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F;'., The Fiftyâ€"Sixth Annual ‘_" Meeting of The Mutual Life â€"~__ Assurance Company of Canada ... was held at the Head Office Building, in Waterloo, on _ Thursday, February 4th, at one pm. The chair was occuâ€" | Notable Progress Made By pied by the President, Mr. Hume Cronyn. It was moved by Dr. J. M. Livingston and seconded by Mr. J. E. Newton that Mr. H. M. Cook, Secretary of the Comâ€" pany, act as Secretary of the meeting. To the Policyholders of The Mutual Life Assurance Company of Canada. The Directors of The Mutual Life Assurance Company present hereâ€" with their Fiftyâ€"Sixth Annual Reâ€" port for the year whici® closed on December 31, 2925, for your conâ€" sideration and approval. Assurances We are glad to report new assurâ€" ances in excess of those for the previous year, as 17,605 policies have been issued for $45,573,577, an increase over 1924 of 864 policies for $2,249,280. Bonus additions were granted for $187,400, and 2,290 poliâ€" cles for $5,752,017 were revived making the gross addition 19,895 policies for $51,512,994. Lowered Lapsed Ratio f The termination from all causes, including death claims and matured Endowments were 10,424 policies for $24,713,575. It ‘is pleasing to=note that not only has there been a deâ€" crease in the actual amount of Not Taken policies from 1,113 policies for $3,299,687 in 1924 to 1,045 poliâ€" cies for $3,039,649 in 1925, but that the Company has also been successâ€" ful in further reducing its lapse ratio. Of the business written in 1923, 10.13%, lapsed in 1924; whereâ€" as of the business written in 1924 only $.14¢, lapsed in the year 1925. This must be regarded as an exceedâ€" ingly favorable result and reflects credit on the care exercised by the Company‘s field representatives in their sales to â€" satisfied . policyâ€" hoiders. The minutes of the last meeting were thereupon taken as read and confirmed on the motion of Mr. W. J. Twiss, seâ€" conded by Mr. W. M. O. At the request of the Presiâ€" dent, â€"the General Manager, Mr. W. H. Somerville, then read the annual report of the Directors, as follows: The total assurances in force at the close of the year were 144,756 policies for $322,529,285 showing an increase for the year of 9,471 poliâ€" cles for $26,799,419 as against an inâ€" crease for the prflg’ing year of 9,177 policies for $25,747,300. Income â€" The total income for the year was $16,474,885.98, an increase of $1,410,209.51. _ Both Premium and Interest Accounts show a large ‘adâ€" vance over 1924. lrfterest payments were well met, and as a result of Overdue Interest Account will be distinctly lowered. While payments in Ontario have been satisfaciory for several years, a mnsidexhly larger portion of the total interest falling due during 1925 was paid than in the year preceding. Payments > As compared with 1924, payments to policyholders increased by $1, 043,149.66 and amounted to the conâ€" siderable figure of $7,631,107.58. The main items making up this increade were heavier payments for death and disability claims, matured Enâ€" dowments, purchased policies and surplus. Death and Disability claims were higher in 1925 than in 1924 by $179,â€" 9§8.96, and Death Claims unadjusted also show an increase of $65,414.97.‘ Notwithstanding the exceptionally | favorable mortality experienced in 1924, when the actual death strain | was 36.01% of the expected, the exâ€" perience in 1925 was again most satisfactory, the corresponding morâ€" tality ratio being 37.95%. ' io e cce c The General Expenses amounted to $2,508,382.31. The percentage of Income required to cover this item was reduced from 15.509, in 1924 to 16.23%, in 1926. Assets The total assets of the Company now amount to more than Seventyâ€" two and a halft millions of dollars, the increase during the year being $4,656,798.71 as compared with $6,5 488,478 84 in 1924. Nearly oneâ€"half of this increase in Assets is accountâ€" ad for by large additional invest ments in mortgage on productive oo nc o0 00 ‘Business in Force Now $322,529,285, a net increase of $26,799419. Expense Ratio Further Reduced from 15.50% to $15 * Very Favorable Mortality of 37.95%. Interest Earnings Increased to 642%. e Increased Rate of Interest Unfortunately the Company‘s Polâ€" icy Loan account also shows a subâ€" stantial growth, although not so great a one as that of 1924. While the security afforded by Policy Loans cannot be questioned, ft is undesirable from the standpoint of the welfare both of the policyholder and the Company that the practice of borrowing on policies should inâ€" crease, owing to the relatively highâ€" er_rate of termination on policies burdened with a loan. Although the tendency throughâ€" out the year in the prices of bonds was towards higher figures with consequentlwlower yields, and this tendency was coupled with a weakâ€" ening of interest rates on mor{gage Joans, the Company was fortunate in being able not only. to maintain but slightly increase the rate of interest earnings on _its invested funds. Liabilities