The latest report of the Atlas Assurance Company is again
an encouraging one, both as regards active business and profits. The profit in the Fire Account is just a trifle lower than in the previous year at £175,465, but it represented 10 per cent. of the premiums, and in the Accident and General Departments, including all classes of casualty business, there was the satis- factory profit of just over 6 per cent. The net interest earnings were also higher. An important change has been made in the form of the latest accounts, since the directors decided to con- solidate the various departmental " additional " reserves in the General Reserve Fund, to which, therefore, have been added £1,311,403 from the Fire Account, £100,000 from Accident, and £200,000 from Marine, which, together with the allocation of £138,597 from the year's profits and the existing General Reserve of £250,000, makes up the General Reserve to a total of no less than £2,000,000. The valuation of the Life Funds for last year discloses a surplus of £589,089. It will be remembered that the bonuses are distributed triennially and the outlook, therefore, appears to be good for the next distribution which is due at the end of the current year. The Life Fund at the end of the year stood at £13,109,0o0 as compared with £12,277,000 a year before. The total Funds were £18,509,330 as compared with £17,479,803 a year previously.
* * * * THE BRITISH EQUITABLE.
The latest Report of the British Equitable Assurance Co., Ltd., shows that the net new sums assured during 1936 amounted to £829,354, giving net new annual premiums of £19,060, with net new single premiums of £1,645. The claims arising by death during the year amounted to - £68;75 z - the average rate of interest on the Life Fund was £4 15s. rd., and after deduction of income tax the yield was £4 29. rod. For the Fire Department the premiums received after deduction of re-insurances amounted to £106,102 and the losses by fire less recoveries under re-insurances absorbed £58,353. After deducting expenses and commission and making the usual provision of 40 per cent. for risks unexpired at the close of the year, and after crediting interest, a surplus of £7,552 was carried to Profit and Loss. In the Accident and General Department the premiums received after deduction of re-insurances amounted to £35957 and the losses less recoveries under re-insurances absorbed £17,507, and the sum of £4,003, repre- senting the surplus in the department, was carried to credit of Profit and Loss. As regards the Profit and Loss account, after charging expenses and transferring £2,000 to Staff Pension Fund, the balance of the account showed an increase from £83,964 to £90,129. The directors are able to recommend a dividend of ro per cent. less tax.
- • - - - * * * * CANADA LIFE.
The report of the Canada Life Assurance Co. for 1936 is a good one. At the annual meeting held recently in Canada, Mr. A. N. Mitchell, the Vice-President and General Manager, stated that the total production from all divisions of the company in new paid life insurance, including revivals and increases, was over £12,600,000, or £770,000 greater than in 1935. The assets of the company also increased during the year by £742,678 to £51,886,331. The increase in the assets, according to Mr. Mitchell's statement, has been considerably affected by changed regulations regarding single premium policies and annuities which have been restricted owing to the low rates obtainable on new investments. So far as the United Kingdom is concerned, the accounts show that over £2,000,000 was disbursed by the company during the year while the United Kingdom income was about £z,362,000. The company earned 4.17 per cent. on its funds, but the calculation excludes any credit for overdue interest on mort- gages, an item which is considered to be amply covered in the Contingency Reserves, the result being that for last year
(Continued on page 742.)
FINANCIAL NOTES
(Continued from page 74o.) the interest account was actually credited with £157,191 less than the cash collections. As usual, the report is accom- panied by a full list of the bonds and stocks held by the company.
* * * * LEGAL AND GENERAL.
Special interest attaches to the latest report of the Legal and General AssUrance SoCiety, inasmuch as it marks the completion of a centenary of its existence. An announcement had been made some, time before the report appeared that the directors were diatributing a special bonus of 5s. per share, free of tax, in addition to the normal dividend of IIs., tax free, in respect of /936. It is good to note that at the time of le centenary of this important Society the latest report shows that fresh records were established during the year both as regards new business and the amount of the Society's funds. The net new sums assured, including Sinking Fund policies, amounted to no less than £18,25o,000, and the total Life policies now in force represent over £118,000,000. The total funds of the Society amounted at the end of last year to £38,650,000 and the rate of interest earned on the Life Fund amounted to £4 os. 9d. per cent. net.
REDUCING LIABILITY.
The total credits to Profit and Loss during the year amounted to £1,229,547. The Fire Account provided a profit of £46,035 and the Accident and General Account a profit of £13,874. Out of the profits £369,781 is written off investments and £15o,000 transferred to Investment Reserve, while a similar amount is transferred to General Reserve • £5o,00o is written off Properties and £6o,000 carried to Staff Pension Reserve. A sum of £50,000 is to be capitalised and applied to reduce the uncalled capital by 5s. a share, making the shares now £5 each with 25s. paid. It is further proposed to sub-divide each share into five shares of LI each with 5s. paid.
* * _ * *
NORWICH UNION LIFE.
In practically every detail the results of the Norwich Union Life for the past year exceeded those of the previous twelve months. As regards net new business, the figure was over £r i,000,000, representing an increase of more than £3430,00o on the previous year, while the expense ratio was the very moderate one of 15.05 per cent. of premiums. The net rate of interest earned on the Funds was also good at £4 7s. 3d. per cent., for the rate assumed in the valuation was only "E2 IOS. per cent. for whole-life and endowment assurances. The society's funds rose by £2,228,091 to £44,47o,297. The interim bonus rates for 1937 range from 40s. per cent. on sums assured under endowment assurance policies maturing at age fifty-five, and 47s. per cent. for whole-life policies of five years' duration, effected at age twenty-five, to £4 Jos. per cent. for whole-life policies of thirty to forty years' duration where the life is now aged
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