Only a small proportion of examination candidates have practical experience of reversions and life interests, and the purpose of this paper is to indicate some of the practical points which arise in transacting this class of business; the selection of appropriate bases for mortality, interest, valuation of funds and Estate Duties do not fall within the scope of this paper. Reference to strictly legal aspects are no more than incidental.

Since 1945 there has been, on the basis of new business figures, a marked revival in reversionary business defined as covering purchased reversions and life interests, and loans secured thereon. On balance-sheet values the reversionary business of British life offices in force at 31 December 1948 was rather more than £15m. There was approximately the same volume at 31 December 1943, but at 31 December 1938 there was about £2m. more in force. Over the 10-year period loans have decreased by about £3½m. to only little more than £5m., but purchases have increased by about £1½m. to more than £10m. These figures can give no more than an approximate picture of market value through the different methods of arriving at balance-sheet values, but they serve to show that reversions and life interests continue to form an important part of the assets of certain British life offices.