The _ assurance _ reserves _ were again _ computed by the British Offices Life Tables Om§ and the British Offices Select Annuity Tables, the rate of interest being 3%% on all contracts issued prior to 1902, inclusive; thereafter on the same tables with 37 interest. The total liabilities on the above basis now amount to $58,723,297. Surplus The surplu® earnings for 1925 toâ€" talled $3,796,982.41 as against $3,â€" 500,258 in 1924. ‘These favorable earnings will enable the Company to continwe to pay dividends to policyâ€" holders on the same liberal scale in 1926 as heretofore and in addition free surplus for contingencies has been increased by $607,981.91. The latter item now stands at $2,126,â€" 316.16, in ~addition to which the Company has set aside $850,000 as an investment reserve fund and $2,800,000 as an estimated provision for dividend . distribution â€" during 1926. . C. M. BOWMAN Chairman of the Board of The Mutual Life Assurance Company. (Continued on Page 9) Premium Income (Net)...... Interest and Rentsg........... Amounts left on deposit...... Profit on sale of securities Miscellaneons â€" Income......... First Mortgages on Real Estaté......$24,619,520.51 Gnvernment and Municipal Bonds.... 27.624,920.80 Other Bonds and Stocks.......lllll 2,836,754.82 Policy LOAN®..:. 0s mommcluaconiciaec e $1,351,191,80 Real Estate, including Head Office ° PTOMHSOB.........000uscnmvcmmmmenmnmnenncens Premium â€" ObH&AUON®........c.c.culll.s. Cash in Banks and at Head Office Due and Deferred Premiums Net Due and Acerued Interest..s........... Mutual Life Assurance Co. of Canada HEAD OFFICE BUILDING OF THE MUTUAL LIFE ASSURANCE COMPANY OF CANADA Financial Statement INCOME ASSETS For the Year Ended December 3ist, 1925 $11,598,043.99 _ 4,081,976.10 . 664,900.87 f 45,237.52 84,727.50 $72,511,565.56 $16,474,885.98 1,843,851.10 10,378.00 969,623.56 1,391,018.73 2,.070,506.24 CASH ACCOUNT BALANCE S$HEET ~Total Disbursementg..................$10,139,489.89 Excess Income over Disbursements.. 6,335,396.09 Premiums and interest paid in RUVRCOG‘s..â€" .. 3202 ceie reinrivierinresnfinssivarsays Credit Ledger Balances...................... Special Reserves and Surplus Funds Dividends allotted Deâ€" ferred Dividend Polâ€" icies iskued prior to 911 Sismommomecmene on ©2,000,9 4001 Since 1911........~........... 1,162,286.10 Provision for Interim Dividends under Quinâ€" quennial Policies ... 414,054.91 Provision _ for Dividâ€" ends payable in 1926 2,800,000.00 8 pe cial Investment Reserves ................... _ $50,000.00 Free Surplus available for Contingencies.... 2,126,316.16 Dcath and Disability Claims........ Matured Endowments............. Surrendered Policies................ Surplus Paid Policyholders............ ANHUAUGS . ... .sss.00. 00. icrrentmrereretietrigence Supplementary Contracts............. Amounts on deposit withdrawn...... Premium Reductions, Quinquennial Losg on sale of securities............ Expenses, Taxes, etC.,....... POCY _ R@B@TV@®.............lcsscccles> Reserve for Unreported Claims...... Death Claims Awaiting Proof........ Maiured Endowments Awaiting Pay Dividends and Sums Assured left on Dividends to Polieyholders due and ATANN: 1 csrs2e 090000000 irierfine ierarvensavenetoss Premium Reductions on ontstanding PPAMIUMB......... 00 00nn mm neemene Unpaid NXDERNSES...:...:s.0su00 smcs Provimcial Taxes Accrtued, payable DISBURSEMENTS LIABILITIES $72,517,505.58 $10,015,406.76 $16,474,885.98 $58,713,297.23 50,000.00 234,105.61 2,868,387.47 1,661,728.08 1,001,980.51 1,482,669.63 3,041,929.86 13,095.09 53,120.41 284,764.21 81,495.31 10,324.48 2,508;382.31 108,168.40 215,686.18 6 122,563.24 133,823.53 18,447.00 6,180.83 31,600.28 post and, by devoting all his tme and remarkable facultiee to the Company, will fully coâ€"ordinate its various domrt:!:ntp with _ your Board of Directors. Massey Retired ~ The Hon. Vincent Massey on enâ€" tering public life decided to resign from the directorate of «he Comâ€" pany. While personally I could not agree that his assumption of public office conflicted with his duties as a dfrector of a purely mutual comâ€" pany, yot we were forced to give ®fMect to his insistence by accepting Vice President of The Mutual Life Assurance Company. grief at the illness of Mr. Charles Rubyâ€"an illness so serious that, acting under the imperative advice of his physician, he has felt compelled to resign. Mr. Ruby has served the Mutual Life since 1884, and for the past eight years has been its Genâ€" eral Manager. At our Annual Meetâ€" ing in 1919 I took occasion to utter a word of warning lest his conscienâ€" tious devotion and untiring labor should prove too great for his strength, but, alas, so intense was his interest in the Company that neither this nor subsequent warnâ€" ings were heeded. I feel certain that all who know him will sympaâ€" thize deeply in his affliction. & Later in the meeting there will be submitted for your consideration a byâ€"law creating the office of Chairâ€" man of the Board. Should this re ceive your assent it is hoped that Mr. C. M. Bowman