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Dividend Scale Maintained largest Amount Ever lllattrhd itt he Year [nuance in Force Readies $1 268,500,000 "if the hopes for continued production and employment. with all that these entail, are to be realized, the utmost co- operation of those in all occupations in Canada is essential," can Louis L. Lang, President of The Mutual Pie of Canada, 'when addressing the 82nd meeting of policyholders of the Company. Mr. Lang called tor a continuance of the pioneer- ing spirit in Canada and the maintenance of sensitivity to the great possibilities_of pioneering enterprise which lad to the successful founding of Canada. haiimttstdaerdtuagtrluretattaqmr's Manilamnaflaimlherd Mutual Life of Canada New Business treeds $133,000,000 Wat-rho, on, Feb. T, 1052 Speaking of the insatiable demand for capital, Mr. Lang pointed out that in 1951 public and private investmeist in Canada totalled about $4.5 Billion, " compared with l933 when the entire gross national product was only $3.5 Billion. Between January l, 1945. and December 3l, 1951, investment in Canada totaled about $20.5 Billion. "Even when the igttiation of prices is taken into account, the si once of there figures cannot fail to impress," said Mr. . "They serve to re-emphasize the basic rules for prosperity of a people; work and produce; save and invest. Provide a high “award of living today; and _by_in_creasing the tools of ttttit'.,',',', assure a higher standard of living tomorrow . . . t is continuously necessary to practice thrift; for thrift pro- dues savings, and without creative savings there can be little progress” The General Manager, Mr. A, E. Pequegnat, reported that The Mutual Life in 1951 had experienced the moat uniformly "tistaetory year in the Company's history. New insurance to the extent of $133,000,000 had been written, bringing the protection in force, all on Canadians, to $t,268/H2,113. There was also a substantial increase in number of individual policies issued in 1961 over the previous year. Surplus earnings of $6,306,839 allowed the Company to maintain its liberal dividend scale. The Company's investments in mort- gage and sale agreements showed an increase of $12,iS0,000 uring the year and now comprise 22% of total assets. This is the seventh Annual Meeting of The Mutual Life As- surance Company of Canada which I have had the honour of addressing since the Second World War came to an end in 1915. These have been momen- tous Fears for us all. We have experienced a fenod of unprece- dented materia expansion in this country. but its advantages have been diminished and our hopes have been marred by the danger of I ihird world war. What the future, lipids ' furl our ownhecono; my, Tr in the larger sphere of international relations. cannot be predicted safety; but we have td make plans based on judgment, experience and available in arma- tion. Therefore, it is tttting that we should pause every year on this occasion to consider our achievements, our imgortant problems. and our possi ilities for the future. both as a Company and Is I nation. N-tr-trt-tber" -. t.C-rrtee-d The Eighty - Second Annual Statement of our Company. which 'gr/gg/tf today. provides ample deuce of ut remarkably success- ful year. The substantial increases in new business written, and in the total of assurances in tome, have been very gratifying to your Dingtoy. 'slhey "3231 also be t.o our Policyholders. We operate in a highly competitive industry. To maintain new written business ll even I constant levelprguires a strong and active field (one, Therefore. since the new insur- ance issued and paid for in 1951 is the largest amount we have ever recorded in one year, and since your Comps?"I has entered no new territory. e results for the your reftect particular credit on the efforts of all members of out annoy organization. .. ' hm Policy Helps md to the Odie": of the Com- m f,r,tt thedput pl% This " mo . every . on to t"v'l'lt1'ls'. irt6Utietetary use of our men and to direct our Invest- - into productive channels. At I time of high employment, the lent of investmem cunnot exceed the ctgrNot level of new uvlnzs without having an inn:- notary em. We have, therefore, endeavoured to make I useful con- mum» th-train! of infla- “our, [one by eortiUtirtg our new investment to our um tumble income. It is worth month; that life imunncu dol- lars mvtde a double-m vu- 'd".