The Northern Daily Times.
Liverpool, Merseyside, England, 1856-08-02 00:00:00

THE ROYAL. INSURANCE COMPANY.-
ANNUAL MEETING-YESTERDAY.

The ordinary annual meeting of the Royal Insurance
Company was held at the Head Offices, North John-street,
at eleven o'clock yesterday. The Chairman of the Company,
Charles Turner, Esq., presided.
The Manager, Mr. Percy M. Dove, read the notice calling
the meeting, and the

ANNUAL REPORT

In presenting to the shareholders of the Royal Insurance
Company statements of the result of its business,, it has
happily been the unvarying theme of the Directors hitherto to
announce a profit at the conclusion of earl, successive year,
which has not only yielded a liberal dividcild on the capital
employed, but which has afforded an annual aiiditimi of more
or less importance to the reserve fund. It is satisfactory to
add that the only variation in the duty of the directors on this
occasion is to present a statement exhibiting a still more
favourable result than it has ever been their good fortune to
announce for a like period of time, since the commencement
of the business of the'establishment.

FIRE DEPARTMENT.--•The fire premiums received for the
year 1855 amount to £130,060 lis 11d. Although this sum
exceeds by only about £1,600 the amount collected during
the preceding year, it yet displays, more strikingly than even
the advances of former years, the power of extension which
the company continues to preserve. The truth of this state-
ment is demonstrated by the fact, that the increase of revenue
referred to has been obtained, notwithstanding that, by the
extinction of some agencies altogether, and by the increased
care, if possible, exercised in others, at least £20,000 of
revenue has been voluntarily abandoned. The probability of
the continued growth of the company, arising from a corres-
ponding increase of the confidence of the public, needs but
this further illustration, viz., that notwithQtanding the continued
exercise of these principles of cautionary vs.riction, the
premiums for the first six months of the year 1856, excoed by
more than £lO,OOO the amount for the same months of the
past year. But the result of the account, as it appears
by the balance to the credit of profit and loss, will, it is
hoped, be received with equal satisfaction to the announcement
of the progressive increase of the gross revenue. Although the
losses on the home business have been heavy, and materially
affect that branch, yet, on the othor hand, the absence of any
losses, beyond a very moderate average on the American
account, leaves a balance of profit on tho entire transactions of
the twelve months, ending December, 1855, far exceeding that
of any former year. The decision Of the directors to extend
their business as widely as the dictates of prudence would
permit, and controlled alone by the restraints adverted to, has
already tended to produce that greater uniformity of periodical
result which it was expected to effect. The small profit
attending the English business during the past year would
probably have produced some diEcouragement at this time, if it
had not been fully compensated by the satisfactory result of the
American business. Whilst the British branch, irrespective of
interest, shows a profit of only £6,510 18s sd, the profit on
the American branch reaches a sum of £18,533 is 9d,—the
interest for the year amounting to £17,805 6s sd.
LIP?, DEPARTMENT.—With respect to the life branch, it is
hardly a matter of surprise that the additions made to the exist-
ing policies in that department in August last, in the shape of
a bonus of unusual extent, should have attracted the attention
of the public, both of the United Kingdom and elsewhere. It
is, however, beliesfed, that few could possibly have anticipa`ed
such an increase of business as has accrued to the company
since that time. The following is a statement respectively of
the new life business effected in the year immediately preceding,
and that which followed the declaration of the bonus :
No of
Policies. Sums Assured. Premium?
In the former year. viz , to
June, 1855, Inclusive..
In the latter year, viz to
June, 1856, inclusive

396 46166,864 3 4 464,567 18 11

654 £288,681 14 1 e 8,370 16 10

Showing an Increase of 258 W 121,817 10 9 £3,852 17 11

Comparing these amounts, it will be found that the premiums
on new life assurances, for the year ending 30th June last,
exceed those for the year ending June 1855, by no less than
83 per cent., whilst for the purpose of showing that the impetus
given to the business was not of a mere transitory kind, it may
be useful to add that, for the last three months of the present
year (viz, kpril, May, and June,) the premiums on new
policies actually show an advance of 243 per cent, over the
amount for the same months of the preceding year. The
increase of the annuity and endowment accounts (hitherto
forming but small branches of the business) presents a still
more striking contrast, comparing past years with the last
twelve or eighteen months. The purchase money for annuities
received in 1855 exceeds that of the preceding year more than
three-fold, whilst the amount of premium for endowments
received even within the last six months is 297 per cent. in
advance of the entire year 1855.

