A PROSPEROUS INSTITUTION

Hawke's Bay Tribune, Volume XX, Issue 192, 4 August 1930, Page 9

A PROSPEROUS INSTITUTION

Tho annual report of the Government Insurance Commissioner (Mr. A. E. Allison) just laid before Parliament, discloses a position which cannot be otherwise than very pleasing to the policyholders. Not only was tho cash surplus the greatest in the history of the office but in the short space of six years tho amount of profit available for division has nearly doubled. A considerable volume of new business has meanwhile been placed on the books and results generally have been so satisfactory that substantially increases bonuses have been declared. These bonuses, taking into consideration tho low premiums charged by tho Department, are concrete evidence of the success of the office in its competition with other insurance institutions. Nearly two millions of new business was written in the year. Tho total income reached £1,073,006, the total funds including reserves are £8,153,332, the claims decreased by £19,529, and expense ratios (both to total and premium income) showed further reductions. In respect of these latter items, it is worthy of not© that since 1923 the ratio of expenses to total income has been reduced from 11.9 to 8.8 ner cent. Another point of interest in the report, particularly as many people think the Department does not pay taxation is the reference to land and income tax. the amount paid last year being £20.558. The denartment. which has made remarkable progress during the past ten years, is conductced under the same conditions and on the same principles as tho ordinary privately managed mutual life, insurance office and nobody benefits in tho profits earned except tho policy-holders themselves. The assets do not form part of the Consolidated Fund but are held in trust for the policy-holders only. (Published by arrangement).