LIFE INSURANCE PROSPECTS.

Auckland Star, Volume XL, Issue 174, 23 July 1909, Page 5

LIFE INSURANCE PROSPECTS.

A TEMPORARY DEPRESSION. An interesting description of the results of the recent financial depression as affecting the life insurance business, and particularly that of the Government Department, was given to a "Star" representative this morning by Mr. J. H. Richardson, Government Life Insurance Commissioner, who is at present on a visit to town. Mr. Richardson stated that the Government Life Insurance Department had been affected to some extent by the depression during the past six months, just the same as had the other offices, but not to a very large extent, the difference being nothing very material. "I think," lie said, "that the depression as affecting life insurance is only of a temporary character, and even now there are evidences of improvement to be seen. I think, in fact, that the prospects for the future are very bright, and the business has now improved to a considerable extent."

Continuing, Mr Richardson stated that the most marked signs of the depression had been in the new business, there being somewhat fewer applications than during the more buoyant periods. As far as he knew, the private companies had experienced much the same thing as had the Government Department.

"The triennial actuarial valuation at the end of last year was entirely satisfactory," added 3lr. Richardson, 'both as regards the profit-earning of the Department and as to the bonuses distributed. The business showed an increased proportion of profit and the cost of working the Department has shown for many years past a gradually reduced percentage of cost in relation to the business done. The increased profit partly arises from tlie fact that the death rate is low in the colony, and partly because the ratio of expense has been gradually reduced in tlie last 10 or 20 years in proportion to the income. The death rate experienced by the office has been entirely satisfactory, and is a good deal below the death rate on which the premiums are based."