GENERAL.--The progress and the results of the business,
both fire and life, for the six months recently expired of the

preoent year, which are Hut included ill the accoun;s which
will be read to you, are equally satisfactory, During that
period, the losses, contrary to the result of the preceding year,
have taken place far more in America and other foreign parts
than in this country. Yet, notwithstanding this circumstance,
both the American and British branches have each yielded
some profit in the time, insomuch that the estimated amount
to the credit of profit and loss towards the account of the
running year, including interest, is £23,920. It is, however,
worthy of notice, that the anticipations of the amount of profit
to accrue during those six months, were much disturbed by the
occurrence of successive losses within a week or two of its
termination. Indeed, the experience of the company has, in
this respect, and on more than one occasion accorded with that
of insurances offices of older growth ; though in the case ofthe
Royal Insurance Company, it is gratifying to add, but to a
very moderate extent. It has however taught the useful
lesson that in such establishments, more perhaps than in any
other, the principles of a continuous prudence can never with
safety be abandoned, even for a single moment, as the
contingencies of a few days may to a great extent, sweep away
the expectations of a year,

DIVIDEND AND BoNus : It will he remembered, that in
declaring the additional bonus of is 6d per share out of the
life profits last year, the board of directors carefully guarded
against any expectation being raised that the result of a valua-
tion only to be made quinquennially should form an annual
precedent. Nevertheless, the profits of the year under review
have been so satisfactory, the directors consider that they will
not be violating the principles of just prudence in now propos-
ing to the proprietors that, in addition to a dividend of 3s per
share, a bonus of 2s per share be declared, both free of income
tax. When it is borne in mind that this division of 5s per
share is made on original shares of £2 paid up, not more
than eleven years since, it is conceived that no argument is
needed to prove, that the institution has fully realised all
reasonable expectation of its success that may have been formed
by the proprietors.
BOARD or DIRECTORS.—The only change in the board
during the past year consists in the appointment of Thomas
Darnley Anderson, Esq., as a director. He, together with
the following directors now retire, and are all eligible for re-
election, viz :—Ralph Brocklebank, Esq., Michael Bousfield,
Esq., Thomas Dover, Esq , Robert E. Harvey, Esq., Wil-
liam John Marrow, Esq., Francis Maxwell, Esq.
RESUME. —lt is now shown by the result, that it was not
without full consideration of the favourable aspect of your
affairs, as respects the future, the directors ventured on the
anticipation in their last report : " That the two great branches
of your business would henceforth act with reciprocal benefit
on each other, and that the success of each would be equally
favourable and progressive." Indeed, there is abundant evi-
dence to show that the favourable notices which have been
taken of the company during the last year, to an extent
entirely without parallel, consequent on the success of the life
fund and the large bonus it has been able to afford, have not
only procured to that branch an increase of business to the
extent announced, but has given a fresh impulse to the fire de-
plrtment. It has, in fact, created a large addition to a revenue
which had already arrived in magnitude at a point to which only
some two or three out of all the numerous companies established
in the empire, during the last 150 years, have attained. It is
believed that the statement of the growing extension of the
company's receipts could not have had a more perfect corrobo•
ration than that which has opportunely been presented by the
" Government Returns of Assurance Companies," published
under parliamentary authority, within the last few days. An
inspection of the accounts contained therein will reveal the
fact, not only that the Royal Insurance Company far exceeds
in its fire business all other companies subsequently estab-
lished, but that, with the exception of one London company
founded under the auspices of the legal profession, the amount
of fire premium stated in this report to have been freely
declined by this company in the year 1855, exceeds, in itself
alone, an entire moiety of the largest, and is actually more
than the total revenue of most fire insurance companies
established within the last eleven years. The directors have
never made a report of the affairs of the company with a
clearer conviction that its statements will give entire satisfac-
tion to the proprietors, and full confidence to the public.
26th July, 1856. CHARLES TURNER, Chairman.
The Chairman said, he thought no statement was required
from him to elucidate the report, which placed before the
proprietors so fully and clearly the situation of -heir con-
cerns, and he thought—indeed he had every eo-aleape_
that on the whole they would be well satisfied with the
position which the Royal Insurance Company had attained,
and would consider that position, at least, some proof that
the board of directors, the manager, and the officers
generally, had attended to their duties and to the pro-
prietors' interests. With respect to the life business he had
scarcely any remark to make. The business had gone on
making very satisfactory progress. The result of the
division they made last year had been productive of very
great benefit to the company, and in every respect the life
business was going on fully as well as the mo,t sanguine
expectations could have predicted. With respect to the fire
business, it would he very wrong of him to complain of any
want of success, because he believed that their success had
been greater than that of almost any other company which
had been established. (Hear, hear.) But vyet, at the same
time, he thought, considering the very high vsition which
the Royal Tnsurance Company had attained, there might,
perhaps, be felt some little disappointment at the general
result of the business. But, in truth, his experience taught
him that which was so fully confirmed by the returns made
to government—that fire insurance was a business which
was not attended with the very extraordinary profits some
parties might expect, who were only imperfectly acquainted I
with the subject. The returns made to government under