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

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 depression, so unfavourable to the progress of life assur-
ance; appears to be gradually disappearing, although during
its continuance, anj 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
imture 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 those 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-
ceeding years, during a severe pressure, there is often a de-
ficien,cy in their annual 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 new been long enough in operation to enable the
Directors to pronounce an opinion in favour of its utility. It
peculiarly applicable during periods of embarrassment and
pressure, which, unhappily, too frequently occur in this
country,
the operation of this principle, the Proprietors
are aware each policy holder assured for life has a right to
borrow two-thirds of his premium ; and very many instances
lave 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 from 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
his capital at the'same time.
To illustrate this, let an instance be taken of a policy
bolder of six years' standing, whose premium amounts to
1001. a year, at the present moment having paid 6001., he
Would be entitled to borrow from the Society the sum of
4001, 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
cannot be too highly appreciated by the public, as they
fed 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
• J"grnent, unbiassed by private solicitation of interested
Parties.
The loan fund on the transactions to the end of the year
has been acted on to the extent of 16,9011. Bs. 9d.
Another peculiar feature of the Society to which the atten-
tion of the Proprietors is called, is its plan of deferred annuities ;
from their first promulgation they have attracted considerable
- attention—they are at once a corrective both of the errors
Peculiar to the system, and glaring abuses in the administra-
tion of
benefit
societies.
It is not alone, however, by the in-
dtstrioua classes, for whom they were originally designed,
that this system may be turned to advantage. The wealthier
classes will find in the combinations of this plan, all the ele-
kents of a safe and profitable investment of capital. The
system includes the advantages of a tontine or survivor-
enelutPit,letrdhenroet onlytiteparty attaining the age required becomes
to the share he has contributed at
compound interest, but to the capital and accumulations of
those rho have failed to reach the stipulated age, while the
Pfau
tb. is so constructed that the loss to the representatives of
latter is but trifling, as two-thirds of the premiums paid
:.Ire returned after death. This investment will be found
• eligible on the lives of, and as a provision for, young people,
:and on all ages from one to forty five. One example will be
.4..„11111Ciellt to show the profit derivable from the application
1001, a-year at the age of thirty, for the pur-
chase of a deferred annuity or the option of other
benefi ts at the age of 65. The party so making the in-
' 'l4iment would be entitled to the option of an annuity, dur-
-ag,4.1,4,, life, of 1,030/. 65.; a sum on attaining that age of
Alth
""'"l' 88.; or a sum at death of 10,039/. 12s.
riet Although the actual mortality amongst the assured has
co en equal to that expected, the policies that have be-
-tile claims on the Society, have amounted in the last four
-3reard to 24,668/. 18s., and of this sum 10,720/. has arisen
in the last year—an amount greatly exceeding the
Iveage experience of the Society, either previous
or since December last. The actual mortality
ew▪ en
the .sat, the assured has exceeded the expected mortality by
sum of 3,363/. on the year. The entire claims on the
ociety amount, however, to less than the expectation since
its commencement by the sum of 1,6911.25.
The Directors, in conformity with the deed of settlement,
have caused the annual investigation into the affairs of the
Society t
to be made up to December, 1843 ; and the result,
.t,orglebtheerreiarditthotthheelceounts of the auditors, arc presented, and
meeting. The result of this investigation
131131441bl:4 the business of the Society in a prospering con-
dition,
The reserved profit above liabilities being 29,380/. ss. 3d. ;
°,11.!-fitth of this will immediately enter into the present dis-
qiulbution, and in the proportion stipulated in the deed. This
ar will enable the Directors, after making a reserve of
)6741. 13s. 6cl. towards the extinction of expenses incurred
in
ti‘ th formation of the Society, to recommend to the meeting
'te
tent. declaration of a bonus on all policies on which five pay-
t
** have been made ; namely, those of 1837, 1838, and
kir and of a dividend on the guarantee capital of the
.144 :holders on the year, including interest and bonus of
to k_enl.o besides reserving 23,504/. 4s. 3d. for future bonuses
°
• 1,7 Policy holders.
tcilie present bonus to the policy holder is, on the average,
81042° 60 Per cent. on the annual premiums, as a rever-
emc: addition to the policy, I 6 2-3 per cent, in present
tedue", on the average, 2 per cent. in permanent annual
° "4 4)n future premiums.
pouf rn°re clearly point out the accumulating advantages to
holders, a few examples are given, taken from the
14
Prepared by the Actuary :
EXAMPLES.

F 1
Et❑ 44
e. d.

C
a .il
t-g

g
•E. PgSF,

$ 4
1837
1838
1839

X s. d.
170 9 3
144 2 2
116 16 0

s. d.' £ s. d.
77 5 1 12 3 9
64 5 6 9 16 4
51 5 11 7 11 9

1 the success of the Society will
the favour of the public and a

11
etui tors believe th,
eo,"`Le to draw towards
.
Cllulled increase of business.
to addition to the resolUtions enabling the Directors
and
kfto the proposed division amongst the policy holders
.4e prietors, the other business of the meeting
ti
electionh of three Directors, in lieu of John Griffith
NstkL-1 -c.B+4, Hunter Gordon, Esq., and John Rawson, Esq.,
alee ZDeriod of office expires, but who are eligible to be re-
ti',4l4 offer themselves accordingly ; and for the elec.
lileL two Auditors, in place of Professor Wheatstone,
°fat'k and Professor Graves, A.M., F.R.S., whose period of
them
eft e 41180 expires, but who are eligible to be re-elected, and
tx selves accordingly.

Th T. LAMIE MURRAY, Chairman.
gtt o r,
~EIAIRMAN—The accounts as passed by the
ts will be now read by the Secretary.
I,Ze StCRETA.IIY then read the audited accounts.
ttUßDlAN—Gentleman, before moving that the
• NoW be received, I beg to state that if any gentleman
oz t° ask any question on the subject of the report,
of the accounts, I shall be most happy to give him an
Partll4l.* As regards the accounts which have been pre-
ys/.1 °Y the Auditors, they can either be examined now,
.0542theY always lie at the office, every person can see
• I.ll:ltring the course of the year.
taktir duel
Pause, during which no person present mani-
Th'eltili.,Y disposition to put any questions,
taIAIRMAN continued—As it seems that no gen-
-4,,,,,,411 13 inclined to make any observations on the
'.4tCrL or the accounts, I take it for granted, that the
Ae nts and the report are satisfactory. I believe that
• tot, so
in that report stated every thing to the Proprie-f
tho tras° as to place them, as far as regards a knowledge o
'ltetiGns of the Society, on a level with the
7of eact°l3. I think that the making a full statement
-tae affairs of the Society in this manner,
4o the best method of establishing confi-
3°.ttee ITtween the managing body and the
Y from which they are derived.—(Hear, hear.) The
tit'ttleetators bave thought it necessary to notice more par-
-1 on the present occasion, the operation of the
mid. hitherto, the aid which the Loan Fund
..4,7l.4fferded to the policy holders, has not amounted to
itch as to enable you to form an opinion of the
"le °t. that • •
a be,. at system which originated with this Society.
.tony've that this system, which we have projected,
,-inatlll:ks within itself the elements of very great'success hirac
lott
i ,t
rther , that as each year enables us to lay before
_l.,t accounts of the operation of that Fund,
"11l find that greater confidence will be

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