ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1890.

Appendix to the Journals of the House of Representatives, 1891 Session II, H-18

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SESS. 11.—1891. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1890.

Presented to both Houses of the General Assembly pursuant to the provisions of the Acts relating to Government Life Insurance.

Government Insurance Office, Wellington, 24th June, 1891. In conformity with statutory provisions the annual accounts of the Government Life Insurance Department for the year ended 31st December, 1890, have been prepared and certified in due form, and are now respectfully submitted. Accompanying the accounts is a statement showing the details of the policies issued and discontinued during the year, and the progress of the business of the department since its establishment to 31st December, 1890. Neiv Business. —During the year there were received 3,840 proposals for insurance and endowment, for a total amount of £988,534, of which 2,744 were accepted and completed, assuring £"684,242. The proposals deferred or declined were 412 in number, for a total amount of £"98,425, being nearly 11 per cent, of the total number of proposals received. In the remainder of the proposals the applicants failed to complete the contracts. Of every 100 proposals received, 71 were accepted at ordinary rates, 18 were accepted with extra premium, and 11 were deferred or declined. Of every 100 policies completed 86 were at ordinary rates, and 14 with extra premium or the equivalent contingent debt. The policies issued in the General Section were 2,344, assuring £"594,870 ; and in the Temperance Section 400, assuring £"89,372 ; makingtogether the total sum above stated—namely, £"684,242. Seventeen annuity policies were granted, securing to the annuitants periodical payments amounting to a total of £"890 6s. 3d. per annum; for these the purchase-money was £"7,071 3s. nd. The new premiums received amounted to £"21,325 3s. Bd., of which £"1,393 Bs. 6d. represented single payments. Of the total policies in the two sections, there are 5,413 tontine policies for £"1,496,861. Interest amounted to £89,795 18s. 2d., being £"8,409 12s. gd. in excess of the sum received in 1889. The average rate of interest was £"5 Bs. nd., as against £"5 7s. 3d. for the immediatelypreceding year. It may here be stated that for four successive years the rate of interest realised has shown a continuous increase, being now 9s. 2d. (nearly J per cent.) more than was earned in 1886. This increase, computed on the basis of the present funds, represents an additional revenue of £"8,000 per annum. The Total Revenue was £"313,425 10s. 3d., being an increase of £"14,716 3s. 4c!. on the sum received in the previous year. Death Claims tinder Assurance Policies, including bonuses allotted and interim bonuses, after deduction of contingent debts, amounted to £59,776 75., being a decrease of £"12,336 10s. as compared with the death claims of the previous year. Endowment Assurances and Endowments matured, including bonuses, amounted to £"10,833 I^s- 3 C'Expenses of Management, including commission (£"11,103 7 s' s^ol and property-tax (£"6,484 17s. 3d.) show a reduction on the year of £"4,129 3s. Bd., which is equivalent to a lessening of the rate by i\ per cent, on the premium income. Accumulated Funds. —ln consideration of the approaching division of profits it has been deemed prudent to set aside a reserve to meet possible fluctuations in the values of the department's investments made by the Board of-the late Association. A special fund of £"25,000 has therefore been constituted for this purpose, independent of which the total funds of the department amounted at the end of the year to £"1,715,193 ss. gd.

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The increase in the funds for the twelve months was 7s. iod., of which 7s. iod. was carried to the Assurance Fund, and to the special reserve already referred to. This increase exceeds the highest previous annual increment by over £1 6,000. Viewing the circumstances of the year, and the temporary derangement of ordinary commercial affairs and general employment caused by the labour strike —an event which seriously retarded the progress of life insurance throughout the colony—the results shown by the figures above narrated are considered as being very satisfactory as regards the business of the department. During the 1890 session of Parliament a short Act was passed securing equity between general and temperance policyholders in the matter of bonuses and also providing for triennial distribution of profits in future. The Fourth Quinquennial Investigation is now being made in London by the Consulting Actuaries, to whom all the valuation data were despatched on the 4th March last, and, to quote the words of the Hon. the Colonial Treasurer in his Financial Statement, "the policyholders " may expect to be in possession at no distant date of the most gratifying and convincing assur- " ance of the vitality of the institution." Josephus H. Richardson, Government Insurance Commissioner.

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Eevenue Account of the Goveenment Life Insueance Dei>aetment for the Year ended 31st December, 1890.

