THE SOUTHERN CROSS ASSURANCE CO. LTD.

Dominion, Volume 28, Issue 92, 12 January 1935, Page 10

THE SOUTHERN CROSS ASSURANCE CO. LTD.

Improved Conditions SUBSTANTIAL RESERVES Chairman Reviews Progress Presenting the 13th annual report and balance-sheet of the Southern Cross Assurance Company Limited, at the annual meeting of shareholders, the chairman and Governing Directoi (Mr. T. J. Confoy) said that the new business for the year ended June 30, 1934, amounted in the ordinary department to £1,215,359. At the last annual meeting, Mr. Confoy continued, shareholders were advised that it was the company’s intention to amalgamate some of the branches and subbranches and re-organise the agencies with beneficial results to the company. The expenses of management were actually reduced by £4,457, making a total of £18.603 per annum since June 30, 1929, and as only a few months’ benefits of reorganisation were obtained, shareholders could look confidently forward to a much greater decrease in.the total cost of procuration of premium income during the current year. To assist, the rapid reduction of expenses desired, it has been decided by the directors to restrict new business writing for the nex few years, so shareholders could expect much less sums assured written in the Ordinary Department than previously. Nevertheless, that policy would tend to bring the company's expenses down to such a low rate that bonuses to policy-holders and dividends to shareholders should be hastened thereby.

The directors take this opportunity of extending their sincerest sympathv to all people who were effected by the financial depression and intimate that they will be prepared to extend assistance for the payment' of premiums due by any of our policy-holders who have been affected financially. if they require the same. W<> will do all within our power to help them Although the average market rate of nil securities fell, the interest earnings of the company moved in the right direction. This is a good sign, and from present indications it is qiute apparent I hat a satisfactory and adequate rate of interest will bp earned on all the company's funds invested. Substantial reserves have been created against all assets. and, in addition, the market value of the company’s Government securities is greater by more than £12,000, than the amount of this item shown in the balancesheet.

Death claims paid by the company amounted to only 63 per cent, of the actuarial expectation, which is a very favourable experience indeed, and, nil told, payment to policy-holders has now reached the huge sum of £454.469. The company's reputation for .prompt payment of claims is still being maintained. Hundreds of letters from various claimants testify that they have been perfectly satisfied with the liberal and prompt settlement of their claims. A summary of events for the last year shows a reduction of the cost of procuration of premium income; a substantial increase in the funds, as compared with the previous year; an improvement in interest earnings; substantial reserves created against assets; reorganisation and consolidation of business, which will be very beneficial to the future operations of (lie company; a decrease of managerial expenses, making a reduction of £18.603 per annum during the Inst five years

Total new life business completed, £19,305,472; premium income, £175,420; life department fund, £559,526; assets, £884,127; claims paid, £454,409. I wish to place on record my own and Head Office Directoft' appreciation of the work performed by the staff, both inside and outside members, and the satisfactory progress they have enabled the company to make.

Mr. 11. E. Walduck was re-elected to the Directorate unopposed. Messrs. Anderson. Hodgson and Lithgow were re-ap-pointed auditors. —1’.8.A.