=tt'rt,'tt,lt Theme tht of donut muting if“: production of goods; Ind ttrough investment, and to m_~ high which “new Notwithstanding our iustiftabie pride in these results, it is well to recall that our operations have but! the bene6t of a favorable eco- nunic environment. To a great extent our growth since the war has been made possible try the Wishing expansion of the mv “one! economy. With higher wages and employment, the in- creases in industrial activity have contributed greatly to the num- ber of citizens who are prospec- tive policyholders. Current proo- perity has made it possible for my of our present policyholders to increase their real insurance Ilrt',tf,t,ifi,t. but the disturbing in- non dunn. the period has made it may tor many to add to their holdinu merely to main- tain adequate protection. tnttatitm has been a matter of 91"? er?Peery_to 'our ping-ton “chess by Mr. L L hug, President Net Cost Hut-1| Life Insurance Consistently Low The ultimate cost of insurance} to a policyholder in a mutual Ike) insurance company is dependent in the main on the interpley of the mortality experience. mural. return and administrative ex- gense. From the beginning. It as been the constant endeavour‘ of the Directors and omen oh our Company to provide premium‘ refunds or dividends which would) give to the policy owners Tet tion at the lowest possible coat comEatible with safety. In a year mar ed by rapid advances in the price levels of nearly all goods and services, it is interesting to review the cost of our product to the policyholder as disclosed in a study recently completed by our Actuary. Deducting from the premium the average dividend during the tUst twenty years ot the policy, the average cost of e SLOW policy on the straight life plan issued at age thirty-thre. at decennial periods since the turn of the Century, is shown to be, for policies issued in 1901. $2116; in 1911. $18.85; in t921, $13.91; and in 1931, $18.11. Assuming a con- tinuation of our present dividend scale for the issues of MMI and 1951, the comparable costs would be. tor policies issued in MMI, $18.15; and in 1961, $18.42. The consistency and stability of the, cost of Mutual Life insurance is immediately obvious. Elect of Higher Interest Rates To most of us, " consumers and savers, inttation has been the most sigrti6eant economic feature of 1951. Nevertheless. the monetary developments of the year were not entirely unfavorable. The up- ward movement in the rate of in- terest seems to indicate that the period of abnormally low rates has passed. " is again being recog- nized that the citizen who saves and invests, and thus performs a valuable economic service. timid be rewarded more fairly tor his contribution to the welfare of so- ciety. The future, while not prom- ising ievels of interest rates ap- punching those of the ttmn will probably provide us with a more satisfactory return for at least as long as this period of very rapid and intense development of our resources continues. Naturally, the higher interest rates have meant a favor‘ble increase in yields on our new investments; but it is well to recognize that many years of such higher rates are necessary before the increased return works fully through a very large portfolio of investments such as we hold. We have all been pleased, I am sure, by the encouraging rise in value of the Canadian ollar in relation to the currency of the United States, which has been re- cogniaed for some an as the world's strongest amnion; of the Canadian dollar in me free exchange markets have juattBed an decision of the Governmam to move exchange contrxttA and have borne out their eonBdegtee in its external value. Mu - sun Hal-l Modern CAmduns are a modest poo ie. We have heed accused pertu- rWttty it! some - 0‘ . luck of viaion, Let us “manly hope that we have not loot that semitivity to the greet pot-fun- tin of mounting emu-prise which lad to shown] {mand- " of g. - and our Com- believe we can all be proud. Yet, it the drama of the opening ot the last continental (wonder, the Canadian Northland, does not move us, we may well have grown too cautious and e/'r,,",'g'it Those of us who. mm day to It Ts éontinuously necessary to: practice thrift; for thrift produces savings. and without creative sat' has there can be little W. Four hundred years ago North America was a wilderness in- habited by primitive rat: They lived in a vast store use of wealth but did not know it. Not until men from across