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DOMINION LIFE REPORTS ~ CONTINUED PROGRESS "Our business in force figures of $476,790,000 indicates a commendâ€" sable increase for the year and, although none of us claim the gift of prophecy, I think with Mr. Upton, I can safely predict that, before our 64th Annual Meeting, our business in force figures will be well over the halfâ€"billion dollar mark. Qur company is growing gentlemen, and growing apace; which means that, in the years shead, we will have new problems *o face. The results in the report gou have heard, however, indicate that our company is in good hands and we can look forward to aggressive administration, as the sompany grows and new probâ€" lems are encountered. advantages of life insurance, as a medium of family savings is not being overilooked, and that as soon as circumstances permit, inâ€" dividuals will take advantage of their conversion privileges and obtain more permanent types of protection, which wil}l include savings features for their own "The reduction in the purchasing power of the dollar is of vital "The death of the King has spread a mantle of sorrow throughout the Commonwealth and it seems only fitting to extend our public sympathy and take cognizance of the bereavement which has fallen to the King‘s survivors and to all his loyal subjects throughout the world. "Long live the Queen! m?;:;;’::;::;;kfi:;? iseel: pf-o.vide financial .se.curity for inâ€" so ably presented by our Viceâ€" finndua@s and fal.mhes by promotâ€" President and Managihg Director, | ‘}E habits of thrift. In these days, Mr. A. S. Upton, rem hat the dgcpx?e the fact that jncomeg are Company is continuing to proâ€"| PiEN in many quarters, there is a mo protection at all. But it is "The visit of his daughter, our present Queen, to Canada, following so soon after the King‘s serious illness and during his convalescence, gave us an insight into the devotion of the Royal Family to their responsibilities and brought our people to understand more clearly something of the family spirit which is so vital a characteristic of the Royal Household. this report â€"covering as it does, so many favorable aspects of our operation, is a source of satisfacâ€" tion to everyone associated with our company. "Our field organization, as indiâ€" cated by the volume of premiums which have been recorded â€"the largest total in the Company‘s history â€"is deserving of special mention. The field men have demonstrated in an admirable way, throughout Canada and in our branches in the United States and Jamaica, their abilities to sucâ€" cessfully develop our business, under a highly competitive free "I think we have had every reason for gratification, as we reâ€" viewed with Mr. Upton, the careâ€" ful analysis of the varied phases of our business which he has Business in Force Approaches purchasing power of the dollar is the reason for the comparative reduction in the sales of investâ€" ment types of contracts. the family unit to be protected with term insurance than to have ours, whose primary purpose is to Waterloo, February 8th. â€"Mr. J. E. Frowde Seagram, President, The Dominion Life Assurance Company, while making a motion for the adoption of the 63rd Annual Report, spoke as follows: "The sudden death of His Majesty, King George VI during this week came as a shock to all people of the Commonwealth. As head of the British Emfiire, King George VI had endeared himself to his people. His sincerity and devotion to his arduous tasks, his qualities of humanity and serious, democratic personality earned him a very real place in the hearts of all his loyal subjects. ‘‘The number of term contracts being sold continues to be proporâ€" tionately high. lil'hj.s is a sign of the times, since there is no quesâ€" tion but that the present low Proposed Increase in Government Annuities Unfair to Majority PRESIDENT J. E. FROWDE SEAGRAM §SEES GREAT FUTURE FOR CANADA "It is much better, of course, for Low Purchasing Power of the Dollar of Vital Concern to the Life Insurance Industry Proposed Changes in Government Annuities "The Government recognized reâ€" cently the problem of high living costs as they are encountered by those who have reached old age, by providing, through the Old Age Security Act, $40 a month to persons upon reaching the age of 70, regardless of their means. We in the life insurance business commend this action as sound. But it is difficult to understand, }Xn these days when overâ€"spending ‘on the part of the government is to be deplored, how responsible agencies can consider the proposal ‘to increase the monthly amounts available through government anâ€" nuities, to $200, and the introducâ€" tion of cash values into the conâ€" ‘tndn. We see no reason why the Canadian public