In dealing with the valuation of a large number of policies, the method of grouping is of very great importance, and although there is probably nothing new in any of the suggested methods, I venture to hope that a discussion of this subject will be of some utility.

Many valuable papers have been read before this Institute in recent years on the subject of the sources of surplus, on various methods of bonus distribution and on kindred subjects, notably those of Mr. Sunderland in 1887 and 1890 (J.I.A., xxvi, 357, and xxviii, 257); Mr. Rothery in 1892 (J.I.A., xxx, 131); Mr. G. F. Hardy in 1894 (J.I.A., xxxi, 261); and Mr. G. J. Lidstone in 1895 (J.I.A., xxxii, 73); which are, in my opinion, contributions to actuarial science of the utmost value and models of concise language and elegant demonstration for the actuarial student.