The Sun.
London, England, 1849-10-12 00:00:00

THE GRESHAM LIFE ASSURANCE
COMPANY.

The first annual meeting of the proprietors of this
company—the purpose of which, in addition to the
transaction of the ordinary business of life-assurance
offices, is the assurance of lives declined by' other
offices as not being of the first class—was held yes-
terday, at one o'clock, at the offices of the company,
Old Jewry. William Tabor, Esq., was in the chair.
Among those present we observed, Mr. Matthew
Marshall end Mr. William Smee, of the Bank of
England; Mr. John Bcadnell, jun., Mr. John Brit-
ten, Mr. A. Davies, Mr. J. Lyne Hancock, Mr.
Alfred Smee, F.R.S., &c., Mr. W. H. Thornthwaite,
Mr. George Tyler, Mr. Joseph Williams, Mr. George
Lowe, F.R.S., Mr. Lad bury, Mr. T. H. Davonshire,
solicitor to the company, and Mr. Pott, the secretary
and founder of the society. The attendance of pro.
prietors was large and influential.
The CHAIRMAN called upon the secretary to read
the report, and in doing so expressed the pleasure
which he and his brother directors experienced at be-
holding so large an attendance of shareholders and
policy-holders.
Mr. T. A. POTT (the Secretary) then read the fol

lowing report of the proceedingsjf the society, to the
31st of July, of which the following is a succinct
abstract :
" Your directors have much pleasure to report that no
claim has arisen by death during this first year of the
society's existence; a fact which, considering the number
assured (419), must prove as satisfactory to the members
as it is gratifying to your directors, and which it is

hoped may be taken as an evidence of the care
which this branch of the business has been conducted by
your directors, assisted by their medical officers. In
setting forth these advantages, and the consequent claims
of the Gresham Life Assurance Society to public confi-
dence and support, it may in truth be said that this
society. originated in the more general appreciation of
aanvaniulatlhl
life assurance as a provision for survivors; inasmuch as
out of the number of those persons who hare sought to
yernpsreelcvlueadendf byit advantages,
many
practiceth thousands
admittinga n w ere
none but such as are pronounced—upon certain
medical principles—first-class lives. This practice was
found to operate so much to the prejudice of a con-
siderable number of persons (to whom their sup-
posed physical disqualifications became a source of
additional anxiety after the rejection of their pro-
posals for assurance), that the projector of this
society was induced to turn his attention to the esta-
blishment of an office which, whilst it should be open for
the transaction of all the usual branches of assurance
upon first-class lives, should also embrace the novel and
desirable project of assuring 'lives which, not being
positively diseased, nor having any strong tendency
thereto,' might nevertheless be found, by the ordinary
medical standard, a little below the average of sound and
robust constitutions. It was felt to be a matter of
pressing necessity that some office should be established
on principles at once sound, liberal, and comprehensive;
and it was to meet this necessity that the Gresham'
Society, embracing especially, but not exclusively, this
particular class of business, was projected and esta-
blished, with very flattering prospects. It was supported
by the opinions and authority of some of the leading
actuaries in the profession, who did not hesitate to
express their conviction that an office based on such
principles would, if properly conducted, not only effect
an immense amount of good, but also transact a safe,
large, and profitable business. It is, therefore, with
peculiar pleasure that your directors refer, under such
circumstances, to the statement of business transacted;
and to this they have now to call your particular
attention.

