NEW ZEALAND GOVERNMENT LIFE INSURANCE ASSOCIATION (ANNUAL REPORT OF THE), FOR THE YEAR ENDED 31st DECEMBER, 1884.

Appendix to the Journals of the House of Representatives, 1885 Session I, H-08

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1885. NEW ZEALAND.

NEW ZEALAND GOVERNMENT LIFE INSURANCE ASSOCIATION (ANNUAL REPORT OF THE), FOR THE YEAR ENDED 31st DECEMBER, 1884.

Presented to both Houses of the General Assembly pursuant to Section 66 of " The New Zealand Government Insurance Association Act, 1884."

Head Office, Wellington, 19th May, 1885. The Central Board of the New Zealand Government Life Insurance Association have the honour to report as follows, for the year 1884 : — At the commencement of the present year " The New Zealand Government Insurance Association Act, 1884," came into operation, constituting the Government Insurance Department a corporate association, under a Central Board of Directors. Of these Directors, four were appointed specially by the statute, three were nominated by His Excellency the Governor, and three were elected by the policy-holders. The Directors appointed by the Act are the Colonial Treasurer (Chairman of the Board), the Solicitor-General, the Secretary to the Treasury, and the Public Trustee. The three Directors nominated by the Governor, in compliance with the Act, are Messrs. J. H. Bethune, Nicholas Eeid, and G. V. Shannon. The three Directors elected by the policy-holders are Messrs. H. D. Bell, George Fisher, and George S. Graham. The revenue accounts and balance-sheets for the calendar year ended the 31st December last, certified by the Controllor and Auditor-General, are appended to this Eeport. The particulars of the business done in that period are narrated below, under the respective heads. OEDINAEY BEANCH. The new proposals received in this branch during the year numbered 4,520, for a total sum of £1,137,217 4s. 7d. Of these, 3,309 became policies insuring £800,016 Is. 9d.; 396 were declined; the remainder were not taken up. These numbers are lower than those of the year 1883 ; but an analysis of the business month by month discloses the fact that the new business effected in the latter half of the year under notice was fully double that of the former half. The following tabular statement sJ.io-.vs the number, amount, and character of the policies issued :—

New Business

The amount paid for claims of all kinds, including endowment policies matured, and also bonus additions and allowances for prospective or intermediate bonuses, was £51,380 lis., representing 146 policies, insuring 135 lives. The claims through death are considerably within the expectation of mortality upon which the tables are based.

The discontinued policies during the period reported on were as follows:—

Class. No. of Policies. Sum Assured. Single Premiums. Annual Premiums. ■Assurance —General section .. Assurance —Temperance section Endowment Annuity 2,309 842 152 6 £ s. d. 594,492 0 0 197,475 0 0 8,049 1 9 310 1 2 per an. £ s. d. 2,255 3 9 8 15 0 £ s. d. 18,031 5 8 5,632 5 11 410 0 6 2,612 12 10 Total .. 3,309 800,016 1 9 4,876 11 7 24,073 12 1 Add single premiums .. 4,876 11 7 Total new premiums 2S,950 3 8

Assurance General i Policies. section. Ass Tet CHANCE nperanci Policies. ! Section. Endowment 'OLICIES. No. of [Policies. Sum Assured. Annual Premiums. No. of Policies. Sum Assured. Annual Premiums. No. of Policies. Sum Assured. Annual Premiums. 130 6 332 1, 367 6 £ 47,214 900 114,136 337,136 2,750 10,075 £ s. a. 1,029 2 7 81 14 <t 3,910 10 10 9,981 10 8 399 16 5 311 14 3 725 £ s. d. 23 10 0 £ £ s. a. iy Death Maturity Surrender .. Lapse .. Expiry, &c. .. Beduction .. 3 "7 800 5l'l3 0 9 200 2 3,950 36,420 700 1,950 114 7 3 1,097 4 8 14 14 11 45 0 6 149 13 5,379 1,595 251 10 4 68 17 8 Total .. 7,774 372 1 0 1,841 512,211 16,314 9 1 214 43,745 1,294 17 i 169

