The Sun.
London, England, 1847-01-21 00:00:00

"It is clear, then, that the prospects of the policyholders
at future divisions are most favourable, partly from the un-
usually large sum retained to meet claims, as shown above,
and partly from the reserve of so considerable an amount as
51,500/., out of profits thus ascertained.
"These facts, which have operated to a certain extent in
the diminution of former bonuses, will undoubtedly contri-
bute most powerfully to increase the amount of profits to be
appropriated to the assured at all succeeding divisions.
"In confirmation of this view, the Directors need only
remind the assured of the statement made at the division in
January, 1842, that the two preceding bonuses had averaged
22 per cent. on the premiums ; that the one then divided
averaged 28 per cent., and that the future bonuses were ex-
pected to exceed that amount.
"The most sanguine expectations entertained at that time
have been fully realised by the amount of the present bonus
averaging more than 36 per cent. ; and on precisely the
same grounds the Directors conceive themselves entitled to
assert, with additional confidence, that its further increase
from time to time is almost certain.

" The large and increasing amount of the Society's busi-
ness, and the proportionate diminution of the expense of
management (which is now only 31/i 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
thhoelddeeriztous or to
allan theypereasolneuwlahtoiomnsa,
the assets and liabilities, and balance-sheets of the Society."
So far as he (the Chairman) was 'concerned, any comment
ywbiet with a desirous
fui 1 statement assuring,etent
was unnecessary, for he believed the report would speak sa-
tisf;.ctorily, both to the proprietors and the assured.—
(Applause.) lie 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•
plicitness and contents of the report, said he would just
trouble the meeting with one or two observations. The sum
of 155,242/, 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
The
hSi
rxdc ao
rn T
theA a v
profits) saidtethe
wass stufi2lsl
ears;b aywnadut
tthhaeberoelufa sot
therefore
thesi division
srieooani.
within the last five years.
( o nTeh-
profit realised during
or 126,0001.

Mr:FOWLER—Then it would appear that these surpluses
seivp er
precedingincrease,
one.eachbeing made greater by
replied that it altogether depended on the
musttheT reserve
haveßaf
Er successive
itc
tesTh
continued increase of profits, about which no fears were en-
tertained.—( )
Mr.atiali FOWLEE
e themselves
wishedhoefar. t
to know whether any parties had
he opportunity afforded of reducing
taevr. °
The SECRETARY said that a considerable number of persons
their premiums?
had applied their bonuses in reduction of their future pay
ments of premium.
Mr. WHITEHOUSE apprehended that the sum of 51'5
which formed the reserve fund, was a basis of future 1"
accumu-
lations.
The SECRETARY.--Certainly.
Mr. NEISON (Actuary to the Medical and Invalid Assur-
ance S )ciety) congratulated the directors on the very dis-
tinguished success which had attended the company's opera-
tions.—(Applause.) Perliais the Secretary could explain
whether the principle of haWing 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 advautages 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 wai /1'.3 mode in whico the Minton
1•j i , ~et 11. . po,-
tion to reter to individual instances, but he knew that most
serious errors had followed the course of valuation which had
been repudiated by the society. lie wished to ascertain