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& AECOCEC NERZ T ERCIEDIINRADOE AOV RMMIS CUIIE Since then, for‘twenty:o try five years ago. To maintain seven _ years Canada‘s the investment boom and a risâ€" gross _ national product | ing standard of consumption at has shown remarkably ;'he _z;ame time, we borrowed steady #growth, even afâ€" trco:;v'oÂ¥ r;t;rr:):dofan:ursor:gli:g:l. ter a_dJUStment for chanâ€" | resources and industries. ges in the value of the dollar. However, on two e ,R""""G'r: '::""A':" d occasions the presidentâ€" as o W ea ial address revealed that Since 1957, the pressure on Canadians‘ were S(.\rious- the economy from this large 1 oncerned about the | invyestment program has gra Y C . t ._ | dually eased. The total amount future, and each time this | pf imoney devoled to capilal anxiety was illâ€"founded.| investments has fluctuated in When the country was |a relatively narrow range but moving out of the depths | real gross national preduct has of the depression, there I""t"’(:'"”;’d fo Fige s :,'."l?‘ ihe was widespread fear that| |abour force and our ability to s support â€" such an â€" investment the economies ofâ€" the program. Looking back, we western world had reachâ€" | may be thankful that the peak ed maturity and stagnaâ€" | of this tremendous boom was tion. K#ater, Canada enâ€"| followed by a high platcau tered the peacetime ecoâ€" with no decline in gross naâ€" [ La â€" J tional product. nomy at the end of the The last three years have Second World Wm,‘ "? 2| been a period of adjustment. mood of fll’l”’_*“_""‘“”'! â€"~ | However, the very duration of a mood surprisingly simiâ€" | this period suggests that we lir_to that which is so | may n on i9 seee sroany reon widespread today. Act.| ond, and we have already seen can I there 1,“_' uhrad | the modification of some of the iYÂ¥ : © ; 2i‘ ‘»ctors which gave rise to our an invertment Loom Of jroptems. The fear and expocâ€" unprecedented size and jation of inflatioh have been @ New Insurance Sold $360,544,000â€" Insurance In Force Rises To $3,179,505,000 w © o_ _e # Surplus Earnings Reach New Record â€" Dividends To Policyholders $13,102,000 â€" lgreatly reduced and the preâ€" . the same time exerting every . ness is represented in the Bal Net Interest Rate Earned Is 506% mium on the Canadian dollar | effort to keep the interâ€"continâ€" ance Sheet by liabilities totallâ€" * in the free foreign exchange ' ental lines of trade open. While ‘ ing $199 million, an increase markets has declined shalrply. { Canadians have always shown Of $!8 million forlfthe year, and These adjustments will help to a mati _ approximately half as large as "ew Mongage 'nveStments restore business§ confidence | fm?:lngmfiggmnfi:j? eztx?le:‘: the liabilities for the $2%° bilâ€" and a normal rate of growth. | these powerful {Norld-ufide for. lon of ordinary insurance in 8 oo ooo In addition, as we entered the | [ /; may weil have a firm hana force. These accounts too are cee 1 1 1960s, it was expected that ris °; _~p. ",~ oue national destiny â€" @XCluded from the published â€" Mutual Life of Canada Individual _ _ _ Insurance Sales Up 11% in 1960 Twentyâ€"Seven Years of Growth In the speeches of the early 1930s, you can feel the crushing force of the eeonomic collapse which began in 1929 and exâ€" tended through four difâ€" ficult years â€" each one worse than the last â€" to reach a climax in 1933, when the level of unemâ€" ployment averaged more than 19% of the labour force. PACE EICHT w "I am an optimist about Canada," said Presiâ€" dent E. A. Rieder, when addressing the 91st annual meeting of policyholders of The Mutual Life of Canada at the Company‘s Head Office in Waterloo yesterday. He said that the Mutual Life is making plans for expansion in line with Cansada‘s longâ€"term trend of growth in both population and gross naâ€" tional product, and stated: "This country‘s fundaâ€" mental position remains one of impressive potential strength." With this in mind, I have found it most interâ€" esting to reâ€"read the speeches of former Presidents ef this Company at Annual Meetings over the last thirty years. Their comments reveal not only the changing pattern of economic events, but give some indication of the future as viewed by Canadians at the time. j S r en t meronnmnommmogrmmuntsrererot nrmmme mm oentwree Mr. Rieder reported that the Mutual Life had continued to grow in all areas of its operations in 1960, which he termed "a year of excellent proâ€" gress." He reviewed Canada‘s progress in the past twentyâ€"seven years in which the gross national proâ€" @uct has shown remarkably steady growth. The complete address follows. A Long View of Canada‘s Development Needed Because our :operations have been confined almost exclusively to Canada for ninetyâ€"one years, this Company is vitally concerned with Canada‘s economic growth and prosperity. This year, it seems more necessary than ever for us to take a long view ef our national development. : The