Underwriting Profit from Investments, [Discussion]

Mr. Bailey is to be congratulated for bringing this timely and important subject of underwriting profit from investments before the Society. He has succeeded in pointing out the many facets of this complex subject, and he has avoided many of the pitfalls that less sophisticated commentators have fallen into. He has, for example, distinguished between policyholder and stockholder funds, even in the case of mutuals. He has recognized the understatement of surplus, and also the fact that most cash needs are associated with policyholder funds.