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The policies in force in the Ordinary Branch, in both General and Temperance Sections, numbered 20,997, insuring £6,138,475 ; the average amount of each policy in force is £292 7s. The income of the Ordinary Branch for the year was £228,434 6s. lid., of which £48,472 Bs. Id. was interest on invested funds. ACCUMULATED FUNDS. The accumulated fund on 31st December last amounted to £972,775 14s. Bd., showing a net increase of £126,616 4s. Id. For the purpose of showing the growth of the funds during the past ten years the following table is given : — £ s. d. Accumulated funds, 30th June, 1875 .. .. .. .. 109,967 12 1 1876 .. .. .. .. 153,717 7 6 1877 .. .. .. .. 219,394 4 0 1878 .. .. .. .. 292,523 2 4 1879 .. .. .. .. 371,889 16 9 1880 .. .. .. .. 459,335 17 0 1881 .. .. .. .. 557,230 11 10 1882 .. .. .. .. 653,890 7 9 31st Dee., 1882 .. .. .. .. 704,888 14 11 1883 .. .. .. .. 846,159 10 7 1884 .. .. .. .. 972,775 14 8 Note.—At the date of this report the accumulated fund at the credit of the Association exceeds one million sterling. The rapid increase of funds exhibited in this table is believed to be without parallel in the history of any life office in the British dominions. INDUSTBIAL BEANCH. 2,679 policies were issued during the year. Of these, 593, assuring £21,426 lis., with a total weekly premium of £18 15s. Bd., were adult risks, the remainder, for a weekly premium of 2d. each, being on the lives of children. On the 31st December the policies in force numbered 7,928, assuring £93,944 Bs. on the adult policies, and a varying sum on those of the children. The weekly premium on the policies in force amounted to £123 lis. Bd. 40 death claims occurred during the year, of which 25 were under infantile policies, and amounted to £128, while the sum assured under the 15 adult cases amounted to £557 Is. GENEEAL EEMABKS. Although the operations of the Association under its new constitution do not come within the limits of last year's proceedings, yet it will be of interest to the policy-holders to learn something of the new organization. The Board are of opinion that it will work well. It will tend to popularize the institution, as well as to necessitate careful deliberation on all points affecting its welfare. Everything of importance outside the routine duties comes before the Board, which sits from three to four hours a week. But, besides the duties performed at the Board meetings, a great deal is done by Committees. There are Committees which examine and report to the Board on all expenditure, on all alterations in the staff, and on the office requirements, including building. Whilst precaution is taken not to bring the names of proposers and policy-holders before the Board, all cases of exceptional character have careful consideration, and supervision is exercised over the routine business without invasion of its confidential nature. On the whole, a great deal of work of a beneficial character is effected which has not been practicable under a purely Government management. On the other hand, the connection with the Government gives great facility for investment of funds which are never idle. The Board are lending, and propose to lend, considerable amounts on mortgage of real property, but they are very careful to investigate all the conditions attaching to each application they receive. It is proposed to establish local Boards at once at Auckland, Christchurch, and Dunedin. This was decided on after careful deliberation, but the three elected members of the Board were opposed to it. The other members were in favour of it, excepting the Solicitor-General, whose opinion is not known, he having, from ill-health, not been able to attend the meetings of the Board. So large a majority of the Board being in favour of the establishment of local Boards, it was not thought necessary to invite the opinions of the policy-holders. It is, however, considered desirable that they should know of the difference of opinion amongst the members of the Board, and also that, should they desire to move in the matter, the Board will give respectful consideration to their representations if made by a resolution, concerning which a poll' of all the policy-holders can be taken. It must be understood that the Directors do not invite such expression of opinion, the majority of them being, as stated, convinced of the expediency of establishing the proposed local Boards. They think it right, however, to state the circumstances, and to point out to the policy-holders that action is open to them if they desire it. Julius Vogel, Chairman. H. D. Bell,) I Directors. N. Beid, J D. M. Luckie, Acting General Manager.

