GOVERNMENT INSURANCE COMMISSIONER (ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1881 Session I, H-09

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1881. NEW ZEALAND.

GOVERNMENT INSURANCE COMMISSIONER (ANNUAL REPORT OF THE).

Prepared for Presentation to the General Assembly in pursuance of Section 41 of "The Government Insurance and Annuities Act, 1874."

Government Insurance Office, Wellington, 4th September, 1880. I have the honor to report that, although the past financial year has been marked by commercial depression in the colony, the new business of this department has continued to expand beyond expectation, the assurances completed in that time having reached an amount greater than that effected in any former year. I. New Business. New proposals were received by the department to the number of 3,032, for a total sum of Of these proposals, 759 were either declined or otherwise failed of completion. The others, numbering 2,274, became policies assuring and yielding a new annual premium income of 17s. Bd. These figures show an increase of 265 proposals received, and of 203 policies issued, as compared with those received and issued in the immediately preceding year. A descriptive summary of this new business is contained in the following table : —

11. Mortality and Claims. The number of deaths which occurred among persons assured during the year was 6-j, representing 78 policies, assuring the sum of The death-rate is still, as on former occasions, considerably below the mortality expectation on which the tables are based. In the report issued last year, reference was made to the number of violent and accidental deaths which were included in the claims for that year. A similar percentage of accident distinguishes the experienced mortality for the period under notice, 16 out of the 67 deaths announced being accidental, and 2 others resulting from suicide. As usual, the chief cause of these accidents was drowning, 8 of the 16 persons referred to having been accidentally drowned.

Class. No. of Policies. Sum Assured. Single Premiums. Annual Premiums. 2,268 4 2 £ 724,854 400 £372 is. per ann. £ s. d. 1,203 5 3 £ s. d. 23,188 15 10 22 1 10 Lssurance ... Endowment Lnnuity 3,259 11 o Total 2,274 7-*S. 254 4,462 16 3 23,210 17 8 Add Single Premiums 4,462 16 3 Total NePremiums £27.673 13 11

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III. Policies Discontinued. The policies discontinued during the year, with the causes of discontinuance, are set forth in the annexed table: —

IV Total Business. Since the establishment of the department in 1870 it has issued 15,170 policies, assuring Byjapse, surrender, or death of the assured, 3,463 of these have been discontinued, leaving at the end of the'year 11,707 existing policies, representing an assured sum of £4, 175,890. V Accounts and Accumulated Funds. The usual accounts presented with this report show the year's income from all sources (including 6s. lod. in the Industrial Branch) to be us. 3d., being an increase as compared with the previous year of .£13,379 16s. 3d. The amount of the accumulated fund of the department at the end of the year (including ,£722 14s. 6d. standing at the credit of the Industrial Branch) was .£460,058 us. 6d., showing an additional accumulation during the year of .£87,403 17s. id. The investigation into the financial condition of the department, and the periodical valuation with a view to a declaration and division of surplus profits, as provided by the Act of Parliament, are now in progress, and two eminent London actuaries, Messrs. Bailey and Hardy, have been appointed by the Governor to make an independent valuation, and to report their opinion as to the surplus profits and the amount for division among policy-holders. This report will, in accordance with the requirements of the Act, be laid before Parliament. D. M. Luckie, Commissioner.

Revenue Account of the Government Insurance Department (Ordinary Branch) for the Year ended 30th June, 1880.

03 m *o Ph 6 "A Ass Poi JRANCE .ICIES. 1/: u 'o ■6 Endc Pol >WMENT '/: Ij 'lj "o a, C 6 Annuity Policies. <u '3 O P. o o •- Industrial Policies. ■ IC1ES. Mode of Termination. Amount . , . Annual . .. Premiums. Annuity. Sum Assured. Annual Premiums. Sum Assured. Annual Premiums. Sum Assured. Annual Premiums 3y death „ maturity „ surrender „ lapse „ expiry „ reduction „ cancellation... „ transfer to ordinary branch 78 I 32,500 100 £ s. d. 1,200 11 6 12 IS 4 1,399 8 o 5,700 6 2 *57 *2 5 282 14 11 92 15 8 £ £ i. d. £ 50 £ s. d. £ s. d. 106 4 o £ s. d. 3 18 c 2 300 500 1,650 20 o o 2196 109 2 4 1 1 IOO 636 12 42,340 191,640 8,850 9>663 3,800 4 13 300 2 168 6 o 6 10 c 3 3 25 2,798 14 o 114 12 4 Total decrease 830 288,893 8,846 4 o 350 28 3,073 4 o 125 o 4 "J, 2,45° 150 11 1

