16 AUGUST 1930, Page 32


Policyholders in the Liverpool and London and Globe Insurance Company must have been gratified by the recent announcement that the directors had decided to increase the rate of interim bonus on whole-life policies to 48s. per cent. per annum in respect of policies becoming claims on or after August 1st next. Last year the interim bonus was raised to 45s. per cent. on " Globe " whole-life policies and this further increase to 48s. per cent. is an excellent indication both of the strength of the company and of its bonus earning prospects. Moreover, the announcement gains in importance by a remembrance of the conservative policy pursued by the company. For fifty years commencing from 1875 the company regularly paid a bonus rate of 855. per cent. per annum which at that time was -a high rate of bonus among leading British Life companies. A con- sideration of this policy in the past would seem to justify the belief that the present decision indicates the probable maintenance of bonuses On the higher scale. The raising of the rate twice since the last bonus distribution inspires hope- fulness as to the next quinquennial distribution. A. W. K.