'The annual meeting of the shareholders of the Asia Life Insurance [Company was held on Friday after-hoon at the Company's Head Offices at 17, The Bund in the President's 'Ofice' under the chairmanship of Mr. C._V. Start.
Following the reading and adoption of the minutes of the last meeting, the Directors submitted the following. report, which was unanimously accepted. "All.oe Directors was re-lected ai the meeting.
Your Directors have pleasure in submitting to-day the audited accounts for the Company's operations during 1934. The steady growth of your Company has continued, a satisfactory profit was earned and. the Sempany is in a sound financial con-
New life insurance written and paid for amounted to $12,540,537.00, which after deducting all lapses, surrenders and maturity claims produced a net ain for the year of $3,359,166.50. The {otal insurance in force. expressed Shanghai dollars at December 31 exchange rates, reached the figure of The mortality experience was again favourable, being just 60 per cent. of the expected mortality for Standard American lives. The average over fourteen years of the Company's existence has been 67 per cent.
Oriental mortality has been the subject of considerable debate among. actuaries in the West. Based statistics compiled many years ago and upon more recent calculations of mortality fa Japan, the general conclusion has been that mortality la the Far East.
considerably higher than in the United States or Europe. The fourteen years' experience of the Asia Life indicates that, at least for produced being given as 11,172,558 perly selected lives in China, this is economic forees and through con-provement of living conditions, com-Dating epidemics with modern medical science, educating the people on Questions of hygiene and. establishment of well-equipped hospitals staffed by qualified doctors and nurses is having a definite effect in reducing the death rate, at lest in the larger cities where life insurance is usually sold. "Although we are unable to Speake dogmatically regarding ultimate mortality, our studies show that Chi nese living on a reasonable economic standard and taking proper precaution against infection are satisfactory ris {for life insurance and have a natur resistance which, in the case of some Aiseases, is superior to that of Occidental people. In the second place, the fact that the mortality experience of the Asia Life is more favourable than that of some other companies operating in China indicate the value of the unique medical and inspection system of the company which has [been perfected over a period of years. Whilst companies in the West are finding it necessary to increase premium rates or decrease policy—holders' dividends, it is probable that improving mortality inthe Far East will. as time goes on, tend to decrease the net cost of life insurance to residents in the Orient.
During the year ce-operative agreements or reinsurance treaties were arranged by the Asia Life with the tional Life Insurance Company of /Manila, the Occidental Life Insurance Company of California and the United States "Life Insurance Company New York. A substantial shareholding interest in the United States Life has, been acquired.
The year was marked by the rapid growth of a number of local insurtance companies in China and the Philippine Islands. The Asia Lite ha: welcomed this development as an inication of an awakening appreciation fof the benefits of life insurance. the United Slates. the period from 1845 to 1880 saw the organization of number of life insurance companies, Jsome of which are now numbered among the largest and most influential institutions of that country. We be-Hieve that of the Oriental insurance companies being organized during the present period, a number may similar-grow to positions of great strength and usefulness. Your Directors beeve that by encouraging these companies and where possible assisting with their problems, the Asia Lite Fender a valuable service to th in insurance andthe [countries under whose charters they operate. Constructive ce-operation rather than withering criticism Unfriendly competition will bring Jabout the highest development of life insurance in China. of this Office ser-continued support which persists despite the unfavourable conditions now holding back. most enterprises in China, It Jseems probable that as time goes on fan increasing number of people residing in the Orient will insist that their rife insurance companies shall not require them to deal with head Jofices located at great distances but will demand the more efficient and personal service available through main offices located here.
'This is the fourteenth annual stock. holders' meeting. As the Asia Lif Insurance Company enters the fifteenth year of ite history, it can Ino longer be considered a small life insurance company. Each year it has gained not only in size and stability. Dut also in the efficiency of its organization. Commencing its opera: tions at a time when life insurance was imperfectly understood in China, it has played a significant part in the shaping of this business in China. Tle growth as a financial institution presents its Directors to-day both. with. increasing responsibilities and with widening opportunities for service, Turning to the accounts you will was as compared with, ote that the operating prot for 1894 }$403.96422 for 1933, which, considering the abnormal economic conditions, [was eminently satisfactory.
'The cash position is strong, with $677,043.04 in banks and on hand. 'The asseis Increased by $1,169,90023 dur-Ing the year. Of this' amount. $282, 358.99 was loaned to policyholders gainst the security of their reserves Jand the balance was invested. Aver fage interest earned on mean invested assets was 58 per cent.
The surplus account takes up an Jexchange adjustment of $48,201.18. [This could properly have been [charged to the silver reserve but your: Auditor and Directors favoured main-{aining that reserve unimpaired due present currency uncertainties. [The adjustment arose chiefly from 3 temporary disparity between Canton Jand Shanghai silver currencies which followed the imposition of the export duty on silver shipments from Chins Our policy reserves on Canton busi ness are largely invested in Shanghai Jdue to scarcity of suitable investments jin Canton currency. The disparity the currencies should gradu-pro- [ally adjust itself both through natural afier appropriations, the sum $204,151.91. Adding the profit from operations and deducting interim divi-ends, exchange adjustments, taxes and charges applicable to previous years, the sum available for distribution or otherwise dealt with at this meeting is $971,58025, Whilst your Directors recognise tha: the profits earned justify a inal dividend to shareholders in addition the interim already paid, they feel that present unsettled conditions force them (o advise the prudent course of postponing any dividend until the solution of Shanghai's ancial prolems are more clearly discernible, However. dividends to policy holacers, will be continued on the present scale, your Directors having appropriated" $125,000 from the surplus profits of the Company to continue the low net cost of Asia Life protec: tion which is gaining increasing sup. port both from agents and the public, The loyalty and sustained enthusi: ostic support of agents and staff are tone of the Company's most valuable essels and T cannot let this occasion ass without acknowledging it.
The Directors, unanimously elected, fare Messrs. Mansfield Freeman, Tsu yee Pei, F. J. Raven, C. L, Seitz, V. Start, 'T. 0. Thackrey and "Mis Vander Start.
Text read from the printed page and cleaned; old type leaves the occasional error.