£ s. d. .mount of funi3s on ist July, 1879 ... 371,889 16 9 lenewal premiums Assurance, Annuity, and Endowment .. ... .. 109,991 11 7 !few premiums on 2,274 policies, assuring £725,254, and yielding an annual revenue of £23,210 17s. 8d. ... .. ... 10,621 11 9 Single premiums—Assurance and Endowment ... ... ... ... 1,203 5 3 .onsideration for Annuities granted .. 3,259 II ° interest ... ... .. ... 21,097 11 4 Fees ... .. ... ... 31 13 6 £ s. d. Claims under policies, Assurance ... 32,500 o a Endowments matured ... ... 400 o c Annuities ... ... ... 2,212 17 1 Surrenders .. ... ... 3,975 7 3 Commission, New ... ...£4,994 711 ,, .Renewal ... 985 19 10 5,980 7 9 Expenses of Management — Salaries, Head Office ... 5,931 5 3 „ Branch Offices and Agents ... 1,846 13 4 „ Extra clerical assistance ... 444 6 o Medical fees ... ... 2,680 13 2 Travelling expenses, Agents 739 18 11 „ Others 218 6 8 Advertising ... ... 177 9 11 Printing and stationery ... 358 16 5 Bent ... ... ... 350 o o Postage ... ... 475 o o Telegrams ... ... 94 12 o Exchange ... ... 53 o o Office furniture, depreciation ... ... ... 92 o o General expenses ... 128 10 5 Eee for special audit ... 100 o o —— 13,690 12 1 Amount of funds on 30th June, 1880 ... 459,335 17 c £5*8,095 1 2 £5*8,095 i 2

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Balance-sheet of the Government Insurance Department (Ordinary Branch) on 30th June, 1880.

Government Insurance Office, Wellington, 4th Sept., 1880. D. M. LTJ OKIE, Commissioner. Examined and found correct. C. T. BATKIN, Assistant Controller and Auditor. 14th September, 1880.

Authority: Geobge Didbbuey, Government Printer .Wellington.—lBBl.

Liabilities. £ s. d. Total Assurance, Annuity, and Endowment Funds (as per Revenue Account) ... 459,335 17 o Claims announced, but not paid ... .. 7,155 11 2 Surrenders ... ... ... ... 263 4 1 Annuities unclaimed ... ... ... 800 o o Commission (new) ... ... ... 542 14 3 Medical fees .. ... .. ... 579 12 o Rent and postage ... .. ... 468 15 o Sundry accounts owing.., ... 146 8 11 Premium deposits ... ... ... 617 5 4 Assets. £ a. d. Loans on policies ... ... ... 19,917 n 6 Government securities ... ... ... 343,900 o o Railway debentures (guaranteed by Government) ... ... ... ... 40,000 o o Municipal Corporation debentures ... 2,500 o o Office furniture (Head Office and Agencies) 1,082 13 4 Overdue premiums on policies in force ... ... £6,040 7 o Outstanding premiums due in June, 1880 ... 8,705 6 1 H.745 13 1 Interest outstanding ... 405 19 6 Interest accrued, not due 5>°8i 19 1 5,487 18 7 Agents' balances (since accounted for) ... 749 16 3 Casli on deposit ... 37,000 o o Cash on current account 4.525 15 o 41.S25 'S o £469,909 7 9 £469,909 7 9 Revenue Account of the Indus 1 :eial Bhancii, 30th June, 1880. Amount of funds on 1st July, 1879 Renewal premiums Interest £ a. d. 764 17 8 211 1 10 36 5 ° Claims under policies ... Surrenders (on transfers to Ordinary Branch) Commission ... Amount of funds on 30th June, 1880 £ a. d. 106 4 o 162 13 8 20 12 4 722 14 6 £1,012 4 6 £1,012 4 6 Balance-sheet of the Industbial Bbanch, 30th June, 1880. Liabilities. Total funds (as per Revenue Account) Commission ... £ a. d. Assets. 722 14 6 Agents' balances (since accounted for) 3 3 10 Cash on current account £723 18 4 £ s. d. 288 7 23 9 8 £725 18 4