GOVERNMENT INSURANCE COMMISSIONER, (ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1876 Session I, H-33

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1875. NEW ZEALAND.

GOVERNMENT INSURANCE COMMISSIONER, (ANNUAL REPORT OF THE).

Presented to the General Assenibly in accordance with Section 41 of " The Government Insurance and Annuities Act, 1874."

Sie, — Government Insurance Office, Wellington, 30th September, 1876. In the absence of the Commissioner, I have the honor to forward you the Report of the department for the past financial year, together with the Report made by Messrs. Bailey and Pattison, on the transactions of the first quinquennium which has already been laid before Parliament, but is appended to this Report; as taken in conjunction with the statement I am now enabled to submit, it will, I trust, show both to Government and Parliament the soundness of the business that has been done, and the steady progress that continues to be made. New Business. 1,986 proposals were received during the year for £717,341, of which 501 were declined or not completed leaving 1,485 policies issued for £501,509, the particulars of which are shown in the following summary: —

Claims. The claims that fell in during the year were 41 in number, and amounted to £21,550, caused by the death of 37 persons. The number of losses is but slightly larger than those for the previous year, but the amount is increased by upwards of £9,000. This is accounted for by the fact that 3 of the claims amounted to more than one-third of the whole sum that was claimed. On the other hand, 2 annuitants have died, by which annuities amounting to £180 have ceased to be payable. Policies Discontinued. A summary of the policies discontinued during the year is given in the following table:—

Class. No. of Policies. Sum Assured. Single Premium. Annual Premium. Insurance Endowment ... Annuity Industrial 1,215 27 6 237' £ s. d. 477,] 20 0 0 3,950 0 0 £218 7e. 5d. per an. 23,439 1 0 £ b. d. 279 6 9 £ s. d. 16,224 1 1 193 8 9 2,356 4 5 848 0 8 Total 1,485 504,509 1 0 2,635 11 2 17,265 10 6 2,635 11 2 £19,901 1 8 Total Kb Pbemitjmb %..

How Discontinued. 1 o i iBANCH. m to Endo Bb. WMENT iNcn. i I 5 6 Annuitt Beanch. I I lM o 6 Industrial Bbanch. Sum Asaured. Annual Premiums. Sum Assured. Annual Premiums. Amount of Annuity per ann. Annual Premiums. Sum Aniiual Assured. Premiums. By death ... „ expiry ... „ surrender „ change... „ lapse ... Not taken ... £ 21,550 100 7,000 2,700 7,010 £ s. d. 683 1 0 1 10 3 252 3 3 64 19 10 199 11 7 £ £ s. d. £ s. d. 180 0 0 £ s. d. £ s. d.| £ s. d. 2,778 10 0 92 14 8 98:2 17 0 45 14 4 41 1 25 4 27 I "a 200 14 4 0 4 450 23 18 3 in Totals ... 98 38,360 1,201 5 11 650 38 2 3 180 0 0 88 I _____ 3,7<>1 7 0138 9 0 The nu: 12,602,285, iber of tin if which l,i policies ii )7 have be isue* 1 since Liscontiu the esta ued, leav tOisi iment of the depi 5,406 existing poli< ,rtn lies. tent is 7,413, assurm; ussuriug £2,303,665 en c ing

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Accounts. The revenue account and balance sheet have been prepared in accordance with the 41st section of " The Government Insurance and Annuities Act, 1874," and are attached to this report. In the Ordinary Branch, notwithstanding the expenses attending the quinquennial valuation (which are not properly chargeable to the year's expenses), the ratio of the expenses of management (including commission) to the premium income, has been reduced to 16- 3 per cent., as against 37- 4 percent, in the year ending 30th June, 1872, clearly showing that the expenditure incurred on new business has been a good investment, although no credit whatever was taken for such investment in the recent quinquennial valuation. Industrial Branch. The new business in this branch was discontinued at the end of the financial year, although it was fast increasing ; the Government having considered that there were circumstances connected with the business that rendered its continuance undesirable, and the report of the English Actuaries shows that this discontinuance was in accordance with their views. Investments. Investments continue to be made in the manner mentioned in the last report, and a comparison of the present balance sheet with the last will show that the Treasury Bills held by the department have increased during the year from £105,300 to £147,400. General Kemabks. Messrs. Bailey and Pattison having pointed out that the rates of premium charged on older ages were too low, the tables are now being revised on the basis of the " Mortality Experience of the Institute of Actuaries." A valuation is also being made by the department, which is intended to be done annually, in addition to the quinquennial investigation prescribed by law. The whole of the operations will thus be kept under review, while errors (if such should creep in) will be detected, and the stability of the office placed beyond doubt. These arrangements will give additional confidence to the public, and doubtless will tend still further to increase the business of the department. I have, Ac, J. Woodward, The Hon. the Colonial Treasurer. Deputy Commissioner.