last three years have been a period of adjustment. However, the very duration of this period suggests that we may be reasonably close to its end, and we have already seen the modification of some of the Since 1957, the pressure on the economy from this large investment program has graâ€" dually eased. The total amount of money devoted to capital investments has fluctuated in a relatively narrow range but real gross national preduct has continued to rise as has the labour force and our ability to support â€" such an â€" investment program. . Looking back, we may be thankful that the peak of this tremendous boom was followed by a high platcau with no decline in gross naâ€" tional product. The gross national product rose significantly above the longâ€"term trend line in terms of constant dollars during the Second World War and the Korean War, when every efâ€" fort was bent toward increasâ€" ing production, and again durâ€" ing the free spending period of the mid 1950‘s when the, inâ€" vestment boom reached feverâ€" ish â€"proportions. We tend to forget the intensity of econâ€" omic development in this counâ€" try five years ago. To maintain the investment boom and a risâ€" ing standard of consumption at the same time, we borrowed heavily abroad and sold conâ€" trol of many of our national resources and industries. duration. Periods of Exceptional Economic Expansion Have Occurred THE WATERLOO (Ontarie) CHRONICLE and to make the most of â€" at On this continent, we have found that our economic ties with the United States have become _ increasingly _ importâ€" ant. A large proportion of our foreign â€" trade is with our neighbour. Through subsidiary companies, there has been conâ€" siderable integration of indusâ€" try. The natural continental pull on our economy is a fac tor we must learn to respect in the free foreign exchange markets has declined sharply. These adjustments will help to restore â€" business _ confidence and a normal rate of growth. In addition, as we entered the 1960s, it was expected that risâ€" ing family formation would stimulate a high level of conâ€" struction immediately. While this did not materialize, we know it still lies ahead. In Africa one can discern a movement â€" toward â€" federation for both economic antd political reasons _ almost before the breaking of colonial ties has been completed. In South Amâ€" erica, a number of nations are organizing a free trading area. The nations of Europe have come together in two competâ€" ing â€" groups, but there are strong indications that the two may eventually merge into one cconomy. The great heartland of Asia north of the Himalayas has been under the control of one system for some years. During the year, Canadians became inc:‘easil'lgly aware of the problems associated with foreign investmen}ts in this country. Events of 1960 have also brought into sharper focus a worldâ€"wide phenomenon in the trend toward large continental trading areas. The continent, rather than the nation, appears to be developing as the natural economic unit. For many years, this continental influence was obscured by the historic diviâ€" sions within Europe, and by the ties which linked farâ€"flunsg parts of the world during the colonial era. In the last five years, Canâ€" ada has come to rely heavily on the savings of other counâ€" tries, particularly the Unifed States. They have been willing to provide the différence beâ€" tween our own savings, and the amount borrowers and busiâ€" nessmen wished to invest in Canada. There are dangers inâ€" herent in this situation, as we are all aware. Its correction must be undertaken: gradually â€" and an important contribuâ€" tion can be made by encouragâ€" ing saving and capital formaâ€" tion by Canadians themselves. However, in our anxiety to reduce our dependence on forâ€" eign capital, we must not overâ€" look one important fact. Canaâ€" da‘s salvation does not lie in restricting the application of capital to our economy, reâ€" gardless of its source, but in apMlying additional capital to improve ow$t productive faciliâ€" ties and reduce unit costs of production. Only in this way can we keep pace with advanâ€" ced techniques, complete with foreign goods in both domesâ€" tic and foreign markets, and maintain our standard of cor sumption. Capital Needs Great If Canada To Keep Pace The Continental Pyll in World Trade ’:[ You. may recall that we anâ€" he | nounced, in the early part of al } May, that the Company hgnd it Ereachcd $3 billion of life inâ€" ; surance in force. By the end al of the year we had $3 billion s 1180 million of insurance in as’l‘orce, a gain for the whole “ year of $256 million. This is a y ; Yery creditable showing during q.