3 MARCH 1939, Page 54


A YEAR OF STEADY PROGRESS His Grace the Duke of Atholl, K.T., presided at the annual meet- ing held on Friday, February 24th, in Edinburgh.

In moving the adoption of the report he said that for the fourth consecutive year the company had issued new policies for over £2,000,000 of sums assured net which satisfactory total had been spread over a larger number of policies than had ever been issued in one year before. There was an advance of about £100,000 in sums assured over the previous year. The net premium income for the year was £658,000 which included £34,000 of new single premiums. The renewal premium income was therefore £624,000, which was £18,000 over that of the previous year. During the past year the company had earned an interest rate of £4 25. 2d. per cent. after deduction of Income Tax.

Claims by death were below those expected. The total outgo for claims including endowment assurances matured by survivance was L554,000. Surrenders, including annuity surrenders, at £51,000 represented a normal figure. Commission and expenses had increased fractionally to 16.9 per cent. of the premium income. There had again been a substantial addition to the funds, the increase being £288,000, which brought the company very close to its ninth million. There had been no striking change in the balance sheet items, and the amount of new mortgages and loans added to the investment portfolio was nearly equal to the sum added to the Stock Exchange securities.


Sir John Lome MacLeod, chairman of the board of directors, in seconding said that considering the forces which were influencing the future, life assurance, without profits, was still being offered in many quarters at premium rates which were on the low side. It was felt that some of the company's non-profit rates were out of line with present conditions, and steps were therefore being taken to adjust certain premiums for new entrants to slightly higher levels. In referring to the balance sheet he said that in spite of the reces- sion in capital values of securities which had occurred since 1936 the book values of investments were still considerably below current market values, so that the company had an undisclosed margin of security which was greatly to the benefit of policy-holders. The report was adopted and the recommendations therein con- tained approved. A final dividend of 2s. yd. per share, less tax, was declared in respect of the past year, making with the interim divi- dend of 2s. yd. per share, already paid, a total for the year of 5s. 6d. per share. An interim dividend of 2s. yd. per share, less tax, pay- able on September ist, 1939, was also declared. A vote of thanks to the branch officials, moved by Mr. Wm. Lawson, was acknowledged by Mr. J. L. Anderson, branch secre- tary, North Wales.