The Sun.
London, England, 1848-07-01 00:00:00

assurers), and of all persons having claims thereon in
possession or in expectancy, have been fairly dealt with
and secured, and appropriating one-third of the profits, or
7111. Gs. 10d. to the benevoli•nt fund of the association,
the holders of all policies of five years standing are en-
titled to a reversionary bonus of one pound per cent.
per annum for all the time their policies have been
in existence, which bonus is equivalent on the average
to about thirty-three per cent. on the premiums paid by
them up to the 31st December, 1847. That the board
believe that the profits realised by the members of this
association will be found to be equal to, if they do not
exceed, those of a great majority of life assurance so-
cieties, and at the next division, which will take place
after the 31st December, 1852, it is hoped from the in-
creased amount of business, and the reduction of ex-
penses consequent on their being spread over a larger
number of policies, a still more satisfactory result will
be shown ; that in a few days a circular would be ad-
dressed to all the members entitled to a bonus, so that
each may make his election as to the mode in which he
individually wishes to receive his proportion (either an
addition to the policy, reduction of premium, or present
cash payment).
" The report then congratulated the memb, rs on such
an encouraging state of affairs, and earnestly called on tilt in
to make it known among their friends, and to exercise
all their influence in introducin; new members, so that
not only may the present high position of the associa-
tion be maintained but most materially increased and
im proved."

The re port was much applauded.
Mr. IloorEn considered that Rule 32 should be altered,
as it operated injuriously to the institution ; it prevented
some of the assurers from participating in the profits
for nine years, and would cause new assurers to seek
other offices which divided their profits oftener ; he would
suggest that a special meeting should be called to con
eider the matter.

The CHAIRMAN said it was always injudicious to alter
the rules of a society soon after its establishment. It
might have the very contrary effect to that intended, as
the public seeing that the rules were altered from time
to time, according to the caprice of some of the mem-
bers (he did not use the term in an offensive sense)
would hesitate to join it. In this institution the relatives
of an assurer of the class referred to would receive the
equivalent value of the policy sooner than in any other
office. Perhaps Mr. Ratray would wish to explain this
more fully.

Mr. RA-TRAY thought the rule a very wholesome one.
Some offices—the Equitable, for inktance—divided its
profits but once in ten yars. Institutions started with
certain rules, and parties joining them did so in accord-
ance with them.

Mr. HOOPER said those whom he had induced to join
the institution agreed with him in saying they would get
profits tor one or more years at the National Provident,
and other offices.

Mr. PRICE said a reservation was made for those who
did not participate in the profits at present. They should
recollect that if they did not divide so much, they kept
a better capital in hand to meet contingencies.
Mr. RATRAY said the suggestion could be better un-
deretood at the end of the next five years than at present
—then, perhaps, they would be in a position to divide
every three years; indeed, he hoped the success of the
institution would be such as to enable it to divide every
year.—(Hear, hear.) The present assured business did
not justify a departure from the rule. If they had
an income of 80,0001., instead of 8,0001, he should agree
with the suggestion; let them bear in mind that seven
years was not a great test of an office, and that they should
not alter rules which had been in existence so short a
time.

