GOVERNMENT INSURANCE COMMISSIONER (ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1882 Session I, H-27

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1882. NEW ZEALAND.

GOVERNMENT INSURANCE COMMISSIONER (ANNUAL REPORT OF THE).

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

Government Insurance Office, Wellington, 26th August, 1882. I have the honor to submit the accounts of this Department for the year ended 30th June last, and to report thereon and on the business done in the period named. ORDINARY BRANCH. In the Ordinary Branch there were received during the year new proposals to the number of 3,216 for a gross sum of .£940,737, of which 693 were declined or were not closed, leaving 2,523 proposals for which policies were issued, assuring ,£702,912, and producing a new premium income of .£26,488 14s. Bd. These figures exhibit an increase of £152,561 on the sum assured when compared with the new assurances effected in the year immediately preceding. The new business is detailed in the following table:—

The claims arising by death numbered 83 policies on the lives of 74 persons assured, representing the sum of .£35,040 of original assurances, which amount was increased by bonus additions to £36,759 17s. The sum of .£3OO was also paid on endowment policies, three of which matured during the year. The death-rate is considerably below the average expectation, and the payments made on account of these claims are nearly met by the accrued interest on the funds invested, which for the year reached ,£31,309 17s. sd. The continued low rate of mortality, and the rapid growth of the income from investments, are circumstances of a highly satisfactory character.

Class. No. of Policies. Sum Assured. Single Premiums. Annual Premiums. issurance Endowment Lnnuity ... 2.5°7 10 6 £ 701,812 I,I0O £244 9s. 9d. per ann. £ s. d. 2,053 15 11 53 3 6 2,553 o o £ s. d. 21,783 9 o 45 6 3 Total 2>5 23 702,912 4,659 19 5 21,828 15 3 Add Single Premiums 4.659 '9 S Total New 'remiums £26,488 14 8

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The number of policies discontinued and the modes of discontinuance appear in the table below: —

At the close of the year the total sum assured in the Ordinary Branch, on 13,806 policies in force, was The year's revenue from all sources was 15 15s. 3d., being an increase of 4s. iod. on the revenue of the previous year. The accumulated fund amounted to 890 7s. gd., showing an increase of funds by the year's transactions of 15s. 1 id., notwithstanding the additional expenditure in reversionary and cash bonuses paid during the year.

INDUSTRIAL BRANCH. In accordance with the promise of the Government, expressed in Parliament last session, the Industrial Branch, which for some years was held in abeyance, has been reconstructed, and was placed in active operation on 13th March last. The result in the business accomplished, as shown by the experience of the last few months, has largely exceeded the expectations which were entertained at the outset. Up to 30th June last the new Industrial policies numbered 2,593. Of these, 1,690 were policies issued on the lives of infants, on which a weekly payment of twopence each is collected. These policies show an average amount assured at entry of about £6 10s. yd. each, which sum increases with every year the policy endures until the child attains the age of 12 years, when the amount assured becomes fixed at 2"2°- The Industrial policies issued on adult lives were 903, with an average amount assured of 7s. 6d., and an average weekly premium of BJd. The average sum assured, including both infantile and adult policies, is X"22 3s-> with a weekly premium of 4^d.; giving, approximately, a total sum assured by the new policies issued between 13th March and 30th June of producing an annual premium-revenue of The progress of this branch continues rapidly to increase, and gives promise of a wide development—the new policies issued from the Industrial Branch, down to the date of this Report, already exceeding five thousand.

GENERAL REMARKS. Taking together the new business for the year, in both Branches, the total amount of new assurances effected in the period is which is the largest sum assured in the Department in any one year since the establishment of the office. The experience of the year now entered upon appears to indicate a continued expansion. With the beginning of the now current financial year (Ist July) a new feature was introduced into the department, a special section being then opened for the insurance of the lives of total abstainers from intoxicating liquors. The tables of premiums for insurers in this section are the same as for others; but they are entered in a separate class, and the profits which may accrue are to be allocated solely amongst those insured therein, and who adhere in practice to the total abstinence principles they profess. Those who fail to fulfil this special condition of the contract, forfeit their right to any share in such profits, and are placed in a non-participating class. Numerous Temperance Societies have signified their satisfaction with the introduction of the experiment. Attention has been devoted to the work of liberalizing the departmental regulations and practice, with the view of offering to the assured the fullest advantages that careful management would warrant. To encourage early habits of thrift among the young, the tables of premiums have been extended, so as to include lives from age 15 upward; and the more liberal method of reckoning the '*' nearest" birthday, as the basis of the premium-rate for age at entry, has now been adopted in the Department in lieu of that of the " next" birthday, which is almost invariably used among Insurance Offices. Arrangements are in progress for increasing the opportunities for the revival of lapsed policies, and for enlarging the conditions under which such revivals may be secured. Further improvements will be effected as the growing experience of the life assurance system may suggest and justify. The Accounts for the year of both Branches, certified by the Audit Office, are appended to this Report. D. M. Luckie, Commissioner.

