COMPANY MEETING
ALLIANCE ASSURANCE
GRATIFYING RESULTS NEW PROBLEMS MR. LIONEL DE ROTHSCHILD'S SPEECH
THE annual general court of the Alliance Assurance Company, Limited, was held on May isth, in London.
Mr. Lionel N. de Rothschild, 0.B.E., the chairman, said that the war had inevitably created many new problems in their business and the year under review had consequently been an exceptionally difficult one. In the Life Department there had been, as was only to be expected, a material decline in new business for the year under review. The new life business completed amounted to £2,794,227. In the year previous, 1938, they had had a record year of new busi- ness, but he had pointed out last year that that had been brought about by the introduction of a very large endowment assurance pension scheme. The unsettled political outlook thoughout the year had militated against the acquisition of new business and he could not hold out hopes of any material revival during the war period.
The Life Offices Association had come to the wise decision that it would not be prudent any longer to include the war risk without the payment of an extra premium. The directors of this company had accepted that recommendation and appropriate rates had been fixed for cases where it was desired to have the restrictive war clause deleted. The premium income in the active Alliance life account was £1,435,984 and the Alliance life and annuity funds now amounted to £22,787,036, being an addition of L278,292 for the year.
FIRE AND ACCIDENT BUSINESS
In the Fire Department the net premiums amounted to £2,196,409, being £14,843 less than those of the previous year, accounted for entirely by the cessation of business in Germany, Poland and Danzig as from the outbreak of war and the loss of certain fire connections in Canada following on their decision to cease writing accident busi- ness in that country. It was gratifying to be able to report that their Home premium income had increased. The claims amounted to £740,048, being £29,500 less than those of 1938. The result of the year, after adjustment of reserves for unexpired risks and the inclusion of interest, less tax, amounting to £128,436 and after increasing the additional reserve once again by £100,000, was a balance of £454,199 In the Accident Department there had been a considerable fall in the premium income from £1,491,872 to £1,371,640, or £I20,000 down on the previous year. The two chief causes were the laying up of motor-cars and motor-cycles owing to petrol rationing and the cessa- tion of accident business in Canada, to which he bad referred last year. The result of Workmen's Compensation business had been satisfactory in both Great Britain and Eire and the premium income had been maintained. Owing to increased employment they might look for increased premiums in that section, but he was not over-sanguine that the results would improve, as the employment in trade of semi- skilled hands, which was bound to be the case in these days, tended to increase the number of accidents.
The surplus in the combined accident account for the year amounted to £108,252, to which had to be added interest, making a total of £168,082, which had been transferred to profit and loss.
MARINE UNDERWRITING
The Marine premium income had increased by £176,861. To some extent that was due to higher rates on hulls, but in the main it was accounted for my war risk premiums. Agreement had been come to among underwriters to increase further the rates on hulls as from the beginning of the year. The underwriting account for 1937 had now been closed and £47,120 had been carried to profit and loss account, a result which they regarded as satisfactory.
The Trustee department was progressing on an even keel and becoming more and more appreciated.
He hoped it would be agreed that the results of the past year, hiving regard to the unavoidable loss of business and the special expenditure that had had to be incurred, were very gratifying. As to the current year, owing to the calling up of many of their staff and petrol rationing it was going to be difficult to maintain their field force and he did not anticipate any increase in premium income, but rather the reverse. It was true that values were bound to increase, and that would partly offset lack of new business in the Fire Depart- ment. There would probably be a further decrease in motor-car premiums and it was difficult to see in what other directions the Accident premium income was likely to increase, save in Workmen's Compensation.
The report was unanimously adopted. carried to profit and loss.
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