£ s. d. £ s. d. £ s. d. Amount of Funds at 31st December, 1889 1,582,447 17 11 Death claims under policies, Renewal premiums — Assurance, An- Assurance, including bonus nuity, and Endowment .. .. 195,213 9 1 additions .. .. .. 59,776 7 0 New premiums on 2,761 policies, assur- Endowment Assurances maing £684,242, and yielding an annual tured, including bonus adrevenue of £20,489 Is. Id. (including ditions .. .. .. 9,256 12 0 instalments of first year's premium Endowments matured .. .. 1,577 4 8 falling due in the year) .. .. 19,931 15 2 Premiums returned on EnSingle premiums—Assurance and En- dowments .. .. .. 70 1 6 dowment .. .. .. .. 1,393 8 6 Bonuses surrendered for cash .. 627 0 9 Consideration for annuities .. .. 7,071 311 Annuities .. .. .. 4,775 810 Interest .. .. .. .. 89,795 18 2 Surrenders .. .. .. 10,006 3 0 Fees .. .. .. .. 19 15 5 Loans released by surrender .. 17,654 19 11 Commission, new.. .. 9,680 9 6 renewal .. 1,422 17 11 ■ 11,103 7 5 Property-tax .. .. .. 6,484 17 3 Losses on properties foreclosed .. .. .. .. 327 2 9 Expenses of management— Salaries—Head Office .. 10,81113 1 „ Branch Offices and Agents.. 5,244 1 3 Extra clerical assistance 1,513 0 11 Medical fees .. .. 3,901 5 6 Travelling-expenses .. 3,202 7 1 Advertising .. .. 1,142 3 9 Printing and stationery .. 1,380 19 10 Rent .. .. .. 1,062 11 11 Postage .. .. 2,005 4 2 Telegrams .. .. 662 3 1 Exchange .. .. 233 2 7 Office-furniture depreciation .. .. ' .. 419 410 General expenses .. 1,678 17 9 Quinquennial expenses .. 764 2 0 ■ 34,020 17 9 Reserve for possible depreciation in freehold and mortgage securities .. .. 25,000 0 0 Amount of funds at 31st December, 1890 1,715,193 5 9 £1,895,873 8 2 £1,895,873 8 2

Balance-sheet of the Goveenment Life Insubanob Department on 31st December, 1890. Liabilities. £ s. d. Assets. £ s. d. Total Assurance, Annuity, and Endow- Loans on policies .. .. .. 266,497 16 11 ment Funds (asper Revenue Account) 1,715,193 5 9 Government securities .. .. .. 735,100 0 0 Claims admitted, proofs not yet com- Railway debentures (guaranteed by Gopleted .. .. .. 11,135 10 2 vernment) .. .. .. ' .. 79,850 0 0 Annuities .. .. .. 37 1 0 Municipal Corporation debentures .. 85,572 0 0 Commission .. .. 1,014 2 7 County securities .. .. .. 1,000 0 0 Medical fees .. .. .. 735 0 0 Otago University debentures .. .. 15,000 0 0 Premium deposits .. .. .. 1,112 010 Harbour Board debentures .. .. 10,000 0 0 Valuation-fee deposits .. .. 9 9 0 River Board debentures .. .. 935 0 0 Mortgage-moneys in suspense.. .. 58 0 0 Landed and house property .. .. 96,176 911 Tontine Savings Fund .. .. 1,063 15 2 Office furniture (Head Office and Agencies) 3,640 810 Reserve for possible depreciation in free- Mortgages on property .. .. ..357,606 19 2 hold and mortgage securities .. 25,000 0 0 Properties acquired by foreclosure .. 23,490 1 5 Overdue premiums on policies in force .. .. £6,545 11 7 Outstanding premiums due in December, 1890 ..22,306 3 7 ■ 28,851 15 2 Interest outstanding .. 1,693 5 1 Interest accrued but not due 19,544 18 3 ■ ■ 21,238 3 & Agents'balances .. .. .. 2,533 9 3 Sundry accounts owing .. .. 1,057 17 '2 Cash on current account .. .. 26,808 3 4 £1,755,358 4 6 £1,755,358 4 6 Government Insurance Office, 16th March, 1891. JOSBPHUS H. EICHABDSON, Commissioner. W. 33. HUDSON, Secretary. Audited and found correct. JAMES EDWAED FITZGEEALB, Controller and Auditor-General.

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JOSEPHUS H. EICHAEDSON, Commissioner. Wellington, 28th February, 1891. . „ Mokris Fox, c ' J Preparation (not given); printing (1,300 copies), £i. x-j-uxiaia *■"■*> _; Actuary. Price 3d.] By Authority : Gbobge Didsbuky, Government Printer, Wellington. —1891.

STATEMENT OF BUSINESS AT END OF 1890. POLICIES ISSUED AND DISCONTINUED DURING 1890.

