NATIONAL MUTUAL LIFE.

Taranaki Daily News, 10 January 1916, Page 7

NATIONAL MUTUAL LIFE.

A SPLENDID YEAR. ANNUAL MEETING. ■ The annua] general meeting of the National Mutual Life Association of Australia, Limited, was held at the Association's offices, Melbourne, oil December 23. Mr. Andrew Newel! (chairman of directors) presided.. In presenting the annual report, the, chairman-said: "I beg to move the adoption of the report, and Task the members to accept it as a record of a very satisfactory year's work. If it is considered in relation to the prevailing conditions we can claim, I think, that it is the best year's work the Association has yet been able to show. The report show? that we issued 11,287 new policies, assuring £3,128,000; this is £445.000, or about 12 per cent., less than the amount of new business in 1914 This slight falling-off is not, I think, attributable to the war, which has affected us in other respects, but not in this. It is attributable mainly to the unfavorable season that «i experienced last year, which left many of our people without the inclination to fulfil what is really a primary obligation by providing, as it is impossible to provide in any other way, by life assurance for their dependents. ' INCOME The year's income was over £1,555,000; this exceeds by £82,000 the income of any previous year. We paid to our members or their representatives £097,173, and this is £106,000 more than we have paid in any previous year. The effects of the war are chiefly shown in this item; for the claims through the death of policy-holders increased to £352,000, or £82,000 more than the claims in 1914. About half this increase, or nearly £4O,00"0, is due to the death of policy, soldiere who were on active service. The number who thus gave their lives for the Empire during the year is 144.. But I am glad -to be able to tell you fliat notwithstanding the large amount of the claims, our experience is still less than the expectation—that is to say, the amount paid in respect of the deaths is less than the amount that we had provided for in accordance with the tables of mortality upon which our premiums are based.

THE WAJL ''The question is often ,vV. ::o what extent will life assurance companies be affected by the war. The principal business is to provide for the payments of the sums assured at the deaths of policy-holders, and the premiums charged are calculated on the assumption that the rate of mortality will he the rate that is found to obtain amongst healthy people following civil occupations under normal conditions, The liability of the companies is greatly increased when the policy-holders submit themselves to the terrible risks of warfare. It is impossible to say what the extent of those risks is under present conditions, but I am inclined to think that we arc apt to exaggerate them. The most complete statistics that have been published on this subject refer to the South .African war, and these snow that during the whole duration of that war the. rate of mortality from all causes —wounds and illness, amongst all ranks —was at the rate of a little less than 40 per thousand per annum, whilst- the ordinary rate of mortality amongst assured lives at the age of 30 is less than 8 per thousand per annum. We have no means of estimating what the mean rate will be in the present war; the published figures up to the end of April seem to indicate a higher rate amongst officers than any previous experience, but the facts were incomplete. The effect on the life companies will, of course, depend on the number of their policyholders who go to the front, but whatever the number may be. so sound is' their p:;sit'i;n. livd -n stitmg are their reserves, it will ho found that they can easily bear the '(rain. It is impossible to say how many oi our policy-holders have enlisted, for those who insured before the outbreak of war are free, in do what they please, and we are not advised of their movements: but we do know that the number nf Xational Mutual policy-holders who have given their services is more than sufficient to fill twfo battalions, and it probably is sufficient to Jill the whole brigade, and to provide a full complement of all ranks, from officer commanding to private. The directors have offered every facility and encouragement for officers of the Association to enlist, and I am glad to be able to say that officers from the head office and from every branch are serving. Those who for various reasons are unable to enlist are working at high pressure, to keep the work from falling into arrears through the absence of their comrades, and in this way they are doing their part. .

EXPEXSES. Besides the payments to members, £101,537 was spent m conducting the business ot the Association. This last amount represents less than 15 per cent, of the amount received for premiums, and less' than 10 1 /. per cent, of the t6tal income. These figures deserve special notice. The total expenses are nearly £13.000 k*.;3 than they were in the previous year, although the income was increased'by £S2,OOO'; they arc £'4ooo less than they were live years ago. al ; though the income has increased bv more than £400,000 in that period . regarding our invested funds, I have no special comment to make: the amount added for the year, £002,000, has been inve.sted in the same classes of sound securities that we have adopted in previous years. A larger amount than usual, something over has been invested in public debentures. INTEREST. The amount of interest earned during the year was over :C140,000, and this is equal to nearly £4 )Ss per rent, per annum on the average amount of the funds for the year. To obtain the results which have been submitted to you has meant hard work on the part of the Association's staff, and it has been cheerfully done. It may he invidious to mention one imlividual, but I am asked by the general manager to specially acknowledge the work that was done by our Xew South Wales manager, '.Mr. H. J. Cohen, which produced exceptionally good results."

The motion was seconded by Mr. A. Hope, and was unanimously agreed to. The retiring directors (Mr. Walter Madden and Mr. E. Trenchartl) were declared duly elected without opposition. Tile auditors (Messrs W. P. Jarfie and J. Valentine) were re-ap-pointed. The New Zealand directors are Mr. A. E. Pearce (chairman), Hon. Wm. Eraser and Mr. G. F. Pearce. ■Mr. F. W. Nicholson is manager for New Zealand. Mr. J. R. M. Stewart is the district inspector for the society,— Advt,