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Bevenue Account of the New Zealand Goveenment Life Insueance Association (Ordinary Branch) for the Year ended 31st December, 1884. £ s. d. £ s. d. Amount of funds at 31st December, 1883 846,159 10 7 Claims under Policies Assurance (including Renewal premiums—Assurance, Annuity, bonus additions) .. .. .. 50,580 11 0 and Endowment .. .. .. 164,691 13 3 Endowments matured .. .. .. 800 0 0 New premiums on 3,309 policies, assuring Bonus surrendered for cash .. .. 690 13 6 £800,016 Is. 9d., and yielding an annual Annuities .. .. .. .. 2,689 11 3 revenue of £24,073125. Id. .. .. 10,387 4 4 Surrenders .. .. .. .. 18,021 14 4 Single premiums—Assurance and Endow- Commission, new .. £7,040 17 6 ment .. .. .. .. 2,267 10 0 „ renewal .. 1,082 13 10 Consideration for annuities granted .. 2,612 12 10 8,123 11 4 Interest .. .. .. .. 48,472 8 1 Expenses of Management— Fees .. .. .. .. 218 5 Salaries—Head Office .. 8,157 19 3 ~ Branch Offices and Agents .. 2,260 17 0 Medical Fees .. .. 4,383 10 10 Travelling Expenses .. 1,158 17 11 Advertising .. .. 439 19 5 Printing and Stationery .. 1,238 14 0 Bent .. .. .. 554 15 1 Postage .. .. 850 0 0 Telegrams .. .. 386 12 5 Exchange .. .. 116 6 9 Office furniture (depreciation) .. .. 215 14 7 General expenses .. 1,148 13 8 20,912 1 5 Amount of funds at 31st December, 1884 972,775 14 8 £1,074,593 17 6 £1,074,593 17 6 D. M. Luckie. Government Insurance Office, 9th April, 1885. Examined and found correct— James Edwabd FitzGebald, Controller and Auditor-General.

Balance-sheet of the New Zealand Government Life Insurance Association (Ordinary Branch) on 31st December, 1884. Liabilities. £ s. d. Assets. £ s. d. Total Assurance, Annuity and Endowment Loans on policies .. .. .. 85,783 17 0 Funds (as per Revenue Account) .. 972,775 14 8 Government securities .. .. .. 458,100 0 0 Claims announced not paid .. .. 11,817 2 0 Railway debentures (guaranteed by GoSurrenders .. .. .. .. 91 19 10 vernment) .. .. .. .. 40,000 0 0 Annuities .. .. .. .. 37 11 9 Railway debentures .. .. .. 35,000 0 0 Commission (new) .. 649 15 3 Municipal Corporation debentures .. 26,322 0 0 ~ (renewal).. 90 17 6 Otago University debentures .. .. 15,000 0 0 740 12 9 Landed and house property .. .. 18,000 0 0 Medical fees .. .. .. .. 1,004 6 6 Fixed deposits .. .. .. 250,000 0 0 Premium deposits .. .. .. 1,503 10 11 Office furniture (Head Office and Agencies) 1,941 11 8 Exchange .. .. .. .. 22 16 4 Mortgages on property.. .. .. 5,000 0 0 Printirig and stationery .. .. 307 15 3 Overdue premiums on policies Sundry accounts owing .. .. 151 11 11 in force .. ..£9,119 17 8 Outstanding premiums due in December, 1884 .. 15,797 9 11 * 24,917 7 7 Interest outstanding .. 1,277 11 11 ~ accrued not due .. 9,986 1 6 H,2C3 13 5 Agents' balances .. .. .. 11,497 12 9 Temporary advance to Industrial Branch.. 520 0 3 Sundry accounts owing .. .. 221 4 3 Cash on current account .. .. 4,885 15 0 £988,453 1 11 £988,453 1 11 D. M. Luckie. Government Insurance Office, 9th April, 1885. Examined and found correct— James Edward FitzGekald, Controller and Auditor-General.

