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

197 17 3

282 7 5

"It is clear, then, that the prospects of the policyholders
at future divisions are most favourable, partly from the un-
usually 1.-age 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 3!/a 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 full 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 theta, or to attend
to any suggestions which might be offered for the advantage
of the Institution.—(Applause.)
fotprrfl
oei ctmul
5b ntsi
hee2est
ishp2erlao,mt and
profits,
contentsconsisted,t h oef n te hoer
twore po ro tb,
sesnai,datiohnes.
Mr FowLEn. after expressing his satisfaction at the ex-
sannounced to be the surplus arising
would The
sum
he conceived, partly of the reserve
made and announced upon a former occasiod. He believed
that these reserves went on accumulating and incorporating
themselves so as to a certain extent to make up
thin 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 SICAETAILY said the sum laid bln at the last division
athereforethese sutrhpelurseeasl
,esr•elar;s was about 125,000/.
made greater by
( o
profitn e t
realisedhir d of the
during
last was
n 2:
LEA—Then it would appear tghd
altogethern depended on the
"Far°e\l;st successive increase, eachbei
(mt)lriueATlsl2ritrie6e.h: esrEvceßfEr oTma
Itch the
replied preceding
tha
that it
one.
continued increase of profits, about which no fears were en-
tertained.—( Hear, hear.)
Mr. FOWLES wished to know whether any parties had
availed themselves of the opportunity afforded of reducing
their premiums?
The SECRETARY said that a considerable number of persons
had applied their bonuses in reduction of their future pay.
ments of premium.
Mr. WHITEHOUSE apprehended that the sum of 51,5031.,
which formed the reserve fund, was a basis of future accumu-
lations.
The SECRETARC—CertainIy.
Mr. NEisos (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.) 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 eom-
panics, and its advantages were obvious. It might be ques-
tioned, probably, whetherin 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
!t 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 whiclr was deserving of some explanation. Any
holder of a policy 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 rice vers(l.—(Hear, hear. He believed
the last valuation Wa', made up to the 30th June, 1811, and
was anxious to ascertain the number of policies in force on
that day, and the number at present in existence. He also
wished to know the average age of the assured. lie asked
for this information on public grounds—(Hear, hear)—and
could not help thinking that the reports of societies of
this description would be ranch 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 the moat honest and safe principles to
follow; bin in a Company of the magnitude of the pre-
sent, a differenee of 1,0001. or 2,0001. a year in tits an-
nual expenditure was of little int OS CaaPara with
She errors which might be caused by adopting exploded
systems. The sort of information to which he bad entitled
would be very useful, and in Germany a noble example had
been set in this respect. At Gotha, not only was that done,
bat they published the lives assured, the number of deaths,
the periods at which the policies were effected, and they
even went so far as to give the names of the individuals.
He would in conclusion ask one other question—namely, the
number of deaths during the last five years, and whether
there had been any material difference between the actual
number and the number anticipated ?—(Hear, hear.)
The SECRETARY felt great pleasure in answering the
questions which had been put by the able and intelligent
gentleman who had addressed the meeting. With respect to
the first question, he was not aware of any other
proprietary office which had adopted the principle 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 how
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 which 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 suplu3 fund for future appropriation." It
was, therefore, quite evident that the prospects of this Com-
pany for the future were pre-eminently above those of all the
other companies which had not been obliged to adapt this
system, and every person connected with it might look for-
ward with perfect confidence to extremely satisfactory bo-
nuses. With respect to the mode of valuation, it was stated
in the report that all the policies had been valued separately;
and he would state in addition, that all the lives taken
as healthy lives had been valued at the increased age at
which they had arrived on the 30th of June last. With
respect to the diseased lives, the directors had adopted a
course contrary to that of every other office which had taken
such lives. If they had taken a life at 40, whose real age
was 30, they had always, to all intents and purposes, con-
sidered that life as a life of 40; so that a much larger sum
was laid by to meet that claim than would have been laid by
bad the same policy been effected in any other office. Now,
with respect to the question respecting the reduction of pre-
mium, he begged to say that the bonus might be taken in any
shape, and at any time, that might suit the convenience of the
party interested. Another question put by Mr. Nelson was with
rogard to the number, of policies. The number at the last divi-
sion, five years ago, was 3,140 ; and the number now in exist-
ence was 4,138.—( Hear.) The average age of lives on the
books was 48. The number of deaths expected within the
last year was 106; but he was happy to say the actual
number which had occurred was only 53, being just one-half.
—( Applause.) This was rather snore favourable than the
general average; but the same sort of mortality bad existed
during the five years, with little deviation.—(Hear, hear.)
In answer to a question by Mr. STREETER,
The SECRETARY said, that in consequence of the enormous
competition which had existed between the life offices for
the last ten or twelve years, several of the more recent ones
had endeavoured to show a great bonus. In order to keep
themselves alive, they had, on the first occasion, instead of
dividing the profits up to that time, anticipated the future
profits from the business upon their books. This was an ex-
tremely fallacious 'rode of proceeding, and must in time
prove ruinous. It would, no doubt, have the effect of mis-
leading some persons, by giving to the office a highly flourish
big appearance, when that was not really the case. This
Company had, however, laid by rather too much than too
little, and had not encroached on any future profits.
Mr. NEISON had not the least hesitation in saying
that the mode of valuation which this society had rejected
would have had the effect of anticipating future bonuses,
and he was justified in that opinion by an essay read before
the Philosophical Society of Edinburgh, by one of the most
scientific writers on the subject. One feature connected with
this Society deserving of great commendation was the mi-
nuteness of detail with which the valuations were made.—

