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RY » uo % dor £5 i i i | i h i i i | i | ; i ; i i H ! +. Policyholders td | § i 500,000 Annually the Population on This Continent Invests in Life Assurance ANNUAL SUMMARY OF AFFAIRS BY HERBERT C. COX PRESIDENT, CANADA'S OLDEST LIFE ASSURANCE CO. Canada Life Issues Its ~ 81st Annual Statement At the 81st annual meeting of the Canada Life Amurancs Come pany held on Thursday, January 18th, President Herbert C. Cox spoke aa follows: The important and widely distributed expansion evident during recent years in all classes of business appears to have again prevailed in 1927. Statements already issued by banking and trust institutions disclose an excellent condition and most successful operations for the lve month Deposits have Increased, commercial loans are i i : i i i fi 3 1 i g i i f i i : i H i ] | a 2 i : i i : I i fi i F il i i : ; ing how glad they are that they ap- plied for the policy years before most of them expressing regret that they had not decided to set aside more money in this way, . They would witness alse the many oases where life insurance protec tion cannot be obtained because of the state of health of the applicants; most of whom have "put off" until téo late the decision io insure. They would read distressful let. tors from widows, inquiring whether thelr husband's insurance was in ef. fort at the time of death, The hard. ost Job that falls to the lot of a life insurance official is to tell & be. reaved widow or mother that thelr sole reliance, a life Insuranee policy, Bas lapaed through neglect, To ocatoh such a glimpse of the ploture ss members of 8 Life Insure ance Staff see it dally would thor. | tained oughly convince the most skeptics! a8 to the wisdom of Insuring early and adequately, for the sake of thelr own protection in ease of total dis. ablement, and for the protection of thelr dependents Thelr own inde pondencerand comfort in later life 10 also at stake, because the great majority of persons find it difficult to earn a livelihood after age sixty or sixty-five, Early Pioneers Suffered Great Hardships in West Western Canada Undevelop- ed Even in 1879 When A big lite (insurance company which transacts business al) Canads has no Isck of appreciation of any part of it. As early as 1870 the Canada Life had its agencies In Western Canada, but the country was 80 sparsely settled that the en- tire West, from Port Arthur to Van | 5 i | ag freriit jill HFN ; i New Canada Life pollel amount of $157,000,000 were lssued during 19037. Canada Life insurance on the Nves of ita policyholders mow exceeds $769,900,000, " During the year 1937 the large sum of §4,283,000 was paid In profits to policyholders, During 1038 the Canadas Life will Pay to policyholders profits amount. ing to $4,660,000, Canada Life policyholders receive 95% of the profits earned by the Company, . The Canada Life 41d mot reduce its sonle of dividends to policyholders during the war and influensa eple demic. During the past few years, however, alvide ds to polieyh have been {noreased. Vol7 vie ve A licyholders are ley oo amounting to HP $00,000, This ls the leet) reserves but' the total sasets of the Canada Lite are now more than $140,600,000, nt reserve funds of | Sontinge Spproximately $1,300,000 are main. Life investments warrant {he Utmost confidence of its policy- Ry ders. On request a complets Tat its securities will be mailed to any policyholder. A reputation for fair and eyholders | and [as Tats Suarantes for the future, Bank Required Life Insurance Collater-l ----------reren $100,000 Policy Placed to Cover Large Loan About eight months ago a Branch Manager for the Canada Life went to visit & motion pieture producer, Prosident of & company, with the object of Interesting him In persona) or business insorance, Belg & bachelor with rather's large income, however, this man could not see the necessity for either personal or business insurance, Later on Ip the year the Manager of his corporation ealled and the interview brought forth the fact that the manager had applied to bis bank | larger, assets have grown greatly, profita are much enhanced, all of which comes from a greater activity in Industry and manufacturing. Exports of manufactured and partly manufactured goods are greater, more of our pulpwood la being converted inte paper at home and less of it sent abroad in the raw state. Electric power undreamed of a few years ago is being developed and applied to Industry, somp of ft old but much of It new and attracted to Canada by our power possibilities. Cereal crops have again been most bountiful, having been exceeded In only one year, and our farmers, particularly those in the Western Provinces, will enjoy & most gratifying reward for thelr labors and will be enabled to make a very Important reduction in their obligations. It may not be generally appreciated that repay ments on account of principal of farm mortgages aggregate ten per cont. yearly. demonstrating a pleasing liquidity and tendency towards reduction of indehted Mixed farming continues te grow, with the result that dairy and poultry products have enormously increased and the farmer