MUTUAL LIFE AIJD CITIZENS' ASSURANCE.

Evening Post, Volume CXI, Issue 123, 25 May 1926, Page 9

MUTUAL LIFE AIJD CITIZENS' ASSURANCE.

Presiding at the .thirty-ninth annual meeting of shareholders of the Mutual Life and Citizens' Assurance Company, Ltd., held In Sydney, Mr. James Ashton, M.L.C., said tho report presented was one of the best the company had ever published. The company's policy was to make progress as great as was consistent with careful selection of risks, economy of management, assets of flrst-class security, and liabilities stringently valued. Income Increased during the year by £134,600. Tho mortality rate experienced was again low, and the expense rate in all branches was lower than In 1924. Assets continued to be invested almost wholly In public securities, and no Australian company valued its policy liabilities on a more conservative basis. The net result was seen In profits allocated. Certificates for reversionary bonuses, amounting to nearly three-quarters of a million pounds, would be sent during May to with-proflt pol-icy-holders In all parts of the world.

Perhaps the most marked' feature of the report from the prpflt-earnlng viewpoint, continued Mr. Ashton, was the substantial Increase in Interest earnings In both the ordinary and industrial branches. During and after the war, the company subscribed large sums to the war and repatriation Issues of the Commonwealth Government—a greater amount in proportion to funds than any other company in the Empire. This precluded the company from taking advantage of the higher rates of interest to be obtained from other securities. Last year that obligation came to an end, and the directors were free to improve the rate of interest earned on Investments. The result was partly seen In the large Increase In the effective rate earned In 1925," while tor this year still further Improvement was expected. The rising interest rate would have a favourable Influence on bonus prospects of policyholders.