COMPANY MEETINGS
NORWICH UNION LIFE INSURANCE SOCIETY
RECORD NEW BUSINESS THE PRESIDENT'S REPORT
DIE one hundred and thirty-first annual general meeting of the Norwich Union Life Insurance Society was held on April r8th at Norwich.
Mr. Ernest Hicks (the President) said that it was a matter of great satisfaction to the directors that in a particularly difficult year such as was 1938 they were able to submit a report which showed continued progress. Indeed, in the matter of new business they had again established a record. In the accounts they had converted all moneys into sterling at the rates of exchange ruling on Decem- ber 31st last. The total funds were increased by £1,073,405, and now stood at £48,123,716. The net amount of new business, after deduction of re-assurances, was £ 1 1,755,7oo, and of this 69 per cent. was obtained from the United Kingdom—an increase of £500,772 over their previous record-25 per cent, from the Dominions, and only 6 per cent, from foreign countries.
The board had always insisted upon economy of management as being one of the essentials for the proper conduct of a mutual life society, and they were glad to be able to report, particularly in these times, a further reduction in the expense ratio to 14.28 per cent. This represented a fall of .37 per cent, in the year, and, when applied to their premium income of £4,551,477, meant a cash saving of no less than £16,840.
Their mortality experience had again been extraordinarily favour- able and indeed represented a record for the society. The net rate of interest earned on the total funds was £4 2S. 7d. per cent., which in present circumstances was a very satisfactory one.
The past year had seen a further considerable fall in the market values of Stock Exchange securities, but, owing to the conservative policy adopted by the board in past years, the margin in their favour between the present market values and the values at which they appeared in the balance-sheet was a very considerable one.
The new business figures did not include the considerable busi- ness which the Society did and had done for many years in respect of special staff pension schemes. They had a highly skilled depart- ment, which confined its attention entirely to this particular aspect of insurance work. This Society, in conjunction with their associated office, the Norwich Union Fire, catered for every class of insurance business.
The report was unanimously adopted.
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