the sea, seeking pew avenues for advan- tageous investment of their ener- (be and 'g,tgit became aware ot its potentia nee did America begin its fabulous development. Hutu-rs "" Investments Au Could: 0”th Our Company's part in financing this capital growth has changed greatly from 1873, when we made our tlrst investment. During 1951. iour funds ttowed .into a iverse list of projects: the securities ot (the provinces and 'pttiittl1itt of Canada - making possi le the lexpansion of services so necessary in growing communities; mort- 'ef."", to tutanee residential build- mg; and bonds and stocks to aid :in the industrial expansion across (the country. We have provided ‘funds for the purchase pt diesel Those of us who, fiom day to day, are concerned with the in- vestment of the company's funds. hnve been impressed by the seem- ingly insatiable demand for 'ttt tall In the post year. we are to d, public and Plate investment ln Canada tout led about $4.5 Billion. In 1933. the cameras national product we: only .5 Bullion. In the period between Joinery i, 1946 and December 31, IMI, in- vestment in Canada totalled about $20.5 Billion. Even when the in- ttation of prices u token into ac- count. the signitkaace of these lla- ures cannot fail to impress. They itil',? ‘to tt"g',t,t',')'ite, tte besic mes alh/gr,,',stg1t.e upco- ple: Work on produce; save and invest. In other words, provide a high standard of living today; and by increasing the tools of Produc-, tion, assure a higher standard ot liv'ing tomorrow. ' er,tf,,'e','. and rolling stock by the rai ways; for the expansion of steel mills; tor the building of steamships; for the development of major hydro-electric projects; tor the pulp and paper industry; tor the production or aluminum; for the production. transportation and rethsing of petroleum; for an expanding chemical industry; for telephone systems; and for many other enterprises. In fact, your Company's assets are invested in in the lifeblood of our national manly. _ _ _ - What is the outlook for 1962? We are aware that the interna- tional situation is the most dan- gemus and unpredictable factor in conditions and developments throughout the whole world. How heavy will be the load of defence and civilian programs on the eco- nomy of this country? What heights will taxation reach? How much can governments take out of the earnings of industry with- out 1T'ttptit efforts to meet defence an civilian needs? If costs continue to rise, how can prices tall? Will many people continue to want and demand more, and do less? Will there be a shrinkage of markets at home and abroad? There has been con- siderable unemployment in some industries and in certain man during recent months. There has been an increase in imports, which has reduced employment in certain industries in this country. Will this continue? . Ilium-ml ttetteftts "tor all the peo- ple of Cumda. including therir calm. There will undoubtedly be u large expansion in defence spend- ing. The opinion is widely held that there will be continued high national production. It is expect- ed that very large sums of mo- on will be invested in this coun- try during 1962, “(rial state- ments have been ma in regard to volume of construction. retail sales and external and domestic trade Etnployment will be de- pendent on the-e factors Ehcour, uingly. at the end of the third quarter of 1961, there were 5.343.- 000 Canadian: gainlully em- pla¥ed. an all-time record. I the trg for continued pro- duction an employment. with all that these entail, are to be real- iaed. the utmost co-operation of theme in all occupations in Canada is essential. Groups of individuals who think and act primarily in their own interests are not helm CM 01 CHI-.- hunk-l kw PM! ing to secure the greatest poasitsle 't.tioetrl ttemeftts for all the peo- Employment Prospects Good him; BWEEom in “Sula“ tngrr_itt_ttret.mtttin auntWIIoMdeul witltthr't'tettt-eyrNett standards for millions of people in addition to the present popula- tion. So long as Canadian: retain thu character, our“. industry and thrift, we, and future nema- tlons. can dew/clog Canada in a manner which wi bear compari- son with any country in the world. Hutu] Life Slocu- Tribute to Ion-den Since our Company Wu found- ed less than eighteen months after Contederution. its history has para1lelied that of the Canadian nation. The present size and M. nuclei strength of the Mutual Life are a concrete realization