I. INTRODUCTORY 
Any attempt to give an account of the effect on British 
Life Assurance of the European War, 1914 to 1918, will gain 
in clearness if prefaced by a short sketch of the previous history 
of the business. 
That history, as possible material for statistical study, begins 
with the Life Assurance Companies Act 1870 (33 & 84 Vict., 
c. 61). Prior thereto its records, scattered and unstandardized. 
do not lend themselves to any kind of systematic exposition. 
It had for about a century earlier made gradual progress, but 
had attained no recognized status as a national institution ; 
and during the years immediately preceding 1870 had suffered 
in reputation on account of serious failures, notably those of the 
* Albert’ and ‘ European’ Companies, which were in reality 
groups of smaller Companies amalgamated under obscure and 
unsatisfactory conditions. The situation evidently called for 
vigorous treatment and legislative regulation, and hence came 
into existence the Act above mentioned. It was really an 
‘agreed measure’, prominent actuaries of the day being takeninto 
:onsultation by the Government as to its principles and drafting. 
Its principles, as described by a phrase which has grown 
proverbial among actuaries, were ‘freedom and publicity’. 
In other words, while abstaining from minute regulations as 
to the conduct of the business (such for instance as obtain 
in the United States), it fixed definite periods for valuations, 
and prescribed detailed forms in which their processes and 
results, and the classified records of business on the books from 
time to time, had to be recorded. It also dealt with the chief 
cause of the troubles which had called it into being, by providing 
for full publicity, consent of policy-holders and shareholders, 
and legal sanction by the Courts, in cases of transfer or amal- 
gamation of Life Assurance Companies. 
The statistics collected under these provisions take the shape 
of returns to the Board of Trade which are published annually. 
Revenue accounts and balance sheets are of course also included. 
As these Board of Trade Returns constitute the official 
material for study of Life assurance progress, and as constant