A PROSPEROUS INSTITUTION.

Timaru Herald, Volume CXXV, Issue 18636, 4 August 1930, Page 3

A PROSPEROUS INSTITUTION.

The annual report of the Government Insurance commissioner (Mr a. E. Allison) just laid before Parliament, discloses a position which cannot be otherwise man very pleasing to the policy holders. Not only was tne cash surplus the greatest in the history of the office, but in the short space of six years the 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 increased bonuses have been declared. These bonuses, taking into consideration the low premiums charged by the Department, are con-

crete 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. The 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 note that since 1923 the ratio of expenses to total income has been reduced from 11.9 to 8.8 per 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 Department, which has made remarkable progress during the past ten years, is conducted under the

same conditions and on the same principles as the ordinary privately managed Mutual Life Insurance office and nobody benefits in the profits earned except the policyholders themselves. The assets do not form part of the Consolidated Fund but are held in trust for the policy holders only. ...