The Sun.
London, England, 1846-07-27 00:00:00

DIVISION OF PROFITS.

The remarkable success and increasing prosperity of the Society
has enabled the Directors, at the last annual investigation, to declare
a fourth bonus, varying from 35 to 85 per cent. on the premiums paid
on each Policy effected on the Profit scale.

EXAMPLES.

02 •1 nus
7.4 Premium. 0
Bo
P !,* added.

Bonus in g g Assured
Cash. g may
5 Borrow.
0 a

s. d.
60 1000 74 3 4

1837,
IS3B
1839
1849
1841

1.£217 15 1 £lOO 011 .£l6 0 4.X445 0 0
192 3 0. 87 1 41 13 10 2 395 11 1
165 11 10 74 1 9, 11 3 11 346 2 3
116 7 6 54 0 101 718 10 296 13 4
111 6 8, 49 10 OF 710 41 247 4 5

The division of profits is annual, and the next will be made in
December of the present year.
F. FERGUSON CAMROUX, Secretary.

ICOTTISH WIDOWS' - FUND and LIFE
ASSURANCE SOCIETY.-BONUS CERTIFICATES,.

The Bsnus Certificates have now been issued from the head office
and agencies, but as it is probable that out of between 6,000 and 7,000
soma few may have miscarried, it is requested that any member who
has not received his certificate will communicate with the Manager
on the subject.
Capital at 31st December, 1845, arising from the accumulation of
the premiums, 1,701,6331. Is. d., or upwards of one million seven
hundred thousand pounds.
Annual revenue at 31st December. 1845, consisting of annual pre-
miums 'and return from invested capital, 245,9291., or nearly two
hundred and fifty thousand pounds.
The Directors are desirous that the members should keep in view :
Ist. That during the last ten years the analunt of insurances an-
nually effected has, on an average, exceeded half a million of
money.
2d. That the expenses of management are kept as low as can be
maintained consistently with the due and proper conduct of the So-
ciety's business, and that an allowance irrthe way of commission is
not made to all persons indiscriminately who are the means of bring-
ing insurances to this office.
3d. That the greater the extent of the Society's business the less
proportion will the expense of management bear to each individual
member's interest.
4th. That the deaths which have occurred during the last fourteen
years have been very little more than one-half of what might have
been expected according to the Tables of Mortality upon which
the Society's calculations are founded—having been during the seven
years ending 31st December, 1838, in the ratio of 57 to 100, and
during the. seven years ending 31st December 1845, in the ratio of
5 to 100.

sth. That in accumulating and investing the premiums for the
benefit of the Society during the thirty-one years that it has been in
existence, not a shilling has been lost, and that the capital thus rea-
lised and invested (independently of payments to the extent of up-
wardi of 766,0001. to the representatives of deceased members)
amounted, at 3 st December last, to the sum of 1,700,0001.
6th. That whilst looking to what is stated above, it is only reason-
• able and natural to expect that a large surplus fund or profit should
be realised, the members, and they only, are entitled to derive any
benefit therefrom ; and that in this respect, therefore, this Society,
and sall others similarly constituted, differ from proprietary com-
panies, which appropriate a certain portion of the profit to their pro-
prietors, partly 'in the way of dividends, • but still more in the way of
lar.te additions to the stock.
In calling the attention of members to these points, the Directors
feel confident that it nth be sufficient to satisfy them that they have
connectedlhemseives with a safe and a flourishing institution ; but
the bonus' certificates, which have now been sent to the members,
afford the hest practical evidence that can be given of the benefits
already conferred upon them. It will be observed by the older mem-
bers —by chose who joined the society between the years 1815 mid
1819 inclusive—that at lit January last • there was for each 1,0001. of
original insurance an addition of 8091. Bs. 7d., and that besides this, in
the event of their death be,ore the Ist January, 1853, when the next
appropriation of profits falls to be made, there will be added so much
more for each year they may live in the interval; that, in the event
of their death (after payment of the premium for the year), there will
be paid under each 1,000/. insurance
In this year 1846 .•• • ..
In the year 1848 .. • ....... 1,917 19 10
ft 1850 .... •• • • 1,990 7 5
1852 . ..... 2,062 14 11
The Members who joined the society in the year 1830 will, in like
manner, derive proportionate benefits ; there will be paid under each
1,0001. insured, in the event of death, after payment of the premium—
In the year 1846 .
„ 1848 .. ••• • • • ...... 1,418 18 1
If 1850 1,472 8 11
, 1852 .............. 1,525 19 10
In the case of those members who joined the society in the year
1840, there will be paid under each 1,0001. insured, in the event of
death, after payment of the premium—
In the year 1846 £1,142 8 0
1848 •••••••• • • • • • • 1,187 4 0
„ 1850 ..
„ 1852
Thus it will be seen that whilst great benefits are conferred upon
the members whose connexion with this society is of ling standing,
the interests of those whose connexion is of later date arc not sacri-
ficed. The directors are most desirous that the members should
examine into and make themselves acquainted with the principles of
division adopted by their own society, and in order that they may
have an opportunity of doing so, the manager has prepared and
printed a short and simple explanatory statement on the subject,
which may be had on application, and any further information or
explanation that may be required will at once be afforded.
In the meantime, let each member keep in view--
1. That at whatever age he may join the society, as he cannot tell
the day on which his death shall happen, he and his co-members,
by payment of premiums corresponding to their respective chances
of life, are all placed upon an equal footing ; and that as it is im-
posible to calculate the exact premlynt which, when accumulated
during the member's life (and accumulated at a fluctuating rate of
interest), shall he precisely equal to the sum insured to be paid on
his death ; and as, even on an average of many cases, although a
nearer approximation may be had to the exact premium, it is still
impossible to fix its precise amount—the society, in order to pre-
vent inevitable bankruptcy, must charge a higher rate of premium
than can, under any circumstances, be supposed necessary to meet

the risk.
2. That when an investigation into the affairs of an insurance so-
ciety takes place (viz., by comparing the accumulated fund with the
value of the engagements undertaken), it is ascertained what the
" profit" amounts to, and considering that nearly the whole of this
so-called "profit" arises from the surplus premium received beyond
what the result of the investigation shows to have been necessary
to meet the risks, the mode of distributing that profit, which it appears
to the Directors bears the nearest approach to equity, is to give it
hack to the members in such proportions as each may have contri•
bated towards its formation; and thus, whether the premiums shall
upon the investigation be found to have been mere than the risk re •
quired, in the ratio of 5, 10, or 2e per cent., to add to each sum in-
sured in a corresponding ratio and in order to give effect to the
sources of profit other than that arising from the surplus premiums
.above referred to, that these additions should be calculated upon the
accumulated amount of the original insurances, and previously de-
clared additions.
3. That this is one of the leading principles adopted by this So-
ciety, and that in following it, no undue benefit is conferred upon
one class of members to the prejudice of another; all join the
Society with the same prospects of benefit, and whether a member be
cut off after a short period of connexion. or after a more lengthened
period of connexion, he still benefits, as nearly as possible, in propor-
tionof life been society.knownn3whorednehreojfotinheedicotolersTtoxflAp
to the extent to which lie would have done had the real chances
cl
Ke cEt osr
zs , E
Head Office, 5, St. Andrew's-square, Edinburgh, June' Manager.
25,
Office in London, 7, Pall-mall. HUGH 3PKEAN, Agent.