ot u courageous dream. The Company is a testimony to the foresight and energy of the charter member». who made it possible tor us to build. today. an autumnal: which symbolius the voluntary co-operative effort ot thousand: ot Canadians to secure protection and security. Ital-octane. ct Ilium Big-out The Mutual Life finds its reason for being in the attempts of for!» sighted Canadians to provide se- curity and protection for them- selves and their dependents; it is built on the careful service and wise counsel of our field represen- tatives; it operates through the loyalty and etBciency of our em- ployees in the branches and at Head once; it grows ever strong- er through the interest and sup- por_t of its policyholders: . . . I have spoken, this afternoon. largely in terms of economic movements-the impersonal ebb and ttow ot such intangibles as investment and interest rates. It would be a serious oversight tor me to conclude without them- {meaning a tact which we are too ikely to forget when we pause to examine be ance sheets and ste- tisties. That fact is the essential human basis ot the Company's it new Kt/te"'; I believe that we can ace the future conBdent- ly, remembering always that in each. problem lies 3n apponunny for greater service to anadians. Ladies and gentlemen, We need clear vision. born ot profound thinking and intensive research; we need fortitude, born of convic- tion; above all else, we need him --faith in ourselves and esdpecial- ly, faith in the integrity an abili- ty of our fellow men. No more inspiring challenge has ever come to us than this: that we devote ourselves intelligently and ener- getically to the task of building a greater Canada? l r 'i:iiit ititipi, year adds to the record o our ompany's achieve- Tents; magnet: yegr_bxjngs gym; 1tefttes Nteded _ r, Canadians ' ' it C ' b-------- A " A " I A ‘A‘v "qt------------------------- TOYAI. TOTAl ASSURANCE! IN ma, MC. " "" . . . (Excluding Annuilia) TOTAL PAYMENTS " MUM AND BENEFICIARIES IN I," . . NEW ASSURANCE' IN t9St . (Excluding Annuities) SUlPtDS EARNED IN "s, . LOUISLLANG. 82nd ANNUAL REPORT HOME OFFICE ( Providing continuance of Mural code of my]. distribution to policyholders.) . Aeorrofeseeemru--rr_r-aeNC-'-t 'rteenu-artuertomeoSe-r9-rr.t9"sadttb-etrm-. T HE MUIUAl llFE Outstanding Items from the Assurance Company or CANADA . sultnnt prosperity or industry In . . l the East, the demand tor invest- stair??? .311th s'l'i,fl w” 'J.'n _ ment funds provided returns um nigh “as: planet)! m" . which greatly stimulated savings s 'ee.yrr to m provmon tor) land the expanding life insurance the v'.l','l'Tse'lti',"t or advanced "e" ‘lbusiness was encouraged to devise tl we 1 'U?, hazard t! New.“ policies which tdtorded an op r- ure "It "r, em was little I tunitv for a large section 'l,'lt ltd"?,, or concern .ot1 the part ot population, whose savings were t t. "e insurance industry gener- , small but regular, to share in the tuly and program selling, based on . rising prosperity ot the country. the normal "Weeklies ot To: _ dern living, utilizing the varied l Value of “Permanent" Insurance forms at optional settlements The increasing element of SBV- available under modem contracts. ings in life insurance premiums provided the Pe?ff ot "PM? so es- manifested itaelt in rapidly episential to good citizenship lr? these l panding funds available tor in. PP.rs of perplexing economic con- , vestment which. in turn, acceler- dawns 1Jnr.ortururteir, recently ', ated the development of our Wes. there MES arisen a group of life , tem Provinces by providing the underwriters who advocate tem- l funds necessary to purchase porary or term assurance only , farms and to tlnance seririceq for and, because of the relatively low , the distribution centres so essen- cost of such temporary insurance, e tial to the colonization ot new this has made serious inroads into , agricultural areas. The demand the popularity ot permanent plans. t-for investment funds exceeded Pf While there is, undoubtedly. a "supply, with resultant high intern place for temporary insurance, in l est returns which were Gitjieliiottt domestic and business cir- available to small savers through cles, many ot the weaknesses of This has not come tooaoon. For twen.ty. year: the trend of inter- est yields has been downy-rd and has lent strung impetus to the n- uumenu of the relatively few who advocate lite tnsunnce for pro- tective pupa-es only. lf