In a Paper entitled “Some Remarks on the Valuation of Endowment Assurances in Groups”, read before the Institute in January 1898 (vide J.I.A., xxxiv, 61 et seq.), the writer described a new method of valuation by which it was claimed the labour of dealing with Endowment Assurances might be reduced to a minimum, and at the same time results might be obtained differing by only an insignificant amount from the exact results. In preparing that Paper it was felt that to encumber it with a mass of technical detail would have been to court the neglect which is the common fate of a lengthy essay, and that the method would be more likely to receive consideration and a fair trial if, in the first instance, no more than an outline of its main principles were given. Since then the author has applied the method, with very satisfactory results, to a volume of Endowment Assurance business much larger than that which was dealt with in the original Paper (vide J.I.A., xxxiv, 510-14), and very gratifying testimony has been received from a number of leading Actuaries who have adopted the plan, and have found it to work smoothly and efficiently in practice. It is thought, therefore, that the time has arrived when it will be useful to consider the subject in greater detail, and with special reference to some of the points that arise in the application of the method.

In order to define the object and scope of the present contribution, it may be well to state at the outset that it puts forth no pretensions to be a complete survey of a subject which embraces in its wide sweep almost the entire field of practical Life Assurance. The author's design is merely to give a brief sketch of the development, from early times, of the systems and practice of Life Offices in ascertaining their liability under Policies of Assurance, and distributing the surpluses brought out by such valuations among those entitled to them; and the idea has been consistently held in view that it is mainly to assist foreign students that each country is asked to give a record and state the lessons of its past experience.