Specimens of reversionary bonuses allotted to policies of £100 each effected at the undermentioned ages.

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 terms allowed are as follows:

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:

£ s. d.

The minimum values allowed for the surrender of policies are as
follows:-

With bonus policies for the whole term of life, 33 per-cent of
the premium paid.

Without bonus policies for the whole term of life, 25 per-cent
of the premium paid.

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
Endowments

s. d.

Surrenders

8,620 6 6 27,083

4

Profit and Loss Account, including Balance of purchase

of other Companies' Account.

Amount of Funds at end of the period

SUMMARY and VALUATION of the POLICIES (see p. 455).

The average rate of interest at which the Life Assurance Fund was invested at the close of each year during the period since the last investigation was £4. 58. 8d. per-cent, namely:

£ s. d.

The surrender value of policies effected for the whole of life and for endowment assurances, upon which at least four years' premium have been paid, ranges between 33 and 55 per-cent of the total ordinary premiums paid. The company has no minimum scale for other descriptions of policies, but makes a fair allowance according to the circumstances of each case.

The company has not transacted business at other than European rates. Extra charges for residence in climates deemed unhealthy are made on the principles usually adopted. Unhealthy lives are rated at advanced rates, the ages having been raised in the valuation so as to correspond with the premium paid.

GENERAL ANNUITY FUND.

CONSOLIDATED REVENUE ACCOUNT of the GENERAL ANNUITY TRUST FUND for Six Years, commencing 1st January 1868, and ending 31st December 1873.