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Northern Advocate, 23 July 1943, Page 5

THE GOVERNMENT LIFE INSURANCE DEPARTMENT Annual Report RECORD OF STEADY PROGRESS The report of the Government Insurance Commissioner upon the transactions cf his Department for the year ended December 31, 1942, which has now been presented to Parliament, reveals that steady progress was made during the year. Its main features are:— (11 New Business: The new business amounted to £2,218.367. Whilst this figure is less than that for the previous year, it must be regarded as highly satisfactory in view of the reduction of over 58 per cent, in the Field Staff since the outbreak of the War. (2) Business in Force: Tire Sum Assured at the end of the year totalled £33,388,155, to which reversionary bonuses amounting to £3,620,884 have been added. (3) Total Income: The total income, £1,386.181, exceeded that for the previous year by' £26,125. (4.) Death Claims: Claims in respect of policy-holders who died on Active Service involved the pa.yment of over £126,000 as against £50,000 in 1941 and £SOOO in 1940. Civilian death claims, which were particularly light in 1941. were above normal. (5) Surrenders decreased by over £76,000 as compared with the previous year, when the figures were over £60,000 less than for 1940. (6) The Assets now total £12,766,411. (7) The Reserves were further strengthened. (3) The Expense Ratios showed a substantial decrease, the ratio to total income being 7.62 as against 8.62 in 1941 and that to premium income being 12.21 as against 13.81 the previous year. (9) The Net Interest Rate earned upon the Department's Funds was £4/1/-, a reduction of only sixpence as compared with the previous year, which must be considered a very satisfactory return in these days of low investment yields. Actuarial Investigation: The usual investigation disclosed a net surplus of £342,130. Careful consideration has been given the question as to whether there should be any distribution of profits on this occasion. It is however felt that under existing conditions the course followed last year was the right and proper one and should again be adopted. There will therefore be no general allotment of surplus. In order, however, that the interests of policyholders shall be fully protected, interim bonuses at rates approximately two-thirds of the bonus last declared will be granted on all policies becoming claims during the current year for each annual premium which has fallen duo since December 31. 1940. War Loan Investments: In continuation of its policy of rendering all possible support to the country' in its prosecution of the War, the Department lias made further substantial contributions to the various War Loans. The amount subscribed to date totals £1,352,180. Mr. W. E. Arnold, who had been Commissioner of the Department for some ten years, recently retired and has been succeeded by Mr. J. W. Macdonald. The new Commissioner, reviewing the future prospects of the Department at Mr. Arnold's farewell, said, “As to the future, well we like to think of this as a live progressive business, not content witli its past of sterling endeavour, but striving hard to advance still further the great principles of Life Assurance for the benefit of the community'. “Indisputably' our slogan is ‘Forward!’ “We have an invincible faith and confidence in the Department. We believe that if we follow our ideals of giving Good Value and Good Service, that if, in every way, we conform to the ideal of Comradeship, strength and prosperity will undoubtedly continue to attend the operations of this fine National Institution.” 529