Mr. H. SMITH sympathised very much with the obser-
tions of Mr. Hooper. Ile was in favour of a quinquen-
nial division, because expense was saved ; when the
profits were divided all should come in for their share.—
(Hear, hear.) It was a clear injustice to deprive persons
who had not been assured five years of any share in the
profits. He would, therefore, most cordially second the
suggestion of the Hon. Member, and recommend the
board of management to take into their consideration
the propriety of altering the rule. He wished to know
whether there was any doubt in the minds of the ac-
tuaries as to the construction of that rule ; because it
said that the profits were to be divided among all the
members, and in a subsequent clause there was a limita-
tion, with regard to the participation of profits, to those
who had been assurers five years.
Mr. RATRAY said the observations he had made
applied to the periodical distribution of the profits and
not to the question, as to who the parties were that were
entitled to participate in them. For himself, however,
he considered it would be very desirable to admit those
who had been more recently assured.—(Hear, hear.)
He would not go so far as to say that assurers of only
one year's standing should participate in the profits, but
the period might prudently be limited to two or three
years. Yet, still he was of opinion that five years
should elapse before they made any such alteration, for
the reason stated in the report, viz., that 1,824/. 10s. 10d.
would be required to give a bonus of IL per cent. to
those who had assured within the last five years,
and to meet that the association had only about
1,0001. in hand, so that they
would require about
8001. more to make up the necessary amount.
Ile and Dr. Griffith Davies had maturely con-
sidered the subject, and taking into account the
superior and very economical manner in which
the association had been hitherto managed, they
entertained no doubt whatever that a bonus of 1/.
per cent. would he received at the tud of the fire years.
It would be advisable therefore to wait another five
years, by which time the society would be placed on a
more firm footing, and they would be better enabled to
run the risk of making fresh arrangements. Ever since
its establishment the society had 11.,er) gradually gaining
in strength and power. In 1845 they issued 17S nolicies;
in 1846 they issued 333 ; in 1847 they issued 384 ; and
no doubt in 1848 the number would be increased to 500
or more —(Cheers.) He concluded by again stating it
was his opinion that they should wait five years in order
co recover themselves from the drawbacks which always
attended the first workings of such a society as theirs.
Mr. PITMAN said it appeared to him that it would be
possible to give all the assurers up to the present
time, or within twelve months of it, a bonus upon their
premiums of 11. per cent. In order to benefit the as-
sured for five years and upwards, all who had
assured at a later period were put off for a period of five
years, and a great portion of them, therefore, would not
participate in the profits of the association at all.
Mr. RATRAY said that arose from the working of the
rule, and not from any fault in calculation on the part of
the actuaries.
Mr. PITMAN trusted, in that case, that the board of
management would see the importance of making an
alteration in the rule hereafter. It was obvious, if they
had to wait five years before all the assurers were brought
alike, that parties would go to other offices where they
could participate in the profits the first year, and con-
sequently the society would sustain a great loss. Ile
was himself an assured for more than four years, and
not being qualified to partake of the present division,
would lose much individually.
Mr. RATRAY—At the next division you will have nine
payments instead of five.
Mr. PITMAN—Yes, but it will lie in the bands of the
society until then.
Mr. RATRAY—The money will not be laying idle, but
will be lent out at interest by the society.
Mr. PITMAN thought he might be able to lay it out to
more advantage himself.—(Laughter.) Theirs was a
mutual society for the exclusive benefit of one another,
and they ought all to be placed on the same footing.
Mr. RATRAY said it was not altogether a mutual office,
for if that were the case there was sufficient profit to
divide one per cent., but they gave over 7001. to the
benevolent fund, and therefore only participated in
their contributions to the extent of one-third, the other
going to the fund.
Mr. PITMAN said he should conclude his observations
by asking the Chairman to put the question, whether or
not members, from the date of their policy, should parti-
cipate in the profits?
The CHAIRMAN said it was only competent for a mem-
ber to make a suggestion at that meeting. The object
of the directors in calling them together was to make
them thoroughly acquainted with every particular con-
nected with the society, but more especially to know
what the feelings and sentiments of the members were
upon various matters brought uncle discussion.
Mr. HOOPER said if the division was to be made only
among those who had been members for five years it would
involve the necessity of some waiting nine years ; and
besides, if a person died in the intermediate period, there
would be no division of profits payable on his policy. If
they provided for such a contingency,. he was of opinion
that every object would be met.
Mr. RATRAT said the object in taki'mg five years was
to enable them to make an average of the profits, for in
one year there might be a great profit,. and in another a
great loss.
Mr. inure said, with the permission of the Chair-
man, he would take the liberty of delivering a few of his
sentiments on the subject before the meeting. The vice
of the present day, with regard to life assurance,
he said, was a greedy anticipation of what
the result would be upon a Calculation of the
profits over an average of years- In making that obser-
vation he meant no offence to those g entlemen who de-
sired the present calculation to be baited upon a nearer
approximation than five years, out simicely to show that the
real intrinsic value of life assurance heel never been fully
appreciated by the public. At the present time life as-
surance, considering the general intelligence of this glo-
rious nation, was immensely below pax compared with
the population of the country, and the number of those
who did insure their lives for the benefit of themselves,
their families, their creditors, or for c Idler purposes in-
telligible to gentlemen engaged in con imercial pursuits,
was immensely too small. Consequently life assurance
was now largely on the increase, and he begged to say
that they would scarcely, e e:pect to arrive at any
great benefit without being liable, in the pursuit
of it, to certain imperfection s which were insepa-
rable from common hum* nity. For instance,
the competition among assurance companies, each offer-
ing greater advantages than tht other, had in a great
degree crippled the efforts of yea 'leg companies to esta-
blish themselves. He made that e few observations in
order that gentlemen might not be misled, and take that
which was cheap but riot durable. The society had been
found to work most satisfactorily, a nd by the appropria-
tion of a portion of the profits to the benevolent fund,
they were enabled to relieve casual. .distress, as well as
pay the premiums which became duce at death. It any
member could suggest any rule or a le:ration of any rule
that would tend to make the syste in upon which the
society was managed more perfect And complete, he
could assure him that no body of pers tons would be more
anxious to effect such an object than the present board
of directors. But it was absurd and fallacious to suppose
that the casualties attendant upon the lives which were
assured in the society could be calculat ed over one year
so as to take a correct average.

Mr. GOSBELL did not think any men lbe.r would want
anything short of a quinquennial divis ion; but at the
same time he must say that if a pars oy went to other