CO129-346 - Governor Sir Lugard - 1908 [1-3] — Page 214

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

211

102penir Snina valt ezt

sa bentru OVM I,nog mi borcevez al

་ཏ! ।

,712 Near

ditaio" sOKETİ BYO

SOOD MUUDRID OF OXLI SOM? DE«ow I go pro at wal emoood

TOO

K

ened no beaning,AS

Frog na to zaltzoffqu nưà no qe barow ed

,duerfcunt al unngero0 arte dale bevong ed

board (duen *60 ↑ Bu roltavier mutmang den s d boulsen190R$

Cause pa ni VideoM to -MR DOXI60)

youerfoa tot noirería a ela o

r

a te nisuah bas atbild 1 eris go, wiod sonslet a exilowa

ni Peterco "mazoo oft in andjidrakt mi

- 4ames snit Ne KÓDEAS

vide? eus ni anme nietsco vaq

o #ato- Even að of ovimong bra blad mi ybeonia erste

we consider the rate at which its funds are at present invested, and whether there is a probability of any change in the future.

This rate would vary in the case of com- -panies in the East from 4 per cent to 74 to 8 per cent.

(2) The provision for expenses is probably best

provided for by deducting a percentage of the premium income.

In ascertaining whether a cormany is solvent or not, we must

consider what percentage of the premium income would be suf-

-ficient to carry on the business if no New Business were

written and the company merely worked off its present liabiliti-

-es. The staff required being merely to collect premiums and

pay claims. Probably 10 per cent of the premium income would be

sufficient. On this assumption the company evidently would be

entitled to consider as "assets" the full office premiums to

be received, less 10 per cent.

(3) The provision for claims involves the en-

-ployment of a suitable mortality table. The table should re-

-present as nearly as possible the mortality which one may

expect to be experienced.

This we find that in valuing for solvency

we should employ a suitable mortality table, assume a true rate

of interest and value the office premium less a suitable per-

-centage.

In anda Ale M decrína si chegron out

bevinges

dos antirut, selv něla Tortugos desedni tu batelne oba brad ni

Jeanete da badelímeroos prie ha esquinqka qoy Fft

nemt neid our ere.T .eida Lag erwoed get an anisio mat deem

6* * beegonit keo smo proted bonded-soas ed of eprint tol molafon (ell (3) .anatuari to evar orta (I) noitsuÏby

.erialo not noialvotą 953 (a) .ESEIQXO

(I)

Vijnabive at volque or Jannetut to aten eta

BRZE, DAJECvul ebaut ati qoex nno tasqnoo oft noile ve duelt [[iw asu İmeng anumet hun stanca enenery fotuv és eten sit galed

ald antnistwensons al artalo naiyan toon 02 bojafimuona ed

By

+

The Ordinance lays down:-

(1) The Actuaries table which is obsolete and

may or may not represent the future mortality

(2)

(3)

4 per cent, which is not much more than

half the rate at which one company in the Fast can invest.

A net premium valuation, which would

possibly mean that at least 30 per cent of the future with

profit premiums would be absorbed in expenses, whereas 10 per

cent is probably sufficient.

I would suggest that the decision as to the

basis on which the valuation was made should be decided by the

Governor in consultation with an Actuary or Actuaries hodding

the

-

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