The Sun.
London, England, 1864-08-10 00:00:00

LIFE BRANCH.

The progress of the life branch, es shown by the new
business trausacted in the last year, is most promising as
respects its future prospects of development. The advances
made year by year in the amount of new insurances
effected show clearly the estimation which the com-
pany is held. The following is a statement for the last five
years :
Net Sum As surcd on New Poll3les
after deducting Guarantees. Net Premiums.
1859 .... £134,470 11 10 .... £13,086 0 6
1860 .... 449,241 16 2 .... 15,079 17 10
1861 .... 621,101 17 0 .... 16,627 18 0
1862 .... 701,427 15 3 .... 22,333 13 2
1863 .... 752,546 18 10 24,069 12 8

This rapid growth, amounting to 73 per cent. on the sum
assured, and upwards of 80 per cent, on the premiums re-
ceived in the course of five years, may justly be considered
as larger than any which could have bean reasonably
expected. The half-year of 1864, however, far outstrips the
ratio of increase indicated by the figures just quoted, as the
sum assured for that period of six months only actually
exceeds half-a•million sterling.

The rate of mortality, likewise, still presents highly fa-
vourable features, and augurs well for the result to be shown
by the quinquennial investigation, which is to take place
when the present year is Concluded.
The Life Assurance accounts further exhibit a sum of
£80,025 7a
nlams .
o6odo. t aedtidoeadl tto h o t64e
perLife'
o
e ot Fundson
utin h te
nhee
t yearpremiums
1863,mioms
rbeecienigved during that time. To this sum must be added the
increases mado in the balances to the credit of the Annuity
and Endowment Funds, making a further amount of
£20,026 6s. 7d. The Life and Annuity Funds are, therefore,
augmented by the large sum of 4106,052 4s. 3d. in the limit
of a single year.

LONDON.
The company's business for the last year in the metro-
polis has closed with very prosperous results. The eaten.•
towards completion, and it is supposed will be ready for
for a portion of the offices lead to a conviction that the pur.
occupation
chars
b uwi
ldli
prove
f ae
more
on companytrho: Th in Lombard-street progresse
rents already agreed upon
able investment than even Was
anticipated at the period of the last report.
DIVIDEND AND DoNos.
The direotors beg now to recommend that a dividend of
3i per share, and a bonus of ¢s, together 7s, each free of
income tax, be declared.

CRAILLEs TURNER, Chairman.
August 4, 1864.
the business of the past
yeTarhfeoCrmnsetnnoateAxxcespatiidon—tGoetnhtlenaeli,
the undeviating career of pros•
y
which
11:583 attended theßoyal Insurance Company
since its commencement. Our
premiums on the Fire branch
amounted in
and show an increase over
those of 18G2 of £40,977. I think that we have every reason
to be satisfied with the progress that we are making. Gen-
per i t
Gen-
tlemen, I hope that you will not consider it out of place if I
allude very briefly to a subject which is mentioned in the
report, and which has given rise to a peat deal of discus-
sion during the past year, namely, the explosion of gun-
powder on board the Lotty ;
Sleigh, and the course pursued
by this company with reverence to payment of the losses in-
curred thereby. Gentlemen, your directors, aided by the
advice of your excellent manager, ea
Lae to the conclusion
that, although the company was not liable in law for those
losses, yet, taking a fair and liberal view of the question,
they ought to be paid. We considered, in fact, that we were
morally bound to pay. Having come to that conclusion, we
determined at once to assume the responsibility of acting in
accordance with it ; and the insured were immediately noti-
fied that no question would be raised, but that the claims
would be at once paid on demand* Your directors are of
opinion that the course they took was not only the proper
one, but a course calculated to maintainthe high
character
for justice and liberality which
has alwtys distinguished the
Royal Insurance Company in its dealings with the public,
and therefore conducive to your best interests. The directors
are moreover glad to have it plaeed oa record that, their
conduct in this matter having been brought before a legal
tribunal, on the suit of one of the sharekolders, Vice-Chan-
cellor Wood—than whom no judge mole able or more emi-
nent sits upon the Chancery bench—not only dismissed the
bill with costs, but expressed a strong opinion that the
course pursued had been a proper one, and was calculated to
promote the best interests of the company. Gentlemen, our
accounts, as you are aware, are made up only to the end of
last year, and the business since that period, for the last six
months, is merely a matter of estimate ; but, taking it as
an estimate, I am bound to say that as regards our fire
business it is not so favourable ; for, although our receipts
for premiums have been large, our losses havo been serious
in proportion. But, gentlemen, lam afraid if we had un-
deviating prosperity we should have very little business ;
for people would come to the conclusion that fires were
so few that they were not called upon to protect them-
selves by insurance against loss.
The business of in•
nuance, whether fire or life, depends upon averages,
and if the average results of five or more years be good, we
ought to be prepared for unfavourable years from time to
time. With an income of £350,000 par annum,
we must
expect occasional large losses, but 'pith a large reserve
judiciously built up, such occasional casualties are compa-
ratively unimportant. As regards our life business, I must
call your particular attention to the details in the report,
which exhibit a rapidity of progress probably unexampled,
and I cannot forbear recapitulating the astounding fact,
that the net sum insured on new policies, atter deducting
guarantees, was, in 1863, £752046, upon which the net in-
come was £24,o69—whilst I beg you to note the still more
astounding fact that the amount insured in the Royal upon
new life policies for the first six months of 1564 actually