156 BRITISH LIFE ASSURANCE, 1914-1918
the interests of a large number of persons, and the character
of that population is continually changing. It consists, in
the rather fine expression of the late Dr. Farr when defining
a Life Table, of ‘generations passing through time’. The
members, therefore, who exist at the date of a given valuation
and distribution have a special claim to enjoy its fullest benefit.
Profit which they have contributed to earn they have a right
to receive. Profit hidden away or laid up for future use they
may never have. Some of them certainly will not, for by the
time another distribution arrives they will have died." These
considerations seem to point to something like a just and
equitable mean ’ in this matter ; especially when the case is of
those who have already suffered the passing of a bonus. Safety
for the future, amply secured, must of course be the first essential;
and subject thereto the Companies may be trusted to give policy-
holders full consideration, in the interests of their business.
The following statement is an attempt to show the collective
effect of the war on profits distributed to policy-holders. The
periods compared are two, each of six years’ duration, from
1909 to 1914 inclusive, and from 1915 to 1920 inclusive. The
inquiry, in this as in other branches of the subject, is inten-
tionally prolonged to the year 1920, as the effect of the war
on Life assurance finance undoubtedly lasted throughout that
year. The figures must be regarded as approximate only, as
the varying dates of quinquennial valuation have the effect of
representing profits as divided which may not all have been
earned within a limit which must be more or less arbitrarily
selected. Further, the differing methods of distribution make
the fixing of exact figures impracticable. For the purpose of
a rough comparison and estimate, however, the work of prepar-
ing such a statement seemed worth undertaking. It must
be regarded strictly in the light of the above reservations.
In the first period (1909-14) the amounts ascertained
actuarially to consist of divisible surplus by the Companies
established in the United Kingdom, and making returns to
1 It is right to mention, however, that this particular case is now largely met
by the widely increasing practice of allowing Interim Bonuses > on policies ceasing
to exist, by death or maturity, between two valuations.