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 D &  New Goods have arrived. Therewillbedi&cultiesinthewayofrepeadngmany?ines. Do not leave it I AIIH fill 111)1 IOC /Opposite the\ TAlGARTH Q/\4"l Too LATE to secure these early consignments. Tailor-made Costumes. Raincoats and Suits to measure. LUnUUK nUUuE ?Market Hau?) T?ninTH M # 1r/\CnlTY7l4 vAb O OSiC r k3UlH HOUSEHOLD LINENS, Etc B Prudential Assurance Company, Ltd. Chief Office: HOLBORN BARS, LONDON. Summary of the Report Presented at the Sixty-Eighth Annual Masting heiu on 1st March, 1917. ORDINARY BRANCH.—The number of policies is sued duriug the year was 48,258, assuring the sum of £ 5,080,989, and producing a new annual premium in. oorne of £ 373,309. The premiums received during the Year were i5,230,170, being an increase of £ 72.654 over the year 1915.. The claims of the year amounted to £ 4,573,917, of which £ 249,689 was in respect of War Claims. The number of deaths was 12,407. The number of endow- ment. assurances matured was 27,065. the annual pre- mium income of which was £ 146.894. The number of policies including annuities in force at the end of the year was 932,539. INDUSTRIAL BRANCH.—The premium.- received during the year were £S.S97,721. being an increase of £ 391,660. The claims of the year amounted to i'4,005,251, of which £87.87!J was in respect of 49,625 War Claims. The bonus additions included in the claim- amounted to £ 112,565. The total number of claims and surrenders, including 16,741 endowment assurances matured, was 398,917. The number of free policies granted during the year to those policy-holders of five years' standing and up- wards who desired to discontinue their payments was 69,775, the number in force being 2,004,282. The num- ber of free policies which became claims during the year was 50,016. The total number of policies in force in tlii- Branch at the end of the ye.ar was 21.305.330: their average duration exceeds thirteen and a quarter years. The War Claims paid during the year, in both Branches, number 52,433 and amount to £ 1,077,568. The total paid up to the present on this account since the outbreak of war exceed? £ 1.860,000, in respect of over 88,000 claims. GENERAL BRANCH.—Under the Sickness Insurance Tables the premiums received during the year were 4C7,780 and £ '3,074 was paid in Sickness Claim. Under the new Memorandum of Association, 13 Sinking fund Policies were issued during the year, assuring a capital sum of £ 131,300 and producing an annual income of £ 2,531. The whole of the fund of R23,390 is reserved fcr future liabilities. The asset- of the Company, in all branches, as shown in the balance sheet Are £ 99,123,746, being an increase of £ 4,328,948 over those of 1915. In the Ordinary Branch the surplus shown is tl.418.240, including the sum of £ 219,331 brought for- ward from last year. Out of this surplus the Directors have added £ 400,000 to the Investments Reserve Fund, which stand- as at 31st December, 1916, at £ 2.000,000. In addition. £ 800,000 has been added to the Special Contingencv Fund, which stands at £ 1,500.000. and £ 218.240 has been carried forward. The Directors have decided to continue the payment of a bonus on all par- ticipating policies of this Branch which become claims either by death or maturity during the financial year. They much regret however that the pre,ent circum- stances do not Justify them in making a general dis- tribution of bonus and the shareholders will again re- ceive no part of the profits of this Branch. The Directors have every confidence however that the in- terests of the participating policy-holders are fully se- cured by the Special Contingency Fund referred to above. £ In the Industrial Branch the surplus shown is *1,000.S92, including the sum of £ 249,282 brought for- Ward from last year. Out of this surplus the Directors have added £ 415,082 to the Investments Reserve Fund. which after deducting £ 15,082, representing realised loss on Securities stands as at 31st December, 1916, at £ 1,400,000. The, provisions relating to Industrial Assurance con- tained in the Courts (Emergency Powers) Act, 1914, have again resulted in a