenses of conducting the business. “Our last year’s accounts contained a special item cf £645,096 consideration for re-insuring the liabilities of other companies; this year we have a similar item of £7186. Omitting both of those, the total income shows an increase of £439,000. “The claims due to death, £669,107, are £85,000 more than in the previous year, but they represent a very favorable jjrte of mortality, as they are>ffuV iff only 61 per cent, of the ejected* Jglyments under this “Me pifruffifitsi® ljimbers for mature# polioJiggft#^(affirt from claims by Meath, tojpyjii^iJp' have just refer® d) iverangS ,KB|fuoo, and this is act Sally less than the correspepding in the previous yeas Lge drop in these payments is of irasjvsni fieanco. It merely indicates a slight irregularity in the distribution of the maturing policies.

EXPENSES. “The expense® of conducting the business are divfied into two classes, those connectedjPwith obtaining new business, whiclfc amount to more than half the tjftal, and the expenses of management and. of collecting the ordinary revenue. jfl’his year both of these classes of asMknse are a lower ratio of the reoz<§i income than in the previous Jpar.j| A.fe'URANGE FUND “The amount affiled to the Assurance Fund as the Ibsult of the year’s transactions is £p,975,205. If we omit the special items which I have mentioned, the amount added shows an increase of £371,000. “The Hewnue Account shows then that we have largely increased our business, we have earned a higher rate of interest; the mortality experience has been very favorable, and the rate of expense has been reduced. “The result of these favorajte de-, velopments, in which, of cour®, our policy holders share, is imtxt The cost cf insurance will be raluced—that is to say, tha»bonu|bs wM be in- <; “fiircal Jfur jfrasjfion to the principal ch(@ig&| i#our investments as slftwn Governntent aJet other public securities now Ipnoiuß to over £11,123,000, or This amount lias increased by £983,000 during the year. I am not surjy that this 'is a matter for tion. , GOVERNMENT BORROW^TG. “The requirements of jjw different Governments show no J/jM ns a^a in< r , hut 1 am afraidMKiat tliey will not find it easy the picsent rate of boMWwing without impeding the devourment of our industries. JBF , ~ "In his Imt Budget, speech the Federal Wiisurer (Dr. Page) announcedjfkt it was the. intention of the • G#Pernment to provide £2O,UUu, 000 Jcassist in the provision of Houses for the people both by new construction and purchase. Building societies have been formed throughout Australia for this purpose; their investments at the end of last year exceeded £7,000,000. Savings banks are established in each State, I hey hold deposits amounting to nearly £200,000,000, and some of them have lent large sums and are still lending to help in the purchase and building of houses. Trustee companies and insurance companies make it part ot their business, and we ourselves have ober £1,000,000 so invested lhe intervention of the Federal Government does not seem to be necessary. It would mean, I suppose, the formation of a new department, and as a rule the administration of a Government Department is cumbrous, and it is not noted for its efficiency or econ°n"if the £20,000,000 which the Treasurer referred to is to be provi - ed bv a loan the Government will not be disappointed if the institutions concerned do not subscribe. “Loans on mortgage have increased by. £291,000. - “Loans to members on the security of their policies have increased, by £514,000.

INCREASE IN HOUSE PROPERTY

“House property—the Association’s freehold properties—has increased by £BO,OOO. This is due to the completion of the new buildings in Durban, South Africa, and in GeeLong referred to at our last meeting, which are now occupied. Since the close of the books we have arranged to buy the well-known property called Panver House, in London. This property in Paternoster Row adjoins Qiuf Cheap,side building, and it will provide the additional accommodation which lias long been required by cur branch office. New buildings for our Queensland branch are in course of erection in Brisbane, _ and we arc adding to our premises in Auckland, New Zealand. “Life assurance has been called a social barometer: the standard of the companies and the measure of their 'prosperity are indications of the-wel-fare of the community. In Australia we have 29 companies established. Most of these are proprietary coup panics, which have been formed, during the last few years, and hove not yet proved Their efficiency. According to the last annual returns of the new business transacted by the 29 companies'’, not all in Australia, more than 70 per cent, was transacted by

five mutual- companies, and of the total -funds of over £113,000,000, 8o per cent, , were held by tho five Mutual Companies. “In his presidential address to the Institute .of Actuaries in October last, Sir Joseph Burn said: ‘From whatever .point pi view I attempt, to view this matter' it is impossible -°r me to understand how any true teacher of morality can fail to teach.assurance. My belief is that what is needed at the present time is a great awakening cf the nation’s mo a.l sense, insurance should.be taught-in schools; it should be preached from, pulpits; it should he analysed and studied by professors; it should be trumpeted by the Press, and proclaimed by every possible’ means or publicity.’ That is, I think, profoundly true, “and it is specially applicable to our conditions. It should be published throughout Australia. “Before I move the adoption, 1 wish to express our thanks to our officers and agents at all the Associations’ offices for their efficient services which have made it possible for us to submit such a satisfactory report.” The chairman then moved the adoption of tho report and statements of accounts. This was seconded by the vice-chairman (Mr. George Swinburne) and carried. - Sir John MacFarland, the only retiring director, was re-elected. New Zealand Directors: O. S. Watkins, Esq., J.P.; J. M. A. Ilott, Esq., J.P.; W. D. Stewart, Esq. General Manager for New Zealand: F. W. Nicholson, J.P.; Common, Shelton and Co., Ltd., Local Agents; A. Collins, District Inspector. (Published by Arrangement.)