PROVIDENT LIFE ASSURANCE COMPANY

Evening Star, Issue 20135, 27 March 1929, Page 6

PROVIDENT LIFE ASSURANCE COMPANY

ANNUAL GENERAL MEETING A SUCCESSFUL year. INCREASED BONUSES TO POLICY HOLDERS. The annual general meeting of the Provident Life Assurance Company was held at the- head office of the company, Dunedin, on Tuesday, .March 26, 192!). The annual report showed new assn ranees for the year exceeding £l,0U0,61)0, of which £356,871 was completed in the ordinary branch and £630,734 in the industrial branch; tho premiums received amounted to £196,635 19s (id, an increase of £IB,BBB Is •5d over those of the previous year, while interest, etc., yielded the sum of £15,163 12s sd. and consideration for annuities £192 15s Id. 'The total income was thus £242,592 7s 3d, an increase ot £23,769 2s 6d over flic income for 1927.

During the year £57,400 12s 10d was paid in claims, ami tho sum of £83,614 Is 6d was added to the funds, which at the end ot tho year amounted to £858,519 9.s 9d

Tho directors recommended the payment of a dividend of It) per cent., with a bonus ot 2 per cent, on tho paid-up capital of the company. In moving the adoption of the report and accounts the Chairman (Dr AA'. S. Roberts) warmly complimented the staff on ike results achieved during the \-ear. The new business in the ordinary branch had increased by 40 per cent,, while the expense ratio had been extremely moderate at _ 89.4 per cent. of new' premiums and 8.94 per cent. of renewals. The income of the branch had increased hy more than £6,000, while the rale ol interest yielded ay the Binds was £5 15s lid per cent., or practically the same a 1 that for tho previous year, despite a genera’ fall in the rale ot interest. Payments to policy holders amounted to £22,060, an increase ot 50 per cent,, hugely due to death claims of £5,250 arising through accident nr .suicide Hie ratio ot actual to expected death was, however, only 85 per cent In the industrial branch the premiums were £12,168 greater Ilian in 1927, while the total income showed an increase of £15,000. The rate oi interest yielded hy the funds at £5 13s Rid showed an improvement of 5d per cent. 'There was an increase of £12,000 in the payments to policy holders, largely due lo heavier death claims, which, however, were well within the expeetat ion. The report, of the actuary on the valuation of the liabilities and assets ’was then read. During the quinquennium all securities bought at a premium had been written down to par, and the market value of the assets at December 31, 1928, was £23,764 in excess of the value at which they appeared in the balance-sheets. In the ordinary branch, a net premium valuation, without iriodihcal ion. based on the Dili ’I able, with interest at 3'. pm cent, had been made. The surplus, alter setting aside 012,500 to strengthen reserves, was £12,782 8s 2d, the policy holders share cd which was sufficient to provide immediate reversionary bonuses under lile policies ranging from £1 Lis to £3 per cent, per annum and under endowment assurances irom £1 Rts to £1 15s pet cent, per annum. In flic industrial branch the valuation was based on tho Australian males table, assuming interest_ at the rate of 3,i per cent An addition of £19,600 was made to the reserves, and the resulting surplus amounted to £24,685 19s 3d. out of which it was recommended that bonuses ranging from 5 per cent, to 15 per cent, should he paid to claimants during the present quinquennium. The reports were adopted, alter complimcntarv reference had been made to the success of tho management during the past Five years, and the meeting dosed with a 'vote of thanks to the chairman.