THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

Evening Post, Volume CVIII, Issue 25, 29 July 1924, Page 10

THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

TRIENNIAL' DISTRIBUTION- OF • BONUS.

That' .well-know national institution,' the Government Life Insurance Department, hai completed its actuarial valuation, and ■is just now distributing its bonus for i the triennial ' period ended 31st .December last. The results more than'justify the reputation the Department has gained inside as well aa outside the Dominion as an outstanding example of successful State management. ■ '. " •

Despite tho fact that1 the war and the •influenza epidemic cost the Department over half a million pounds in extra death claims it was one of the few ofljcea which at the time maintained its. bonuses at a " virtually undiminished level. The faith then placed in the future has been amply justified. The sum assured in force has increased from (£14,900,000 to £16,550,000, and jthe triennial income, from £2,086,647 'to ±-2,049,072, whilst the death, claims have been lighter than usual, and the investment and general results have beeu very satisfactory indeed. ■ ; The Department has found itself' in so good. a position as to enable tho actuarial valuation to be made upon the strongest basis known among Australasian life offices, viz., the OM 3 per ,cent. The feat, achieved by the Department in proceeding at one bound from a. 3£ per cent, to a 3 per cent, valuation basis is noteworthy. As it now stands the' Department's actuarial liabilities have been valued on the asssumption that interest at the low rate of 3 per cent, only will be earned upon ■the funds. . The effect has been to increase the Department's reserves by a net sum of £173,000. But in spite of this very great addition to the reserves, there is being distributed as bonus the cum of £317,563, which is greater by £99,857 . (or 46 per cent.) than- has been distributed in any previous triennium. The new commis-' sioner (A: T. Traversi, Esq., F.1.A.) is, wo understand, sanguine as to "the future bonus prospects, particularly in view of the very strong reserves and the large margin existing between the low future rate of interest that has been 'reckoned up (3 per cent:), and the satisfactory raid thai is now being' earned (£5 bs Bel per cent). These facts, coupled with the knowledge _ .that -the "-Department ' opcratiiiir 0n1y,,, New Zealand, is subject to tho lowest, mortality rates should areist in a realisation of the soundness' of the department as a, business proposition. (Publifihed by arrangenieat-J