The investments of the company are well diversified, "As a policy the company maintains an. approximate balance between essels and Liabilities various currencies. In view of the relative weakness of some currencies, however, there has been sume depar: ture from that policy ducing the last two years. A\ special reserve of 'U$§90,000 set aside in 1939. Is. maintained to cover ucteation exchange or any Tesuiting depreciv~ ton in the value of investments.
'The mortality among he compar' policyholders turing 1939 was. £2.03 per cent. of the expected, provided for in rates and reserves. This is more favourable then either of the years 1998 and 1997, when this per~ centage was 69 per' cent. and 6240 per cent, respectively. The low Mortality during the past three years Indicates that hostilities in China had material effect on the company Tncome from interest, dividends and rents amounted to USS97, S17.19, and the yield on mean ledger' assets was 4.15" per cent. The corresponding gute for 1938 was 521 per cent. The lower return is due mainly formally high cash position. any's interest return, but under prevailing conditions it seemed wise to maintain a high degree of liquidity, New Business The work of the Agency Department during the year was highly satisfactory. Due toa continuation Of unsettled conditions in China Greater emphasis was placed on ac-Quiring new insurance in other areas, Of the new insurance written ap: Droximately 50 per cent. came feom the Philippines and 20 per coat. {rom Hongkong. China accounted for less than 8 per cent. of the total.
Because of exchange fluctuations extensive comparisons with previous Fs are apt to be misleading. insurance was larger than for any year in the history of the compan} Expressed in terms of US. dollars the net gain for the year, ie, new insurance less all surrenders, deaths, maturities and other conetiaton Was approximately 16 per cent larger than in 1938.
On December 31, the oral insurance force stood at US$1G,304.741, which is slightly less than the corresponding 'Aigures at the close of 1938. The aparent Joss of insurance is not, however, the result of cancellations oF failure of the Agency Department acquire a sullicient volume of new nsuranee, but is due solely to shrink the value of the company's *se dollar portfolio when ¢x-Dressed in terms of U.S. dollars. for the purpose of comparison should apply' the same exchange rate the outstanding insurance at the end of both years, then the increase insurance during 1939 would have been in excess of US$2,000.000.
Text read from the printed page and cleaned; old type leaves the occasional error.