has a more diversified source of income, THE MINING INDUSTRY, Nor must we overlook our vast mining areas which are seething with life and energy They have produced this year in the nelghbore hood of $280.000,000.00 and with the addition of recent discoveries are apparently only beginning to show their possibilities. Canads i» eminently fortunate in her mineral resources, which must ultimately bring her great wealth. CO-OPERATION ON VAST SCALE, Co-ordination of effort in industry and finance has become the key to success, and In an age of co-operation and investment trusts life assurance Is the most outstanding example under both categories. Upon this continent alone upwards of sixty-five millions of people are joined in the greatest co-operative undertaking in history. . Each member of this gigantic society makes his periodic subscription to it in order that at a time, determined or undetermined, his individual preconceived plan may without fall be carried out and estate ber come the recipient of a definite sum of money, the p eds of his life assurance contract, That the object of these members is being realized to the extent of one and one-half billions of dollars per year, irrespective of the number of subscriptions or premium payments each has made, is the demonstration of the co-operative spirit and intention developed to the highest degree and must carry its own strong [ dation and appeal. 01d and young, rich and poor, on every continent, today seek the advantage of this world-wide asso- elation which solves a pressing and important problem for all. If we are to share each other's burdens surely mo better way is presented of doing eo than through the channel provided by the 1ife assur- ance companies. In Canada and the United States new policies taken up in 1937 approached twenty billions of dollars! INVESTMENT OF FUNDS, While enabling ita members to attain a very definite goal, life assur. ance also makes each a shareholder In the most widely diversified Investment Trust In existence. As you know, life assuranee funds are invested in a multitude of securities. carefully scrutinized and selected, and upon the payment of his premiums, beginning with the first, the assured establishes a proprietary interest in them and In the care of them, Their safety and earning ability are of primary Ime portance to him, and | am happy to say the companies have been eminently successful in both directions, Gover and municipal securities are much favored by the companies and .heir purchases have frequently been of material assistance in financing the require: ments of the nation. Similarly public services and utilities have been largely financed through the accumulations of millions of pelicy- holders' small payments. Life assurance funds are also the most important factor and source of supply in the real estate mortgage loan market, ' . ------ C.L.U. Degree Conferred Upon Many Canada Life Men Of vital Interest to everyones is the progress of our great Na: tional Institutions, and the an- ,. EFFORTS TO PROLONG LIFE, Already the life companies give indication of usefulness in the epreading of propaganda for health and right living. The desire te prolong life is inherent in every human being, but for a life assur- ance eompany the desire becomes, for obvious reasons, & necessity, Some headway towards greater longevity has been made, but there will be required many years of intensive effort to prevent unnecessary and premature death before a full degree of success can be CANADA LIFE PROGRESS, Further progress in all departments of our own company has established in the year just closed. The intelligent and wells of our associates In the field has again enabled us to the objective set by the General Manager and to veport the very excellent sum of §146.492,000 in new policies issued and taken up. This amount is again well in of the previ year, and Is a tribute to the calibre and loyalty of your representatives. Success has not been confined to any one section of our forces, but has been general throughout Canada and the United States, Great Britain and Ireland, despite very difficult conditions overseas. There is neces. sarily a considerable turnaver in personnel in a large agency organi- sation, since not all wha enter it can be successful, but we endeavor through fudiclous selection to restrict this to a minimum, As only the fittest survive and are added to from year to year, it will be apparent that we are gradually accumulating & force of high type and performance. This essential means of contact between the office and Its off must nd fd and the figures just given you will suggest the care and acumen displayed by our agency officials, CANADA LIFE SURPLUS, The earned surplus of §5,127,823.69 for the year is very excel: lent, and again reflects an encouraging rate of mortality and a gratify- ing rate of Interest. The former results from the continued Influx and proper selection of new lives and the latter from a careful but expanding choice of investment securities. As the trend of yleld upon Government and municipal issues, to which we have hitherto largely directed our funds, is generally downward, it