The Sun.
London, England, 1847-01-19 00:00:00

" The large and increasing amount of the Society's busi-
ness, and the proportionate diminution of the expense of
management (which is now only per cent. on the
income), must also be taken into account in the anticipation
of future profits.
The Directors have only to add, that they have in-
structed the actuary to exhibit to any proprietor or policy
holder, or to any person who may be desirous of assuring,
the details of all the calculations, with a frill statement of
the assets and liabilities, and balance-sheets of the Society."
So far as he (the Chairman) was concerned, any comment
was unnecessary, for he believed the report would speak sa-
tisfactorily, both to the proprietors and the assured.—
(Applause.) He would, however, just call the attention
of the meeting to a very distinguishing feature of the Insti-
tution—the economy of its management ; which was not
only well known to the proprietary, but to the public.—
(Applause.) The directors would be happy to answer
any questions which might be put to them, or to attend
to any suggestions which might be offered for the advantage
of the Institution.—(Applause.)
• Mr. FOWLER, after expressing his satisfaction at the ex •
plieitnesa and contents of the report, said he would just
trouble the meeting with one or two observations. The sum
of 155,2421., which was announced to he the surplus arising
from the profits, consisted, he conceived, partly of the reserve
made and announced upon a former occasion. He believed
that these reserves-went on accumulating and incorporating
themselves so as to a certain extent to make up this amount.
." If the Secretary-could state how much of the amount referred
to was composed, of the reserve from the former bonus, the
meeting would be able to see more clearly the profit realised
within the last five years.
The SZCRETAXY said the sum laid by at the last division
(one-third of the profits) was 29,5001.; and therefore the real
profit realised during the last five years was about 125,0001.
or 126,000/. •
Mr. FowLEß—Then it would appear that these surpluses
must have a successive increase, each being made greater by
the reserve from the preceding one.
The SECRETARY replied that it altogether depended on the
continued increase of profits, about which no fears were en-
tertained —(llear, hear.)
Mr. FOWLEE wished to know whether any parties had
availed themselves of the opportunity afforded of reducing
their premiums?
The SECRENAItY said that a considerable number of persons
had applied their bonuses in reduction of their future pay.
ments of premium.
Mr. WIIITE1101:8E apprehended that the sum of 51,500/.,
which formed the reserve fund. was a basis of future accumu-
lations.
The SECRlcrAllY.—Certainly.
Mr. NEISON (Actuary to the Medical and Invalid Assur-
ance Society) congratulated the directors on the very dise
tingtlished success which had attended the company's opera-
tione.—(Applause.) Perhaps the Secretary could explain
whether the principle of having a reserve fund applied to
other proprietary companies. It was well known that this
was- a distinguished feature of several of the mutual com-
panies, and its advantages were obvious. It might be ques-
tioned, probably, whether in the infant state of a company the
assured would consult their own interest by adopting such a
principle; but in a society so greatly advanced as the present
it formed a very strong recommendation to the assurers. If
it did not exist, the assured would be deprived of a
very large bonus laid out for them in future. There
was another point of great importance in the
report, and that was the mode in which the liabilites of
the Company had been ascertained. He was not in a posi-
tion to refer to individual instances, but he knew that most
serious errors had followed the course of valuation which had
been repudiated by the society. He wished to ascertain
from the Secretary whether in ascertaining the liabilities
attaching to the policies the actual age of the assured had
been taken. There was another point in connection with
the bonus which was.deserving of some explanation. Any
holder of a po'dcy might select a reduction of premium in-
stead of a bonus. Now, suppose a person to select the re-
duction of a premium on the present occasion, he wished to
know whether he would be able to select a bonus in addition
on the next, and vice rersti.—(Bear, hear.) He believed
the-last valuation was made up to the 30th June, 1841, and
was anxious to ascertain the number of policies in force on
that day, and the number at present in existence. lie also
wished to know the avenge age of the assured. He asked
for this information on public grounds—(Hear, hear)—and
could not help thinking that the reports of societies of
this description would be much more valuable if they en-
tered somewhat more into the scientific details by which
their operations are regulated. He considered economy of
management one of tke most honest and sal:3 principles to
follow; but in a t e)tnpany of the magnitude of the pre.
°elite a difference of 1,000/. or 2,0001. a year in the an-
nual expenditure was of little impertaace compared with
the- errers which might be caused by adotife exploded
system:,
the sort of information to which he had alluded
would be very useful, and in Germany a noble example had
been set in this. remehcet.livAt Gotha, not only was that done,
but they published t lives assured, the number of deaths,
the periods at which the were effected, and they
even went so far as to
He would in conclusion ask one the names of the individuals.
number of deaths during thenel other question—namely, the
there had been any material e'',esf-
teroliove years, and whether
number and the number anticipated ,ce between the actual
The Svelte-reel- felt great pleasure in
ear, hear.)
in answering the
questions which had been put by the able and intelligent
gentleman who had addressed the meeting. Withntelligent
the first question, he was not aware of
Lespect to
office which had adopted the prineoriizother
proprietary
of
laying by one-third of the profits. There could be no
'
question that that principle had been a great drawback
to the Company with respect to the bonuses which had
heretofore been 'declared ; and it was a matter of astonish-
ment to those who were acquainted with these matters hoer
the Company had got on so well. Notwithstanding this
great difficulty, the Company had done its full share of bu-
siness when compared with other companies whieli had not
adopted this principle. All difficulties had now been got
over, and the plan of laying by one-third of the surplus
would do more to increase the bonuses on future occasions
than any other that could have been adopted. To -prove
that this system had acted beneficially, he might refer to
the report of the Equitable Society, in which, after giving
examples of its large bonuses, he found this statement :
" Among the causes which have contributed to these impor-
tant results is the reservation at each decennial division of
one-third of the supine fund for future appropriation." It