PROVIDENT LIFE ASSURANCE COMPANY

Hokitika Guardian, 30 May 1929, Page 2

PROVIDENT LIFE ASSURANCE COMPANY

ANNUAL GENERAL MEETING

A SUCCESSFUL YEAR

INCREASED BONUSES TO POLICYHOLDERS.

The annual general meeting ’of the Provident Life Assurance Company was held at the head office of the company, Dunedin, on Tuesday, March 26th, 1929. The annual report showed new assurances for the year exceeding £1,000,000, of which £356,874 was completed in the ordinary branch and £680,734 in the industrial branch; the premiums received amounted to £196,635 19s 6d, an increase of £IB,SBS 7s 5d over those of the previous year, while interest, etc., yielded the sum of £45,463 12s sd. and consideration for annuities £4.82 15s 4d. The lota' income was thus £242,592 7s 3d, an increase of £23,769 2s 6d over the income for 1927.

During the year, £57,406 12s lOd was paid in claims, and the sum of £83,614 Is 6d was added to the funds, which, at the end of the year, amounted to £858,519 9s 9d.

The directors recommend the payment of a dividend of 10 per cent., with a bonus of 2 per cent., on the paid up capital of the company. In moving the adoption if the report and accounts, the chairman (Dr. W. S. Heberts) warmly complimented the staff on the results achieved during the year. 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 df new premiums and 8.94' per cent, of renewals. The income of the branch had increased by more than £6OOO, while the rate of interest yielded by the funds was £5 15s 11 d par cent., or practically the same as that lor the previous year, despite a general .fall in the rate of interest. Payments to policy-holders amounted to £22,000 an increase of 50 per cent., largely due to death claims of £5250, arising through accident or suicide. The. ratio of 'actual to expected deaths was however, only 85 per cent. in the industrial branch, the premiums were £12,168 greater than in 1927. while the total income showed an increase of £15,000. 1 lie rate of interest yielded by the funds at £5 Ids lOd showed an improvement of 5d per cent. There was an increase of £12,000 in the payments to policyholders largely due to heavier death claims which, howver, were well within the expectation. 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 in excess of the value at which they appeared in the balance-sheets. In the ordinary branch, a net premium valuation, without modification based in the Om Table with interest at 3.} per cent., had been made. The surplus, after setting aside £12,500 to strengthen reserves was 042,782 8s 2d the policyholder’s share ol which was sufficient to provide immediate ie\cisionary bonuses, under life policies, ranging from £1 15s to £ 3 per cent, per annum, and under endowment assurances for £1 10s to £1 15s pei cent, per annum. jn the industrial branch the valuation was based on the Australian •,lales Table, assuming interest at the rate ol 31* per cent. An addition of 219,000 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 be paid to claimants during the present quinquennium. The. reports were adopted, after complimentary' references lmd been made to the success of the management during the past five years, and the meeting closed with a vole of thanks to the chairman. —1.