The Sun.
London, England, 1862-03-24 00:00:00

/"

; PA pi

had baeonie claims, tue holdeis of thOke-y6/4161
fcr money conßetetitt7'Z;,-
tonary bonuses to, the extent of Ll

pre vlotittl3l. stirrehcler

s-I.rrn

`~. Eli l:i~,

these, baa rquaained payable
,oLly

at (leatii, the

°teas amount of bonus attaching to the sum
of, £101,017 would have been £31,984, giv-
ing an average rate of 31 tt
per cent. o
the sum assured.' Oac policY 'that has dropped
during the year. deserves special remark. It was
one of our early policies, of £5,000, and if a part of
the bonus had not been taken before it became a
claim the bonus addition to the principal sum as-
sured would have amounted to £2,834 or .4;r-A 12s.
per cent. In addition to the 167 policies which have
become claims in the past year wo have purchased
54; policies, 71 others have lapsed, and three have
ceased by expiry of lime. The total number off
since the previous year is thus 297, and ,the
number on 443,' making a total increase of 146
policies. The claims which have accrued upon poli-
cies that have fallen in during the year amount
to £141,861; but according to tables upon which
our calculations are based we might have expected
that the claims would have amounted to £160,C30,
so that we have a difference in favour of the society
of £18,778. Consequently the last year has been a
favourable one to us. (Cheers.) The ages of the
parties whose policies have fallen in by death in the
course of 1861 were—aged 70 and upwards, 23 ; be-
tween 70 and 80, 13 ; above 80, 10 ; and the oldest,
90 years—the average of all being 581 years. The
whole therefore have been very profitable policies to
the office. The assurance fund now amounts to more
than £2,000,000. We have in all 8,671 policieS in
,llisaBbilivetyhoicfh£773iBthB,3l4h7e,
bon existence,
tis es added
s unriiankge s £a6t,oBtoa2l
to meet which we have £2,030,000 of invested
capital, together with an income of £200,000 a year
arising from premiums. Thus we have more than
one-fourth of our whole liability positively put by
in investments of the most unquestionable character,
for wo have not one farthing out which is not safely
invested, our object having been invariably to select
safe investments rather than to place out our money
at a high rate of interest which might possibly,
when we made up our accounts, prove fallacious.
(Hear, hear.) On former occasions I have alluded
to the money advanced by us in the shape of loans
to policy holders upon the security of their policies.
The amount of these loans does not appear to have
increased much in the past year, but it has so neve r.
theless. During the year we lent £15,104, hilt we
have had repaid £11,700 in respect to loans upon
policies that have fallen in and become claims dur-
ing the year. The amount we have actually lent
during the year upon the security of policies in our
own office is £15,000. This is an item to which I
would draw attention, because it speaks of a prin-
ciple in connection with our policies which in diffi.-
, cult times may he found of great benefit to the
i assured—l mean the facility we offer to our policy-
( holders of raising money for a long or a short period
upon the security of their policies, while, on the
other hand, we cannot have better security than those
policies, nor, in the event of the loans not being re-
paid before the policies fall in can we do better
than in this way reducing the liability before the
claims arise. As showing the value of this facility
and of our policies at the same time, I may mention
thatupon wo
one
e have,poli ciyn
otfh the
icourse:Too
ao of
loan the
.oyf eiar,
900. advancedlt
is,
of course, one of our earliest policies, the bonus
accumulations of which have raised its value so
much that we felt perfectly justified in making that
apparently large advance. It should be borne, in
mind, too, that this is a peculiarly easy and, inex-
pensive mode of borrowing money. There is no.
trouble, no delay, and no charge, the only expenvo.
being the stamp day of 2s. 6d. per cent. Another
point I would refer to is the purchase of policies:
Under this head we have paid £B,OOO during _file
year, which is so much in addition to the £119,328
balance, which we have laid by. These purchases
are really an investment, and a very valuable one
too, for the society, seeing that we make a
profit on any policy we buy up. Our office
expenses may appear at first sight somewhat
large, but I do not think you will ccnsider them so,
when I tell you that the figures which appear i.p_
the account against that item include every chartre,
salaries, advertisements (which are necessarily very
heavy), stationery, rent, and everything else. 'Jr ou
will observe that the amount is £7,557, which,
upon £266,000, our total income, is under three per
per cent. (Hear, hear.) There are many gentle-
men connected with large commercial undertakings
in the room, but I very much doubt whether they
can point out any similar establishment which is
carried on at the same rate of expenditure. (Hear,
hear.) I would again impress upon your minds
the very high position in which we stand—that we
have more than one quarter of our whole liabilities
invested, besides an annual income of £200,000 ill
round numbers from premiums, and £82,000 from
investments to meet the claims arising upon. our
policies. (Hear, hear.) This I say is a position of
affairs which ought not only to afford great confi-
dence to the present policy holders, but to satisfy
those who may contemplate joining us, that whtat
they contribute to our funds is not requie.ed
to make up deficiencies upon the claims of ex-
isting policies, and that they will receive the Whole
benefit of their own premiums, and are likelytonebwe
largely benefited by the premiums ,already paid—
(hear, hear)—and that in fact we confer
upon
ihnasvuerenr g
now
wa
torea t
move
kindness
that
t in h
e statementadmitting
of t ll e m .
accountsl
and reports now laid upon the table be received and
adopted.
Mr. R,OIITII, deputy-chairman, seconded the
motion.

