The points to be considered in these notes arose in connection with the first valuation of two new Widows' and Orphans' Funds both of which were investigated practically concurrently. In view of the recent establishment of the Funds, it was impossible to obtain any satisfactory experience as regards rates of marriage, mortality, &c., and therefore it was realized at the outset that the valuations would have to be made, at least mainly, upon the basis of data derived from other sources. At the same time, bearing in mind the fact that if the Collective Method of valuation were employed, it would be possible to obtain from the data representing the existing membership certain information that might be of service, it was resolved to approach the problem from that point of view rather than merely to fall back upon the use of extraneous tables. As the work progressed, a number of matters arose that appeared to be of general interest rather than of purely immediate importance, and these notes have been prepared in order to describe and to discuss the chief points that called for consideration.

When the subject of this paper was suggested to me, I realized that a big task would be involved, but the prospect of obtaining interesting results, combined with the fact that a mortality table applicable to such data would possibly prove of material assistance to Actuaries, emboldened me to proceed with the Investigation.

The Managers of the five large Banking Institutions were approached, and after discussing the matter with them, I was able to proceed with the certain knowledge that the clerical work involved in supplying the data would be carried out by their respective staffs. A circular letter addressed to the Insurance Companies met with an equally sympathetic response, and I was thereby able to receive the cards with the majority of the work, as regards the tabulations of the data, already done. I should like to take this opportunity of tendering my sincere appreciation of the help so readily given by the officials of the Banks and Insurance Companies, not only for allowing me to make use of the data they had available, but also for their assistance in the clerical work involved in tabulation.

In this essay an attempt has been made

If a text be needed for this paper it is to be found in a remark of Mr. Elderton's during the discussion following a paper by Mr. Maltby on “Results of an Investigation into the effect of different valuation bases upon Surplus,” in J.I.A., vol. liii, p. 167. In the course of his argument, in which he dealt with the strain of setting up reserves on the net premium basis in respect of new business, Mr. Elderton said:

The 3 per-cent net premium method of valuation functions because over the whole business it produces results similar to those which might be expected with a bonus reserve method.

In the year 1885 the New York Life Insurance Company commenced to do business in India and continued actively there until the outbreak of the World War. A reinsurance arrangement was made in 1922 with the Sun Life Assurance Company of Canada. Before disposing of the statistical records mortality investigations have been made, the results of which are now published in the hope that they may be of value to actuaries.

In the early years a goodly proportion of our policies were issued to British residents of India, but this condition gradually changed so that since 1900 the great majority of policies were granted on natives of India. The change was partly due to the British companies granting the former more liberal treatment than we did. In determining the rates of premium our Company did not distinguish between natives of India and others. Until the end of the year 1913 the Company charged the tropical scale of premium and then changed to the semi-tropical rates, with a restriction, however, to 10, 15 and 20-Year Endowment Insurances maturing not later than age 65.