ALLIANCE ASSURANCE COMPANY, LIMITED
Review of the Report, Accounts and Balance Sheet for the year 1941 by the Chairman, Mr. Richard Durant Trotter THE board of directors have come to the conclusion that it would be a convenience to shareholders if, in lieu of the usual chairman's speech at the annual general court of the company to be held on May 27th, 1942, a review of the company's operations during the past year was sent with the report and statement of accounts. It is therefore my pleasure to present to you the following statement.
The net new business completed during the year in the life department amounted to Li,118,485. This is slightly lower than the corresponding figure for 1940 and is about one-third of the amount of business which we used to complete in the pre-war periods. The board in these difficult times have considered it advisable to be very conservative in accepting business in the life department as it has not been felt that it is a wise policy to put business on the books of the company at unremunerative rates, and, in this connection, it must be borne in mind, that the majority of new money in the life department, as in other departments, is being invested in War Loans at not more than 3 per cent. gross. The fact that we have been conservative will have the effect of strengthening our position after the war, when we hope to get our share of new business.
The claims experience in the Alliance Life Department was satisfactory. The claims by death Were Only £573,104, and this figure included £50,496 for war claims' as against £826,027 in 1940, which was admittedly a bad year from that point of view.
At the close of the year, the Alliance Life and Annuity Funds amounted to £23,141,164, an increase of £318,429 for the year.
The quinquennial valuation of the Imperial Life and Annuity Funds took place as on January 3ist, 1941, and the total surplus revealed was £29,029 after paying interim bonuses of 412,222. Of this sum, £9,392 was allocated to policyholders and £19,637 was carried forward._ There was an amount of £3,499 due to the shareholders' account, but your directors felt that it would be wise to leave this amount in the fund for later transfer should conditions permit.
Now if we turn to the fire department, you will see that the net premiums amounted to £2,129,372, which is £46,247 less than the premiums in 1940, and this is not surprising, owing to the fact that we have naturally lost business in foreign countries now occupied by the enemy.
The claims experience was considerably more satisfactory than in 1940, and after having put by E25,000 for bad and doubtful debts, after adjust- ment of reserves for unexpired risks and the inclusion of interest (less tax) amounting to £95,595, there is a balance of £529,552, which has been carried to profit and loss account. I feel that you will agree with me that this is a very satisfactory year's result in these difficult times.
In the accident department there was a net increase in premium income of £22,573, the comparative figures being £1,227,778 in 1941, as against Li,205,205 in 1940.
The profit of the department as a whole, viz., £198,867 15s. I Id., which includes interest of L43,509 2s. 6d., has been transferred to profit and loss account, and is slightly in excess of the amount transferred to profit and loss in the previous year's account.
The marine underwriting account for 1939 has now been closed, with the very satisfactory balance of £143,348, which is £59,514 higher than the balance of the 1938 account. The surplus, after setting aside £9,168 for further claims in respect of 1939, is therefore £134,18o, which; together with interest (less tax) on the marine fund, viz., £28,820, making a total of £163,000, has been carried to profit and loss. This is an exceptionally good result and one we can hardly hope to repeat next year.
In the trustee department, the funds now being administered total approximately ,C16,000poo (excluding debenture trusteeships and the like). The number of trusts now being administered is 246.
I should now say a word with regard to our Stock Exchange securities and I am glad to be able to report a considerable recovery in the market value of such securities. As was reported last year, there was a favourable margin over the book value in the case of the Members' accounts. This margin has further increased in spite of considerable sums which have been written off during the last two, or three years in respect of deposits in enemy-occupied territories.
I am glad, on this occasion, to be able to report to you that, in the Life accounts, as you will see, it is possible to state in the Certificate at the foot of the Balance Sheet that in each Fund the aggregate market values exceed the book values.
Turning to the profit and loss account, you will observe that, we have transferred £150,000 to the special reserve set up last year-for cOOtingencies arising out of the war. This brings the total of this fund 'to 4250,00o. We have also transferred to the staff pension fund a sum of £5o,000, and We have increased our contribution to the widows' and. orphans' fund by. £25,000. In addition we have considered it prudent to increase the amount normally applied in reduction of office premises.
It is satisfactory to be able to rePott to jou that our' associated office,' the National Boiler and General Insurande 'Limited; has increased' its dividend during the past year, and it can be congratulated on a' sorrecsful year's trading.
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