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

QCOTTISH WIDOWS' FUND and LIFE
ASSURANCE SOCIETY.—BONUS CERTIFICATES,
The Banns 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
some 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, 1,701,633/. Is. 6%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, 248,929/., 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 amount 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 la the way of commission is
not made to all persons indiscriminately who are the means of bring-
ing insurances to this office.
ad. 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 lest, and that the capital thus rea-
lised and invested (independently of payments to the extent of up-
wards of 766,0001. to the representatives of deceased members)
amounted, at 3 st December last, to the sum of 1,700,000/.
6th. That whilst looking to what is stated above, it is only reason-
able and natural to expect that a laige 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 all 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
large additions to the stock.
In calling the attention of members to these points, the Directors
feel confident that it w ill be sufficient to satisfy them that they have
connected themselves with a safe and a flourishing institution; but
the bonus certificates, which have now been sent to the members,
afford the best practical evidence that can be given of the benefits
already conferred upon them. It will be observed by the older mem-
bers—by those who joined the society between the years 1815 and
1819 inclusive—that at let January last there was for each 1,000/. of
original insurance an addition of Com Bs. 7d., and that besides this, in
the event of their death before the let 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 ...• .. • .. • • £1,845 12 4
In the year 1848. 1,917 19 10
1850 .... •••• • • • . 1,990 7 5
„ 1852
The members who joined the society in the year 1830 will, in like
manner, derive proportionate benefits; there will he paid under each
1,000/. insured, in the event of death, after payment of the premium—
In the year 1846
1848
~ 1850 .............. 1,472 8 11
, 1852 .............. 1,525 19 10
In the case of those members who joined the society in the year
1.840, 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 ....... .
~ 1850 . .
,• 1852 .............. 2,276 16 0
Thus it will be seen that whilst great benefits are conferred upon
the members whose connexion with this society is of long standing,
the interests of those whose connexion is of later date are 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 en equal footing ; and that as it is ha.
posible to calculate the exact premium 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 approximatiom 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
4. 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
back to the members in such proportions as each may have contd.
billed towards its formation; and thus, whether the premiums shall
upon the investigation he found to have been mere than the risk re •
quired, in the ratio of 5, 10, or 20 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
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By order of the Court of Directors,
Head Otßce, 5, St. Andrew's
Office in London, 7, Pall-mall. HUGH WKEAN, Agent.