this atti- tude tow-rd life inmnnce shotild become teamed generally. it is in- “rating and, to me, disturbing. to contemphte the probnble ulti- mate effect on the nltioml eeono- Gnvnh " Savings Foam lulu-tune Policie- The colossal monument to thrift and home protection. represented by our Canadian life insurance companies, is largely a product of the twentieth century and me from the ashes of the noble at- tempt. ot the later decades ot the nineteenth century. to provide tamily Krotectlon on a current bav sis. Wit out my attempt to evalu- ate and provide for future re. quirements. The absence of on adequate element of savings in the early policy years resulted in no reserves to meet the largely augmented demands of advanced years. To the credit at Intermi organizations. however, it must be said that the importance of fam- ily protection became deeply, in- grained in the ttei conscious- new and, when e weaknesses of the excrement system become up: parent, the groundwork had been laid tor the rapid expansion of life insurnnce in the form we now know it, based on sound oetuarittl principles. During the fraternal society era, the growth of the so- called "old line" life insurance companies was slow and the re- serve funds, which were steadily accumulating. represented but an 'tgi,,',','?',,',',",','.,": portion of the tttV tiona savings. However, co~inci~ dent with this turn to sound lite insurance, came the surge of Cam ada's growth. With the opening of the Canadian West and the We sultnnt prosperity of industry in the East, the demand tor invest- ment funds provided returns which greatly stimulated savings and the expanding life insurance business was encouraged to devise policies which tdtorded an 'l'lt tunitv for a large section of population, whose savings were small but regular, to share in the rising prosperity ot the country. Value of “Permanent" Insurance 'juh+roh.t.h-trh.i.h., M.h.,aeet"atager WATERLOO, ONTARIO A. . MINERAL LIA. FSA. the medium of life insurance " II no wonder that lite insurance prospered and that policies in which the savings feature predo- minated became justly popular. For a period during these golden years, policies issued by our Com, pany. maturing in twenty years. returned all premiums paid with compound interest in excess of 1%, in addition to carrying the risk of earlier death, This golden era closed abruptly in the early thirties. The rapid growth ot both industry and agriculture came to a halt and there was lit- tle demand tor investment funds. Interest rates declined rapidly, from a gross average rate in this Company ot 6.48% to a low of 3.50% in 1949, when the upward trend commenced This period of law returns was prolonged and accentuated by the tunnelling of the national savings into govern- ment war loans at low interest rates. As a war economy mea- sure these low interest yields may have been iustified, but the ettort to indefinitely maintain such low rates was abandoned during the past year. The post-war expan- sion of our country. both " to housing requirements and indur- trial growth, produced a demand tor funds which could not be at- tracted other than by a more re- munerative return. It is not sur- prising that during the past two" decades there has been an itwretts- ing trend toward life insurance policies which place the greater emphasis on protective features. This trend was iustithed by the need of a larger coverage to offset the steadily diminishing purchas- ing power of the dollar. A. B. PM: 8 387360.60] t 23,160,007 ' 183,762,542 81,Sti6,S62,1t3 age M, based on a modern "gtrlte/ my table, is TIS, at age 35 the) chance is "s, and at age As, 16%.‘ Newton, the provision bf family Protection beyond age as is equal, y, it not more important than. prior thereto. The second fallacy is the claim that an individual can invest the savings portion of a per- 1 manent plan premium to better) advantage than can a lite inaur-, ance company. The truth is thel exact reverse. The average indi-, vidual cannot invest these small“ amounts to equal advantage and,,) furthermore, if he were able to; do so, very tew would persevere} in so doing. The success ot life insurance. from the standpoint of [ the policyholder, is acknowledged” by one and all to be the systema- tic and enforced necessity of malt-! in. provision for constantly re-) curring premium payments in or; der to make secure the plan oti (unily and business protection upon which one has