NATIONAL MUTUAL LIFE ASSOCIATION.

Gisborne Times, Volume XIX, Issue 1654, 22 January 1906, Page 2

NATIONAL MUTUAL LIFE ASSOCIATION.

ANNUAL MEETING,

A PROSPEROUS SOCIETY.

Tho thirty-sixth annual meeting of membois oi tho National Mutual Life Associalion of Australasia (Ltd.) was held at ihe Asaooiat'on’s offices, Melbourne, on 22ad December. Colonel J. M. Templeton, Ohnitmsm an! Managing Director, in moving the adoption of the report and statement of account?, said For the eleventh time in succession I have the pleasure and privilege of presiding at the annual meeting and of moving the adoption of the report and statement. Glancing at the report, it will be observed that the new business transacted during the year ended 30th September last is repreeenied by 10,143 policies, assuring £2 615,216, yielding new annual premiums of £91,351 Us, in addition to single pro-' miums amounting to ! £40,221. This large amount of new business, compared with that transacted last year by 50 British life offices which have been in existence from 57 years lo 195 yea's, places our Association third in tbe order of sums assured and seventh in the [order of new annual premiums. (Hear, hear,) As 29 of these British offices have been doing business for over 75 year?, while it is only 36 years sinoe wo commenced business, it is exceedingly gratifying to find that «re have taken so high a place. (Hear, hear.) The amount received by us for premiums last year (£568,496) exceeds 'that received respectively by 41 of the British offices referred to , so in respect of total premium inoome we were tenth on the list. This is even more remarkable considering that we have been in existence for 21 years less than the time during which even the youngest of those offices have been transacting business. Our assurance fund now amounts to £4.195,849, which exceeds the amount accumulated respectively by 25 of these offices. We thus stand exactly midway io comparing our assurance fund with that of the 50 offices respectively, which have had from 57 to 195 years wherein to make their acculumations, while we have had only 36 years’ As to - tbe_ average rate of interest earned on the mean funds, we stand absolutely first, our rate for 1904-5 being [at least 10s per cent higher than the highest rate realised by any one of them. It has been said that " compound interest is the food that life assurance lives upon.” An extra i per cent therefore gives our Association an im menae advantage in i'.s effects on future accumulations. I cannot eay on this occasion that the year just closed is in all respects our record year. In 1903-4 the number of policies issued and tbe sums assured were slightly greater —namely, 10,243 against 10,143, and £2,664,616 against £2,615,216; but in respect of new annual premiums and amount added to funds the year 1904-5 stands ficst. (Hear, hear.) It may be interesting to note that the Association accumulated fands of £1,000,000 during its first 21 years; and in its la«t 15 years it has added more than £3,ooo,ooo,thereto. (Hear, hear.) I have explained on former occasions that, ae a large proportion of our business consists of endowments and endowment assur« accsß, a much larger proportion of our income is required for payment of claims than would have been required if our proportion were similar to that of other offices. During our 36 years we have' paid to our members or their representatives £3,832,812, of which £1,909,111 was paid tq living members and £1,923,701 to the representatives of members who had died. In the year just closed our payments to policyholders or their representatives amounted to £361,053 12s, of which only £147.827 was paid for death claims. The benefits derive! from the Association in 1904-5, therefore, were represented by cash payments of £6,943 every week on the average. If tbe business of the Association had been of the aame character as that of most of the British offices, bur funds would now have amoun'ed to over £6,000,000 instead of £4,195,849. The amount added to the assurance fund durs ing last year was £263,482, or an average weekly saving of £5067, which must be considered lo be highly satisfactory.' Duting the year the expensesof the investigation and tbe allotment of bonuses have,'compared with last year, oaused a slight increase in the ratio of expenses to renewal piemiums, but tbe ratio is less than it wes in 1901-2, when similar expenses had to be met. : The progress of the Association has necessitated the erection of new offices in London, Capetown, Johannesburg, Baliarat, and Hobart, and some interest has been sacrificed on tbe money used for the erection of the buildings. It might be urged that such interest should be credited 7 aud the amount oharged to the cost of 7 buildings, but tbis has not been done. The net loss of rent derived from the old buildings, incases where the income from the new buildings will more than compensate for same, has, however, been oharged to the cost of the new buildings. When I tell you that the most costly of these buildings, although unfinished, has already been partly let, and the net rental on the part let amounts to 6 per cent, per annum on the cost of the whole building, including cost cf land aud old buildings, you will see the justice of charging up the net rent formerly received. As stated in the report, just after the year closed the Association had the misfortune to lose two of its directors by death : —Mr William Siddeley and Mr Edward Langton. Both of them were present at the last meeting in September (held on the 26th), and seemed to be in their usualhealth, but on the 4th and sth October, within twelve hours, both had died. Mr Langton was one, of the twelve members who took out policies on the first day on which-the offioe wts opened for business. He was one of the first auditors and joined the Board in 1873, remaining a director fll the time of his death, and during thirteen years—lßß2 to 1895-had been ohairman of the Board. Mr Biddelcy had been Ohairman of Directors of the Mutual Assurance Society of Victoria for many years up to 1896: He was a mem- „ fcer of the joint committee whieh arranged the terms of amalgamation of that Society with our AesocatioD, and afterwards became oue of our diiectors. These ■ gentlemea had a lengthened business experience and their counsel and advice at Board meetings (svhioh both attended most regularly) were rnuoh appreciated by the other members of the Board. (Hear, h'ar.) 1 The articles of association empower the the Board to fill up casual vacancies, and, after carefully considering the names of qualified members, the Board was unanitnous in te'ecting Dr J. H. .MaoFatland and Mr A. T. Danke, and, acting for the aoard, I succeeded in persuading them to accept the seats. I think the members are to be oongta'ulated thereupon, as well as upon the very satisfactory report now submitted to them. I move that the report and statement of accounts, as printed "““ circulated, be received and adopted. ' TT Mr .“® nr y Butler seconded the motion. 1 Be said it must be inost gratifying, not 1 only to the members, but to all interested, ■ ,0 s \ e s . u °h a good repoit, as it ensures a conviction that the Association is progressive. There can be no donbt at all as to the Association carrying out the engazenients it has made. Tho reserve funds are almost unprecedented. I think an association of this kind should act just as a business firm would. When they find their capital increasing they should find fresh means cf utffising their capital. The capital of a life association is its stability, and its credit in addition fca what the reserve funds are; aud it would be unjust f the dt ectcra did not exercise their ability and knowledge of bnsimss in developing i s interest. 1 am convinced that year after year, as long as the present or similar directors are in office, the Association will go on increasing by leaps and bounds. For these reasons 1 am glad to move the adoption of this magnificent report and the statement of accounts. The motion was agreed to.’ Mr W. H. Irvine, M.L.A., Dr J. H MaoFatland, and Mr A. T. Danks were’ re-elected as directors, and Messrs VaiantjDe and Tullooh as auditors, after which : the meeting terminated.