}: a period or rather unsettled _" : economic conditions. Our _ pension _ and _ deposit business has also been growing rapidly and now forms a very significant part of the total operation. In fact, this busiâ€" the same time exerting every . effort to keep the interâ€"continâ€" ental lines of trade open. While ‘ Canadians have always shown a strong determination to reâ€" main completely independent, these powerful worldâ€"wide forâ€" . ces may weil have a firm hand in shaping our national destiny. | Sales Of Ordinary Insurance / A third important line of business for the Company is the underwriting of _ group health insurance. This busiâ€" ness is not included in the figures we publish for new life insurance and life insurance in force. Net premium income in this branch was $7.1 million in 1960 compared to $5.8 million in 1959. These figures under state the importance of this operation. _ Because we _ are handling the Public Service of Canada _ Surgicalâ€" Medical _ acâ€" count on behalf of a Jarge number of companies, we are actually administering a preâ€" mium volume of over $21 milâ€" lion. Increased $30 Million Despite the cross â€" currents which affected so many parts of the Canadian economy, the Mutual Life of Canada made excellent progress in 1960. Sales of new ordinary life inâ€" surance totalled $309 million, an increase of 11% over the figure for 1959 â€" and, once again, an allâ€"time high! An inâ€" crease of this magnitude â€" over $30 million â€" does not come about easily. Human naâ€" ture being what it is, life inâ€" surance has to be sold, and this new record demonstrates a most effective selling effort by our Field Force. on the size of the groups writâ€" ten, and our 1960 sales were considerably less than in 1959. Nevertheless, the grand total of new life insurance â€" ordinary and group combined â€" reached a new record of of 37 million over the corres ponding figure in 1959. specialists. Group life insurâ€" ance sales fluctuate radically Large Volume of Group Health Insurance Being Administered The Mutual Life was originâ€" ally organized to sell ordinary life insurance. This is still by far our most important line of business, but other lines have been developed and addâ€" ed over the years. The agency force sold $51 Pensions and Deposits Show Substantial Gains Impressive Gain in Insurance in Force Group Life Sales P‘C~ . Jn addition to those already Mil~ mentioned, the following are members of the Board; W. A. ; Bean, CBE.. Kitchener; P. A. 4 Beique and N. R. Crump, Monâ€" treal; Brigc_â€"Gen. J. A. Clark, posit CMG. DS.0O.. Q.C., Vancowu wing ver; J. D. Leishman, M.D., Re very tina; H. A. Mackenzic, O.B.E., total _J. S. Proctor, IL M. Turner busiâ€" and W. u. Watson, Toront@ ' The group pension business, ‘ including the plan for our own staff and agents, has accumuâ€" lated funds totalling $67 milâ€" lion. We have on deposit $61 ; million of dividends which our . policyholders have left with ‘the Company to accumulate at , interest. The remainder is | divided among policy proceeds | which beneficiaries have left 1on deposit with the Company, | reserves for claim settlements being paid to beneficiaries in { the from of annuities, reserves | for individual annuity conâ€" ltracts and a number of special deposit accounts. lComponv Offers Many Forms Of Group Pension Plans ness is represented in the Balâ€" ance Sheet by liabilities totallâ€" ing $199 million, an increase of $18 million for the year, and approximately half as large as the liabilities for the $2%° bilâ€" lion of ordinary insurance in force. These accounts too are excluded from the published totals of new insurance and in surance in force. At the O1st Annual Meeting of the policyholders of The Mutual Life of Canada the six retiring directors were reâ€"electâ€" ed to the Board. They are: Messrs. I. Pitblado, Q.C., LL.D., Winnipeg; <â€" G. Blair Gordon, Montreal; H. L. McCulloch, Galt; R. W. Cooper, Hamilton; G. D. Stanfield, Halifax; and H. J. S. Pearson, Edmonton. At a meeting of the Board held subsequent to the Annual Mecting,, Louis L. Lang, Galt, was reâ€"elected Chairman of the Board, and E. A. Riedor, FS.A., _ Kitchener, _ President. R. C. Berkinshaw, C.BE., Torâ€" onto, _ was _ reâ€"elected _ Viceâ€" President The. great majority have chosen <he unit benefit group annuity under which an addiâ€" tional unit of deferred pension is added to each employee‘s account each year. The amount of the additional unit is es tablished by the pension plan itself. As each unit is purchas ed from the Mutual Life, it is fully guaranteed; the employâ€" er‘s responsibility is completeâ€" ly discharged and transferred to us. Only through an insured plan can the employer have the assurance that he has completâ€" ed his ebligation each year as he moves along. We have designed modifica tions of this basic plan which will provide additional flexiâ€" bility when desired for final earnings formulas or other rea sons, and can tailor plans te meet all needs. , â€" The substantial volume of Group Pension business which this Company is administering is composed of a wide variety of plans designed to suit the varying needs of employers. Almost all our liabilities Surplus Funds Provide Adequate "Safety Margin‘ BOARD OF DIRECTORS