22 MAY 1941, Page 26



STATEMENT by the chairman, Mr. A. H. Dawes, relating to the accounts submitted to the seventy-second annual general meeting held at the chief office, 50 Finsbury Square, London, E.C. 2, on Wednesday, May 21st, 1941.

The total income for the year amounted to £4,491,694 as compared with £4,439,066 a year ago, i.e., an increase of £52,628. The premium income increased by £14,859 to £3,509,836: the gross interest income at £970,486 showed an increase of £40,835 but owing to the increased Income Tax the net interest was lower by £31,664 at £681,66g. Total death claims at £1,032,096 showed an increase ot £20,636, while maturities showed little change at £751,148. The total assets amounted to £22,550,164 compared with £21,471,397 a year ago—an increase of £1,078,767.

During the year new life and endowment policies were issued in this branch assuring a total sum of £2,117,476, which is 8o per cent. of the business completed in the previous year. The premium income amounted to £1.446,070, showing a small reduction of £25,112. Death claims increased by £31,933, of which £20,253 was directly attri- butable to enemy-action. Maturing assurances at £649,659 decreased by £4,205. Surrenders were £33,289 lower. The ordinary branch fund at the end of the year was £13,125,552, an increase of £619,214. The gross rate of interest earned on the life fund was £4 155. 3d. per cent, compared with £4 15s. 5d. per cent.. butthe net rate fell from £3 Its. 9d. to £3 5s. 5d.

The premium income in this branch amounted to £1,978,807, showing the very satisfactory increase of £47,691. Claims by death (including £45,506 due to the war) were a little lower at £799,256. Maturities were £2,718 more. Surrenders were lower by £15,026. The expense ratio was 34.83 per cent., compared with 35.67 per cent. in the previous year. At the end of the year the industrial branch life fund stood at £8,179,9/6, an increase of £451,308. The gross rate of interest on the fund fell to £4 135. rid, per cent., while the net rate fell to £3 8s. 4d. per cent.

In the industrial branch it has been decided that, (A) on the attain- ment by a life assured of age 85 or more before May 20th, 1942, and subject to at least to years' premiums having been due and paid under the policy, no further premiums shall be payable thereunder; and (B) the same interim bonus as granted a year ago shall be adde to claims by survivance under the company's Tables 4, 5, 6, 6A, 7A and 9. £146,448 I2S. has been transferred to the profit and loss account, the remaining surplus, viz., £102,418, being carried forward in the life fund.