NATIONAL MUTUAL LIFE ASSOCIATION

Dominion, Volume 13, Issue 173, 17 April 1920, Page 9

NATIONAL MUTUAL LIFE ASSOCIATION

GENERAL MEETING. ■ : SATISFACTORY- GROWTH, OP ■■ ■ ■ , 'BUSINESS. (Published by Arrangement.) An extraordinary general meeting of members of the''National Mutual Life Association of Australasia,' Ltd., vim held at Melbourne on 21th ultimo. The report of the actuary, which was [submitted by the directors,, stated: "In tho last throe years' the growth of the association's business was very satisfactory. Tho amount of how policies is-' sral—<£i:i,Js!i,PS!) :>s. fid.—and the amount received for premiums and interest— ■£5,505,28 i (is. 3d.—"during. the period, were much'in excess of the corresponding amounts in'any previous report. Although the claims ' under policies were' except : onally heavy,'"' i2,39G,795 Bs'. Sd. was added to the assurance fund, which was thus increased (Jo las. Tho directors have decided that the surplus Of 4789,487 15s."shall be divided amongst the policy-holders entitled to participate. It will provide reversionary bonuses amounting to .£1,450,000." •" THE CHAIRMAN'S SPEECH: The chairman of directors (Mr. Andrew Nowcll), in moving the adoption of the report,', said:— Gentlemen,—l will ask you to take the report.,of the directors .on the 10th investigation of the affairs of the.association',, .which you have in your.hands, as road.' ' It contains:'!! very brief statement of the result's .of 'our business for.,the last three jjears'; the actuary's, report, upon which, it, :'s,based,! with the usual,schedules giving details of the .valuation of the. liabilities, will'be circulated amongst .members as soon as we can get thorn printed. But. in order. that the significance! of the. results may' be appreciated, I propose, if you,will allow me, to compare some of them with, the results shown in previous reports.

. ]fEW ; BUSINESS. The amount of new ■ busini.es,. ,£13,4.56,089,'. exceeds what' had been our. best, 'record by.. .£2,771,643. Before .this triennium we had reached our highest point in'l9lo-13, which is'the last investigation period that was free from the effects of'war. During. 1913-16 tho, total tell to tlie extent of over uMi.UW, and this seenied to be attributable to. the. Avar conditions. ' But how, for the. years 1916^19,."when'we might have expected ' Unit .the influence' of .'those conditions would be most' severely felt, there is a rise of over.3l niillions.. Our experience in this respect is not singular, for most of the companies are reporting .tin increased new , business, particularly during the,lnst year, of the period. .The reason < for this are not apparent Some have availed themselves of .the facilities offered, by. life companies for subscribing to the war. loans, others have realised that a life policy is the best way to provide for the .higher probate duties; but. .these are hot sufficient .to _ account for the general increase in. business. Whatever the reasons, may';be, it.is a good thing for the community .that at-a time when titer}''is'such urgent' necessity to husband .our the people arc recognising the benefits of life assurance.' ■' , .

INTEREST. " ' ■ The amount of. interest, earned, by tho funds,. ,£1,701,555, is ' .£376.100 more than the amount earned in 1913 r 16j it is equiil to the average rate of .£5 3s. Id. per cent, per annum. The rate for 1913-16 was. .£5 Os. 3d. per cent, per annum. The higher rato accounts-for nearly ,£17,000 of the total amount .earned. Tho total receipts: for the period were ,£5,808,281, more than the receipts for 1913-16.- - .-.. '.■■

• Amongst our disbursements, the most prominent item is the amount paid for claims under policies. This, 1 regret, was increated to £1,581,108, -or JE552.*202 more, than' the amount .paid in the last . triennhun.. : Of. this amount, no less than iCfio',332''represents war claims—ft term which/ has become, too familiar, but; we hope it will now , disappear—and ,£232,453 was due to deaths from the influenza .epidemic, the effects of which .were- .actually .more, severe for the period of the Visitation than the clfccts of' the war, fbii^£\'ny'' : 't)6rio'd-..of..sitrtilar'dhration; The totatof 'the'sb fwb"amounts, .£677,790: is.; equal to■: 4- per • cent, of .the total claims; if' they' were' deducted, what wo may call the normal claims would be only, some .£9ooo' more than those for 1913-16. • Tho expense ratios of both new and renewal business are lowor, and, although the I "new business" is, not only so much larger in Itself,' but is a larger proportion of the total than it was m the last period; the. "aggregate expense ratio also is lower.'. The reduction of the ratios is equivalent to a. saving of nearly .£51,000. SURPLUS.

The net result of ■our transactions in the tineo years is an addition to the assurance fund of which is some .£269,000 more than the amount added in 1913-10". The surplus availaide- for distribution, is ■£29,954 more than the amount distributed three years ago; but as the number of members entitled to participate, is •so much larger, the bonus will, in somo cases, be a little less than tho. amount allotted at the last distribution. . .But when wo consider the extraordinarily heavy claims that have been met and the singularly unfavourable conditions that-have prevailed during the : last five .years, the results disclosed in the report are very gratifying, and are a.tribute to tho good work of the officers ,of the association., at head . office and the branches, ■ including our field staff, through.whoso' unceasing, efforts the large new business has, been obtained. , This finishes my comments on the figures that are how before you, but, before I conclude, may I indulge in eopio reminiscences', and give you,somo facts regarding the history of the association and the work it has accomplished? The report of the first investigation of the association, which was made on Scpt<,ml>er 30, 1574, five years '■ after its foundation, showed that the income for the five vears was JC31,124; the funds at the end of the period amounted to £15,404, and £1098 was distributed omongst tho members. These figures look' small when compared with those now presented, but the work' that was then being, done 'was ot the utmost importance; our founders-were men of wide' vision, and they were laying the foundation .which'. mado' it: possible to build safely tho structure that we have today. ■'

PERSONAL. I became a member of the board in, ISBO, when the association was in its eleventh year; beginning to feel- its strength, it had then begun to extend its activities by tho establishment of branches; its annual income was something over. .Oi:l,O00i and its funds had 1 reached tho respectable sum of .£IOO,OOO. The policy of expansion which had'been adopted • produced an immediate effect; at the end of three years the income was, 'jei-M.500, and the funds were .£304,000; at tho end of ten years the income was .£'200,000, and the funds had readied ,£1,000,(100, and so the growth has continued until now, at the end of its 60th year—the Jflth year of my directorship— the association is amongst the leading institutions of the Empire, .'with;an annual income of .£2,110,000, and funds exceeding ,1:12,000,000. Since its, foundation it has paid, in death claims, under 17,01-4 'policies, 'the, sum of -£0,010,001;' to members whose policies have'matured it has paid •£3,091,306, and. to annuitants 4M35.J19.,. The cash surpluses that have bteii'l'divided amongst the members amount to JM,0l!);00:l. , These figures indicate tho important place.the association occupies in the social organism; and as its ktcst achievements'arc its best, wo aro justified in looking with hope and confidence to a still greater extension of its usefulness. Tho motion for tho adoption of the report was seconded by Mr. Walter Madden, and agreed to. It is expected that tho bonus certificates will Ix; issued to members in tho course of a few days.