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As: Pc iURANCE iLICIES. .ndowment Policies. Annuity Policies. Mode of Termination. Sum Annual Assured. Premiums. Amount of Annuity Annual per Premiums. Annum. No. Sum Assured. Annual Premium s. No. No. £ 35;°4° £ s. d. 1,195 T4 8 £ £ s. d. £ £ s.d, 5y death „ maturity ,, surrender „ lapse „ expiry, &c. „ reduction „ cancellation 83 136 897 55.6io 258,178 2,011 15 10 7,725 19 TO 424 16 7 3°4 9 7 12 3 o 3 3 1 300 400 100 20 14 8 24 6 1 3 '6 o 1 9,492 250 i Total decrease ... 358.57° 11,67419 6 800 48 16 9 1,117

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Revenue Account of the Government Insurance Department (Ordinary Branch) for the Year ended 30th June, 1882.

Balance-sheet of the Government Insurance Department (Ordinary Branch) on 30th June, 1882.

Government Insurance Office, Wellington, 9th August, 1882. D. M. Luckie, Commissioner. Examined and found correct: C. T. Batkin, Assistant Controller and Auditor. 24th August, 1882.

£ s. d. Amount of funds on 1 st July, 1881 ... 557,230 11 10 Renewal premiums—Assurance, Annuity, and Endowment ... ... ... 125,153 2 1 premiums on 2,523 policies, assuring £702,912, and yielding an annual revenue of £21,828 15s. 3d. ... ... ... 10,183 4 9 Single premiums—Assuranceand Endowment 2,106 19 5 Consideration for annuities granted ... 2,553 ° ° Interest ... ... ... ... 31,309 17 5 Fees ... ... ... ... 9 11 7 £ s. d. £ s. d. Claims under policies, Assurance, including bonus additions ... 3^.759 *7 ° Endowments matured ... ... 300 o o Bonuses surrendered for cash ... 5>°9° *3 I0 Annuities ... ... ... 2,210 19 9 Surrenders ... ... ... 9*231 4 7 Commission, New ... 6,290 3 9 „ Renewal ... 1,023 3 9 — 7.313 7 6 Expenses of Management,— Salaries, Head Office ... 4,947 2 7 „ Branch Offices and Agents 1.293 12 o „ Extra clerical assistance ... 452 o o Medical fees ... ... 3>ooi 18 4 Travelling expenses ... 374 10 1 Advertising ... ... 177 14 1 Printing and stationery ... 805 17 o Rent ... ... 350 o o Postage ... ... 475 o o Telegrams ... ... 176 5 6 Exchange ... ... 128 2 II Office furniture, depreciation 155 o o General expenses ... 265 1 II Alterations in offices ... 250 o o Compensation for loss of office 75 2 3 Quinquennial valuation expenses 822 10 o ■ '3.749 l6 8 Amount of funds on 30th June, 1882 ... 653,890 7 9 £728,546 7 1 £728,546 7 1

Liabilities. £ s. d. Total Assurance, Annuity, and Endowment Funds (as per Revenue Account) ... 653,890 7 9 Claims announced, but not paid ... ... 8,895 8 6 Surrenders ... ... ... ... 732 4 2 Bonuses surrendered for cash ... ... 39 2 10 Annuities ... ... ... ... 12 10 7 Commission (new) ... ... ... 793 5 2 Medical fees ... ... ... ... 438 7 6 Sundry accounts owing... ... ... 25 14 6 Premium deposits ... ... ... 1,126 12 7 Assets. £ s. d. Loans on policies ... ... ... 36,646 2 4 Government securities ... ... ... 559,700 o o Railway debentures (guaranteed by Government) ... ... ... ... 40,000 o o Municipal Corporation debentures... ... 2,500 o o Office furniture (Head Office and Agencies) 1,616 13 4 Overdue premiums on policies in force ... £5>°38 19 8 Outstanding premiums due in June, 1882 ... 10,367 7 5 , 15,406 7 1 Interest accrued, not due ... ... 3)624 13 9 Temporary advance to Industrial Branch ... 261 15 5 Agents' balances ... ... ... 1,105 5 2 Cash on current account ... ... 5,092 16 6 £66S,953 13 7 £665,953 13 7

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Revenue Account of the Industrial Branch, 30th June, 1882.

Balance-sheet of the Industrial Branch, 30th June, 1882.

Government Insurance Office, Wellington, 9th August, 1882. D. M. Luckie, Commissioner. Examined and found correct: C, T. Batkin, Assistant Controller and Auditor. 24th August, 1882.

By Authority: G-eokqe Didsbuby, Government Printer, ■Wellington. —1882.

£ s. d. £ s. d. Amount of funds on 1st July, 1881 Premiums Interest 829 13 9 4" 4 5 28 10 o Claims ... ... ... ... 200 o o Surrenders ... ... ... ... 35 9. 3 Commission (new) ... £IO4 *9 2 Commission (renewal) ... 169 2 6 274 1 8 Salaries (Head Office) ... ... ... 124 10 o Medical fees ... ... ... ... 220 19 4 Travelling expenses ... ... ... 25 17 4 Advertising ... ... ... ... 41 3 5 Printing and stationery ... ... ... 51 14 o Miscellaneous ... ... ... ... 20 15 10 Amount of funds on 30th June, 1882 ... 274 17 4 £1,269 8 2 £1,269 8 2

Liabilities. 'otal funds (as per Revenue Account) ledical fees kdvertising 'emporary advance from Ordinary Branch ... £ s. d. 274 17 4 67 9 o 3 2 6 261 15 5 £6o7 4 3 Assets. Preliminary expenses on re-opening branch (to be written off during the current quinquennium) Office furniture Cash in hands of agents ... £ s. d, 557 H « 8 8 e 4i i 5 £6°7 4 3