GOVERNMENT INSURANCE COMMISSIONER, (ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1877 Session I, H-22

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1877. NEW ZEALAND.

GOVERNMENT INSURANCE COMMISSIONER, (ANNUAL REPORT OF THE).

Presented to the General Assembly in accordance with Section 41 of " The Government Insurance and Annuities Act, 1874. Sib, — Government Insurance Office, Wellington, Ist September, 1877. I have the honor to forward you the Report of this Department for the year that ended on the 30th of June, and have again to state that there has been a very satisfactory increase in the business, as will appear from the following statement: — New Business. 1,896 proposals were received during the year for £789,561, of which 487 were declined or not completed, leaving 1,409 policies issued for £503,928, the particulars of which are shown in the following summary:—

Claims. The claims during the year have been exceptionally light, amounting to only £11,750; they ■were 40 in number, and were caused by the death of 39 persons. Policies Discontinued. A summary of the policies discontinued during the year is given in the following table : —

r : : ' _: The number of policies issued since the establishment of the Department is 8,522, assuring £3,166,213, of which 1,479 have been discontinued, having 7,H43 existing policies, assuring £2,734,602. Accounts. I attach to this Peport the accounts prescribed in the 41st section of "The Government Insurance and Annuities Act, 1874." The income of the year from all sources amounted to £91,995 7s. 9d., and the accumulated Fund now stands at £219,394 45., being an increase of £65,676 16s. 6d. during the year.

Class. No. of Bolicies. Sum Assured. Single Bremium. Annual Bremium. Insurance Endowment ... Annuity 1,393 13 3 £ 560,828 3,100 £197 per annum. £ s. d. 189 14 3 43 19 9 2,212 7 6 £ s. d. 18,177 6 11 154 4 0 Total 1,409 563,928 2,416 1 6 18,331 10 11 2,446 1 6 Total New B. LE.MHJM8 £20,777 12 5

How Discontinued. ■J JB *S o & o 6 ft Am B iURANCE BANCH. I "8 3 Ph O c ft EBsowmm Branch. '3 o 6 ft Anni Bua JITT SCH. 'o O PM O d IsDrs' Bba? miAL iCH. Sum Assured. Annual Bremiums. Sum Assured. I Annual Bremiuuis Amountof Annuity annum. Annual Premiums Sum Assured. Annual Bremiums. £ 11,750 6,200 16,200 1,500 88,950 £ s. d. 422 18 4 96 3 0 518 17 1 53 13 6 2,749 8 2 £ 100 £ 8. d. 4 11 6 £ s. d. 43 7 0 £ s. d. £ s. d. 168 15 0 £ s. d. 5 17 0 By death ... „ expiry ... „ surrender „ cancelled „ lapse „ transfer Io Ordinary Branch 40 6 44 5 297 I 1 8 550 25 3 7 1 1 47 4,499 18 0 141 1 0 27 3,069 12 0 107 5 0 Totals ... 392 124,600 3,841 0 1 650 29 15 1 43 7 0 7.-; 7,738 5 0 254 3 0

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The ratio of the total expenses of management (including commission) to the premium income has been reduced to 147 per cent. The proportion of these expenses chargeable to new business amounted to 471 per cent, of the new premiums, aird that chargeable to the renewal business to 45 per cent, of the renewal premiums. These percentages compare very favourably with those of the most successful English and colonial Life Assurance Companies, which generally range from 50 to 80 per cent, on the new, aud from 7 to 8 on the renewal premiums. Industrial Branch. The deficiency in this branch, caused by its being closed immediately after considerable expenditure had been incurred in starting it, has now been made good, and there is a balance of £333 Is. 2d. to its credit. One claim for £168 15s. has arisen during the year, caused by the first death that has been experienced in this Branch. Investments. The treasury bills now held amount to £211,400, being an increase of £04,000 upon the amount held in the previous year. Tables. In pursuance of the revision referred to in the lieport of last year, new tables have been issued, based upon the Institute of Actuaries' HM Kate of Mortality, which is tho most recent and trustworthy table of the mortality of assured lives that has yet been published. I have, &c, J. Woodward, The Hon. the Colonial Treasurer. Deputy Commissioner.

