Your directors admit with regret that a considerable portion of the past year's loss has been caused through want of proper management, but Ihvy can assure you with con fidence that this will now be a thing of the past. With reference to the balance fiheet, I will not weary you wiih many figures, but will content myself with pointing out that the diminishe.d in come is accounted for by tho fact that the in suring public had a feeling of uncertainty as to whether the business of the company was to be disposed of or not, and consequently removed their risks to other companies. This state of affairs has now come to an end, and the tide of business will flow in more rapidly than it went out, and your directors are much pleased at the many offers of support which are con stantly coming in. With reference to the losses, though £4783 lees than last year still they are abnormally heavy, I am pleased, however, to state that since the close of the year they have been comparatively light. The very fullest allowßnco has been made for all outstanding louses to the Slat Dsosrebar, The itena £3567

wnttea off office furniture, preliminary ex penses, stationery, and bad debts, appears a large sum, but your directors determined that everything which was not absolutely good should be disposed of in this manner and the exact state of affairs laid before you. During the year a call upon the shareholders of 2s 6d per share has been made, Is of which was due up to the 31st December, and you will note that the committee of investigation recommend that a further call of 2s 6d per share be made, to become payable after the above. This will only be made if tb.3 directors find it necessary. Now, gentlemen, with refer ence to the life department, I have little to say— the figures are before you and speak for them selves. A comparison with last year's sheet will show you that the position is somewhat im proved. 