The subject of the division of surplus in a Life Assurance Company is one that cannot fail to be interesting to all who are engaged in the business of life assurance, as well as to the public at large; and while there is so great a diversity as at present exists in the methods of division in use, it must be useful occasionally to draw attention to it, as a means of inviting discussion and the interchange of opinions. This must be my apology for bringing before this Society this evening a subject which has more than once been discussed here; for I can scarcely hope to lay before you in my remarks much that has the merit of novelty, on a matter that has occupied the attention of the most eminent men in our profession.

In a paper which was read before the Institute of Actuaries on the 8th January, 1855, the idea was first suggested by Mr. Farren of introducing into the theory of life contingencies the hypothesis of a constantly fluctuating rate of interest, in lieu of the supposition hitherto adopted of a uniform rate.

Abundant reasons are assigned, in the paper referred to, for making the proposed change; and no one, at all acquainted with the practice of life assurance, can fail to see that the effect of Mr. Farren’s suggestion, if carried out, will be to base all computations upon an assumption which is in the closest possible accordance with actual facts.

The following observations and tables are extracted from a pamphlet recently published by Mr. John James Downes, the actuary of the above-mentioned Society. The length of the period embraced, the number of lives concerned, and the well known ability of the compiler, render the statement of considerable value and importance, and we have inserted it not doubting but that it will be looked upon by our readers in that light.

The present paper may be considered a sequel to that upon the “Mortality arising from Naval Operations,” which I had the honour to lay before the Society in their last session.

Although military affairs are in general looked upon in England with less interest than those of the navy, they derive at this time increased importance from the fact that nearly all the great operations of the present war have been upon land; and have, moreover, from a combination of unfortunate circumstances, been subjected to much criticism and discussion.

With the view of turning to some farther account the information afforded by the periodical reports of fires in the metropolis furnished by the London Fire-Engine Establishment to the Offices supporting it, and extending now over a term of twenty-four years, I have drawn out some results in a tabular form, and have attached to them a few comments more suggestive than at present available; premising that these results are necessarily of limited value, in consequence of the indefiniteness of the data in many essential respects. For Mr. Braidwood’s kind assistance I take this opportunity of expressing my obligations; and especially I am indebted to Mr. W. M. Browne, Secretary of the Westminster Fire Office, for the readiness with which he has placed the results of his experience at my disposal.