National Mutual invested $54M last year

Press, 18 April 1979, Page 22

National Mutual invested $54M last year

[PA Wellington! I The National Mutual Life' ! Association made a net in- j [vestment in New Zealand of! 1553.9 M in the year to Sep[tember 30, according to its! [annual report: I National Mutual is one of! [the largest life insurance! jcompanies in New Zealand, land its manager for New [Zealand (Mr G. M. J. Hos- [ kins) said that almost al! in[come earned by the com- | party in New Zealand was [retained here, and in- | vestments in New Zealand were now about SIM a week. Total New Zealand income for the year increased 11.2 h per cent to $83.1M. This-in- i eluded SS3M in premiums,l:

land $30.1M income from inI vestments. ; Bonuses increased $2 per[ [thousand on all profit pol-1 jicies, largely because of a| [significant increase in in-[ I vestment income. I The containing of ex! ipenses had also been import-! ant. They had risen only 5.2 [ per cent in the year. Investments for the year! were: Government securities $5.5M (10.1 per cent of the, total); local authority secu-1 rities $2.5M (4.7 per-cent); ! loans for housing $l2.6Mi (23.5 per cent); loans for ; farming $2.4M (4.4 per [cent); loans on policies 154.9 M (9.1 per cent); commercial mortgages SO.7M 1(1.3 per cent); company debentures $6.4M (11.8_ per cent); shares S4M (7.5 per cent); properties ' $14.9M (27.6 per cent). These investments included more loans for farm-, ling than in previous years, and substantially increased! [buying of debentures. Spend-1

ling on local authority stock [ was down, and . loans for [housing were static in dollar I terms, but down in perIcentage. [ Total investments at September 30 amounted to I $411.7M. ! In hrs review Mr Hoskins .said that inflation continued Ito threaten personal savings' iof all kinds and was of vital: concern to everyone in life insurance. There could how-, lever, be reasonable grounds; !for optimism regarding the! future, provided the Government gave firm leadership, he said. “We needed from the Government a determined effort to reduce its deficit by other than loan revenue-raising means. We needed a clear cut energy policy. “Most important of all, we i need a better climate in [ which private enterprise [ could flourish, with less Government directives, and [more encouragement for inIvestors,” he said.