I.O.O.F.'S QUINQUENNIAL VALUATION.

Evening Star, Issue 13146, 30 December 1908, Page 7

1.0.0.F.'S QUINQUENNIAL VALUATION.

The- - folio-wing , corjpesjptinfohce, 'which has been .placed, at our disposal, explains itself: ’ ’ ; - Wellington, December 24. sir, —In order to fulfil my promise that the Department would push your valuation results on to completion, I asked the valuer to-lot mo have a. preliminary report on th« position (if possible) before the end of the year. Tills ho has just managed to do, and it will probably be of interest and value to the Executive at the present juncture, Tho, results are really splendid, ami it would be difficult to imagine a society starting out on its consolidation career in sounder trim than your people show. I congratulate you and your follow officers on the result-;, which are largely uue to efficient and sound management. I need hardly remind von that no action should bo taken in respect of. any parpluses until you have tho report in extern*).—l am, etc., R. Haves, ‘ ~ Registrar. Mr Rerd, G.S., 1.0.0. F. Friendly Societies- Department. Wellington, December 24, 1908. The Registrar,—l have the pleasure to fiiioimt some preliminary figures regarding the valuation of the 1.0.0.F In view ,lf the consolidation which took place at Ist January, 1908, every lodge has been valued on *i 4 per cent, basis—that is to it IS assumed that the Order will earn 4 per cent on its consolidated sick and funeral an hj. This rate, I may say, was. more than maintained by the funds, taken as a whole, an the quinquennium ended 1907. lie result of being able to adopt so much more generous a rate of interest than ho.ore in many lodges is a vast improvement m the figures, ihe results are as follow : -Valuation of Funeral Funds as at 3let December, 1907. Present value funeral liabilities .. £3B 989 >Sur P lu3 s;i23 £47,112 Amount of General Funeral Fund (including £225 10s Bd, interest accrued, and £lB9. chare of contributions owing) £po Qti Amount of Rchekah Funeral Fund (including £6, share of contributions owing) s 237 Present value future contributions 28.814 £47,112 --Valuation of Sick Funds as at 51et December, 197 (excluding Funeral Fund Surplus).— Present value sickne-'s liabilities ... £134,805 Present value funeral liabilities ... 58 989 value contributions to .’ „ D ' F ‘ F 28.314 Sur P llls 6,865 £209,469 Pick funds of ledges £39 652 Present value funeral liabilities reinsured 38,989 II CBcut v:Uuc future contribu{loll6 130.828 £209,469 The foregoing valuation balance-sheets present the position of t[ie funeral and the si-k funds ns separate entities, and the two surpluses arc additive. 1 lie following would be a representation of the position of the society as a whole: —Valuation Balance-sheet ‘of the Society as a Whole as at the 31st December, lsU7.—■ Present value sickness liabilities ... £154 803 Present value death liabilities* ... 38 989 lSur P lus 14*986 £188,778 Lodge Sick Funds £39,652 Funeral Fund (general) 18 061 Funeral Fund (Rebekah) 237 Present value contributions ... 130.828 £188,778 Tho origin of the surplus is as follows: —Origin of Surplus.— Funeral Fund (general) ...£7759 Funeral Fund (Rebekah) ' 354 Sick Funds (male) 5 443 Sick Funds (Rebekah) ’420 £14.986 As tho surpluses in individual lodges amount to £9,786, it follows that tlmrc is a surplus of £5.200 in the whole society, even when individual lodges’ surpluses are left out of account. In considering these figures there is a point winch must always have due weight, and that is the stringency or otherwise of the valuation, which was made on the sickness and mortality experience, of the New Zealand friendly societies; and it might lie said that, whilst the valuation is in these respects (excluding interest from consideration) more stringent than that of 1902, the experience of the quinquennium would go to show that it is not stringent enough in respert of mortality, and perhaps a little too stringent in re-ftl-ect of sickness. These figures are suhjert to some modification, and they do not include the Star of Napier and’ certain iiewly-estahlishod lodges. The female lodge* have been valued by the male standard trebles, ami hence the surpluses shown therein should he regarded rather as nominal. Iho society are to be congratulated on the really notable result. A. T. Tkaverst, _ Actuary.