GOVERNMENT INSURANCE COMMISSIONER (REPORT OF THE, FOR THE HALF-YEAR ENDED 31st DECEMBER, 1882).

Appendix to the Journals of the House of Representatives, 1883 Session I, H-06

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1883. NEW ZEALAND.

GOVERNMENT INSURANCE COMMISSIONER (REPORT OF THE, FOR THE HALF-YEAR ENDED 31st DECEMBER, 1882).

jPrepared for Presentation to both Houses of the General Assembly in pursuance of Section 41 of " The Government Insurance and Annuities Act, 1874," and of Section 15 of " The Public Revenues Act, 1882."

Wellington, 31st May, 1883. By a clause in the Public Revenues Act, passed in last session of Parliament, provision was made for changing the financial period of this Department so that it might run concurrently with the calendar year, instead of terminating, as previously, on the 30th June. In accordance with this provision the accounts of the Department which I have now the honour to submit are prepared for the period of six months from Ist July to 31st December, 1882, inclusive. The details given below show an amount of new business for the six months in excess of that accomplished in any former financial period of twelve months duration. The success which has thus attended the operations of the Department is gratifying, not only from the extent of the business and its character, but also because of the fact that the manifold benefits which the Government offers in the shape of low premiums, liberal regulations, and above all the inviolable security of the colony, are being more and more recognized and taken advantage of by all classes. This is more evident now than heretofore, and I venture to say that the rapid progress which has marked the growth of the Department is one of the best reasons for its existence. ORDINARY BRANCH. New proposals in this branch received for the half-year ended 31st December numbered 3,344, for a total sum of Of these 797 were declined or were not taken up, leaving 2,547 proposals, on which were issued policies assuring the sum of 1,279, and producing a new premium income of ss. Bd. The separate temperance section mentioned in my last report, and into which only total abstainers from intoxicating liquors are admitted, was opened on the Ist July last. The expectations of success which were entertained on the establishment of the section have been fully realized, 472 policies, for an assured sum of producing an annual premium income of lis, 4d., having been issued during the first six months, as specified in the table which follows : —■

Class. No. of Policies. Sum Assured. Single Premiums. Annual Premiums. ■£* £ s19.329 111,225 725 £13 8s. per annum £ s. d. 966 11 5 o 17 8 79 7 I0 172 1 9 £ s. d. 15,876 16 8 3,281 11 4 26 19 o issurance —General section ... insurance —Temperance section Endowment innuity ... 2,066 472 7 2 Total. .YT 2.547 631,279 *,2i8 18 8 19,185 7 o Add single premiums 1,218 18 8 Total new iremiums £20,404 5 8

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Death claims on 44 policies, representing 42 persons, have arisen during the half-year. The amounts payable on these claims, including bonus additions and allowances for prospective or intermediate bonuses, amounted to 16s. One endowment assurance and three endowments, for a total of ,£"500, attained maturity within the period. The mortality experienced is still much below the expected ratio, while the interest received on investments nearly reaches the total amount payable under these claims, a circumstance which, considering the comparative youth of the office, cannot fail to be deemed satisfactory. In the next table will be found the number of policies which have lapsed, and the modes of their discontinuance :—

A decrease in the number of lapses is shown in this table as compared proportionately with those of the previous year. This reduction is mainly due to an evident increased disposition on the part of persons assured in the Government office to maintain their policies in force by regular payment of premiums, and also to improved and more liberal arrangements which the Department has instituted for the prevention of lapses, and for extending, so far as a due regard to safety permits, the non-forfeiture period. On 31st December last the total number of policies in force in the Ordinary Branch was 15,888, insuring £5, 178,717, exclusive of bonus additions, showing a net increase in the six months of 2,082 policies, and of on the sum assured. The revenue of this branch for the half-year from all sources was is. sd. The accumulated fund at the close of the half-year amounted to 14s. nd, showing an advance for the half-year of .£"50,998 7s. 2d. INDUSTRIAL BRANCH. During the six months there were issued in this branch 6,288 new policies, assuring a total sum of Of these, 2613, assuring .£"137,363 175., for a total weekly premium of £1 11 6s. 9d., were adult risks, and 3,675, assuring approximately £2 1,164, for a weekly premium of 2d. each, were on the lives of children. The policies in force at the end of the year numbered 7,551, assuring .£"177,183 45., for a total weekly premium of ,£"156 ss. Bd. The claims arising during the half-year comprised 19, of which 16 arose under infantile policies, and amounted to ;£"66, while 3 were under adult policies, and amounted to ,£"65 19s. 6d., making a total of/"131 19s. 6d. GENERAL REMARKS. The total new business of the two Branches for the half-year under notice may be here briefly recapitulated, and some further figures given which will show the new business completed during the entire calendar year ended with the 31st December last.

