The Sun.
London, England, 1844-05-09 00:00:00

NATIONAL LOAN FUND LIFE

ASSURANCE SOCIETY.

ANNUAL GENEHAL MEETING.
The Annual General Meeting of the Shareholders of
the National Loan Fund Lire Assurance Society was
held yesterday, at one o'clock, at the London Tavern,
Bishopsgate-street.
T. LAMIE MURRAY, Esq., in the Chair.
The SECRETARY having read the advertisement con-
vening the meeting,
The CIIAIRMAN said—The Directors have prepared a
report of their proceedings during the past year, and
lilac) a statement of the accounts as prepared by the
Auditors. The Secretary will read the report, which I
trust will be considered satisfactory.
The SECRETARY then read the
FIFTH ANNUAL REPORT.
The Directors have again the pleasure of meeting the Pro-
prietors at the recurrence of the annual general meeting of
the Society.
They feel much gratification in stating that the business of
the Society has been considerably increased. The late gene-
ral depres4ion, so unfavourable to the progress of life assur-
ance, appears to be gradually disappearing, although during
its continuance, and the severe trial which every species of
national industry sustained, the Society had made satisfac-
tory progress, having, since 1840, more than doubled its
business.

It may with truth be said that every institution in the
nature of life assurance, whose progress or success depends
upon the surplus income of society, becomes affected in pro-
Portion as this surplus increases or diminishes—the sums that
are annually applied to life assurance being tkose which re-
main to each individual after his ordinary wants are satisfied.
It so happens, however, as the experience of the Society has
proved in a great many instances during the past years, that
however equalised the surplus income of individuals may be
In a series of years as applicable to life assurance, yet in suc-
e"eclicien.ncyg yineatrhseir annualduringa severe pressure, there is often a de-
resources.
It is to this point, as peculiar to the working of the Society,
that the Directors would wish to call the attention of the
Proprietors. The loan fund system, as engrafted on the
Society, has now been long enough in operation to enable the
Directors to pronounce an opinion in favour of its utility. It
is Peculiarly applicable during periods of embarrassment and
Pressure, which, unhappily, too frequently occur in this
Country. By the operation of this principle, the Proprietors
are aware each policy holder assured for life has a right to
hcovow two-thirds of his premium ; and very many instances
have come within the knowledge of the Directors, wherein
the effectual aid afforded to the policy holder, has enabled
him to sustain his policy, and to carry out his original inten-
tion of providing for his family.
In other numerous cases, equally within the observation of
the Directors, the sum which the assured had been enabled to
borrow has saved him Mom pressing temporary embarrasment,
or enabled him without injury to his policy to make a profitable
aPPlication of it. It has in fact afforded him all the chances
and security of a life assurance, and the use of two-thirds of
Ills capital at the same time.
To illustrate this, let an instance be taken of a policy
holder of six years' standing, whose premium amounts to
1004. a year, at the present moment having paid 6001., he
Would be entitled to borrow from the Society the sum of
41301., while, at whatever period his death might occur, his
representatives would be entitled, deducting the amount bor-
rowed (supposing his age at entering 31, and his policy
4'°°°l•), to the sum for which his life was assured.
The importance of this principle the Directors believe
c/unzot be too highly appreciated by the public, as they
feel assured that, combined with other equally liberal advan-
tages offered by the Society, it is sufficient to obtain a pre-
ference from assurers who act upon the dictates of their own
Judgment, unbiassed by private solicitation of interested
Parties.