In answer to questions,
The CHAIRMAN stated that the business was
rather less in the current than in the corres
ponding year of the last quinquennial period
—that the rate of interest charged upon loans
made on the security of policies was five per
cent., and that the £7,388,446 included liabilities-.
unon all policies, bonuses, and every thing else 13,p
to the Ist January, 1861.
Mr. WHITEMAN consitdheerseadinetkhiaurtlapd,rteehxseein,
model
dateol
themsat satisfactory
oughtctory m
tsot statement
peunbtliwithheidc htohtandebweeon
as
slitbvi very
mariner the
aeforitaldlioathinertihnestmitousttioncosnoefise
and
open
position of the office, leaving nothing to be inquired
into. (Hear, hear.) With an income of near'y
£200,000 from premiums, besides the interest ur,on
their investments, and with one quarter of their
total liabilities in hand and invested, the world must
be assured of their stability ; and if all ot1:1er offices
would make it a rule of placing their o.ccounts be-
fore the public in a simple form, shorwing in three
lines their receipts from premiums, their total lia-
bilities on policies issued, and thr., amount of their
invested capital, many of those, sad results which,
had attended the failure and 7einding up of insur-
pholders.
ance companies of late yews might have been
avoided.
at Tthhee
mCHeeAtlinßgMoAnNttp:4oooallfgbhoodtfytthhoefesrs.6aatli7lstppaoaclrtiiteoyyn
,„ motion of the chairman, seconded by- Vr.
was a convincing
was felt in the management. (Rear.) Whiel,resent
The motion was carried unanimously.
£l6O was voted to then, - - - auditors---
for their
services in the past year, and the
were re-elected. 7'•;111ne rAnditors
Mr. T. MITCHELL asked wb
practicable to send round to, • ether it 'would be
who were entitled to attend, those policy holders
RoOunth,th
the meeting (that was
those who were insured,
abstract of the account Teir more than £500) an
ing took place?
years ago that
lie at the
The CHAIRatiA,N ',l a few days before the meet-
hensNitlabsolel'ler 'replied that it was settled two
nie reports should be printed, and
such offier4 some days before the meeting for
cd the,
expense
pp re inesteo rtso asse
ncdh
roundseo apply
efpo them,ro„t
It
large a proprietarit would 3„nvolve a
collld not be sent with the notice o!,,neteting, .asthat
had to be given so long beforehan'd that the report
Was never ready when the n
"oti'ces were sent.
After some conversation ,
The CHAIRMAN prow:lsed to take it into con-
sideration whether the reports could not be sent
round with the. 'notices for payment of the pre-
miums.

In answer to Mr. BOWLEY,
The C; AIRMAN said that the largest amount of
bonus 't)aid by the office was £2834 upon.a policy
of £6,000, which was equal to £.56 12s. per cent.
The date of that policy was 1823.
of thanks was. accorded t.
Mr. DowNEs (the
3arcrt.uaßryo)wreLmEayrKcdectohnaatet:ebrle.
,acvvtuhaircyh),
mr. D .
canes
wasmto
ro. a
nbco onetuh:
eTpl 1
motionoos 10, i e
pery the
co efn bonuses
t directors,
.uponv. whichwhich
havinga r o o u tib
ft e (1:0
a similar
a vote
bthreicticyhaiaremkannowiaged,
paid to en
Compliment •
and Mr was
Mr.
tphe°WBneeoBrOtEtrythe)
acknowledged, and WI brought the * . c w
bum •ess to
Maedonald (
its conclusion.

I,f.
1 borrtis pr,.3-1)10 Jri 13S