The Sun.
London, England, 1865-12-28 00:00:00

ANNUAL REPORT.

The directors have again the pleasure to report the
satisfactory progress of the society. During the year
1864-5, 5,095 proposals, for assuring £1,81,8,069 Bs. 10(1.
were submitted, of which the directors accepted 4,806
assuring £1,709,121 Bs. 10d. The remainder, for assuring
£148,918 were either declined or not completed. The new
premiums received in respect of these assurances amounted
to £42,213 17s. 7d. The amount paid during the year for
assurance and endowment claims, with the bonus additions,
was £84,212 10s. 10d. After payment of claims and charges
for the year, upwards of £95,000 has' been added to the
funds invested. •

The account of receipts and expenditure have been ex-
amined by the auditors month by month. The cash
balance-sheet (of which copies have already been circu-
lated) has been certified by them, and is now submitted
for approval and adoption.
With sincere regret the directors announce the death of
Mr. Beadnell, the late deputy-chairman, one of the
founders, who gave his best energies to promote the in-
terests of this vast society, and whose sound judgment
and practical knowledge of business were much valued by
his co-directors.
The board have elected to the vacant seat, Mr. Henry
Christopher Thomas Beadnell, of West Green-road, Tot-
tenham, who is a qualified shareholder, and they recom-
mend his election for confirmation.
The directors retiring on the present occasion are Wil-
liam Tabor, George Lowe, and Joseph Williams, Esqrs.,
who, being eligible, are recommended by the board to con-
stitute the list for re-election.
The auditors, Messrs. G. H. Ladbury, William Webb
Venn, and William Whitelock, Esqrs., retire, and again
offer themselves for re-election.

By order of the Board,
F. ALLAN CURTIS, Actuary and Secretary.
27th December, 1865.
QUINQUENNIAL REPORT.

Tho year ending July 31st, 1865, being the period for
the quinquennial valuation for the declaration of bonus,
the directors have caused a searching investigation to be
made into the whole position of the society, and have
directed their actuary to make his valuation on all annuity
and assurance contracts, at a rate of interest of 3 per cent.
per annum. The actual rate of interest made by the society
is about 41 per cent. upon its investments, but the effect
of a valuation at the lower rate of interest is to create a large
fund in reserve, for the protection of the society against
any unforeseen events.
For the determination of bonus, the number and amount
of the policies in force on the society's books on July 31st
have been carefully extracted. It was found that 17,091
policies, insuring £6,630,192, existed at that date, and
that the premiums as shown by the statement of receipts
and payments. were £203,893 is. It was also found that
312 policies for annuities were in force, and that the sum
payable under them amounted to £15,319 per annum.
These sums represent a very large amount of business.
Every separate proposal has been considered by the Board
of Directors by itself, and the directors have much plea-
sure in recording that more than half this vast business
has accrued within the last five years, and, therefore, has
but a mean duration of two and a half years.

The special character of the short average duration of
the existing contracts of the Gresham Life Assurance
Society was particularly pointed out in the last quin-
quennial report in 1860, as materially influencing the
value of the company, but in the present investigation
it stands out in greater magnitude, and the addition,
during the short space of five years, of assurances for
£3,667,600 collected together policy by policy has no
parallel in the annals of kindred institutions. The ave-
rage duration of all the policies in force being still under
four years.
This rapid growth of the Society, and the recent acces-
sion of so great a bulk of the business, has materially in-
fluenced the general valuation, and the prospective balance
of gross profits amounts, at the low rate of interest of 3 per
cent., to no less than £313,000, which is the present value
of the excess for prospective profits and expenses, as shown
in the actuary's report appended.
Upon consideration of the whole facts, and being de-
sirous to act with due caution on one hand, and justice
to the policy holders on the other, the directors have re-
solved not to divide more than a quarter of this sum, and
they propose to apportion by way of bonus £75,000, which
is rather less than one quarter of the prospective balance.
The growth of the Company will bo seen by a compari-
son with former valuations.

Bonus Divided.

Prospective Balance.
1852
1855 105,000
1860 206,000
1865 313,000

Eighty per cent. of the bonus belongs to tho participat-
ing policy holders, and from the amount which has to be
divided, the sum assured by some of the alder policies will
be increased by about eight per cent. in addition to the
former bonus declared in 1855 and 1860, amounting in the
whole to an increase of rathermore than 20 per cent. upon
the original sum assured. The more modern policies will
share no less advantageously, considering the recent ad-
mission of the assured into the society.
All the usual options will be afforded to policy holders,
in selecting the mode in which the bonus will be appor-

tioned to each policy.
The directors, in submitting this their quinquennial re-
port, congratulate the members upon the position to

which the society has already attained. By conducting
its affairs with the same energy, enterprise, a nd prudence
as heretofore, the directors feel confident that the futuro
will be no less satisfactory than the past.
GENERAL BALANCE-SHEET FOR 31ST JULY, 1865.
ASSETS.

X s. d.