has been thought wise to turn a measure of attention to Industrial and public utility bonds which have become e0 popular with large investors. We have been mble within recent months to make a selection of these in Canada and the United States which combine ample safety with Satisfactory return and as we have to provide the reserves for our American policies in American securities our purchases of the latter will continue to increase, but with, | am sure, agreeable profit to the Company As a stabliizer for our interest rate we have upwards of forty-six million dollars of real estate mortgages about equally divided between city and farm properties and embracing practically every Province and important centre of population, The security is excellent, the return satisfactory, and the cost of caring for them extremely low, COMPANY EXPANDS, A year ago you were advised of the Company's re-entry into the State of New York. 1 am happy to say the result has been as antivipated, and encouraged by the success of the office in New York City another was opened In Buffalo on December first, and already gives promise of real progress. The gordial relations between the two great nations of this continent are nowhere more apparent than In the reciprocity between thelr Insurance Institutions which are, 1 am sure, & powerful factor In cementing thai friendship, Head Office Staff "Takes Own Medicine" Canada Life Employees In- sured Themselves for $673,872 Salary Deduction Plan Helped Soon after the "Salary Bldget" idea was Introduced by the Canada Life and offered to the public, many members of the Head ()ffice Staff took up the plan and adopted for themselves this 'deduct from pay en- Velope" method of saving A large number of new policies were issued, and a few old ones changed to the monthly basis of paying premiums, ob the same basis as all other Salary Rudge! ease» Issued by the Company At close of last year this Insup. ance on the staff had Increased to $10 policies In foree, amounting io held by many employees. The In which this Insurance has been continued would seem to prove that, where it is the best understood, and its advantages realized, Salary Budget is likely to pe kept up quite as eon- sclentiously as insurance takes on the regular plan. Frequently some of these Balary Budget policies are changed to a yearly basis. when It becomes more gonvenient for the holders of them to pay the premiums annually instead of monthly. The Salary Budget or pay envelope deduction plan, so far as the benefit to employees is concerned, is one of the most valuable Ideas recently introduced into life Insurance sery- ce, The total life Insurance carried by the 650 employees at the Canada Life Head Office In Toronto amounts to $1090 315, while Branch Man. agers and Company Representatives have secured Insurance In the Can- {ada Life of paproximately $b 800,000 making a total of almost $6.400, 090 life Insurance on the entire staff, which shows unmistakably how thor. ployees furing the year 1937, The great good and the great economic result brought about by Group Ine surance ¢an best be understood by the following figures: During the year 1926, forty-six per oent. of all the death claims paid In Canada and the United States were Group Insurance claims, and sixty. five per cent. of the above forty-six per cent. were pald to families who had no other insurance protection, The figurea given below show the growth of Group Insurance en this Continent and speak for themselves: Group Insurance was first writ. ten in the year 1913, and the end of the year showed a total of $13,113, 198 Group Insurance in force, In three vears (1915), this figure had grown to $99,046,363; in 1930 to $1,602,387,449; In 1925 to 84,310. 048,128, and it is estimated that at the end of 1927 over $6,250,000,000 will be in force, Group Insurance Features, This plan includes a total and per. manent disability benefit, and » Group Policy may be converted to 8 regular plan if employee leaves the service of hig company. All are eligible, but only through the Employer can employees receive the benefits of Group Insurance, Few Employers today are entirely free from the spirit of altrulsm, and Group Insurance has proved to be Life Insurance can be fMlustrated by comparing a $100,000 insurance Policy placed on the life of a wealthy man as compared with a $100,000 Group policy placed upon the lives of 100 employees, In the first case the dependents of one man benefit, but In the see ond case it Is possible to spread the "happiness" into the lives and hearts 2% 100 families, Then again, in the case of the wealthy man's depene dents, they, in all probability, would not be destitute if he had net taken the Insurance, whereas in the case of the "breadwinner," the lack eof the $1,000 Group Policy may mean "Starvation." "What do you do when one of your employees dlea?" is a question often put to an Employer, and the answer in many cases is, "We were sorry to lose him, but we replaced him." Analyse this answer -- the em. ployee 1s replaced in the business and the business goes on as before replacing a life as you would a broken cog In a wheel or a pulley on a line