Claims under policies (after deduction of Sums Reassured) 874,188 17 5 Surrenders 54,227 7 4 SUMMARY and VALUATION of the POLICIES (see p. 450). VALUATION BALANCE SHEET as at December 31st 1872. To Net Liability under Assurance and Annuity Trans- To Surplus £ s. d. 1,392,729 After payment of one premium before the close of the quinquennial period, a policy is entitled to share in the division of profits, and the bonus vests immediately. The results of the valuation show SUMMARY and VALUATION of the Policies, as at December 31st 1872. PARTICULARS OF THE POLICIES FOR VALUATION. Net VALUATION. VALUE BY THE TABLES REFERRED TO IN ANSWER TO if ascertained. and Bonuses. Sums Assured Office Yearly Bonuses. The net liability for 9,697 whole term of life assurances has been ascertained from prepared tables, which do not show separately the value of sums assured and value of office yearly premiums. 133 2,515 701 1,336 ascertained. 700 51 Age at Entry. Specimens of reversionary bonuses allotted to policies of £100 each effected at the undermentioned ages. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 013 0 013 12 Policyholders have the option of surrendering at any time a reversionary bonus for a present cash payment, or for a permanent reduction in the annual premium. The average rate of interest at which the Assurance Fund was invested at the close of each year during the period since the last investigation was as follows: The minimum values allowed for the surrender of policies are as With bonus policies for the whole term of life, 33 per-cent of Without bonus policies for the whole term of life, 25 per-cent Endowment policies, 40 per-cent of the premium paid. These values are allowed any time after payment by the assured of one year's premium. The manner in which policies granted upon unhealthy lives are dealt with for surrender is similar to that adopted in ascertaining the value for reserve. The business of the company is confined to the United Kingdom. When any life assured goes beyond the limits allowed-as published in the prospectus of the company-an extra premium is charged to cover the extra risk incurred. In the event of the policy being subsequently surrendered, a portion of such extra premium is included in the surrender value. SOVEREIGN LIFE ASSURANCE COMPANY. Established 1845. This company has published no formal bonus report, and we can therefore only give the following extracts from the returns under the Fifth and Sixth Schedules. BALANCE SHEET on the 31st December 1873. The valuation was made up to 31st December 1873. Three-fourths of the profits of the assurance business are divided among the assured in proportion to the premiums paid by each since the last division of profits [in 1862]. These principles are determined by the Deed of Settlement. The Institute of Actuaries table was employed for valuing the Assurances, and the Government Annuity Experience, 1860, for the Annuities. The General Annuity Fund has been valued by the Carlisle 4 per-cent tables. The rate of interest used was 4 per-cent. The proportion of premium reserved as a provision for future expenses and profits is on participating policies 24-15 per-cent, and on non-participating policies 15.55. A participating policy is entitled to receive profits at each division, although only one premium may have been paid. The results of the valuation show:-1st. A profit on the Life Assurance Fund of £36,503. 2nd. The amount divisible among the policyholders is £27,911. The number of policies was 6283, and the sum assured £1,454,875. There was a deficiency on the Sovereign Annuity Fund of £1,392, and a surplus on the General Annuity Fund of £31,317. 6s. The following are specimens of reversionary bonuses allotted to policies of £100:— Age at Entry. In force 5 Years. In force 10 Years. In force 15 Years. The Office allows cash value of the reversionary bonus or an equivalent reduction of premium until the next valuation on policies of five years' standing. CONSOLIDATED REVENUE ACCOUNT for Six Years, commencing 1st January 1868, and ending 31st December 1873. Claims under Policies (after deduction of sums reassured) 271,115 3 7 8,620 6 6 Annuities Commission. Expenses of Management Dividends to Shareholders Profit and Loss Account, including Balance of purchase of other Companies' Account. Amount of Funds at end of the period |