Bevenue Account of the Ordinary Branch, from Ist July, 187G, to 30th June, 1577. £ b. d. £ s. d. £ s. d. Amount of Funds on Ist July, 1876 ... 153,717 7 6 Claimsunderßolicies, Assuranco ... 11,750 0 0 Renewal Premiums, Assurance, Annuity, Annuities ... ... ... 1,571 15 5 and Endowment ... ... 70,762 15 10 Surrenders, Assurance ... 1,098 4 9 New Premiums on 1,409 policies assuring „ Endowment ... 18 6 0 £563,928, and yielding an annual 1,116 10 9 revenue of £18,331 10s. lid. ... 9,643 0 8 Single Premiums, Assurance and Eudow- Commission, New... ... 3,681 19 7 ment ... ... ... ... 233 14 0 „ Kenewal ... 1,221 4 5 Consideration for Annuities granted ... 2,212 7 6 4,903 4 0 Interest ... ... ... ... 9,133 7 9 Expenses of Management, — Fines ... , ... ... ... 1 011 Salaries, 11 end Office ... 2,393 3 5 Fees ... ... ... ... 9 11 „ Branch Offices ... 238 15 0 „ Extra Clerks ... 376 G 0 „ Travelling Agents 250 0 0 Medical Fees ... ... 1,975 2 10 TravcllingExpenses, Agents 916 13 7 Others 42 16 3 Advertising ... ... 162 910 Printing and Stationery ... 235 3 3 Bent ... ... " ... 160 0 0 Telegrams ... ... 68 0 0 Depreciation in Office Furniture ... ... 54 7 0 Miscellaneous ... ... 74 3 11 6,977 1 1 Amount of Funds on 30th June, 1877 ... ... ... 219,591 4 0 £245,712 15 3 £245,712 15 3

Balance Sheet of the Ordinary Branch, 30th June, 1877. Liabilities. Assets. £ c. d. -C s. d. Total Assurance, Endowment, and An- Loans upon Bolicies ... ... 1,617 8 2 nuity Funds (as per Bevenue Account) 219,391 4 0 Investments (Treasury Bills) ... 211,400 0 0 Claims announced, but not paid ... 4,900 0 O Office Furniture, Head Otliceand Agencies 489 2 3 Annuities due, but not paid ... ... 407 7 7 Agents' Balances ... ... ... 404 9 6 Commission (new) ... ... ... 520 14 2 Overdue Premiums on PoliTravelling Expenses... .. ... 73 7 6 cies in force ... ... £4,067 12 4 Medical Fees ... ... ... 684 17 0 Outstanding Premiums due Advertising ... ... ... 42 18 0 ia June, 1877 ... 3,758 0 6 Kent ... ... ... ... 55 0 0 • ' 7,825 12 10 New Premium Deposits ... ... 92 11 0 Outstanding Interest ... 103 14 11 Miscellaneous ... ... ... 20 9 7 Accrued, but not due ... 1,742 511 ■ ■ 1,810 0 10 Cash on deposit... ... 508 15 3 Cash on Current Account 2,000 0 0 2,508 15 3 £226,091 8 10 £226,091 8 10

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Revenue Account of the Industrial Branch, from Ist July, 1876, to 30th June, 1877. £ s. d. £ 8. a. Funds on Ist July, 1876 ... ... ... Balance against Branch on Ist July, 1876... 443 13 8 j Bremiums ... ... ... ... 865 7 2 Claim under Bolicy ... ... ... 168 15 0 i Medical Fee deposits forfeited ... ... 110 Commission ... ... ... ... 99111 i Miscellaneous ... ... ... 020 Travelling Expenses ... ... ... 10 8 0 Amount of Funds on 30th June, 1877 ... 144 2 5 £866 10 2 £866 10 2

Balance Sheet of the Industrial Branch, 30th June, 1877. Liabilities. Assets. £ b. d. £ s. d. Total Funds (as per Revenue Account) ... 144 2 5 Cash ... ... ... ... 333 1 2 Claim announced, and not paid ... ... 168 15 0 Commission ... ... ... ... 3 19 9 Medical Fees ... ... ... 8 18 0 Medical Fee deposits, not returned ... 2 2 0 Travelling Expenses ... ... ... 5 4 0 £333 1 2 £333 1 2 By Authority: G-eoege Didseuey, Q-overnment Printer, Wellington.—lB77. Briee, 3d.]