shaft--but what of his home--Dhis wife--his kiddies? Nothe ing can replace his loss In thelr lives and hearts--his presence--his love ~his earning power--all are lost to his dear ones forever, Group Insurance Helps, Because it produces a fund free from the stigma of charity, that con. tinues to feed the mouths and clothe the budies of those who have a sound and bust necessity and should have first place in all 1 J i h today. The cost of Group Insurance fs based upon the ages of the .em- ployees in the Group, The insurance can be written un. been depend on the Employer's payroll==whom the Employer may never have seen--but who are 8 vital part of his organisation because they are entwined with the ambitions and lives of his employees, and #t must also be remembered that "the home is the foundation of the nation." = -- received during 1937, one of contracts. to serve fits clients faithfully, AN ACKNOWLEDGMENT The Canada Life Assurance Company takes this opportunity of publicly acknowledging the great number of letters of appreciation It is glad to have been able to many policyholders with regard to the results of their policies, and it is very gratified to know that its Stal! has given such considera tion, advice and assistance as to merit the expressions of appre elation received from many bereaved families. . The policy of the Company from its inception in 1847 has been 'fair and square" dealing and liberal interpretation of Its record is well known to all, and its constant aim Is CANADA LIFE ASSURANCE COMPANY. 4 the pectation of so in the t Measuring Group Insurance A By the Happiness It Brings, The happiness produced by Group Chartered Life Underwriters Earn Distinction by Examination The *C, L. U," degree is the "hall mark" authorized by Dominion Par- lament by which the qualified Life Underwriter may now be recog- nized. Lite Underwriters can only qualify for the degree by passing a set of test examinations after at least a three-year period of study, and 'ex- perience in serving the public. This requires 8 thorough knowledge of lite insurance law. ethics, history, fundamentals, policy plans. benefit slauss, rules and regulations. finance, ete, and the solution of set problems similar to which these men are confronted with dafly in connee- tion. with the' creation and conserva tion of estates. Aside from this, every man rep- resenting the Canadas Life completes ®& special educational life insurance course which is conducted from the Home. Office i» Toronto by corre spondence, and when he is suf- ficiently advanced he is brought to Toronto ang is given a further con- esptrated training. which enables bim to give even better service to [she public, The ides prevaiont a few years 280, that an estate was "something big"~-sometbing possessed by only the weaithy classes. is fast becom- nual addresses of the leaders In industry and finance which give the public an insight Into sopd@)- $673,873, This is In addition to/oughly they believe In practicing other "yearly premium' Insurance what they preach. y tions in every field of endeavor are, therefore, worthy of study Life Insurance affects #0 many persons directly and indirectly that practically everyone will find of much interest this review by President Herbert C, Cox, of the Canada Life, of the progress of Canada's oldest Life insurance Company. Each year the Can- ada Life takes this means of in- forming its pblieyholders snd the public generally as to its affairs, Canada Life Herbert © Cox, Leighton McCarthy, © eo, Prsiden SsSurance Lo, "irl EB R Wood, LL.D, ESTABLISHED 7 7. G0. McConkey Vice-President. ny Cenersl Manager, Avoid Carbon Monoxide | Menace "open season" for carbon monoxide poisoning. Statistics show that from December when fatalities from this cause reach their This is the AVOID the MENACE! Never run an automobile engine ip a closed or poorly ventilated gar- age. : Never work under machine with SOME OUTSTANDING FEATURES OF THE 81st ANNUAL REPORT | Profits Paid Policyholders in 1927 Profits to Be Paid to Policyholders in 1928 Total profits. paid iw Dolebolders in 1927 4 sora) of $4,660,000 will be paid In prufits fo DE . Th smu} Of wv : ompany exceeded. the five-million Assets for Protection of Policyholders mark In surpin sarmings, Benefits Paid fn 1927 Bia. during "1927, ving Dolcsmokders. received $9,989,076, Policyholders are protected by policy reserves amounting to $124,810,000. This is the legal re. serve, but the total assets of the Canada Life are now more than $140,600,000, Total Business Issded in 1927--$157,000,000 Total Insurance in Force increased £0 .ovsssvsnssssssssss $769,982,000 $96,691,000 Total Assets INCreBSEd 10 . ors rsrsrssrsssrsnssssersssse 140,680,000 13,333,000 Reserves for Protection of Policyholders....oonssssspessss 124,810,000 12,280,000 New Assurances paid for in 1927 ,....0000000000000%%0000 146,492,000 9,662,000 Total Income for 302 srr sesstosannrrnpesiphis shapes rts 84,378,000 2,346,000 During the year the large sum of $4,253,000 was paid fn dividends to policyholders (A Complete Annual Statement Will Be Mailed Upon Request to Head Office at Toronto.) odaaes Eee ERue wEE ~~ pe eeeeniaammg jg C00