The Dorset County Express and Agricultural Gazette.
Dorchester, Dorset, England, 1872-04-30 00:00:00

ordittrary Branch' • £10,661
lad ustrial Branch 118,170
Total Prentitua income reserved for axpeaase

_And the present value of such reserve to £1,479,47k

• • -
flea facts prove incontestably how strong le the pedtion
(4th. Compaq.
Very groat diversity of opinion having prevailed in reference
to the construction of the various Scheduks of the Lae
Aaeurance Conipanite Act, and the peculiarity of some portion
of the barnao of this Company rendering the interpretation of
the clauses more than usually difficult, the Directors have
deemed it right to obtain the mat eminent probentonal ads lee
in the metier; the whole of the schedules (4th. Company
lave been submitted to Mews. Quitter, Hell, and Co, Public
Accountants, and they have been subsequently placed before
Mr, Napier Higgins, t2.C.,and Mr. Phew, both memben of the
Chancery Bar. On receiving the opinions of thole gentleenen
that the Schedules are in conformity with the Act, the Direc-
tore will deposit them .oth. Board of Trade, and • ill then
transmit copice to the liharenLldenk, and they hope to be able
to do ea before the Annual Meeting.
Due notice will be given to all the Participating Policy-
holders of the amount allotted to their thspective Policia,
but, in consequmce of the very large number of calculations
required, some time meat elapse before the amount can be
oned to each policy. la the meantim
ethee, Policy-
= who prefer taking their Bonus by way of reduction
of premium, must pay the full premium now payable, and a
return of the difference will be be made when,the computations
are completed.
The Shareholders will also he informed in due course of
the amount respectively allotted to them.
JAMES GILLMAN, Chairman.
bib Argil, 1072.
To the Director, qf the Prudential diseurance Company.
-

Gerrta have carefully examined the valuations of
the liabilities of your Company made by Mr. Hughes for the
General, and Mr. Dewey for the Industrial Breech. The
condition. under which the busker of the two branches is
conducted differ materially. In the Industrial Ikarrih the
Policier have rimmt all boon granted for the whole terns of
tile, but It is found that • large proportion of the whole
number is kept In form for abort periods only. The Premiums
on all these Policies are parable weekly, and being collected
by the Company from the Policy-holders, such • heels...
nmemarUy Involrm considerable expense, mid, therefore, the
✓ates of Premium must be higher than in the General Branch.
From them circurastanom it seem to me that the liabilities
of the two Branches should not be regarded in the eamo
*money Thk, however, mem. to be at variantt, with the
provisions of the Life Assurance Companies' Act, which
✓equires that • valuation of the whole of the liabilities
to periodically made, and that Schedules containing particu-
lars of all the outstanding risks shall he delivered to the Board
of Trade, The enormous labour attending such an invest**.
tioa In the cam of your Company has, therefore, been under-
taken, and the resulto are now submitted.
On the 314 December, :871, there were in force in the
General Smith 11,179 Policia. for Assurance. of £1,790,292,
includin* £46,511 bonus eaditione ; 148 Immediate Annuities
of £4,303 ; 3211 Deferred and Cootingent Annultiee of £1,032,
the PTOVALUZIM payable under them ocialracte amounting to
£40,649 For MIMEO Ile-emurances WKs suMkelng to the
amount of £35,238. There is alio • small liability &Mpg
from 25 outstanding Policies Involving the contingency of
Sickness.
At the maze date there were in force in the Indutriel
Branch £1512,206 Polick. for Amurances of £1,531,934, the
Premiums on which amount to £A15,221 annually. The
average amount mound by each Policy le ES On, 10d., the
average weekly Premium lather more than lid., the average
rate of PremOm being 1.4 6.. 3d. per mat, pow mum. The
significanos of the WM fact will be understood, when it I.
added that less than 4 per cent, of the Pclides In force are on
live. above 60 year, of age, and attention is directed to it as
tending to explain the eerious mistake. Into which some
persona have Wien, who attempted to apply to this branch of
your businein teem of solvency derived from the experience of
Companke whom Policia have been granted on very different

