The European Economic Community came into existence on 1 January 1958, following the ratification of the Treaty of Rome by the parliaments of the six member countries, Belgium, France, Germany, Italy, Luxembourg and the Netherlands. The long-term aim of ‘The Six’ in setting up the Community was to achieve a unified economic unit with a common economic policy, and whilst commonly referred to in the United Kingdom as the Common Market it should not be thought of merely as an advanced form of customs union.

It might at first be thought that this paper is limited to the problems of those few who hope to establish a new office in a highly organized and competitive life assurance market. Yet all offices wishing to expand will be faced with problems of a similar nature. This is evident when contemplating a development overseas and was the subject of a paper to the Faculty in March 1960 by R. G. Mallett (T.F.A.26, 547).

On the occasion of the bicentenary of the foundation of scientific life assurance, it was thought fitting that a work should be prepared in which the development of some aspect of the subject might be discussed. The authors undertook some research on the origins and disposal of surplus and the results are set out in a book entitled Surplus in British Life Assurance—Actuarial Control over its Emergence and Distribution during 200 Years. The following pages convey some of the impressions formed in the course of its preparation. Much of the later part of the paper consists, in fact, of extracts from the text of the book. The introductory sections present a short outline of the book as a whole.