In the Paper which I had the honour of submitting to you at the close of last session, “On Premiums deduced from the Mortality Experience of British Life Offices”, I expressed the hope that at a future time I might have an opportunity of inviting your consideration to the other branch of the subject, namely, policy values. This hope I am now able to realise.

I have based my calculations upon the “Grouped Select and Ultimate” rates of mortality obtained from the unadjusted observations in the manner explained in the paper referred to. The period during which selection was assumed to exist was, it will be remembered, ten years; and the observations at five consecutive ages at entry were grouped together, and the results assumed to relate to the central age of the group. A correction to first differences was made, as the average age of the group differed in most cases from the central age at entry, owing to the number of entrants varying at each age. The net premiums are given in that paper, and the annuity values from which they were deduced have been used in the calculation of the policy values. Any additional annuity values required were calculated in the same way as before, a correction to first differences being made for the age, when necessary.Notwithstanding that the unadjusted observations have been used, the results will be found to be very regular.