The loan fund on the transactions to the end of the year
Lax been acted on to the extent of 16,901/. Bs. 9d.
Another peculiar feature of the Society to which the atten-
ti. on m",the Proprietors is called, is its plan of deferred annuities ;
oin their first promulgation they have attracted considerable
attention
—they are at once a corrective both of the errors
realiar to the system, and glaring abuses in the administra-
''loll of benefit societies. It is not alone, however, by the in-
dustrious claNes, for whom they were originally designed,
Tact this system lzmy be turned to advantage. The wealthier
Zaales will find in she combinations of this plan, all the ele-
"'elite of a safe and profitable investment of capital. The
araem includes the advantages of a tontine or survivor-
/41N where the party attaining the age required becomes
entitled
not only to the share he has contributed at
v°lllPound interest, but to the capital and accumulations of
t1;1-1._°34 who have failed to reach the stipulated age, while the
31.17 4 se constructed that the loss to the representatives of
'me latter is but trifling, as two-thirds of the premiums paid
returned after death. This investment will be found
attgible on the lives of, and as a provision for, young people,
L'ld on all ages from one to forty- five. One example will be
saCeient to show the profit derivable from the application
°f 103/. a-year at the ago of thirty, for the pur-
Illuiee o.. 1" a deferred annuity or the option of other
(70fits at ,the age of 65. The party so making the in-
; *rota would be entitled to the option of an annuity, dur-
.4
life, of I,tgol, 65.; a sum on attaining that age of
11,5007
Air' 88- ; or
, snot at death of 10,0391. 12s.
Lough the actual mortality amongst the assured has
not been equal
to that expected, the policies that have be-
%ate claims on 'the Society, stave amounted in the last four
tars to 24,6681. 18s., and of ,*,his sum 10,720/. has arisen
othe last Year—an amount
greatly exceeding the
_erage experience of the Society', either previous
to or since December last. The actual mortality
amongst the assured has exceeded the expected mortality by
Socisetv
—"3'3631' on the year. The entire claims on the
its c„_ unlit, however, to less than the expectation since
13.1:fleie Directors, in
ommencement by the sum of 1 691/. 2s.
conformity with the deed of settlement,
caused the annual investigation into the affairs of the
etY to be made up to December, 1843 ; and the result,
ether with the accounts of the auditors, are presented, and
be read to the meeting. The result of this investigation
irtZte the business of the Society in a prospering con-
The
reserved profit above liabilities being 29,3801. ss. 3d. ;
a—alth of this will immediately enter into the present dis-
Zltiaa, and in the proportion stipulated in the deed. This
2.,„Wi1l enable the Directors, after making a reserve of
iim• 13s. 6d. towards the extinction of expenses incurred
t)Ze'le formation of the Society, to recommend to the meeting
cleelAration of a bonus on all policies on which five pay-
-14,44 ha to been made ; namely, those of 1837, 1838, and
of a dividend on the guarantee capital of the
Per eZlders en the year, including interest and bonus of 7i
to tct" beak:lW reserving 23,5041.45. 3d. for future bonuses
P°lleY h01t;41,.
Npre,aent bonus to • the policy holder is, on the average,
q 0 t° 60 per cent. on i,he annual premiums, as a rover-
-4,7 addition to the policy, 16 2-3 per cent. in present
44,
,t °I., on thel average, 2 per ce..q" permanent annual
„r°ll en future premiums.
qng advantages tooe Inwee Clearly point out the accumulat.
tiali43; holders, a few examples are given, u:kken from the
I)taPared by the Actuary
\MPLES.

-,................ ' EXAMPLES.
...--
411
S r).'l . . to tt:J (1"g :4
. • itt 0 .0, ..:.-. fro
,RPI,
....1 ' ig. ....w1,... 0.6...
iSgCa aiio'*
......._ • • .-..". P.;
Oia
7i-----1.
d'---
X s. d. X s. d. X s. d.
%1I"A 74 , 1 1837 170 9377 5 1 3 9
~.,.._ i% " 4 1838 144 2 2 64 56 12
9 16 4
....---- ....____ 1839 116 16 0 51 511 711 9

The
content
"tors believe that the success of the Society will
ttitt.'t to draw towards it the favour of the public and a
increase of business.
t1:1 —addition to the resolutions enabling the Directors
aM ~e the proposed division amongst the policy holders
0, Pl°Prietors, the other business of the meeting
-1,1101 election of three Directors, in lieu of John Griffith
R. /41 N.l Hunter Gordon, Esq., and John Rawson, Esq.,
tlk te-Pri°cl of office expires, but
.who are eligible to be re-
tioh -9 and offer themselves accordingly ; and for the elec-
of hire Auditors, in place of Professor 'Wheatstone,
Snd Professor Graves, A.M., F.R.S., whose period of
oftZ fast) 'txpires, but who are eligible to be re-elected, and
thetas 'gives accordingly.
T. LAMIE MURRAY, Chairman.
ettsai, WAIT—The accounts as passed by the
Itteirs Will now read by the Secretary.
'the SacatTAß,, then read the audited accounts.
the
tepekLellaxasw,,,_ -Gentleman, before moving thatn
*jib received, :leg to state that if any gentleman
or of -es to a*
an gion on the subject of the report,.
the ttecountsy bn most happy to give him an
Nrettieti: As regards the acs.
ot, 44 by the Auditors, they can
*Kints which have
examined now,
pre-
slither be exam
them (1'14_7 always lie at the office, every person can see
;A during the course of the year.
tested Pause, during which uo persLin present nistni-
The-1 disposition to put any questions,
tle% eltalamAN continued—As it seems that no gen-
renart is inclined to make any observations on th
4P-02t or the accounts, I take it for granted, that the
1e17.11t41 and the report are satisfactory. I believe that
teh lite in that report stated every thing to the Propri
tde as 11(1
to Place thorn, as far as regards a knowledge of
4140,--",:lactions of the Society, on a level with the
of the r 5• I think that the making a full statement
it :h airs of the Society in this manner,
tleile 'le best method of establishing confi-
between 11,4 s the managing body and the
Ariecfrore which they are derived.—(Hear, hear.) The
tieui.t4rs have thought it necessary to notice more par-
:l:v:ly,
on the present occasion, the operation of the
14 ahVitld• Hitherto, the aid which the Loan Fund
uerded to the policy holders, has not amounted to
yea eh as to enable you to form an opinion of the
bv.e Of that system which originated with this Society.
contains
that this system, which we have projected,
alZaiins within itself the elements of very great success ;
yox vtilibk, that as each year enables us to lay before
:No
..41.ther accounts of the operation of that Fund,
'BAI find that greater confidence will be