" The business transacted during the year is as follows:
—Gross sum assured by 419 policies, being the number
issued to July 31, 149,1601., producing an annual income
of 5,615/. 1 ls. Bd.
" Total amount of business transacted or submitted
during the year:—Proposals made to the society for as-
surance (amountiug in the aggregate to 339,7241.), 932;
incomplete and under consideration (amounting to
91,4520, 229; declined (amounting to 99,112 L), 284;
accepted, and upon which the premiums have been paid,
each policy averaging 3561., 419.
" It will, no doubt, be interesting to the shareholders
and policy-holders to be informed of the number of first-
class lives assured relatively to those upon which an in-
creased premium is payable. Your directors, therefore,
furnish the following statement of each, viz. :—Policies
issued at ordinary rates, the assurance being on first-
class lives, 237; ditto, at increased rates, the assurance
being on lives supposed to be somewhat below the ave-
rage, 182; making the total number of policies for the
year (as above stated), 419.
" From this :statement it will be seen that, had the
society's business been limited to what, in assurance
language, is termed first-class lives, its success, from the
confidence placed in it by the public, would still have
been very great. The fact of between 909 and 1,000
proposals for insurances having been made to the society
in the first year of its existence is one which, if not
altogether unparalleled, is a proof of very decided suc-
cess ; since only one or two instances can be found—
and those not of recent date—which at all approach
to such success. It may be well to remark that many
of those who have sought to become assured with the
' Gresham' are persons whe not only hold a good posi-
tion in society, but aro familiar with old and wealthy
corporations, and are fully competent to judge of the
importance of selecting a responsible society for such a
purpose. The only circumstance :connected with the
business of the society apparently to be regretted seems
to be that, of those who have proposed for policies, the
directors have been compelled, after an anxious consi-
deration, to decline the assurance of so large a number.
But it must be borne in mind that the society does not
undertake the assurance of lives in a state of positive
disease, nor even of those in which a strong indication
is given of a tendency thereto; but it seeks the assur-
ance of those lives which appear, after searching exa-
mination, to have been declined upon insufficient grounds.
Your directors would now call attention to one very im-
portant feature—and one to which they have given much
cautious deliberation—the constitution of this society.
It will be borne in mind that a company on a purely
mutual principle might have been established with
equal, facility, and perhaps might have shown
superior advantages to the casual observer; yet after the
most careful inquiries and deliberations, your directors
could only come to the conclusion that the nixed mu-
tual and proprietary' was the only system with which
they could prudently commence a society possessing the
peculiar features which distinguish the Gresham.' The
advantages derivable from this system to the assured are
undeniably very great, in whatever light the subject
may be viewed. In the first place, the policy-holders
have the benefit of a capital fund which, if not too large
to be profitably employed, is a source of security, and
must therefore he a great benefit to the policy-holder.
This view of the question has been frequently confirmed
by members of mutual' societies, who purposed making
proposals for assurance to the Gresham,' and who pre-
viously to effecting a policy, have inquired the amount
of subscribed and paid-up capital, and the position of
those parties who hold shares, and as satisfactory an-
swers were given, such assurances were in due course
completed. The capital of the society is essentially a
working capital, and is so invested as to become a very
productive source of life-assurance business. This
will be apparent when it is stated that the capital
is invested in a manner combining both safety and
profit, by loans to individuals effecting policies.
In no case is an advance made without unexceptionable
security, and then only on the condition that a policy
or policies of insurance are effected in connexion there-
with. As the expenses of management are borne rate-
ably by all the assurers, it follows that the greater the
number of assurances which are effected the better will
it be for the policy-holders. The capital of this society
is sufficient for the security of the policy-holders beyond
the shadow of a doubt; at the same time, it is not so

largo as to make it difficult to find profitable invest- I
ments. Acting, therefore, upon these impressions, and
with the advice of the best authorities, your directors
have made the nominal capital of the society 100,0001.,
which they have divided into 5,000 shares of 201. each ;
of these 2,548 shares have been allotted, and 6,1581. 10s.
paid, which shows an average of 2L Bs. 6d. per share.
This is more than is customary for assurance offices to
receive on each share ; but your directors feel convinced
that a moderate capital is not only desirable, but essen-
tial, at least during the earlier years of a society of this
nature. In connexion with this branch of the subject
there remains to be noticed one important reservation in
the society's deed of settlement; and that is the power
therein contained of converting the society into one on
the purely mutual principle whenever such a step shall
be, in the opinion of the members, a wise and prudent
measure. As might have been expected, the services
required, and the charges in respect of many items in
the account of the first year's expenditure, are compara-
tively heavy; but the necessity for them was imperative.
The preparation of the deed of settlement, the heavy
fees payable on registration, the charges for fittings and
furniture of offices, stationery, printing, advertisements,
&c., are examples of this kind. In this society, the first
year's receipts for premiums alone have been more than
sufficient to pay the whole of the expenses of formation
and charges of management, besides leaving a consider-
able surplus, so that the capital is preserved intact. A
still more favourable view remains; for as by the provi-
sions of the deed of settlement the preliminary expendi-
ture may be distributed over a period of seven years, no
less a sum than 2,2911. 13s. 6i. from premiums received
would remain to meet any claims which may arise after
having charged the first year's premiums with its propor-
tion. During the past year about two hundred agencies
have been established throughout the kingdom, together
with the usual moans and appliances necessary for con-
ducting the business of such an institution. Your
directors have, nevertheless, studiously avoided all ex-
penditure of a speculative character, and confined the
expenses to actual matters of business; and it will be
seen that the expenses have been entirely due to the
large amount of business transacted. It must be con-
ceded that it is of the utmost importance to the society,
as well as to the policy-holders, that on every life
assured a sufficient premium should be charged to cover
the risk incurred; and therefore some of the assurances
effected in this society have been, and must be, subjected
to an increase of premium proportionate to the risk, and
of course dependent upon the peculiar circumstances of
the case. But this extra rate is not necessarily a con-
tinuous charge; on the contrary, the privilege of a re-
consideration of such case is conceded at intervals of not
less than one year, when, if the improved condition of
the life assured be such as to justify the directors in
making a reduction, they invariably reduce the charge.
It gives your directors much pleasure to state that
in some instances this reduction has already been made,
after a careful re-examination had satisfactorily shown
its practicability consistently with the safety of the office.
But besides this advantage (which is peculiar to this
society) your directors cannot forbear to remind you that
in the event of such extra charge being found excessive,