Untitled

Daily Telegraph (Napier), Issue 3025, 7 March 1881, Page 2

So many of onr readers are interested in the progress of the Government insurance business that we need make no apology for placing before them a summary of the annual report. The policies existing at the end of the departmental year of 1880 numbered 11,707 while the sum assured amounted to £4,175,890. At the end of the year the accumulated fund amounted to £460,000, showing an additional accumulation during the year of £87,400. The year's income was £146,452, being an increase, compared with the previous year, of £13,380. During the twelve months the department had received 3,033 proposals for new policies, for a total sum of £1,037,252. Of these proposals 759 were declined, or they otherwise failed of completion. The others, numbering 2,274, assuring £725,254, and yielding a new premium income of £23,211, became policies, being an increase of 202 on the policies issued during the immediately preceding year. It appears that the amount for which the department became responsible through the mortality among policy-holders during the year was £32,500. The expensed of management for the department amounted to £13,690, and this some may regard as making up rather a heavy percentage on the year's income from all sources—namely, £146,452. On the whole, though, the business of the department appears to be healthy and progressive. The last clause in the report reads thus : " The investigation into the financial condition of the department, and the periodical valuation with a veiw to a declaration and division of surplus profits, as provided by the Act of Parliament, are now in progress; and two iminent London actuaries, Messrs Bailey and Hardy, have been appointed by the Governor to make an independent valuation, and report their opinion as to the surplus profits and the amount for division among policy-holders. This report will, in accordance with the requirements of the Act, be laid before Parlia' ment." With respect to the division of surplus profits, Major Atkinson explained in the House last session that everything was being got ready for the five-yearly actuarial investigation; that the annual report had not been laid on the table through justifiable and usual delays in connection with making up the accounts; and that according to the Act no bonus could be paid until June, 1880. The books had been closed and dnta were then being got out in order that they might obtain the report of an independent actuary, as provided by the Act. The House would then have to decide, also under the Act, as to the mode of the division and the amount ; so that nothing could be done with regard to that until the House met next session. Policy-holders must therefore wait until the House meets before learning the amount of the profits, and the method of their division.