LIFE INSURANCE PROBLEMS
These are difficult days for life insurance companies, esp on the investment and valuation side. Interest rates are steadily screwed down, and the net yield is brought still 10 by rising taxation. It is not surprising, in the circurnstan that most of the life companies have been compelled to cut dividend rates. Among them is the Pearl, which pres nevertheless, a distinctly satisfactory set of accounts for I This office, which transacts a large volume of industrial ass among the wage-earning classes, actually succeeded in increa its new business last year, and premium income in both departments was above that of 1940. In his statement accompae ing the accounts, Sir George Tilley points out that the coin has invested over £181 millions in Government loans since war began. He also discloses that the balance-sheet figure exceeded by the market value of the company's Stock Elea investments, so that the investment reserve funds of 0.450' are free reserves. Like all other companies, the Pearl has stiff a decline in net interest earnings, which has now gone s0 as to lead the board to strengthen the valuation reserves reducing the assumed rate to 21 per cent., while in the irld trial branch a lower rate has-been used for the valuation of up policies. Even on this more stringent basis total surP1 in the life. fund amount to L3,149,000.
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