NATIONAL MUTUAL LIFE ASSOCIATION.

Press, Volume LVI, Issue 16729, 12 January 1920, Page 2

NATIONAL MUTUAL LIFE ASSOCIATION.

FIFTIKTH ANNUAL MEETING

The fiftieth annual moot ing of the National Mutual Life Association ot Au>jtralasia. Limited, was held at Melbourne I on December L'ord. Mr Andrew Neweli ! proi-Ung. lit moving the adoption ot j 'he animal report, which was adopted unanir.nn.sly. the chairman s.:u!: — 'Since oar last meeting tin- Association has Id.-t a good friend and a wise co'.inrellor through the death oi Mr ! Ja*iie> Cooper Stewart. As one of its » solicitors from the foundation of the A'-sociation. and as a diteeter for the last six vears. .Mr Stewart was < :o>e!y identified with its welfare, his wide experience in business a/fairs, and his sound judgment were highly valued by his eolleniruos on the ltoard. "Tho report of our hist year's business, which is now presented, is chiefly remarkable for the largo amount of new policies we have issued. They represent assurances for £'o.(»30.41o, or £1,309,01X1 more than the amount issm-d in the previous year. This increase of our new business indicates that the value of life assurance is beginning to be appreciated in British communities. After four years of tho most devastating war the world has ever seen, which tested the stability and resources of life assurance institutions more sercrelv than those of any other financial institutions, followed by a year of deadly epidemic, their position is stronger than it over was. A writer in a leading journal has recently described life assurance companies as a sheet anchor of the nation. TREMIUMS. '•'Compared with the previous year, the premiums received, as .shown in the revenue account —£1.459,00G —were £130.larper; the interest and fees — tfjL'G.-•">3—were £03,977 larper; and so tho total income. £2,116.ii09, was £194.930 larger. The interest is equal to £o 3s 3d per cent, of the average funds. "On tho expenditure side of the revenue account you will find that the amounts paid to policy-holders totalled £1,0(i3."274. or £156,280 in excess of the total for the previous rear: of this the verv large amount of £630.31 a was paid under claims duo to tho deaths of policv-bolders, which is £l l- r >.404 larger than the claims of tho previous year. Tho increase in this item onlv partly represents the effect of the influenza epidemic on tho funds of the Association.

"The ro?f of tho expenditure is the cost of conducting tho business. wliit-li, in relation to tho premium income, is about 1 nor rent. higher than it was in the previous venr. This iueronse in the rr.tin is accounted for bv tho lariror proportion of now premiums. tho collodion of which, of course, involves a m"ch hidhor rate of exponso than tlio colleotion of renewal premiums. THE FUNDS. "The amount added to the funds was £815,015. Although this is £24,330 less thnn the amount added in 1918, this result of tlio year's transactions must be accepted as very satisfactory when the largo increase in the payments to policv-holdors is considered. "Tlio principal alterations in tlio amounts shown in the balance-sheet sire an increase of about £1.000.000 in Government securities, and a decrease of £180,000 in loans on mortgage. Since 1914 our Government Kocuriri»s have increased by more than £3.000,000. All the available funds have boon lent to the Government, to help it to moot the heavy war > expenditure—the directors nro sure that t!iis was in accordance with the wishes of the members. Now that the war expenditure has censed, it is hoped that the demands of the Government will be restricted to tho amount actually reouired for carrying on tho ordinary affairs of the country, and so that our funds may again be available to help in developing the productive industries. The numerous borrowings of the last few years which have been correctly described as drafts on the future earnings and production of tl'P ennntry have produced a dang n rous inflation of credit. Ik>Hi public and private, with a false feeling of prosperity, high prices, and extravagant expenditure. To hying tho country back to normal conditions the utmost economy and industry are necessary. FIFTY YEARS. "During the year that has just closed the association completed the fiftieth of its existence. ]t was founded on August 12th. 18Uf>, for life assurance on tilt? mutual principle; the capital required consisted only of the premiums paid by policy-holders, amongst whom there was no privileged class; all were on the same footing. It- was claimed that the conditions of the policies were the most liberal that had ever been offered to the public—they included what is now known throughout the insurance world as thi! non-forfeiture principle, which is a most beneficial principle of assurance contracts. Those conditions have been strictly adhered to. and I can safely claim that during the .">0 years no company has been able to offer more liberal or more oouitabl-* condit : ons. The venture was looked unon as a risky experiment by the insurance world; the times were liiost unfavourable for all insurance companies, owing to tlio failure of two large commnics with a world-wide business, but still the founders. rhirf amongst whom was Colonel •T. X. Templeton. who controlled tho management of the c.ss-Joiation for many .wirs. and to whom, more than to any r>*,h«r r;-.nn. the credit for its present •insi'ion r- due. persevered. Their faith in the venture has been fully justified. GHOWTH OF THE OFFIC*:. "At liiat the growtli was slow; in December, li< 0, auer more man a years work. luo liiii-js aiiiounicii u» i.i.Ai; at tJie end ot Jo years me innus were i'.-Vt.UU ; at t;.e end o! years luey liau illcn ased to 162; ;il t;,u eiiu ot iW years iiitv were ; at I tie enu ol 40 years U;oy were! i: and now. at t.io'end oil tae illiletli year, tliey are iil'.OOl ,o0 ( J. "During me oO years tiie association ! has recened from lis member* julii,«l J;<j—it liu* jiaiu to its niemijeia unuer \ tueir iiolKirs and, a's 1] June ju>t stated, it lioius funds amount-' ing to wincli belong to tiie members. I "l r.e figures 1 have quoted speak elo-' quently ol th.- Micrcss ot tiie as ociition, 1 and oi ti;e good wurk it ha.-, Iteon able to perform. They require no further coin incut 1 rom me." j Mr Andrew .Newell and Captain S. j M. JJnice were re-eioctotl director:-, and • Messrs 11. C. Tudehope and \V. „\l.j Jarvie were re-elected auditors. ! The Christciiurcji District Office is situated at 143 Hereford street, M". | Hclliwell, District Manager. . f