The values by the Cabals Table of Mortality at 1 per cents
interest of the sums amoral, annulUe. and future premiums
payable under ell three contract., have been carefully WM-
puled. To provide for future expenses and prate the follow-
ing deductions from the present value of the premiums have
been made, six., in the (lateral Branch 20 par cent. for the
pneueipaing, and 10 per cant. for the nowitarticipalng
;in the 1144E144414.1 Brandi Cl per cant. The amount
of touch prOVlSioll i+ £1214,1414 per annum
Tbe effect of these deduction. Is to make • reserve In the
Gamut Mulch closely approximating to the result which •
pure premium /illation would have produced, and In the
Industrial Branch to make an ample provision for the ex-
pense. and further to udirn a punitive value to each of the
clamded groupe '4th. liabllitles at every age of lii.. When
It Is added that the present value of the future premiums In
the lndnstnal Branch ie very nearly 15 years' purchme,
further extmment on the sufficiency of such • TIMM is
. .

The general resulta of the Valuation are as follow; vis :
Amuranoo Fund.. £Va3..110
EstimatedLl.biit --
General Asauranem .. £124.251
Annuities

Sicknow, ts:.
I od ustrial

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3G,t.7t1
76
C 261.633
45,141
---- 307,011

Surplus..

L70,01m1

Of this stlnall• I wool-1 vugtty.t that ma
divided on the proven' twx..widouo.oi not exevvd £40,000.
If this suggestion be adopted, the share of four-tifthi. to which I
the assured are entitled would toe equivwlent to £27.1.7 per
cent. on the amount of prOMIUMS pall during the loot Ave
pore on the policies entitled to participate, and this would be
!sufficient to give levenionary lionises averaging more than 51
per cent. OU that amount, a mauls which cannot fall to be
saildactory In the highest degree.
I am, Gentlemen, your obedient Servant,
ARTHUR H. BAILEY,
London Aiwuranoe, 7, Royal Exchange, Actuary.
4th April, 1872.
To lA. Directors of lA, Prsidenttal A sstranee Company.
GIXIIIIIIU,--As instructed by )ott, I have made. Value-
Uon of the Assurance and Annuity Contracts in the Ordinary
Branch. which were subsisting at Use 31.0 December, 1471.
The Business of this Branch comprises three classes of
transagUons:—
- -• •

Amman°, Policies.
Such—Policia securing MOUTLION at Death, together with
slliieranoe In cam of Slcknees.
3rd—Aoooitita.
I. the Orst clue. there were existing at the date of Valet-
Lion, 11,179 Policim, mouring, with bantam, the sum of
£1,790,292, and producing an Annual "haulm Income of
taksav 2s. Of thio amount, 1,116,238 Is reassured at &oast of
£1,103 160. annually.
In the secood clam, the number of Policies was 26, securing
£1,716 fm. (eclusire of Bonus) at death, and 13 M. a week le
case of ifteknees. This clam produces an Annual Premium
Income of £Bl 15.. 24. It will be been that the amount of
%hi. business is Inconolderable. The liability wider It amounts
to £570 16., ad., In addition to the loam at present Mending to
the credit of this clans, which has not hewn included in the
General Valuation of the UM Amureace buoineoe, but forms •
semate fund.
number of the Immediate Annmiy Contracts was 149
for £4,303 18.. per annum.
The number cf Policies for Deferred and Contityrent
Annuities. wen &X for £1,032 h., In respect of which annual
premium. an receivable 00th. amount of £l9lO IN.
Than various contracts have been valued on the airoumptlon
that the mortality experience of the Company will be the came
as timt obewn by thy Cerll.lo Table, and that the Interest
realised sill he per cent.
For the purpme of valuation, the great bulk of the policies,
after beteg *operated Into Um s dame of risk& have
been valued in groups, oceording to the ism attained. In
certain claiims where thls mode was sot practicable, each
policy has been valued seperately.
In orfirosUng the VllllllB of the future premium, the °Mos
gratourfts actually payable have been taken into account. LI,
, Credit were tallea ler tbe 11111 mime cd Wee pricatmes