(Hear, hear.) __
He should feel obliged if the Secretary would
state the total amount assured by all the policies.

The SECRETARY-2,657,0001.

..,
A PRorittaTon inquired what portion of the accumulated
50,0001. the proprietors would eventually obtaic ?
The CHAIRMAN —One-sixth, as at present.

The PROPRIETOR—And the assured ?
The SECRETARY—Three-sixths, and eventually nearly
five-sixths, arising from the reservation of one-third.
Dr. REID inquired the average number of proposals for life
assurance during the last five years, and the amount of money
included in those proposals?
The SECRETARY—The average annual number of proposals
was 557, and the amount proposed by them was 339,6001.
Mr. WHISHAW said the report and the explanations which
had been given were so satisfactory, that every one interested
in the affairs of the company must feel obliged to the direc-
tors for the manner in which they had conducted its affairs.
—(Applause.) He wished particularly to impress on the
notice of the proprietors and tlfe- public the importance of
the last paragraph in the report, which invited the assured
and the public to examine with attention the state of their
own affairs. If there was one mode of inspiring confidence
better than another, it was that of giving on all occasions
every possible information, and showing no wish for con-
cealment.—( Hear, hear.) lie agreed in the suggestion, that
it would be desirable in future reports to give a general out-
line of the principles on which the society's calculations were
founded.
The SECRETARY said the original draft, of the report stated
the exact mode; but the directors thought so few persons
would properly understand it, that it would-be much better
for parties to call at the office, whore every information would
be afforded.—(Hear, hear.)
The CHAIRMAN, in reply to a question by a proprietor,
said that no party would receive the bonus who had not paid
five premiums before the 30th .June last.
Dr. CitucEnx expressed himself highly gratified with
what had takeu place. He was quite satisfied that the di-
rectors had only one object in view—the good of the society;
and if he asked one or two questions, he trusted they would
not be considered as arising from idle curiosity. The first
point on which he wished to ask a question related to the
mode of arriving at the peculiar valuation respecting un-
healthy lives; whether the calculation bad been taken from
the lives received first as such, and bearing a
proportion and
a relative value; or whether the society had received proper
and regular information with respect to those lives, which
rendered them more doubtful than the general progress of
calculation? He also wished to know whether the directors
had considered another matter, which he had always thought
of great importance—the propriety of an insurer participating
in the bonus, instead of its being added to the policy for the
benefit of those for whom he might have toiled. An insurer
might not be always in a position to pay, and he thought
whatever bonus became due should become the property of
the insuring party without receiving it bit by bit in the re-
duction of premium.
The SEcarrativ, in reply to the first question, said, that
more than u•nal care was always taken in admitting diseased
lives, and when they were admitted they were taken at a
corresponding premium. With respect to the second ques-
tion, the directors had no power to act in the
sug-
gested. Dr. Crucefix did not seem to think the reduction
manner
i of
premium so important as it really was. fo show its effect he
would mention one or two instances. In the y ear 1825,
P.
emium of
Archdeacon Pott insured for 1,000/, paying P.
861. Os. 10d. This, being the fourth bonus, woulu notddein lngy
