COMPANY MEETING

LONDON AND MANCHESTER ASSURANCE COMPANY, LTD.

THE CHAIRMAN'S REPORT

THE seventieth ordinary general meeting of the London and Man- chester Assurance Company, Limited, was held on Wednesday, .May r7th, at the chief office of the company, Finsbury Square, E.C.2. Mr. A. H. Dawes (the Chairman) said: Gentlemen: I pre- sume you wish to take the report and accounts as read. (Agreed.) Turning to the accounts, I think you will agree they reveal that the year under review has been one of sound progress. The premium income amounted to £3,452,536, an increase of £103,120 over the previous year. The assets of the company totalled £20,381,733, which is an advance of over one-and-a- quarter million on the figure of the preceding year. This is the first time that the assets have exceeded the twenty million mark. The interest earned on the invested assets was £4 115. 'id, per cent. gross

ORDINARY BRANCH

The amount of new sums assured written in the Ordinary Branch was £3,530,189. This is not so large as that of the previous year, but bearing in mind the political tension that persisted throughout the greater part of our year, I think we can cordially congratulate our Field Staff on the result of their efforts. The premium income increased by £58,066 to £1,460,318. Considera- tion for annuities amounted to £27,382, which compares with £24,070 for the previous year. Claims by death at £171,718 increased moderately, but were well within expectation, whilst claims by survivance of the endowment period rose from £443,067 to £528,963, showing a record increase, and incidentally revealing the increasing extent to which endow- ment assurance is being used for investment.

The ratio of expenses to premiums (adjusting as usual for single premiums) shows a reduction of 2.2 at 12.8 per cent.

The annual valuation of liabilities in this branch made by our Actuary, Mr. C. H. Ashley, on the same bases as in the previous year, discloses the record surplus of £794,164, including the brought-forward. We are proposing to repeat last year's bonus of £2 per cent.—a noteworthy achievement. This bonus will cost £350,296.

INDUSTRIAL BRANCH

In the Industrial Branch the new sums assured amounted to £6,784,741, showing an increase of £231,827 over the previous year. The premium income amounted to £1,890,962, being an increase of £40,697. Claims paid by death and maturity amounted to £811,568, an increase of £18,153. The expense ratio for the year, you will be pleased to know, fell by 1.42 to 36.84 per cent. It is, of course, true that the service of weekly industrial assurance costs mon; than ordinary assurance but, even so, the additional cost is thoroughly justifiable, since without the system of weekly collection of premium at the houses of the people, it would not have been possible for the working classes to enjoy the benefits of life assurance. The current sums assured under our industrial policies exceed £36,000,00o.

In Fire and General Branch the premium income, £97,661, shows a satisfactory increase of £7,041. The experience in this branch is proving of benefit to the company's interests generally.

AssErs

Taking our Stock Exchange securities we have no less than 83 per cent, invested in the United Kingdom, and a further 12 per cent. in the rest of the Empire, thus leaving only 5 per cent. in foreign countries. Fifty-three per cent, of the amount of our Stock Exchange securities carries a definite date of redemption. The remaining assets are all in the United Kingdom.

The amount appearing under the heading of mortgages on property within the United Kingdom shows an increase of £161,888 It £1,972,548. I might mention here that the facilities granted under our house-purchase scheme are making an ever-increasing appeal to the public. As regards the distribution of assets, the principal variations from the previous year are United Kingdom Public Boards County and Municipal securities have fallen from 10.5 to 9.5 per cent. Indian and Colonial Government Municipal and Provincial securities have fallen from 6.1 to 5.6 per cent.

Debenture securities have increased from 15.4 to 16.9 per cent.

Ordinary stocks and shares have decreased from 11.7 to 11.0 per cent.

In the course of the past year our representatives acting in a‘sociation with the National Amalgamated Approved Society distributed to the London and Manchester members 274,387 sick- ness and disablement benefits, totalling £139,614 and 9,971 maternity payments amounting to £21,750. A further £18,143, approximately, was represented by non-cash treatment benefits.

DIVIDEND

The directors are pleased to be able to recommend the same dividend as last year, los. per share free of income tax. Well, gentlemen, I have now touched upon the more important figures representing the results of our work and I think we can claim to have had a satisfactory year despite the drawbacks due to the uncertain political conditions. In such times as these you will not expect me to give any opinion regarding the future, so I will content myself by expressing the hope that this period of anxiety may give place to one of real peace and prosperity and that twelve months hence we shall be able to place before you even better results than those you have before you today. The report and audited accounts were carried unanimously.