Page 9 Advertisements Column 6

New Zealand Herald, Volume LXI, Issue 18773, 29 July 1924, Page 9

THE GOVERNMENT LIFE INSURANCE DEPARTMENT. TRIENNIAL DISTRIBUTION OF BONUS. Thai well-known national institution, the Government Life Insurance Department, has completed its actuarial valuation, and is just now distributing its bonus for the triennial period ended December 31 last. The results more than justify the reputation the department has gained inside, as well as outside, the Dominion, as an outstanding example of successful State management. Despite the fact that the war and the influenza epidemic cost the department over half a million pounds in extra death claims, it was one of the few offices 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 the triennial income from £2,086,647 to £2,349,072, while the death claims have been lighter than usual, and the investment and general results have been very satisfactory indeed. The department has found itself in so good a position as to enable the actuarial valuation to be made upon the strongest basis known among Australasian life offices, viz., the Osi 3 per cent. The feat achieved by the department in proceeding ;»t one bound from a 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 assumption, that interest, at the low rate of 3 per cent, only will be earned upon the funds. The effect ha.s 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 sum of £317,553, which is greater by, £99,857 (or 46 per cent.), than has been distributed in any previous triennium. The new commissioner (A. T. Traversi, Esq., F.I, A.), is, we understand, sanguine as to the future bonus prospects, particularly in view qf the very strong reserves and the large margin existing between the low future rate of interest that'has'been reckoned upon (3 per cent.), and the satisfactory rate that is now being earned (£5 6s 8d percent.). These facts, coupled with, the knowledge that the department operating only in New Zealand, is subject to the lower,i mortality rates, should assist in a realisation of the soundness of the department as a business proposition.