The Sun.
London, England, 1855-07-05 00:00:00

AND GUARANTEE SOCIETY.

" Gentlemen,—l have carefully examined the valuation
made by Mr. Lauudy of the assets and liabilities of your
society, and I am of opinion that the results may bo safely
and fully reli •d upon. In the calculations he has pru-
dently assumed a low rate of interest-3 per cent. being
the rate adopted—and the table of mortality employed by '
him that of the Registrar-General, may be considered to
fairly represent the risks to which the society will bo sub-
ject. He has also in the calcsalation of the contingent
assets valued the net premiums only, so that the surplus
now shown does not anticipate or entrench upon any por-
tion of the future premiums and profits. It appears to me
that all the elements of the valuation have been treated in
the severest manner, so that the results cannot in any way
be regarded as giving an undue value to the resources of
the society, nor as understating its liabilities. Had the
value of the gross premiums entered into the estimates,
the surplus now shown would have been increased about
25,0001. lam fully satisfied that every precaution has
been taken in the valuation to protect the interests of the
assured, and to give an exact and faithful representation
of the true position of the society ; I have, therefore, no
hesitation in recommending the society to declare the ho.
nus as determined by the results of Mr. Laundy's calcula.
tions.
I Lave the honour to be, gentlemen, your most obedieni
servant,

" FRANCIS G. P. NEISON.
" Medical Life Office, 25, Pall-mall, June 30, 1855."

"TO THE CHAIRMAN AND DIRECTORS OF THE LONDON

MUTUAL AND GUARANTEE SOCIETY.
" National Mercantile Life Assurance Office,
June 22, 1855.
" Gentlemen —I have carefully tested the various calcu-
lations involved in the valuation of the assets and liabili-
ties of the London Mutual Life and Guarantee Society.
"The data used by your actuary, Mr. Laundy, is Mr.
Farr's English Life Table No. 2, and interest assumed as
yielding three per cent. only. I have not objected to the
employment of Mr. Farr's table, because it is based upon
the mortality of the population at large, which yields a
less amount of surplus than would have been shown had
the Carlisle rate or the combined experience of offices' rate
of mortality been used ; and the office is, therefore, de-
riving more than ordinary protection by the prudent course
adopted.
"The surplus, as shown by the valuation for the reason
stated, can, in my opinion, be safely appropriated in ac-
cordance with the terms of your deed of settlement ; but
it is important not to appropriate more than yuu will be
able to continue at future divisions of profit.
" I would add, in conclusion, that, by a continuance of
judicious economy, combined with 'care in the selection of
lives, and by means of the ample funds which you have
new in hand, and which will be continually augmenting,
you will not only be able to meet the claims as they arise,
but you will eventually take rank amongst the established
and best-conducted offices of the day.
" I have the honour to be, gentlemen, your obedient
servant, '6 JENKIN JONES."
The following examples will show the amount of bonus
to be appropriated to various classes of the assured :
Example of Bonuses declared at the First Division of
Profits to Dec. 31, 1854.