should be called upon to pay the subsidies on anâ€" nuities which, in the last analysis, are purchased principally by those in the upper income brackets. _ "Originally, the idea was introâ€" provide financial security for inâ€" dividuals and families by promotâ€" ing habits of thrift. In these days, despite the fact that jincomeg are high in many quarters, there is a large groupâ€"including the old, those who depend on fixed inâ€" comes, and those whose incomes have risen only slightly â€" which is bearing a heavy burden because of present inflationary pressures. "Such people have not only found it difficult to stretch their income dollars sufficiently to meet the costs of the necessities of life, but their savings have been that, in addition to inequalities which inevitably exist in an inâ€" flationary period, the encourageâ€" ment of .thrift is hampered and efforts to provide for the future are, in a great many instances, ineffectual. "I think it may be said that inâ€" flation is the most serious single difficulty we have to face today, not only in our business, but in our whole economy. I do not think there is any one way to inâ€" crease the value of our dollar. Many different cures â€"some good â€"some bad â€"are being, and will have to be, tried in the future. You will agree with me, however, that there is no easy solution to the problem. If it is to be solved, we must all be willing to face difficulties and inconveniences and to exercise selfâ€"discipline, especially in our endeavour to coâ€"operate with antiâ€"inflationary governmental measures. Most of the policies which are designed to put a check rein on runaway prices, even when they are soundly conceived, are often unâ€" pleasant and inevitably hurt some businesses and individuails. They merit support, however, not only in our business, but in our private gradually depleted. It is obvious 63rd ANNUAL REPORT REVEALS HIGHEST PREMIUM INCOME, IN HISTORY OF THE COMPANY, FOR 1951 _ ‘"There is not enough Canadian ‘risk capital, due partly to excesâ€" }sive taxation, to develop the reâ€" sources we have at our disposal | and it is a bright sign of the times fthlt so many United States dolâ€" llars, in the form of venture capital, are being invested in the |vast developments which are £taking place in our Western oil fields." flllch Future for Canada \ _ ‘"The pipeline from Alberta to 1Superior, Wisconsin, is now in operation and other projects | which will transporte oil from Alberta to the west coast and from Sarnia to Toronto are in prospect for the immediate future. Canada is to be much richer beâ€" | cause of the oil discoveries which ‘have been made and the rapid development which is taking place. "But there are other things which brighten the future prospects for al Canadians. Tremendous strides are being made in British Columâ€" bia to increase the production of aluminum, and of pulp and paper products. These developments are influencing the growth of the City of Vancouver, where the per capita income is said to be the highest in Canada. In the north easterly part of our country, in [the vast reaches of Labrador, anâ€" |other spectacular project, which will result in an increase in the production of iron ore, is presentâ€" ly being pushed forward. Large sums are being invested in port and dockage facilitiee on the St. Lawrence River, at the southern: end of the railroad now under construction. This railroad wil} serve the mines in the interior which are reported to contain bountiful supplies of the ore "Under these circumstances, the | proposal to increase the amount of retirement income available to} double the amount is unfair to| the majority, since not only are ; the administrative costs borne by | the tax payer, but substantial sums have been paid from general | tax revenues to keep the fund on] a sound basis. During the fiscal year 1948â€"49, it is reported that | the tax payers contributed mil-) lions of dollars toward the mainâ€" tenance of Annuity fund reserves. | The new proposals will simply | increase the burden of taxation to | the many and will result in proâ€" | viding retirement inco»mesâ€"atJ less than costâ€"for the privileged ‘ few. It is to be hoped that the: proposals which have been put | forward will be defeated after ; further investigation and thought | have been given to them." I Canada‘s Soundness | Invites Confidence f make provision for their retireâ€" ment. Small amounts have been purchased by such individuals, but it appears that the bulk of the purchases have been made by the wellâ€"toâ€"do or by corporations for group pensions for their emâ€" ployees." Subsidies Substantial "I would like to taik to you for a few moments about some of the favorable aspects of the current scene which, I think, justify optimism for the future of this country. The removal of foreign exchange controls, for instance, is not only a welcome relief from regimentation, but indicates our sound position in the world. This, with the recent increase in the value of the Canadian dollar on the world market, surely indiâ€" cates the soundness of the Canaâ€" dian economy. Such soundness invites confidence and there is much evidence that this confidence is resulting in an influx of Ameriâ€" can capital investments for proâ€" jects which have as their aim, the development of our country‘s resources. U irmeccas :m arl jl_. 