embarked.! Without a deitnite program, the' proportion of such systematic sav- I ings which could successfully, compete against the lure of the' non-essential luxuries of modern; life is anybody’s guess. My guess is, a very small proportion. Ini these days, the importance of the./ savings portion of life insurance premiums as a strong inftuenee in) retarding the itttUtiott spiral) should be obvious. I Having considered the benefi-' cial aspects of permanent lite mm sunnce protection from the standpoint of the individual polin cyholder. I would be telling but) half the story if I did not give prominence to the important part played by accumulated life insur- ance funds in the development of our country and the conduct of the national economy. At the turn] of the century the funds of life insurance companies played a re- latively minor role in the conduct of our nation's affairs. As lite in- surance - by leaps and bounds in the early decades of the twen- tieth century. its steadily "eumu- lating investment funds soon as- sumed a prominent place in the flmutcing of our country's expand- ing economy. attaining a domin- ant position in the securities and mortage loan market. The uni- form ow of these funds into per- manent investment provided sta- bility to security prices and the hallmark of excellence was attri- buted to investments attractive to 1 life insurance companies. The ex- pansion ot our public utilities, primary industries, municipal ser- "vices and country-wide housing 'was greatly facilitated by the ac, ‘cumulated small savings of ap- oroximately eight million Cana~ \dian policyholders. The ever ex- ipanding National Housing pro- igram is supported almost entirely oy life. i'tT'rie, funds. Had our nation's e insurance program ‘been restricted to term insurance these vast public savings would not have been available tor na- tional pm. " estimate that, Insurance Investments Play Vital Part In than: Building instead ot . life insurance invest- ment in Canada of over four and a halt billion dollars. a! which it now stands, this amount would appmximue not much more than one billion dollars it these policies were all on the term plan. As these investments have steadily increased throughout the years. the accumulated adverse effect. on our country': development. had they not been available as re- quired, is ditBettlt to appraise. I am confident that continuing high yields on investments will prove of irteatimatrle value in retaining for complete, permanent life in- surance protection the wide- spread popularity and esteem which it has earned by sound, faithful and emcient administra- tion over the yarn. Canadian Insurance Protection - National Inca-lie lmenheu! ot the Gov-mm Autumn Act, which propose: to double the maximum amoum. ot sub-saw annuity midi-bk to M.- dun/In under an ' Thi. feud in Camel: stands at 110%. the only nation whose busi- ness m fame exceeds one year's nation-k income. The United States, "Ilium. recognized " the world's most heavily innured ne- tiom “and: " 001.. While these ttgurea give proof of the relative popularity of lite insurance in our countty. the steadily declin- ing 'e"Z,',r,',i"e't of the national 'trt- come evoted to life We premiums does not hastily eny exuberance over our qtsemrttrlistt- ment but rather was prove an incentive to Mr art to di- incentive to Mr alto-rt to di- vert a larger proportion of the existing prosperity into reserve: for future security, M.W‘ At this mint I would like to add my vo to the others which have been mined in rm: month: Figures recently made available indium that Canada leads the world in the ratio of ownership of life immune: to national income. in; m and. “I in - mom' (Continued on E New business issued, over $133 .Mlllion. created a record tor lour Company. Of this, over $l20 [Million was Ordinary business and $13 Million new Group ttttsi- fncss. We do not include. purely .annuity business in our produc- ‘iiun results. Many companies in- clude annuities, in most cases, a ‘substantial amount, making it dinicuit to compare lite insurance ‘results. More important. how- lever. in my opinion, than in- (creased v.olume., is an increase in 'Ahe number of policies placed f during the year. The trend to few- ler policies, in the face of increased ivolume, which began five years Iago. caused serious concern in life ‘insurance circles. The continued le',,',?,':"),",," of life insurance de- _ pends on increased