rate of 2.1 per cent. instead of 2 per cent.,

but it will be appreciated that the margin between 21 per cent. and our current net interest yield on the whole of the funds is larger than the margin which existed in 1947 when we adopted the 2 per cent. rate.

GENERAL PROGRESS I am pleased to report that 1957 was a year of continued progress in all branches. The total income of the company amounted to 18,467.000-an in- crease of £991,000. In the life branches, premium income at £13,314,000 showed an increase -of £543,000, and there was a substantial increase in net interest of £476,000 to £4,345,000. Claim payments, including payments of £6,383,000 to those who sur- vived the term of endowment assurances, amounted to no less than i8,521,000. Policies in force in the life branches assured, with bonuses, £229,768,000. The total funds held for the security of policy- holders rose by £4,038,000 to £106,011,000.

ORDINARY BRANCH In the Ordinary Branch the premium income was £4,345,000-an increase of £127,000. Gross interest amounted to £1,950,000, which shows a gross yield on the funds of £5. 6. 5d per cent. After deduction of income tax, the net interest was £1,408,000, which showed a net yield of £3. 16. 10d per cent.

An outstanding feature of the year was the large sum, amounting to £3,936,000, paid in death claims, surrenders and maturities, of which no less than £3,117,000 was paid to survivors under endowment assurances. We have had two abnormally heavy years for maturing policies, but the figures will return to normal this year and we may hope to expand our premium income and funds more rapidly.

The surplus disclosed, which includes £1,034,484 released as a result of the revaluation, amounts !o £2,292,779. Out of this surplus £1,072,542 has been allocated to policyholders. The directors have de- clared a reversionary bonus at the rate of £2 2. 0,1 per cent. on the sum assured under with-profit policies, which compares with a bonus of £2 par cent. declared a year ago.

INDUSTRIAL BRANCH In the Industrial Branch the premium income was £8,969,000-an increase of £415,000, the largest in this branch in the company's history. Sums assured under new policies amounted to £14,724,000-an in- crease of £1,274,000 compared with 1956.

The trend towards endowment assurances which have prevailed during the last 20 years continued, and over 921- per cent. of the new sums assured and premiums related to this class of business. In view of this very pronounced trend, it is not surprising that endowment assurance maturities totalled no less than £3,265,000.

The expense rate of 27.50 per cent., without taking into account the transfer out of surplus to the Staff Pension Fund, was 1.05 per cent. more than in 1956, the difference being partly accounted for by the in- crease in new business and . partly by improvements in salaries. Gross interest amounted to £3,132,000, which shows a gross yield on the funds of £5. 10. Id per cent. Net interest amounted to £2,937,000-an increase of £392,000. The net rate rose from £4. 14. 5d per cent. to £5. 3. 2d per cent.

The surplus disclosed, which includes £1,171,473 released as a result of the revaluation, amounted to The cost of this great improvement in our bonus scheme has been met by a special allocation this year amounting to £2,500,000. whereas the alloca- tion to Britannic policyholders last year was £1,300,000. Such an allocation has been made pos- sible by the release of reserves, and it follows that such an exceptional allocation cannot he expected in future years.

HOUSE PURCHASE SCHEME

Mortgages increased during the year by £990,000 to £19,889,000. In spite of the increase in the bank rate, we have not raised the rate of interest on existing mortgages and we have kept our rate of interest to new borrowers at 6 per cent. This rate is a high one and any -higher rate would he too heavy a burden on the type of person we are seeking to help, namely, the owner-occupier,• and for this reason we should he reluctant to increase it.

FIRE & ACCIDENT BRANCH We had a satisfactory year in this branch; the premium income amounted to £995,000-a record increase of £147,000. We arc most grateful to the British General Insurance Company for the efficiency with which they manage this branch of our business for us.

'STAFF The results of the past year could not have been achieved without the wholehearted efforts of the staff. They have, as always, worked loyally and well, and it is a real pleasure to express our thanks to them. I am sure you will all approve the increased transfer of £275,000 to the Staff Pension and Widows Fund which we arc making this year.

COMPANY MEETING

ENGLISH STOCKINGS LTD.

Tor 28th annual general meeting of English Stock- irgs, Limited, was held on February 28 in London.

Mr. G. R. S. Doyle, chairman and managing direc- tor, who presided, said : As in the previous year, no dividend was received in 1957 from our principal investment, that of the Klinger Manufacturing Company Ltd. However, the results of that Company to 30 September, 1957, i.towed a considerable improvement over those of 1956 in that they advanced from a loss of £164,518 to a profit before taxation of £43.455. The liquid position was also improved considerably. We are hopeful that the reorganisation of its business and the broadening of its productions may enable it to resume drVidends before long.

On the other hand our gross income from other investments amounted to £26,064 and we are recom- mending a dividend of 10%. and carry. forward £17,655 against £17,883 brought forward from 1956. It is interesting to note that, despite market condi- tions, the market value of our quoted investments at 31st December, 1957, showed a modest improvement. The reduction in hook value of investments results from the application of the surplus on realisations to the writing down of retained investments.