30________|Uihices maintained in the Uni "Canada is the last democracy|States and from the Branch on earth in which so much new Kingston, Jamaica. “ development is being planned and | _ "Another pleasing feature of |undertaken from so great @\new business operations in 1 ;Wealth of virgin resources. is that wis have adain heen s "Mr. J. H. Gundy, CBE., LL.D., whose national and international reputations in financial circles was well known to you all, was a member of the Board of Direcâ€" tors from 1920 until his voluntary retirement two years ago. He passed away on November 10th, 1961. ‘"During his service on the Board, Mr. Gundy‘s advice and counsel stood the company and his fellow directors in good stead. 1 deeply regret to record his passing. "We are indeed entering a dyâ€" namic era in the development of Canada. We have seen and will continue to see, the results of the confidence that British industrialâ€" ists have in the basic soundness of our economy. Some plants have been purchased or built here alâ€" ready by industrialists from the old country, and there are new factories on the drafting tables which will involve the investment of substantial amounts of capital. When these projects are comâ€" pleted, they will provide néw employment for our people and new riches for Canada. % "I regret to record that, during the past year, the company lost through death, the Chairman of the Board of Directors. Mr. George A. Dobbie of Galt, passed away on May 24th last. Known throughâ€" out Canada as an outstanding inâ€" dustrialist and financier, he was appointed to the Board of Direcâ€" tors in 1919 and was made Viceâ€" president in 1929. ‘‘The loss of Mr. Dobbie, who served the company in an outâ€" standing way for many years, in the capacity of Director,â€" Viceâ€" president and, since 1948, as Chairman of our Board is one which we all feel very keenly. ‘"These are only a few examplées of Canada‘s new role as a world producer, but I feel they are jmâ€" portant and significant, especially when they are viewed having in mind the incalculable wealth poâ€" tential of the St. Lawrence seaâ€" way. The development of treâ€" mendous hydro eléctric power and the transformation of what are now inland lake ports into vital links in the chain of comâ€" merce along the shipping larfés of "The Dominion Life is growing with the Dominion of Canada. As| our country develops, and proâ€" vided our immigration programme continues to be accelerated, we in the life insurance business can look forward into the future with sanguine optimism. The insurance in force in Canada, per family, is not highâ€"approximately $4,000â€" and we have an opportunity to render even greater service to the public, if we are ready to widen our facilities. We have an unsurpassed opportunity for subâ€" stantial, steady growth and 1 am sure that, in the light of what is being done to develop the counâ€" try, the darkness on the economic front will be dispelled. ‘ which is so essential â€"not only to our defence programme â€" but in the development of our ecoâ€" nomic strength as well. Canada will be much richer in the future because of the developments beâ€" ing undertaken in Labrador. "Given peace in the world, in the future, we can look forward to an era when opportunity for Canaâ€" dians will be unlimited. the world, indicates the thinking and planning which is part of the new, progressive attitude in the nation." Unsurpassed Opportunity Ahead President, The Dominion Life Assurance Company, who movâ€" ed the adoption of the Financial Statement at the 63rd Annual Meeting, held in Waterloo on February 8th. J. E. FROWDE SEAGRAM ‘"‘Tangible evidence of the conâ€" ‘tinued growth and expansion of | our business outside of Canada is {to be found in the fact that apâ€" | proximately oneâ€"third of this subâ€" | stantial volume of new assurances flowed to us from the Branch |Offices maintained in the United "You will note that the news assurances effected, increased and | revived during the year amounted | to $64,537,593. Had we not made} certain changes in our system of recording new assurances during’ 1951, this volume would have been approximately Five Million | Dollars