have the effect of extinguishing the premium, but of a
the sum of 176/. to the policy.—(Hear, hear.)
A PROPRIETOR remarked that this was somewhat extra-
ordinary.
The SECRETARY, in explanation, said, that the fdo,uirnborednunsces
.
amounted to 400/. By taking an annuity
tion of his premium, he would obtain a largine'rtetiamount than
would pay the premium. •
The Rev. E. G. WrucocEs.—And for the rest •of his life
not have a shilling to pay.—(Hear, hear.)
The SECRETARY.—Yes, and beyond thatadthalerlendweodu.ld
He
e
the addition to the policy to which he
would mention a younger life, the insuranbereernon. 661.
;but
place in 1827. The age was 61, and the p
would just ad `snother in-
would now be reduced to Si. He
by applying the bonus in a similar manner, the premium
stance or two,. where
aged 69, was insured 1832, premium of 1001. That
s 6 another6t,
wasCßse
now
twoin bonuasest
abed been g. A life,
n
life was 61. The emium
premium was now reduced
which, in
reduced to 411.—(Isar, hear.)
.linSel.B32l
Dr. SnEaststaer moved that the account and statements
motion.
Dr.DuNt.ar seconded the .
contained in the Report be approved.
'flees, and the rel
f this with other o number of
tire position o
Mr. FOWLER. said he was desirous of
ascertaining the a
offices started within the last
number had
been projected, but
Mr. NErsos said a great
five years.
he believed that 50 had come
ma
he
was
their
as con-
vinced, however, they had done
once
to
in
moore
rge public
than harm to the
present society, for they had made
individuals P the utility of
maturity,
such institutions; and when
minds toinsure, they would naturally choose old offices which
gave the best bonus.
M other offices har. FOWLER asked whether had been equally
successful.
The SECRETARY believed that a marjod rit ee the old offices
had rather receded than gone forw,a my of the same
standing were not doing near so much .h_ b li
usiness.
Dr. Hua wished to know the number of applications for
policies, and the number of refusals. _
The SECRETARY said the number of proposals during the
out of which last five years was 2,784, h number
415 were
declined.
A PROPRIETORHOW many were effected?
The SECRETARY—For the five years ending June, 1841,
the number issued was 1,837 ; for the last five years 1,
showing as increase of 55. To show that the
Society
,892 ;
progressing, he might add that the number issued d • was
last year was 401.—(Bear, hear.) uring the
The resolution was then put and unanimously agreed to.

glßanAdNilwas established, only
Or ENGLAND.
sledfTHEiEna Europe, one in Holland,
Af tu COMMENCEMENTr egr
e atnt e
btahnek Bae O
F
one in Germany, and two in Italy ; they were of Arns.
terdam, Hamburgh, Venice, and Genoa. All but the
Genoese Bank were formed solely for the
tmvgenenieenrcael
of merchants ; the latter was not only for
purpose, but was also founded for the immediate emolu-
ment of the individual proprietors ; and, after this model, the
Bank of England was established in 1694. The commission
was issued in the reign of William and Mary, on the 15th
of June of that year. The necessity of some institution of this
kind had been long felt, and Mr. William Patterson had
travelled into several commercial countries, in 1691,
and the following years, to examine into their banking
establi -hments. This gentleman had communicated to
Mr. Michael Godfrey the progress and result of his disco-
veries. The original foundation of a public bank is, how-
ever, claimed by Mr. John Briscoe; and the grounds on
which he makes this pretension are stated in a letter pre-
ceding his " Advice to a Freeholder." It was in opposition
to the Nnal Land Ban gazet the Bank of England was
—Banker's Mine.
commenced
The Right lion. E. Strutt and Mrs. Strutt, arrived in
town on Tuesday, from their residence near Derby.