GOVERNMENT LIFE INSURANCE.

Evening Star, Issue 12900, 24 August 1906, Page 1

GOVERNMENT LIFE INSURANCE.

A SUCCESSFUL YEAR. [From Orn Parliamentary Reporter.] WELLINGTON, August 25. The annual report of the Government Insurance Commissioner sheers that the plural premiums and new policies amounted to £25,502, in addition to single premiums for £557. Eighteen annuities were also granted, on which the purchase-money amounted to £7,756. The result was a net increase for the year of 936 policies for £208,754, against £199.500 in 1904 and £163,690 in 1903 —a progressive state of affairs, which, indicates permanency in the business obtained by the department. The report states that the total income is £490,925, showing an increase on the year of £10,209. The claims through death amounted to £120,690, being £20,269 less than in the previous year, while policies maturing represented claims totalling £82,250. The ratio of expenses to income was 15.0, showing a decrease of 5.5 per cent, in fifteen years. At December 31, 1905, the department's assets totalled £5,927,804, of which 54.5 per cent was invested in freehold mortgages, and nearly all the remainder on loans on policies or Government securities. The trienmol actuarial investigation showed that there was a surplus of £195,881 over and above liabilities, of which sum £16,887 was carried forward as a reserve for contingencies, and £178,999 as bonuses on participating policies. It was a matter for regret that it had beau found necessary to give smaller bonuses in the temperance section. An honest effort (extending over twenty years) had been made to give abstainers the benefit which they claim as their duo on account of superior vitality, but unfortunately this intention liad been frustrated by the small amount of support given to this separate section and by one or two other subsidiary causes, not nec.eseoriiy associated with {he mortality of the temperance section, in respect of which there is no reason to think that it is inferior to that of the general section. It is therefore considered that it would be to the advantage of everyone concerned if the section were merged In the general business of the department. . The gross accident insurance funds at the end of the year in connection with the Government Accident Insurance Department totalled £12.187, and the .whole of this amount has been set aside to the reserve, which is all the more necessary, savs the report, because, although the department’s experience for the past year has been of a favorable nature, there is at the, present time a considerable amount of reckless competition going on in the accident insurance business in New Zealand. This branch, however, is. holding its own, and it is hoped that with the exercise of great care and prudence i t will continue to do so. The premium income- last year totalled £23,970, as against £25,768 in the previous year. The claims amounted to £11.242. as against £12.105 in the previous year. The interest receipts had increased to £905, and the year’s working enabled £6,491 to be tranrierred to the reserve fund.