NATIONAL "MUTUAL "LIFE ASSOCIATION.

Otago Witness, Issue 2810, 22 January 1908, Page 38

NATIONAL "MUTUAL "LIFE ASSOCIATION.

CHIRTY-EIGHTH ANNUAL MEETING. A RECORD YEATS. The thirty-eighth annual meeting cf the members of the Nkticnal Mutual Life Association, of Australasia (Limited) was held at the association's office, Melbourne, on 19th December. The chair was occupied by the vice-president (Mr Andrew Newell), in place of the president (Colonel Temple*on), who was absent owing to illness. Th« annual report showed that during the year ended September 30 no fewer than" 12,673 proposals for life assurances had been received, amounting to £3, > 496,243 3s 4d. Of these proposals 2410» amounting to £717,210, had beon declined 'or not completed. In this way - 10,263 policies, «moun4iiig to 42:779,033 Is 43, had "been issued. tSixty-nine annuity policies had been issued lor £E214 2s 2d. per annum, and '1577 endowment policies, amounting to £301,094 149 4d. In all there were 11,909 new policies assuring j£it,Gßo.l27 17b Bd, -and yielding new annual premiums ti £110.070 Us Id, single premiums of £16,431 18s lOd, and considerations for, umuities £31,174 13s "sd. JThe mortality list thowed that 519 deaths had occurred, involving claims under £38 policies, amounting, -with boniis additions, to £1564)11 9s lOd. Also, during the year 573 endowment assurances, amounting to £135,447 0s 3d, and 74 endowments, amounting to £10,232 18s, had 'matured-. Six annuitants, -whose enmities amounted to .£741 0s 8d per annum, liad died. The directors were satisfied^ that the business of the association had increased satisfactorily during lbs "year,, having resulted in a total income t>f £898,258 6s lOd, of which £681,052 0s 4d represented premiums -on policies and £217,142 18s 6d lepresented interest on investments. For the "first time during the history of the association the amount of the jiew business, which was greater than the amount of the previous year _by ,£229,838 16s, had exceeded thieo - millions. Th© total expenditure for the year, 'which inchKied £374,808 -13s 6d paid to policy-holder* or their amotmted_to £532,320 133 9d. Notwithstanding the large increase in the amount at tiskj- claims -under -policies in consequence^ of the death of members had been fewer thiQ.il in 1906, and the amounts paid in xe»pect of matured policies had also been less. She sum of £365,932 18s Id had been added | to the .assurance fund as the., result of the j year's 'transactions. i j The .revenue account showed that during I the year the association had paid £26,845 lls lid expenses -of travelling agents and only £415 16s 5d for law -coats. The expenses of management amounted lo £52,098 12s 4d, including salaries £30,066 and directors' fees (E3851 13s 4d. Mr Andrew Newell congratulated members »n the magnificent results shown in the report and statement, of accounts. When addressing the members 12 morrths ago he announced a record in the history of the association, and had wondered how the chairman of -the 1907 meeting would account for -the falling off that appeared inevitable. Instead, Tiowever, of having to explain away a declension, he had the pleasing duty of announcing that the present year had -established a new record, inasmuch as th« amount - of completed new business exceeded three millions, while the total income for "the year was .£898,253, an increase over that of the preceding one of £74,465.—(Applause.) The Bum' of £365,932 had been added to th« funds, or £82,713 more than the amount added in the previous year. The income from" premiums Tiad been £649,407, and. 'the income from- interest and rents £-217,142 — respectively £69,051 and £12,106 more than the previous year's incomes. It J was -of the utmost importance to a life insurance company that its funds should be VeP* constantly and profitably invested. — C Hear, hear.") The amount the association had received from its investments represented £4 16s 6d per centum of the mean funds for the year. After having deducted £7694 for rates and taxes paid during the j fear, the net amount so received represented ' £4 13s 2d per centum of the mean funds. — (Applause.) Turning to tEe other side of the ' account, members would find that the irst eight items represented the anrounl paid to members or their representatives. Those light items -aggregated £374,808, or less than ifce previous year by £20,934. The decrease aad been due partly to a more than usually !avourar/2e mortality amongst the lives assured. As compared with the jprevious , /ear, the expenses were a lower percentage sf the premium income, and more" than «alf of the expenditure had been incurred < directly in obtaining * new business. . It would be seen that expenditure of the sort - tra.s really of ihe nature of an investment, ts it was incurred srith the object of extending the business of the association and io increase its revenue. Once the business <was obtained the^ expense did not Tecur, cfcut was entirely paid out of the first year's premium. — J"Hear, hear.") la considering

' the expenses of a life company regard must be given to the amount of new business contained in the transactions of the year, as it -was generally conceded that new business costs wers about 10 times «b great as the ordinary -expenses of management. The new premiums were more than 16 per cent, of the total premiums received during the year. If they considered the new business ! as costing 10 times as much as the old, then the ordinary expenses of management had only slightly exceeded 9J per cent, of the renewal premiums received. The assurance fund amounted at the end of the year to £4,644,002, or £365,932 more than it had been 12 -months ago, and .£2.000,000 more than the [ amount ©f 10 years ago. Tho investment j fluctuation fund, which had been put aside j more than 10 -years ago to provide fox ' possible fluctuations in tie investments, now 1 stood at 484,144. Some of the funds had been appropriated for specific investments, many of which had since been realised so favourably that it had not been necessajry to 'draw on the fund to any extent. Turning, again, .-to the credit side, he would draw -attention to the liquid assets held in the form of Government -and municipal sepuri-* ties, which amounted* to -£378,323, as compared Tvirh. .£237,151 for tho previous year. The director^ had taken of the state of the London money market to increase the- Association's 'holding of Government securities, principally in Australian Government debentures, which, had been bought on very favourable terms. Ten years ago the item "properties acquired by foreclosure" h*d -stood at £146,000, whereas it now stood -at £110,639. The realisations had in most cases been very favourable, -and -moet of the properties still held were re- ; training .good interest. Wherever there was a local board of directors the association 'occupied -tieir own premises, as well as in other important centres. The last to be completed was at Hobart, and all yielded I a fair interest. The year's figures were evidence of a -remarkable growth. 'Ten years | -ago the new business was little more than * third of that -of the .year just completed, and during that 10 years the amrual amount had been increased by more than £400,000. Over £3,000,000 had been paid to members or .their representatives during the 10 years, j and over £2,000,000 had been added to the j invested .funds of the association during that time. — (Applause.) The staff at the "head office and th© several branches were highly efficient, and the fact that the great increase -of new business hud been effected -without any increase in the ratio of expenditure was very creditable to tbem. He moved that the report and statement of accounts be received .anil adopted. — (Applause.) Mr W. H. Irvine, M.H.R., seconded the motion, which was carried unanimously. Mr Newell was re-elected a director, and Mr A. M. Val«aitine.and Mr W. G. Tulloch were reappointed auditors. Tlie directors -for New Zealand are Messrs A. E. Pearce (chairman), Wm. Eraser, M.P., and 'Nicholas Reid. General manager for N«w Zealand, Mr Orton Stev«ns,i with branches and agencies throughout the Dominion. — 18108