ROYAL EXCHANGE ASSURANCE
219th ANNUAL GENERAL COURT
THE 219th annual general Court of the Royal Exchange Assur- ance was held yesterday at the Royal Exchange, London.
Lord Bicester (the Governor) said that in the Life Department their total sums assured amounted to £4,526,000, the net sum assured being £4,359,000. The premium income of the depart- ment was E1,400,000, a slight advance on the figure of the pre- vious year, and the claims paid and outstanding amounted to £844,000. The gross amount of interest earned was £627,000, representing £4 14s. id. per cent, on the Life Fund against £4 16s. for the previous z2 months. The most important problems at present confronting the department were the investing of new money and the fact that they had to accept repayment of existing investments, whenever it was in the power of the borrower to do so, by obtaining a lower rate of interest. The directors had taken steps to counter the full effect of the lowering of interest rates by placing substantial sums in short-term securities. Not only had that pElicy had the effect of avoiding any but the smallest depre- ciation on the capital of the Life Fund, but it was also providing them with money which they could invest at appreciably higher interest rates than had been available at the time when the money was originally received.
GRATIFYING FIRE RESULTS
They would be gratified again, he felt sure, with the result of the Fire Department, the total underwriting profit of which amounted to Li58,ocio. After taking credit for ,C47,600, being the net interest received, there was available for transfer to General Profit and Loss account £206,000. When account was taken of the conditions that had prevailed during the past year and the lack of confidence that had been brought about by the international situatjon, he felt that it was a matter of congratula- tion that the premium figure was almost equal to that of the previous year, and the profit figure only a little less than that attained in 1937.
For a Tong time Marine business had carried difficulties pecu- liar to itself and the result for some years had been definitely disappointing. They had felt that nothing short of a comprehensive reorganisation of their Marine business would enable them to look forward to better results, and as a first step they had formed a close association and a common underwriting policy with the Sun Insurance Office, and that arrangement gave every promise of success. It was common knowledge that 1937 had been an exceptionally bad year for the Marine market. They were making a transfer of £15opoo to the Marine Fund, with the object of strengthening it and to cover the loss made as the result of past years, but which he was hopeful might be eliminated in the future, provided that the general conditions of Marine business were such that normal profitable trading could again be estab- lished. The Joint Hull Agreement had been well maintained and through its operation rates were gradually being moved to- wards the level necessary to allow a moderate profit.
The Accident net premiums at £1,228,octo showed an increase of £23000 on the 1937 figure. The underwriting profit together with net interest amounted to £92,000, a figure well above the average earned by the department, and, in the face of many diffi- cult problems, he thought it would be agreed that that was a good result.
Aftet pointing out that the profit and loss account and balance- sheet indicated a position of great strength and that they were proposing to pay a final dividend of /9 per cent., making 30 per cent., less tax, or the year, he went on to say that he could readily suggest that on the results mentioned, the Corporation had again experienced a satisfactory year's trading. The assets of the group as a whole had increased by some £1,500,000 to over £32,000,000, and while such progress was being made he did not think there was any sign of their 219 years of existence weighing heavily upon them.
The report was adopted.
Previous page
