GOVERNMENT LIFE INSURANCE DEPARTMENT.
« TPeb Press Association.! WELLINGTON, May 12. Bonus certificates of the Government Insurance Department, aggregating reversionary additions to policies amounting to .£257,000, were to-day posted to policyholders throughout the colony. The insurance fund of the Department in December last was and the liabilities amounted to .£2,366,000, thus leaving a gross surplus of ,£225,000. Valuations have been made locally, as on the last occasion, upon principles fully approved by the Department's consulting actuaries, Messrs Ealph P. Hardy and George King. Acting upon their advice, a special reserve of no less than .£BI,OOO has been made, with the object of counteracting the general fall in the rate of interest, and the balance of .£144,000 has been divided amongst policy-holders, as against £140,006 for the previous three.years. J The. effect of the stringent reserve thus made is equivalent to valuing upon an interest basis of .£3 12s 6d per cent, and the Department is consequently at the present time in a stronger position financially than ever before. The whole of the securities and investments have also been submitted to a most searching investigation, and a further investment reserve of .£10,500 has been made to provide against possible depreciation in freehold and mortgage securities. The recent fall in the rate of interest obtainable on investments, which has necessitated stronger reserves and consequently slightly smaller, bonuses to some of the policy-holders, has not been confined to the New Zealand department, but has affected all life offices in these colonies and throughout the world, and Messrs Hardy and King observe in their report : — " That the valuations and the whole course of business point to the gratifying fact that the Department is in a satisfactory condition, and able to meet the strain that the fall in the rate of interest imposed upon all , life insurance institutions."
GOVERNMENT LIFE INSURANCE DEPARTMENT.
Star (Christchurch), Issue 5871, 13 May 1897, Page 1
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