Table showing the New Business of the Year 1882.

This very laige extension of the new business of the Department speaks for itself, and offers the best possible evidence, of the great usefulness and benefit afforded to the community by the Government insurance scheme. During the last year" a new prospectus in a popular form was carefully prepared and printed It embodies new. and improved tables and sets forth greater advantages, in the more liberal treatment of the assured, and in the limitation of restrictions and removal of exactions heretofore generally practised, than are offered by any other life insurance office within the bounds of the Australasian Colonies, or, indeed, in any part of the world.

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QJ 'o As: Pc SURANCE DLICIES. Endowment Policies. Annuity Policies. Mode of Termination. "o ft, d z Sum Assured. u *"j "5 ft. *o 6 en QJ "5 'o Ph "o d Amount of Annuity per Annum. Annual Premiums. Sum Assured. Annual Premiums. Annual Premiums, £ 19,200 100 3'.05° 91,250 650 4.55° £ s. d. 642 10 6 12 10 o 1,051 o 7 2,671 19 8 601 9 6 155 18 o £ £ s. d. £ £ s. d, Jy death „ maturity „ surrender „ lapse „ expiry, &c. „ reduction „ return of premium 44 1 81 327 2 3 3 3 400 400 400 33 3 8 15 18 4 28 10 2 I 100 28 I o o Total decrease ... 455 146,800 5.'35 8 3 IO 1,300 106 2 2

Ordina y Branch. Industri L BllANCH. Totals. Period. Policies Issued. Amount Assured. Policies Issued. Amount Assured. Policies Amount Issued. Assured. .atest half-year to 31st December, 1882 'receding half-year to 30th June, 1882 2.547 ',831 £ 631,279 488,737 6,288 2.593 £ 158,527 57.425 8,835 4.424 £ 789,806 546,162 Totals for both branches for the calendar year 4,378 1,120,016 8,881 I 215,952 13,259 1,335,968

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Among the new tables are those relating to the deferred bonus scheme, under which insurance is proffered at rates lower than the ordinary tables. The profits accruing under the scheme will be divided on a system favourable to good lives, no share being given to the representatives of those by whose early death there is a loss. A few of the other improved conditions enumerated in the prospectus may be briefly narrated. They are —■ (1.) Policies, once issued and the age admitted, are unchallengeable except for fraud. (2.) There is now no restriction whatever on policyholders as regards travelling and residence. (3.) Proposers are now accepted without extra charge for occupation, with the single exception of those connected with the liquor traffic. (4.) Special facilities are afforded for payment of premiums by order on the assured's account in the Post-Office Savings-Bank, and by postage-stamp cards, where desirable. (5.) A liberal and early surrender value is allowed. (6.) An improved system has been established for preventing forfeiture of policies by extending the time for keeping them in force, and for giving extremely liberal terms on which lapsed policies may be revived. (7.) In case, during the currency of a quinquennial period, of the termination, by death or maturity, of a participating policy, on which two years' premiums have been paid, a prospective bonus is added to the amount insured without waiting for the next division of profits. This last method has been adopted in order to produce an approximate benefit for such terminating policies as nearly as possible equivalent to an annual division of profits without incurring the cost of yearly valuations. The Accounts of both branches for the half-year reported on, certified by the Auditor-General, are appended hereto. D. M. Luckie, Commissioner.

Revenue Account of the Government Insurance Department (Ordinary Branch) for the half-year ended 31st December, 1882.

*This amount, as heretofore, includes only the first payment of premiums whether annual, half-yearly, quarterly, or monthly, 'all subsequent payments being treated as renewals.