public popu- rlarity rather than the reverse in- dicated by fewer policies. For several years we have been em- iphasizing to our field men the 'ultimate effect of such trend and ‘1 last year the number of policies )placed was made a speciflc factor l of compensation. The results were ‘immediately apparent. Whereas (iii. 1950 the number of policies ',placed showed a decline of te; ’from the previous year, in 1951 _ there was an actual increase of Jim. The increase in business in force. close to $100 Million. com- iprises 379300.069 Ordinary and f$20.l00.000 Group. The increase in Ordinary business which repre- , sent: 05% of new businm placed. is most satisfactory. indicating a ', very low termination experience for a Company of our age. Our ‘ lapse record continues to be the envy of the North American con- ' tinent. Unfortunately. Group busi- ness does not show equal persis- ‘tence. $46 Million new Group r business placed on the books. F either in the form of new policies j or additions to old, produced an I increase of business in force of f $20 Million, 43%. The relatively large terminations arise from , changes of employment and em- I phasize the greater stability of in, ' dividual insurance on permanent . plans. Group insurance is, un- ' doubtedly, well adapted to tem- F porary requirements) but cannot , be counted upon to replace a well 1 planned life insurance program. , Expense Rate Lower l The highlights of the Compa- ‘ny's operations during 1951 have jbeen covered by the Directors' lReport and further details are in "your hands in the form ot the icotyeru"s statement of Income rand Expenditures. the Balance Sheet as at December inst, 195). {and our Eighty-two Years' Re- 'cord, of which all poligholders (can be justly proud. Wi out ex- (ception. the results last year were :entirely satisfactory in every lbranch of the Company‘s opera- I trons. possibly the most uniformly _.e.',iyisi,tey. year in the Compa- _ ny's history. le, Insurance Exceeds $133 Million a t trust you will pardon my hav- ing taken so much time in deal- zing with one Important phase of "te, great business In which we, las policyholders of thus Company, lshould be seriously concerned. "Jar company's slogan for there Fdays. "Protect While You Save", Hun be prominently displayed on anlboards throughout Canada during the next few months. l ( 'Moat Satisfactory Year In ‘Mumal Lite History . companies cmnot “wee-fully compete, places m the hands at term msunnce ndyoentr, I strong argument “mt utm- ment wines. The mooted: at all permanent lite Imam pellet-I. ot both the protective and um portions, are, by contract. Ivmlable at the option of the u- sured or treaeikiasry in “tying torms ot annuity, And for the gov- ernment to enter actively into ex- panded annuity operations, with a saunas feature such as plund- ed by a cash surrender value. would detutitely retard the com tinned growth of lite 'tnauragtee funds and greatly hamper the operations of the country's ten thousand or more lite Insurance representatives who are playing such an important role In encour- ngmg mun and home security thfoughout our mutton. There is nothing noteworthy to report in the items of Income and. Disbursements other than, owin to the substantial increase in total income, we are able to show an expense ratio slightly less than that of the previous year. Faced as we are with many uncontrol- lable items of general expense, all avenues subject to control are be- ing studied and. where economy can be effected. procedures which do not impair essential service to policyholders are moditted. One. such change in practice adopted during the year eliminates the use of receipts for premium payments made by cheque. Movement In Ase! Structure an increase of almost " Million. arising largely from a substantial increase in public utility and in, duslrial securities. In the early months of the year. we continued our policy of decreasing our large holding of federal and provincial bonds as favorable opportunities for investment in more remunera- tive securities were pruented. The net result II that Canada bonds now comprise 36% of total assets, as compared with 00.2% a year Mo and a hifh ofS9,2%, The drop in value 0 Victory Bonds had an immediate affect on all bond and debenture securltiu, and we wen able to increaaa our municipal holdings by $800,000 " The distribution of assets calls for _little contmtrtt. Bonds show Mttri2ttmuhaV tteRt PM.)