will undeftake the duties conected with this new W. H. Somerville Appointed To fill the post thus rendered vaâ€" cant, your Directors have promoted Mr. Walter H. Somerville, who for six years has acted as Assistant General Manager. Mr. Somerville has been a member of the Comâ€" pany‘s staff since 1900, and has fillâ€" ed in succession the positions of Assistant Actuary, Assistant Secreâ€" tary, Associate Secretary and Secreâ€" tary. Of late years he has been brought into close touch with the Board of Directors and Executive Committee, whose members have learned to value his comprehensive grasp of the Company‘s manifold activities, and his sound judgment on the allâ€"important subject of inâ€" \es’tments. R. 0. MeCULLOCH his resignation. ‘The ‘vacancy ‘thisâ€" caused has been flled by the elee=. tion of Mr, T. A. Russell of Toâ€" ronto, whose long experience * proved capacity will be of inestimâ€" able value to the Company. The business of the Mutual Life extends from coast to coast and in every part of our country are to be found _ satisfied . policyholders in "Canada‘s Only Mutual." For some time past your â€" Directors. have thought it would be wise to appoint to the Board prominent policyholdâ€" ers of the Company residing in the. more distant portions of the Dominâ€" ion. With this end in view, at the last session of the Dominion Parliaâ€" ment power was sought and obtainâ€" ed to increase the number of Direeâ€" tors, and at this meeting you will be asked to select, besideg those directors whose term of office automatically expires this year, three additional policyholders to represent the Company in both the Western and Eastern sections of Canada. Some Long Time Investments In the light of the above your Board have deemed it wise to invest a comparatively small portion of the Company‘s funds in longâ€"date first mortgage bonds amply secured by the assets of well established indusâ€" tries such as have been mentioned. The resuit of this policy will be to steady the interest rate earned on the Company‘s investments and to permit out policyholders to share in the benefits accruing from sound Canadian entarprlno.’ * Increase of New Business The new business written during 1925 exceeded that of the previous year by almost two and a quarter millions, while the total business in force was increased by nearly twenâ€" tyâ€"seven millions. At the Anmual Meeting of the Association of Life Insurance Prealdents, held last Deâ€" cember in New York, the President of the Metropolitan Life Insurance Company pointed out that from 1884 to 1891 (or in a period of seven years) life insurance in force .on We have also to mourn the death of Mr. J. M. Scully, F.C.A., who for 42 years had been the trusted audiâ€" tor of the Company. Since his death G. M. Mulholland, F.C.A., and A. B. Shepard, C.A.. have to the Board‘s entire satisfaction, carried on this important duty. Greatest of Surplus Earnings We are glad to be able once more to greet our policyholders with so satisfactory a statement of the afâ€" fairs of a Company which theyâ€" aud they aloneâ€"own and control. As shown by the report just read, the continued low rate of mortality and the marked increase in income receipts combined with a further reâ€" duction in the percentage of'genenl expenses, have resulted in the acâ€" cumulation of the gréatest surplus earnings in the history of the Com:â€" pany. We have, accordingly, been epabled not only to make handsomo refunds by way of soâ€"called diviâ€" dends to our policyholders, but as we‘l to increase materially the proâ€" vision for mortality and other flueâ€" tuations, and to set aside ample funds both for investment reserves andâ€"for distribution during the presâ€" ent year of further generous diviâ€" dends. â€" Bond Policies Up As you are io hear from Mr. Bowman on the investments of the Company, 1 shall not touch the subâ€"~ ject save to remark that, with the extraordinary growth, of the Mutual Life each year finds the problem of profitably _ investing _ the _ golden stream which pours into its coffers. Until a few ‘years ago it was comâ€" paratively easy to find an adequate supply of first mortgages and: govâ€" ernment or municipal bonds to abâ€" sorb all the surplus of the Comâ€" pany. Since the war, however, bonds of this description have â€" yearly dwindled in amount, while their prices have risen so sharply as to make the yield therefrom far from remunerative. Mortgage loans, too, at least of a choicer variety, are not obtainable in the volume we would destre, while at the same time rates of inferestâ€" thereon have tended towards lower levels. These changes in the investment field are in part due to the improved financial conâ€" dition of the country, and in part to the incursion of enormous amounta. of _ American _ capital. Conctrrent with this movement there has been a noted development of certain inâ€" dustries native to our country, among which may be mentioned those connected with our water powers and our pulp and paper resources. â€" (Continued on Page 9) Tribute to Auditor