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Bevenue Account of the New Zealand Government Life Insurance Association (Industrial Branch) for the Year ended 31st December, 1884. £ s. d. £ s. d. Amount of funds on Ist January, 1884 .. 823 0 3 Claims .. .. .. .. 685 1 0 Premiums .. .. .. .. 6,098 10 1 Surrenders .. .. .. .. 161 1 7 Interest .. .. .. .. 214 10 Commission, New .. £232 19 6 Fees.. .. .. .. .. 0 16 6 „ Renewal .. 1,170 16 8 1,403 16 2 Salaries .. .. .. .. 910 4 2 Medical Fees .. .. .. .. 63 9 0 Travelling Expenses .. .. .. 43 2 7 Advertising .. .. .. .. 97 12 0 Printing and Stationery.. .. .. 719 2 Rent .. .. .. .. .. 50 0 0 Postage .. .. .. .. 150 1 9 Telegrams .. .. .. .. 7 18 9 General Expenses .. .. .. 21 14 7 Preliminary Expenses, now written off .. 1,201 12 8 Amount of funds on 31st December, 1884.. 2,057 18 3 £6,925 1 8 £6,925 1 8 D. M. Luckie. Government Insurance Office, 9th April, 1885. Examined and found correct— James Edward FitzGebald, Controller and Auditor-General.

Balance-sheet of the New Zealand Government Life Insurance Association (Industrial Branch) on 31st December, 1884. Liabilities. £ s. d. Assets. £ s. d. Total funds (as per Revenue Account) .. 2,057 18 3 Fixed deposits .. .. .. .. 1,000 0 0 Medical fees .. .. .. ' .. 20 3 0 Office furniture .. .. .. .. 76 5 2 Commission (new) .. .. .. 28 15 10 Interest accrued not due .. .. .. 7 3 8 Temporary advance—Ordinary Branch .. 520 0 3 Cash in hand and on current account .. 1,447 19 0 Agents' balances .. .. .. 95 9 6 £2,626 17 4 £2,626 17 4 D. M. Luckie. Government Insurance Office, 9th April, 1885. Examined and found correct— James Edward FitzGebald, Controller and Auditor-General.

Estimate of Probable Expenditure of the Boaed foe the Year 1885. Salaries.—Manager, £800 ; Actuary, £600 ; Accountant, £600 ; Inspector of Agents, £500; Chief Medical Officer, £400 ; Lecturer (also District Agent), £60 ; Chief Clerk, £280 ; one Messenger, £109 45.; one Messenger Assistant, £39. Four District Agents, two at £350, one at £280, one at £275; four Besident Agents, one at £240, one at £175, two at £150 : total, £1,970. Ten Clerks at Agencies, two at £110, one at £100, one at £85, one at £60, five at £50; total, £715. Head Office : Twenty-seven Clerks, one at £265, one at £260, one at £240, one at £210, two at £200, one at £185, one at £175, two at £170, four at £160, one at £156, three at £150, two at £145, one at £140, two at £125, two at £105, two at £100 ; total, £4,411. Eleven Cadets, two at £90, one at £80, four at £60, three at £50, one at £40 ; total, £690. Extra clerical assistance, £1,500 ; commission, £10,000; medical fees, £5,000; postage and telegrams, £1,800 ; printing, stationery, and advertising, £3,000 ; travelling expenses, agents, &c, £2,000; contingencies (including valuation preliminary expenses), £4,000. Grand total, £38,474 4s. D. M. Luckie.

Authority: Geobge Didsbuey, Government Printer, Wellington.—lBBs.