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ASSURANCES. SIMPLE Total. ANNUITIES. Yeae Whole Life and Term Assurances. Endx imment Assurances. WU^J VV IVICLIN I O, IP VESTMENTS, &c. t 1890. imiurn. v I Sum Annual 1 ' I Assured. Premium. -j Annual ""• Premium Sum Assured. Reversionary Annual Pr< No. Sum Assured. Reversionary Bonus. Annual Premium. Sum HeverAnnual Pi •emmm. 1 No. Ordinary. Extra. Annuity. No. Annuity. Bonus. Ordinary. Extra. ' Bonus, Ordinary. Extra. Policies in forcel at 31st . Dec, [ 1889 J 16,862 £ 5,063,825 £ 203,245 £ s. d. 131,568 9 7 £ s.d. 4,075 3 0 9,700 £ 8,234, 062 £ 71,162 £ s. d. 80,879 19 1 £ s. d. 815 2 3 556; £ ■ 28,242 £ s. d. 1,250 11 11 100 £ s.d. 19 19 2 £ s. d. 5,145 14 5 27,2187,326,129 27,218, £ 274,407: £ s. d.j J2i3,7i8 19 9 £ s. a. '4,890 5 3 \ £ s. d. ,5,i45 14 5 New Business, \ 1890 J 444,042 11,237 9 7 294 8 0 I 1,132 237,344 8,684 16 1 156 11 5 2,856 115 16 0 890 6 3 2,761! 684,242 i 20,038 1 8 450 19 51 j 890 6 3 1,539 73 17 Total .. 18,401 5,507,867 l '203,245 142,805 19 2 1 '4,36911 0 10,832, I 12,471,406: 71,162 89,564 15 2 971 13 8 629 31,098 1,360 7 11 I 117| 19 19 2j 6,036 0 8 ! 29,979^8, 010, 371 1274.407 233,757 1 5; i 5.34 1 4 8 6,036 o 8 Policies discon-'t tinued during Y 1890 j 1,229 336,330 7,462j I 8,943 2 11: I 277 6 6: i 540j j 125,575; 3,183 4,719 16 9 72 18 11 93 4,436 227 6 5 15 9 3 2 367 6 4 1,877] 466,341 10,645 13,899 9 3 350 5 5] I 367 6 4 I i Total Policies') in force at 31st Y Dec, 1890 J 17,172 I 5,171,537 I 195,783 133,862 16 3: J4.092 4 6 il0,292 i 2,345,831; 67,979 84,844 18 5 898 14 9 536 26,662 11,139 1 6 102 10 16 0 5,668 14 4 j 28,102: 7,544,030 263,762| 219,857 12 2 4,990 19 3 5,668 14 4 DETAILS OP POLICIES DISCO: TINUED DUBING 1890. How Discontinued. By Death Maturity .. Surrender .. Surr. Bonus Lapse Expy. Policy Expy. Prem. Miscellaneous .. 142 *153j 38,935 44^384 2,078 917 1,207 3,169 1,186 7 3 1,108' 18 6 40 0 9 4315 1 154- 2 10 41 31 110 16,250 8,354 24,622 621 683 559 212 1,108 666 0 9 523 12 4 908 19 7 13 2 1 5 5 0 16 19 6 '33 51 1,577 2,225 9612 l| 99 4 8 14 332 6 4 197 64 3i4 35 0 0 1,300 2 55,i85 7 1>23i 2,699 683 1,476 1.479 4,277 1,852 8 o 620 4 5 2,117 2 9 53 2 10 5 5 0 60 14 7 332 6 4 *932 2 851,811 1,200 6,011 8 4 14 12 4 541 15 3 80 1 3 *358 76 j349 2,600*16 9 29"8 4 .. I 9 634 31 "3 10 "l 9"3 2 328,794 1,200 8,652 12 1 14 12 4 54i 15 3 100 14 5 183 6 2 35 o o 13' 010 ■26 7 0 - •• •• •• I ■• 13 o 10 34 16 o " "31 - •■ I 20 7 4 8"9 0 o"s 10 367 6 4 1,877 31 ■• •• 1 ! 1,229 277 6 6! 3,183 I i i 4,719 16 9 1 ! 72 18 11 1 93! I 4,436 I 227 6 5| ; 151 I 9 3 2] 466,341 10,645 336,330 7,4621 8,943 2 11 540 125,575 13,899 9 3| 350 5 5 367 6 4 PBOGBESS OP BUSINESI SINCE ESTABLISHMENT TO END OP 1890. Totalissued ..29,461:9,011,194329,959 239,804 9 9,9,456 6 1 18,777 4,455,009 113,9S8jl61, 297 14 1 Totalvoid .. 12,289:3,839,657 134,176:105,941 13 6:5,364 1 7 : 8,485 2,109,778 46,009 76,452 15 8 Total in force 17,172J5, 171, 537 195,783133, 862 16 3J4,092 i 6 10,29212, 345, 831 67,979 84,844 18 5 2,20719 81,706! 78,598 3,905 2 6 149124 11 3'7, 621 10 2 5o,o93 1i3,545,40i'443,947 405,i3i 17 711,664 5 97,62110 2 1,309 4111,170! 51,936 2,766 1 0; 47113 15 3:1,95215 1021,991: 6,ooi, 3 7i!i8o, 185185,274 5 5I 6,673 6 61,9521510 89814 9 536' 26,6621,139 1 6! 102 10 16 0,5, 668 14 4 28,102 7,544,030' 263,762 219,857 12 2! 4,990 19 3 5,868 14 4 Extra Premiums .. .. .. 4,990 19 3 Deduction of Premium by Bonus, &c. 231 1 5 67,9791 84,844 18 5| 89814 9 Note.— The Ordinary Premium is the premium at the'real age; the extra, the additional premium imposed for any reason whatsoever. J £225 2 079_12_ TO