NATIONAL MUTUAL LIFE ASSOCIATION

Dominion, Volume 13, Issue 90, 10 January 1920, Page 10

NATIONAL MUTUAL LIFE ASSOCIATION

i FIFTIETH ANNUAL HEWING. ■ Tho 50th annual meeting of the National .Mutual -Life Association of Australasia Limited was held at Melbourne on December 23, Mr. Andrew Newell presiding. In moving the adoption of the annual report, which was adopted unanimously, tho chairman, said: "Since our last meeting the association bus lost a good friend and a wise counsellor through Hie death of Mr. James Cooper Stewart. As one of its solicitors from tho foundation of tho association, and as a director for the last six years, Mr. Stewart was closely identified with its welfare, hie wide experienco in business affairs and his sound judgment being Inglily valued by hie colleagues on tho board. "The report of our last year s business, which is now presented, ie chiefly remarkable for tho large amount of new policies we have issued, 'lhey represent assurances for .£3,030,115, or ,£l,oO!l,1)03 more than the amount issued in tho previous your. This increase of our new business indicates that the value of life assurance is beginning to be appreciated in Dritish communities. After four years of the most devastating war the world has ever seen, which tested the stability and resources of life assurance institutions more severely than those of any other financial .institutions, followed by a year of deadly epidemic, their position is stronger than it ever was. A writer in a loading journal iiaa recently described life assurance companies as a sheet anchor of tho nation. Premiums. Compared with the previous year, the premiums, received, as shown in the revenue account—.£l,4B9,ssß— ivere .£130,933 larger; the interest.aud fees—,£62o,9s3— , wero ,£03,977 larger; and so the total income, £2,116,589, was £104,935 larger. The interest is equal to £5 3s. 3d. per cent, of the average funds. "On the expenditure side of the revenue account you will find that the amounts paid to policy-holders totalled .£1,063,274, or ,£186,285 in excess of the total for the previous year; of this the very large amount of JC1i35,315 was paid . under claims due to the deaths of policy- J holders, which is £115,154 larger thin I. the claims of the previous year. Iho increase in thisi item only partly represents the effect' of tho influenzal epidemic on tho funds of the association. _ "The rest of the expenditure is tho cost of conducting the business, which, in v-iilion to the premium income, is about 1 per cent, higher than it ivas uv the , previous year This increase in the rauo is accounted for by tho larger properlion of new. premiums, tbo collection ot which, of course,-involves a much higher rate of expense than the collection ol renewal premiums. ' The Funds. "The amount added to tho funds was, J815.515. Although this is ,£24,330 less than the amount added in 1918, tms iostilt of the year's transactions'must be accepted as very satisfactory when tins large increase in tho payments to policv-holders is considered. , "The 'principal alterations in tho amounts shown in the balance-sheet are an increase of about ,£1,000,000 in Gov- ■ eminent securities, and a decrease of ,£186,000 in loans on mortgage. Since 1914 our Government securities havo increased by more than £8,000,000. All the available funds have beeu lent to the Government, to help it to meet the heavy war expenditure-l.he directors are siiro that this was in accordance with tho wishes of the members. Now that the war expenditure has ceased, it is hoped that the demands of. the Government, will ho restricted to tho amount actually required ior carrying on the ordinary affairs of the country, and so that our funds may again bo available to hell) in developing the productivb industries. The numerous nor. rowings of the last few years which have been correctly described as drafts on the future earninu's and production of tho country have "produced a dangerous inflation" of credit, both public and rrivate, with a falso feeling of prosperity, high prices, and extravagant expenditure. To bring the country back to normal conditions the utmost economy and industry are necessary. Fifty Years. "During the year that has just closed tho association completed tho fiftieth of its existence. It was lounded on August 12, lSli'J, for lilc assuranco on the mutual principle; the capital re- ■ quired consisted only of tho premiums paid by policy-holders, amongst whom there was no privileged class j all wero on the same looting. It was claimed that the conditions of the policies wero the most liberal that had ever beeu offered to tho public—they included what is now kno.wu throughout tho insurance world as the lion-lorfeiture principle, which is the most beneficial principle of assurance contracts. . Those conditions navo been strictly adhered tu, and X ■ can safely claim that during the 50 years no company has been able to oiler more liberal or more equitable conditions. The venture was looked upon as a risky experiment by tho insurance world; tho tunes were most unfavourable for all insurance companies, owing _to tho failure of two large companies with a world-wide business, but still the founders, chief amongst whom was Colonel J. N. who controlled the management of tho association tor many years and to whom, more than to any other man, the credit for its present position is due, persevered. Their faith in tho venture lias beeu fully justified. Growth ot the Ofiee, "it first tho growth was slow; nt Wei ceinbor, 1870, aftet more thai. »j*«fi work, the funds amounted '--u X2m; at the end of 10 years the funds v-ere £95,201; at the end of £0 years they had increased to £5!)5,452; ivt the fiid ol M years they were £3,035,232; at the cud of 40 years they were £5,937,2(6 i lvlld now, at the end uf the (ilcc-iu y«*i, are jei2,Col,. r io 9. - "During the 50 ycaw tho has received from its member* .W.ioJ,334—it has paid to its members .inuer their policies £12;2f>5,KHJ, <mrt, us i havo just stated, it holds funds amounting to .£12,601,509, which oelwig to tile "The figures I ha>e quoted speak do. quontly ol the-success of the «woc».iHcm, iind of the »ood'work it !<a!> wen. ixble to perform." They require no further M r e lndrrNeTeU and CaptainS XL Bruce were re-elected directors and Messrs. 11. O. Tudoliow ; .<nd «. U. Jarvie were re-elected auditor. ■ (Published by Arrangement.)