THE AUSTRALIAN WIDOWS' FUND.

Wairarapa Age, Volume XXIX, Issue 8392, 10 April 1907, Page 7

THE AUSTRALIAN WIDOWS' FUND.

This very conservatively managed colonial life office has just passed the thirty-fifth mile-stone, and the record SO far is one of progress. It has maintained its position in the worst periods of Australian economic con- ■ ditlons, and the last balance-sheet for ' the year ended October 31st, 1906, is one that the officers of the institution might well feel "satisfied with. During the year under review the Society received 3,530 proposals for £800,066, and wrote 2,966 policies assuring £655,441. This compares with previous years as under:— No. of Arnt. Policies. Assured. V 1903 2,193 .£425,254 r 3,904 2,390 £511,916 1905 2,726 ,£584.863 1906 2,966 .£655,441 This table discloses a Tescendo movement that is very ".ratifying indeed, for it shows that U<e Society is thoroughly established in the confidence of the public. And the Society fully merits this confidence, for it is ■ a very sound institution unci thoroughly well managed on <:< rr. -•ervative and prudent lines. The >ii*cmium /revenue for the >ear amounted to £184,221; the receipts from interest totalled £75,149; and other receipts, being profit on realisation of assets, amounted to £3,249, making the total revenue over a quarter of a million. Taking the past four years; the premium revenue and the renewal premiums aompareas under: Premium Renewal Revenue. Premium. 1903 ... £176,502 £160,847 1904 ... £175,195 .£159,098 1905 ... £179,506 £159,892 1906 ... £184,221 £162,273 Here again we see that the Society has held its ground exceedingly well. The claims by death, with bonuses, ■ amounted last year to £54,067, and this according to the actuary, is very much below the expectancy. This has been the experience of the Society for many years, testifying to the care that is taken in admitting asuurants. This carefulness is very necessary if the interests of the policy-holders are to be conserved. The claims by death, with bonuses added, and the total payments to policy-holders and their representatives for a number of years compare as under : ( Death Total i Claims. .Payments. 1903 ... £45,322 £140,982 1904 ... £44,369 £152,266 1905 ... £57,982 £167,442 1906 ... £54,067 £162,618 The accumulated funds of the Society on October 31st last amounted to £1,766,645, having been increased by £42.813 during the year. The investments of the Society are well distributed, and over a considerable amount of gilt-edged securities. Attached to the report and balancesheat is the report by the actuary on the seventh qukquenYiial investigation, and it is the most favourable that Mr Jamea Graham, the actuary of the Society, has been able to issue. The valuation has been on a "pure premium" basis. This is somewhat of a technical term, and, to quote the r actuary, the explanation is that "assurance and endowment assurance policies have been valued by the Hm ** table of mortality, assuming that the funds of the Society will, in future, yield a net return of 3& per cent, interest." This, we may say, is the course adopted by the leading British and colonial offices, and is unquestionably the safest and best for the policy-holders. The policies valued consisted of 25,302 aEsurance and endowment policies, assuring, with ■ bonus additions, the sum of £6,580,960 13s lOd, yielding an annual premium income of £200,478 12s lid, and of 54 annuity policies, umder which the Society p<*ys £2,474 16s 3d per annum. The result of the valuation is to disclose a surplus of .£135,364, which is a record for the Society. The actuary recommends the distribution of £130,290 16s 3d amongst policy-holders, and points out that for every £I,OOO of surplus distributed at the 1896 valuation, £3,157 was distributed in 1901, and £4,112 is now available for distribution. The magnificent progress made by the Society in the quinquennium, } its expanding profit-earning capacity, \ its sound financial position, and the prudent and conservative manner in which it is managed, combine to make it a privilege well worth having to possess a policy in so good a life office. We venture to say that when the Society reaches its fortieth year, and th 6 eighth quinquennial report is published, the results will be considerably better than the record ishowing of to-day.— New Zealand Mercantile Gazette.