REVENUE ACCOUNT of the ORDINARY BRANCH from 1st July, 1875, to 30th June, 1876.

BALANCE SHEET of the ORDINARY BRANCH, 30th June, 1876.

Amount of Funds on 1st July, 1875 Renewal Premiums New Premiums Single Premiums Consideration for Annuities granted Interest Fines ... ...' Miscellaneous £ s. d. ... 109,967 12 1 ... 61,136 13 6 ... 8,414 2 1 346 1 9 ... 2,356 4 5 ... 6,669 6 11 Nil. 11 19 0 Claims Surrenders Annuities... Commission, New ... Commission, Renewal Travelling Allowance, Agents' Medical Fees Travelling Expenses Advertising Salaries, Head Office Extra Clerical Assistance Salaries, Travelling Agents' ... Printing ... Rent Cost of Actuarial Valuation ... Miscellaneous Written off Furnituro Amount of Funds on 30th June, 1876... £ s. d. 21,550 0 0 820 4 7 1,384- 17 0 1,507 4 2 1,408 5 7 1,266 4 3 1,794 0 0 299 6 6276 7 3 2,500 0 0 284. 10 0 938 1 2 205 4 6 115 8 0 705 11 8 76 7 10 52 19 9 153,717 7 6 £188,901 19 9 £188,901 19 9

Liabilities. Total Funds, as per Revenue Account... Claims announced but not paid Annuities due and unpaid ... Commission, New ... Commission, Renewal Travelling Expenses Medical Fees Advertising Agents' Salaries Stationery Bent Messrs. Pattison and Bailey's Fees Miscellaneous £ s. d. 153,717 7 6 2,800 0 0 122 8 8 660 4 11 36 14 3 59 5 7 535 10 0 37 16 4 6 10 119 8 1 35 8 0 500 0 0 13 1 5 Assets. £ s. d. Loans upon Policies ... ... 581 1 3 Investments (Treasury Bills) ... 147,400 0 0 Office Furniture, Head Office and Agencies 476 18 6 Agents' Balances ... ... 55 17 4 Outstanding Premiums ... ... 5,817 2 4 Outstanding Interest ... ... 42 10 10 Accrued Interest ... ... ... 1,227 14 1 Advance to Industrial Branch ... 478 4 3 Cash ... ... ... ... 2,560 17 2 £158,643 5 9 £158,64,3 5 9

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REVENUE ACCOUNT of the INDUSTRIAL BRANCH from 1st July, 1875, to 30th June, 1876.

BALANCE SHEET of the INDUSTRIAL BRANCH, 30th June, 1876.

Funds on 1st July, 1875 Premiums Medical Pee Deposits forfeited ... Miscellaneous £ s. d. Nil. 5fi5 12 10 a 12 6 1 14 3 Balance against Branch, 1st July, 1875 ... Commission ... Trayelling Expenses Advertising ... Salaries Medical Fees... Miscellaneous £ s. d. 501 3 7 154 5 11 152 2 3 9 2 3 43 5" 0 135 13 6 18 0 9 Balance (deficiency) 443 13 8 £1,013 13 3 £1,013 13 3

Liabilities. Assets. Temporary Advance from Ordinary Branch Claims announced and not paid Annuities due and unpaid Commission Medical Fees ... £ s. d. 478 4 3 Nil. Nil. 3 8 9 18 7 0 Cash £ s. d. ... 56 6 4 Balance (deficiency) 30th June, 1876 443 13 8 £500 0 0 £500 0 0 By Authority: Geobge Didsettby, Government Printer, Wellington.—1876. Price 3d.]