severe strain upon the Com- pany's resources, which has reduced the surplus shown on the operations of the year, and whilst these provis- ions remain in force the strain must continue. In these circumstances the Directors have not felt justified in drawing upon the R350,000 set aside last year to meet contingent liabilities created by the Act, but have met t he loss out of revenue. The Cou-rts (Emergency Powers) Act Reserve therefore stands, as at 31st Decem- ber, 1916, at 9350,000, The profit sharing scheme in the Industrial Branch provides that after payment of a fixed dividend to the shareholders any surplus profit shall he divided into six parts: oil,, part being retained by the shareholders, one distributed among the outdoor staff of the Company, the remaining four parts being allotted by way of bonus to the policyholders of the Industrial Branch. The sum which has already been paid or allotted under this scheme by way of bonus to the Industrial Branch policyholders and outdoor staff amounts to £ 2.825,000. The Directors regret that the- amount of surplus shown this year does not permit of any increase being made to this sum: there is. however, still a bal- a nee remaining, from which bonus additions will be made ,,tne, remainin W",stire-d on all policies in the Industrial Branch on which at least thirty years' premiums have been paid and which become claims either by death or maturity of endowment from the 2nd of March, 1917, to the 7th of March. 1918. both dates inclusive. In addition to the reserves held against the liabilities shown by the valuation, the total amount reserved for contingencies, including amounts carried forward, ex- ceeds £ 5,650.000. The Balance sheet includes amounts totalling over t-17,750,000 in British Government Securities; this re- presents an increase compared with last vear of about 4-4,500,000. During the year the Company has lent or sold to the Treasury under the various mobilisation schemes secur- ities of a nominal value of £ 6,955,159. The Prudential Approved Societies formed under the Xationa) Insurance Act 1911 continue to make satisfac- tory progress, and the valuable services rendered to the members by the Agency Staff are highly appreciated. The amount distributed in benefits to the members a.t their homes during the year amounted to Rl,320,397, making a t-otal exceeding £ 5,700.000 since the Act came into operation. An arrangement has been made and approved by the Insurance Commissioners whereby the Prudential Approved Society for Miners is absorbed into the Prudential Approved Society for Men. and the Soc- j ietv for Laundresses is absorbed into the society for Women as from the 31st December. 1916. thus reducing the number of Prudential Approved Societies to four. j During the year the Government has continuously availed itself of the services of the Company and its officials; it has been a matter for congratulation that the services so rendered have met with the greatest ap- preciation. The. indoor and outdoor staff- have been further de- pleted during the year by Naval and Military demands, and the Company is now supplying more than ten thous- and men to the fighting strength of the nation. BALANCE SHEET OF THE PRUDENTIAL ASSURANCE COMPANY, LIMITED, BEING THE SUMMARY OF ALL BRANCHES ON THE 31st DECEMBER, 1916. LIABILITIES. £ s. d. Shareholders' capital 1.000,000 0 0 Life assurance fund- ? s. d. Ordinary Branch 4;.881.009:Ö dii Life assurance fund- Industrial Branch 44,553,424 17 9 Insurance fund- General Branch 23,399 8 7 92,461.733 17 0 Investments reserve funds 3,400,000 0 0 Contingency fund 1.500,000 0 0 Courts (Emergency Powers) Act Reserve 350,000 0 0 Claims under life policies intimated and t\. In course of payment. 367,020 15 2 Annuities due and unpaid 5,694 5 5 balance of bonus under life policies re- served for distribution 39,296 14 10 ^P9,123,745 12 5 ASSETS. t s. d. Mortgages on property within the rnited Kingdom 9,009,073 18 6 Mortgages on property out of t-he United Kingdom 372.966 6 2 Loans 11 on parochial and other puh)n 12,408,5sl 19 6 rates 12.408,581 19 6 ra;? on Hf. interest? 