NATIONAL MUTUAL LIFE.

Taranaki Daily News, 10 April 1920, Page 3

NATIONAL MUTUAL LIFE.

GENERAL MEETING. SATISFACTORY GROWTH OF BUSINESS. • An extraordinary general meeting of members of the National Mutual Life Association of Australasia. Ltd,, was held at Melbourne on 24th ult. The report of the actuary, which was submitted by the directors, stated:—"ln the last three years the growth of the association's business was very satisfactory. The amount of new policies issued—£l3,4so,oß9 2s Ud—and the amount received for premiums and interest— £5,808,281 Os 3d-during the period, were much in excess of the corresponding amounts in any previous report. Although the claims under policies were exceptionally heavy, £2,390,795 8g 3d was added to the assurance fund, which was thus increased to £12,524,368 15s. The directors have decided that the surplus of £789,487 15s shall be divided amongst the policyholders entitled to participate. It will provide reversionary bonuses amounting to £1,450,000."

THE CHAIRMAN'S SPEECH. The chairman of directors (Mr. Andrew Newell), in moving the adoption of the report, said:— Gentlemen,—l will ask you to take the report of the directors on the 10th investigation of the affairs of the association, which you have in your hands, as read. It contains a very brief statement of the results of our business for the last three years; the actuary's report, upon which it is based, with the usual schedules giving details of the valuation of the liabilities, will lie circulated amongst members as- soon as we can get them Pfinted. But in that the signiflcance of the results may be appreciated, 1 propose, if you will allow me, to compare some, of them with the results 6hoWn in previous reports.

NEW BUSINESS. The amount of new busings £13,450,089, exceeds what had been our best record by £2,771,643. Before this triennium we had reached our highest point in 1910-13, which is the last investigation period that was free from the effects of war. During 1913-16 the total fell to the extent of over £743,000, and this seemed to be attributable to the war conditions. But now, for the years 1016-8, when we might have expected that the influence of those conditions would be most severely felt, there is a rise of over 3% millions. Outexperience in this respect is not singular, for most of the companies are reporting an increased new business, puticularly during the last vear of the period. The reasons for this are not apparent. Some have availed themselves of the facilities offered by life companies for subscribing to the. w;c loans, others have realised that a life policy is the best way to provide for the higher probate ditties; but thesi are not sufficient to account for the general increase in busipess. Whatever the reasons may be, it is a good thins for the community that at a time wlr-n there is such urgent necessity to husband our resources, the people are recognising the benefits of life assurance.

INTEREST. The amount of interest earned bv til" funds, £1,704,555, is £370,100 'mora than the amount earned in 1913-1G; it is equal to the average rate of £5 3s Id per cent, per annum. The rale for 1913-16 was £5 0s 3d per cent, per anum. The higher rate accounts for nearly £47,000 of the total am mnt earned. The total receipts for the period were £5,808,281, or £1,117.083 more than the receipts for 1013-1(1. Amongst our disbursements, the most prominent item is the amount paid for claims under policies. This, I regret was increased to £1,581,108, or £552/202 more than the amount paid in the last triclinium. Of this amount, no less than £455,332 represents war claims—a term which has become too familiar but. we hope it will now disappearand £232,458 was due to deaths from the influenza epidemic, the effects of which'were actually more severe for the per'od of the visitation than the offee** of the war, for any period of similar duration. The total of these two amounts, £077,700, is equal to 42 per cent, of the total claims; if they were deducted, what we may call the normal claims would be only some £9OOO more than those for 1913-10. The expense ratios of both new and renewal business are lower, and, although the new business is not only so much" larger in itself, but is a larger proportion of the total than it was in the last period, the aggregate expense ratio al=o is lower. The reduction of the ratios is equivalent to a saving of ne<Hv £ISOO. SURPLUS. The net result of our transaction* in the three years is an addition to the assurance fund of £2,39G.795 which is some £209,000 more than the amount added in 1913-16. The surplus available for distribution. £789,487 is £29,594 more than the amount' distributed three years ago; but as the number of members entitled to participate is so much larger, the bonus wii' in some cases, be a little less than the amount allotted at the last distribution Hut when we consider the extraordinary heavy claims that have been met, and the singularly unfavorable conditions that have prevailed dnrino- the last five years, the results disclosed in the report are very gratifying, and are Ml. t0 the s ° od work of the oflr 'C"s of the association at head office and the branches, including our field staff, ■through whose unceasing efforts the large new business has been obtained. This finishes my comments on the figures that, are now before vou, but before I conclude, may I indulge in Rome reminiscences, and give voir some facts regarding the history of the association and the work it has >iccornplishcd? The report of the first investigation of the association, which was made on 30th September, 1574, five years after its foundation, showed that tiie income for the five years was £11.124; the funds at the end of the period amounted to £15,404. and £3oflS vas distributed amongst the members. These figures look small when compared w'tn those now presented, but the work that was then being done was of the utmost importance; oiir founders were men oE wide vision, and they were laying the foundation which made it possible to 'build safely the structure that we have to-day. PERSONAL. I became a member of the board m 1880, when the association was in Its eleventh year; beginning to feel its strength, it had then begun to extend Ha ftfltivitiw by the establishment of