LF ASSURANCE COMPA

ASSURANCES IN FORCE t...) $1,250,, 90,000

An increase of $235,393,000

New Assurances Paid F or - - An increase oi $7Z,4l 2,000

Total income . - i - - An increase ol $9,825,000

Payments to Policyholders and Beneficiaries

Total Payments Since Qrganization

Reserve ior Unforeseen Contingencies -

Surplus over all Liabilities and Contingency Reserve

An increase of $137 l ,000

ASSETS at December 31, I926 345,251,000

An increase oi $421 95,000

Dividends to Policy/zolders increased for l seventh successive year

. 265,889,000 - i 78,972,000

38,576,000 - 257,8l 6,000 l l.,000,000 34,0l l,000

NY or cA DA

The operations during the past year have resulted in substantial advances in all departments. .

The new policies paid for. . . . almost double the. figures of two years ago. g ' The assurances in force, alter deduction of reasaurances, . . . .

chow an increase of . . . . over twenty-three per cent. I

Policies and group certificates now outstanding aggregate well in excess of half a million.

The figures relating to resources and earning power are equally satisfactory. "

The high qunlit_v and profitable character oi’ our investments has again tieen demonstrntetl. As a restilt of continued reduction in prevailing rates of interest, and of satisfactory industrial conditions, there has been zi itirtlter rise in the market values of our long-term bonds and of our preferred and other stocks. The appraisal of our lecurities made by the Government Insurance Department shows that the excess of market values over cost has increased during the year by $6,894,266.26. ln addition, the suin of $1 ,729,364.52 has been realized as net prcfit; fmm the redemption or sale of municipal deben- tures and othersecuritie: which had risen to high premiums‘. Therate of interest earned on the mean invested assets has also risen to the remarkable figure of 6.69 per cent. as the result of substantial divi-

EXTRACTS FROM DIRECTORS’ REPORT

dend increases, bonuses, and stock privileges received in connection with many of our holdings.

The quality of the investments listed in the assets may be judged from the fact that 0n 99.55 per cent of the bonds and on 99.71 per cent of the preferred stocks, not one dollar of interest or dividend is in arrear for even one day. On our common stocks the dividends now being receiver] are greatly in excess of the dividends payable on the same stocks at time of purchase.

The total surplus earned during the year amounted to $20,457,077.28. From this the following appropriations have been made: i

The sum of $2,000,000 has been deducted from the oflicial valuation of our securities to provide for possible fluctuations in market values. This raises the amount set aside for this purpose to $5,000,000. In other words, the value at which our securi~ ties are carried in the balance sheet is $5,000,000 less than the appraisal made by the Government authorities.

The account to provide for unforeseen contingencies has been increased by $1,000,000 bringing the total under this heading to $11,000 O00. ‘

The book value of our Head Oflice building has been written down by a further sum of $250,000 though it certainly could not be replaced at even its original cost.

\ An additional amount of $400,000 has been set aside to provide for greater longevity of annuitants. The total held

under this lteading, in excess of Government requirements, is now $1,500,000.

The reserves on the newly acquired business of the Cleveland Life, and on other reassured policies, have been raised to the same high standard‘ as that used for the valuation of liabilities under our own contracts.

To our policyholders, profi ts have been paid or allotted during the year to the amount of $9,235,526.80 ~

After tuaking these deductions and allocations an addition of $5,371,564.56 has been made to the undivided profits. The shr- plus over all liabilities, contingency accounts and capital stock, now stands at $34,011,565.Z5.

For six years in succession we have increased the profits to par- ticipating policyholders. During this period ounprofit scale has been doubled. While the assurances in force have multiplied two and a half times since 1020, the amount paid or allotted as profits to policyholders has multiplied five-and a half times. We are gratified to announce,'for the seventh consecutive time, a further increase in

the scale of profits to be distributed to our policyholders in the ensuing year.

SURAN F CANA

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