GOVERNMENT INSURANCE.

New Zealand Mail, Issue 1157, 4 May 1894, Page 17

GOVERNMENT INSURANCE.

In 1891 the last five-yearly distribution of profits took place and the Legislature passed an Act enabling tho Department thenceforth to take stock and divide profits every three years. The last day of 1893 was the end of tho first three-yearly bonus period, and although only four months have since elapsed tho Department has now completed the investigation necessary before an allotment of bonuses. Indeed tho bonus certificates have actually been completed and posted and are now in tho hands of policyholders, thus completely breaking the record as far as New Zealand is concerned.

Amongst the more important of tho results which are apparent we may state that the insurance fund is £2,128,590, tho liability £1,938,590, and the surplus at tho end of 1893 was accordingly £190,000. It was thought prudent to divide £I4O,OCX) amongst the policyholders, and for tho present to reserve the largo sum of £50,000. This, too, in addition to a stun of £IB,OOO, which has been applied to strengthen the investment fluctuation reserve, and as a consequence the Department is as solid as a rock, apart from tho invaluable State guarantee which distinguishes it from all other offices.

The divisible surplus of £140,000 lias been applied to increase tho policies by reversionary bonuses amounting to £277,000, thus bringing up the total insured by tho Department’s policies to over nine millions sterling. The existing business of the Department may be thus summarised: —18,421 life policies insuring £5,489,420 and 12,723 endowment assurances for £2,783,433. Existing reversionary bonuses amount to £796,266, and there aro 154 annuities on which annual payments aro made amounting to £7855 7s 2d. Tho premium income of the Department is £244,299, and tho interest earned in 1893 was £108,097.

Tho assets at the end of hist year were constituted as follows : Government securities, £926,896; mortgage on freehold property, £498,146 j loans on policies, £365,676; local bodies’ debentures, £157,155; landed and house property, £149,299 ; miscellaneous assets, £70,976 ; cash on current account, £22,794: total, £2,190,942. The now business for 1893 was £742,000, a large increase on the previous year; and the expense ratio has decreased for every year of tho valuation period.

The whole of tho recent valuation has been carried out in tho Colony upon principles which have received the approval of the eminent English actuaries who have advised the Department on all important occasions for many years past.