1,114.487 0 11 Loans on Reversions 48,963 16 4 on stocks and shares tg 19 0 Loam on Company's policies within their surrender values 2.S04.214 !) 7 Loans on Personal security Nil. Loans to Educational institutions secured on income 39.938 17 2 Carried forward £ 2.5,879,696 10 2 ASSETS (Continued). £ s. d. Brought forward 25,879,696 10 2 Investments — Deposit with the High Court ( £ 16,266 13s. 4d. 4.12 per cent. War Loan, 1925-1945) 16,080 19 1 British Government Securities 17,734,165.2 3 Bank of England stock 143,117 2 10 Municipal and county securities. United Kingdom 1,918,905 17 1 InrJian and Colonial Government se- curities 4,929,284 5 11 Colonial provincial securitie-s 1,322.080 18 1 Indian and Colonial municipal se- curities 3,540,922 5 3 Foreign Government securities 7,201,928 2 4 Foreign provincial securities • • 792,499 16 7 Foreign municipal securities 3,365,484 7 6 Railway and other debentures and debenture stocks and gold and sterling bonds—Home and Foreign 12,808,104 9 9 Railway and other preference and guaranteed stocks and shares 3,253.104 5 5 Railwav and other ordinary stocks and shares 2,933,687 4 9 Rent charges 565,705 12 7 Freehold ground rents and Scotch feu duties 4,784,230 0 0 Leasehold ground rents 9,548 14 8 House property 4,451,470 16 3 Life interests 34,626 14 6 Reversions 1,249,709 11 10 Agents' balances 7,674 9 6 Outstanding premiums 722,737 17 0 Outstanding interests and rents 207,597 2 4 Interest, dividends and rents accrued but not payable 485,345 15 1 Bills receivable Nil. Cash—On deposit 20,000 0 0 In hand and on current accounts 685,997 11 8 £ 99,123,745 12 5 The values, of Stock Exchange securities are determined, under the Articles of Association of the Company, by the Directors. Due allowance has been made for accrued interest, and the book value of these securities as set forth in the Balance Sheet stands considerably below cost price. A careful investigation as to the actual saleable value on 31st December, 1916, compared with the; book value, shows that the Investments Reserve Funds are much more than sufficient to meet any depreciation of the permanent securities. Terminable securities have been valued on a basi", which, with Sinking Funds already Established, provides for the equal- isation of the hook values and the redemption values at the date of maturity. We certify that in our belief the Assets set forth in the Balance Sheet (having regard to the standards indicated) are in the aggregate fully of the value stated therein less the Investments Reserve and Contingency Funds taken into account, and make ample provision for all the liabilities of the Company. No part of any fund has been applied directly or indirectly for any purpose .other than the class of business to which it is applicable. J. BURN, ACTUARY. THOS. C. DEWEY, CHAIRMAN. A. C. THOMPSON. CMNK)?) MM<;I:it. G. E. MAY. SKfMTARy. W. J. LANCASTER, ) D. WINTRINGHAM STABLE, ? "Ikectors. We report that with the assistance of the Chartered Accountants ns stated below we have examined the foregoing accounts and have obtained all the information, and explanation, that we have required, and in our opinion such account,, are correct and the foregoing Balance Sheet is properly drawn up so a;" to exhibit a true and correct view of the state of the Company's affairs according to the best of our information and the ex- planations given to us and as shown hy the books of the Company. No part, of any fund has been applied directly or indirectly for any purpose other than the class- of business to which it is applicable. PHILIP SECRET-?N, I AU'DITOR' W. H. NICHOLLS ? AUDITORS. We have examined the Cash transactions (receipts and payments) affecting the accounts of the Assets and Investments for the year ended December 31st, 1916. and we find the stnie in good order and properly vouched. We have :11 '0 examined the Deeds and Securities, Certificates, etc.. representing the Assets and Investments set out in the above account, and we certify that they were in possession and safe custody as on December 31st, 1916. DELOITTE, PLKNDER. GRIFFITHS & CO., CHARTERED ACCOUNTANTS. 13th Fehruarv, 1S17. br615/238 -=-

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