higher. This is borne out( when we examine the new preâ€"} mium account which established’ an allâ€"time record for our Comâ€"| pany in 1951. ] "Another pleasing feature of our new business operations in 1951 is that we have again been su@â€" cessful in maintaining our preâ€" vious standard of obtaining a much higher averageâ€"sized policy Waterloo, February 8th. â€"Mr. A. S. Upton, Viceâ€"President and Managing Director, The Dominion Life Assurance Company, while presenting the Company‘s 1951 Statement to the 683rd Annual General Meeting, spoke as folâ€" lows: "As an international organization we transact business in three curâ€" rencies: the Canadian dollar, the United States dollar, and the pound Sterling. In the report beâ€" fore you the United States dollar is taken at the rate of one dollar Canadian, and Sterling at the rate of three Canadian dollars to the pound." "It is my privilege to present the 63rd Annual Report of The Dominion Life Assurance Comâ€" pany and to draw your attention to the salient points embodied in the report. that experie;ced by rmo;.’t( Bank of Toronto Bldg 1951â€"ANOTHER YEAR OF PROGRESS! A. S. Upton Reviews Company‘s Progress in 1951 Averageâ€"size Policy $5,200 REPORTS HIGHER INTEREST EARNINGS ON INVESTMENTsS GEORGE M. BECKER Mortality Experience Shows People Living Longer WATERLOO Copy af complete Statement mailed on request. at Canadian companies. This figure for 1951 is just over $5,200. "Even this brief reference to our new businessâ€"getting activity in 1951 must make it abundantly clear that the Company was capably served." Assurances In Force "The increase in assurances in force was gratifying and amountâ€" ed to $34,307,445, bringing the grand total in force at the end of 1951 to $476,797,665. Every Branch Office throughout the service conâ€" tributed to this splendid result and, granted the same growth during 1952, we should pass anâ€" other milestone, the halfâ€"billionâ€" mark, well before the close of the current year." Income ums.deposiled with the Company "Income from all sources in 1951 reached a new high and amounted to $19,353,779.13. The total premiâ€" commenmmmensithontiiinetiihernentinesstiemmmzm d [talled $2,213,231.23; policies surâ€" A. S. UPTON ‘rendered prior to maturity $1,â€" Viceâ€"President and Managing |(8408299; dividends to policyâ€" Director, The Dominion i.ite owners $810,009.45; ma_tured enâ€" Assurance Co ny, who preâ€" |dowments $679,608.21; income to sented theh 63.Ed E:inancial Statei annuitants $356,922.25; and group ment at the ay‘s ua i "and si i t Meeting on Fegguary &lgn "$21,:4..;2.a sickness elsims o 1 King St. North 52â€"0 _ "It is interesting to note that 97% â€"by number and 80% by volume of our new loans were made on the security of property designed for dwelling purposes. Over 92% of these mortgages will be repaid as to principal and inâ€" terest, on the monthly repayment plan. ‘‘These loans play a dual role, inasmuch as they provide a sound policyowners‘ savings and, at the "Interest, dividends, and rents | amounted to $3,678,843.26, and the [balance of our income was made | up of amounts left on deposit by Eour policyowners, and other reâ€" | ceipts." §r.,mu To Policyowners ‘and Beneficiaries "The Mortgage account increased by $5,240,652, bringing our total investment in mortgages to $31,â€" 436,088. This represents more than twice the amount of mortuqe loans outstanding four years ago. "It is 'grnli(ying to report that there is no overdue interest on this large Llock of assets, and that no bonds or debentures are in default. ‘‘Policy loans increased to $5,â€" 285,230.43 during the year and Real Estate to $685,732.79. "At the close of the year the total assets of the Company amounted to $108,310,143.88. This represents an increase during 1951, of $8,â€" 774,324.98. The major portion of our assets continues to be invested in bonds and debentures and we held $61,376,326.40 under this heading at the end of 1951. Stocks, preferred and common,, amounted to $4,535,322.89. "The mortality experience for 1951 was the most favourable in the Company‘s history. This imâ€" provement has been a progressive one in recent years and unâ€" doubtedly reflects an overall betterment in living standards and the marvellous advances made in medical research. Some realization of the improvement I refen to may be gained when we compare the average duration of all claims incurred in 1948, of fifteen years and two months, with the average for 1951, of eighteen years and one month. "Heart disease in its various forms remains the ‘great killer‘. Over 40% of the death claims in 1951 are under this heading with an avernage age at death of 59 years." "The cash paid out to policyâ€" owners and beneficiaries during 1951 amounted to a total of $5,842,098.95. Of these payments, death and disability claims toâ€" ‘‘Payments made under claims payable in instalments, together with the withdrawal of amounts previously _ left on _ deposit, amounted to an additional $1,â€" 776,846.14. "In addition to the above payâ€" ments, ‘7,084.395 was credited to the policyowners‘ reserves which are set up to provide future payâ€" ments under insurance and anâ€" nuity contracts. The total of such reserve funds set aside for this purpose now amounts to $87,â€" 633,970." Mortality by our policyowners, made up of new annual and single premiums arising out of the large volume of new assurances previously reâ€" ferred to, and renewal premiums on assurances in force prior to 1951, account for $13,390,530.90. , make a substantia) ‘‘The report presented to you toâ€" day gives us reason to believe that we enjoy the confidence of the insuring public and that we shall continue to merit this confidence in the future." "We do know that given a reaâ€" sonably favourable atmosphere, the prospects for Canada‘s future development are unsurpassed. ‘"‘We do know that upwards of five million Canadians have deâ€" monstrated their desire to provide financial security for themselves and their families by owning nearly Seventeen Billion Dollars of life insurance. in the western world declaring that 1952 is the year of decision, it would indeed be foolhardy for a business man to venture a foreâ€" cast regarding conditions for the coming year. Any changes in world events will rapidly make themselves felt throughout our national economy. The contingency reserve was inâ€" creased substantially and this reserve together with unallotted surplus now amounts to $3.965.â€" The Future Outlook "In the present state of interâ€" national affairs and with the heads of responsible governments _ ‘"The other liabilities to policyâ€" owners are fully described on the balance sheet and require no parâ€" ticular comment at this time." Surplus Earnings "Surplus earnings in 1951 reachâ€" ed a high point of $1,530,049. Dividends paid to policyowners amounted to $810,008. In addition, an increase was made to the policyowners‘ dividend reserve. ly in excess of Government reâ€" quirements, being determined on an interest rate of 3% or lower. life insurance company‘s balance sheet, since it is this fund which, with interest and future premiâ€" ums, must provide all payments under the insurance and annuity contracts outstanding at the end of 1951. These reserves are greatâ€" _ "Undoubtedly the most fmporâ€" tant developments affecting the investment operations of life inâ€" surance companies in both Canada and the United States during 1951, were the decisions reached in Ottawa and Washington to reâ€" verse previous policies in an effort to combat inflation by direct monetary action. The pegged prices of Dominion of Canada and United States Government bonds were successively reduced by the Bank of Canada and the Federg) Reserve Board. This action h!s tended to more effectively conâ€". trol the money supply and reâ€" sulted in higher rates of interest. ‘"‘The opportunity of investing new money at much more favourâ€" able rates of interest however has brought about a decline in the market values of older security investments." Liabilities ‘"‘Turning now to the liabilities shown on the balance sheet, the principal item, policy and annuity * reserves, now stands at $87,633,â€" would be the case ffom a tenant of rented property." Interest Rate "For some years the rate of return on investments generally has been influenced by the finanâ€" cial policies of the Canadian and United States governments. In order to borrow as cheaply as possible the amounts necessary to service the national debt it has been the policy of both governâ€" ments, mainly through the meâ€" chanism of their respective cenk tral banking systems, to keep interest rates low. Under these conditions interest rates were prevented from performing their normal function of maintaining a balance between the supply of savings for investment and the demand for investment funds. "As a consequence of the higher rates of interest Available on new investments and a shifting of a large amount of the Company‘s assets to investments of higher yield, the rate of interest earned on the Company‘s assets in 1951 increased to 3.87% in comparison with 3.75% in 1950. We look to a further increase in our investâ€" ment earnings during 1952. constantly growing population. Our activity in this field provided approximately 1200 families with living accommodation in 1961. Moreover, the repayments were arranged, in the vast majority of cases, in such a manner that the monthly payments required by contribution the tremendous task of provfi( housing for our ‘"‘This is the ‘key‘ figure in a