£ s. d. Amount of funds on 1 st July, 1882 ... 653,890 7 9 Renewal premiums—Assurance, Annuity, and Endowment ... ... ... 67,830 14 9 New premiums on 2,547 policies, assuring £6^1,279, and yielding an annual revenue of £19,185 7s. ... ... ... *8,036 18 4 Single premiums—Assurance and Endowment ... ... ... ... 1,035 >6 9 Consideration for annuities granted ... 172 1 9 Interest ... ... ... ... 17,7 11 o 11 Fees ... ... ... ... 2 8 11 £ s. d. £ s. d. Claims under policies, Assurance, including bonus additions ... I9>857 '6 o Endowments matured ... ... 500 o o Bonuses surrendered for cash ... 924 10 4 Annuities ... ... ... 1,210 6 10 Surrenders ... ... ... 4)955 2 9 Commission, New ... 5.5°2 ! 6 „ Renewal ... 644 19 7 6,147 • ' Expenses of Management,— Salaries, Head Office ... 3,216 9 4 ,, Branch Offices and Agents 813 II 3 „ Extra clerical assistance... 427 14 6 Medical fees ... ... 2,906 19 6 Travelling expenses ... 387 10 11 Advertising ... ... 526 18 o Printing"and stationery ... 748 17 3 Rent ... ... 150 o o Postage ... ... 400 o o Telegrams ... ... 120 5 5 Exchange ... ... 49 19 1 Officefurniture, depreciation 166 10 o General expenses ... 281 2 o 'o,'9S '7 3 Amount of funds on 31st December, 1882 704,888 14 II £748.679 9 2 £748.679 9 *

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Balance-sheet of the Government Insurance Department (Ordinary Branch) on 31st December, 1882.

Government Insurance Office, Wellington, 23rd February, 1883. D. M. Luckie, Commissioner. Examined and found correct: James Edward FitzGerald, Controller and Auditor-General.

Balance-sheet of the Industrial Branch on the 31st December, 1882.

Government Insurance Office, Wellington, 23rd February, 1883. D. M. Luckie, Commissioner. Examined and found correct ■ James Edward FitzGerald, „**-£ Controller and Auditor-General.

By Authority: George Didsbuey, Government Printer, Wellington.

Revenue Account of the Industrial Branch for the half-year ended 31st December, 1882.

Liabilities. £ s. d. Assurance, Annuity, and Endowment Funds (as per Revenue Account) ... 704,888 14 11 .laims announced but not paid ... ... 10,965 7 6 Surrenders ... ... ... ... 114 26 .onuses surrendered for cash ... ... 436 Commission (new) ... ... ... 895 8 7 dedical fees ... ... ... ... 684 12 o iundry accounts owing ... ... 160 9 n 'remium deposits ... ... ... 1,314 17 3 £719,027 16 2

Assets. £ s d. Loans on policies ... ... ... 43,892 3 8 Government securities ... ... ... 575,400 o o Railway debentures (guaranteed by Government) ... ... ... ... 40,000 o o Municipal Corporation debentures ... 9,172 o o Otago University debentures ... ... 15,000 o o Office furniture (Head Office and Agencies) i>553 6 6 Overdue premiums on policies in force ... £4,882 5 o Outstanding premiums due in December, 1882 ... 9,641 7 5 I4..23 12 5 Interest outstanding ... 294 Interest accrued, not due 1,836 9 3 ■ 1,838 18 7 Agents'balances ... ... ... 1,413 '9 10 Temporary advance to Industrial Branch ... 1,816 10 9 Cash on current account ... ... 14,417 4 5 £719,027 16 2

Amount of funds on ist July, 1882 Premiums Fees £ »• d. ... 274 17 4 ... 2,744 12 3 044 r £3.019 '3 "

£ ,s. d. Claims ... ... ... ... 131 19 6 Surrenders ... ... ... ... 1638 Commission, New ... £49° 4 JI ,, Renewal 139 8 5 629 13 4 Salaries ... ... ... ... 827 19 o Medical fees ... ... ... ... 478 17 1 Travelling expenses ... ... ... 83 12 8 Advertising ... ... ... ... 24 o 1 Printing and stationery ... ... 84 13 3 Rent ... ... ... ... 25 o o Postage ... ... ... ... 100 o o Telegrams ... ... ... ... 22 1 I General expenses ... ... ... 41 1 7 Interest ... ... ... ... 20 o o Amount of funds on 31st December, 1882 534 12 8 £...019 '3 I'

Liabilities. £ s. d. Total funds (as per Revenue Account) ... 534 12 8 Rent ... ... ... ... ... 25 o o Temporary advance from Ordinary Branch ... 1,816 10 9 £2,376 3 _

Assets. £ s. d. Preliminary expenses on re-opening branch (to be written off during current quinquennium) 2,201 12 8 Office furniture ... ... ... ,,. 60 10 o Cash in hands of agents ... ... ... 114 09 £2*376 3 5