ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1895.

Appendix to the Journals of the House of Representatives, 1896 Session I, H-08

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1896. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1895.

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

Government Insurance Office, Wellington, 6th July, 1896. I have the honour to submit herewith the accounts and tables of business of the department for the year 1895 and to report thereon in compliance with the law. New Business.— During the year 3,808 proposals, for a total amount of £"833,059, were received Of the whole of the proposals submitted, 381 were deferred or declined. Of every 100 proposals received, 79 were accepted at ordinary rates of premium, 11 were loaded— i.e., accepted with an extra premium—and 10 were deferred or declined. Of every 100 policies completed, 94 were at ordinary rates, and 6 with an extra premium, or the equivalent contingent debt There were also granted 38 annuities, securing to their holders £"1,513 per annum. The following is a condensed summary of the new policies issued by the department during the year: —

In the General Section the policies issued were 2,391, assuring £"518,173, and in the Temperance Section 483 policies, assuring £"89,875. The particulars of the new and discontinued business of the year, and the progress ot the department from its inception, are given in great detail in the annexed statement of progress of business. . Civil Service Insurance Scheme.—There are now in force 113 policies under the Civil Service Insurance Regulations, insuring £"19,848, and entitling the survivors at age 60 to annuities amounting to per annum. ran* 1 Premiums received. —The total new premiums received amounted to £19,938. Ihe renewal premiums received amounted to £"230,052, being £"10,745 in excess of the previous year. The consideration for annuities granted during the year was £"16,042. Interest.—The interest earned during the year amounted to £119,973, being £4,703 in excess of the interest for the previous year. Total Revenue.—The total revenue from all sources showed the substantial increase of £"16,534, and amounted to £"386,012. Claims under Policies.—Death claims arose under 271 policies through the deaths ot 248 policyholders, representing (after deduction of contingent debts) a total sum assured, including bonus additions, of £"99,689. Matured endowment assurances and children's endowments amounted to £"28,289. since its foundation the department has paid over £"1,250,000 sterling in the liquidation of insurance claims. Expenses of Management. —The expenses of management (including commission £12,544, and land- and income-tax £"6,623) amounted to £"50,462. There has thus been an absolute decrease o f £"5,260 in the year's expenditure, representing a reduction of about 3 per cent, in the ratio of expenses to premium income.

* And deferred annuities securing £2,052 per annum. t And single premiums amounting to £16,042. I—H. 8.

No. Sum assured. Annual Premium. Whole-life and term assurances indowment assurances Double-endowment assurances... Children's endowments Vnnuity assurances 964 1,401 400 £■235,395 262,349 100,900 3.4046, ooo : ' : 9.54 6 2,853 I 3 1 327 3O 4 1 Annuities 2,836 38 /"608,04s £1 ,513 per annum £*9> I0 7 18+ Total policies ... 2,8 74 I

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Accumulated Funds. —The funds have increased by £164,006, and at the end of the year amounted to £2,428,245. This is the largest increment in any one year since the foundation of the department. The total assets now amount to and on the 31st December, 1895, were invested as follows: —

General Remarks. —The most noticeable feature of the business of the year 1895 has been a marked decline in the expenses of management. In proportion to the premium income of the department the rate of expense has declined during the year from 22 per cent, to 19 per cent., and in the last six years the reduction in the ratio of expenses to premium income has been more than 6J per cent. The department has, in common with other institutions, experienced a slight fall in the rate of interest earned on its funds, as was to be expected in view of the general tendency in that direction. Having regard to the lower rates ruling in other investments, the department has considered it right to reduce the rates charged to policyholders for advances on the security of their policies. The new insurances of the year, although a little less than in 1894, amounted to considerably over sterling, which is a greater business , than that transacted by the majority of British life offices. ' Considering the very limited population to which the operations of the department are confined, the yearly increase in the business in force is highly satisfactory, as may be seen from the following table of total assurance in existence at different periods:—

The total insurances therefore, amount to Of this, ,£"3,365,000 relates to endowment insurances, and the amount of provision for old age or early death thus made by New Zealanders in the Government Office alone is greater than the similar provision made by the policy-holders of any English office, with two exceptions. The insurance discontinued from all causes during the year shows a decrease of as compared with the discontinuances of 1894. The success of the department's efforts to induce policy-holders to maintain their policies in force is shown by the following table, from which it will be seen that the lapses and surrenders have declined from per cent, of the total business in force in 1885 to per cent, in 1895 • —

In connection with the appalling disaster by which the lives of sixty-seven miners were lost through the explosion in the Brunner Mine on the 26th of March last it may be of interest to learn that the department held insurances on the lives of no less than nineteen of the victims of the accident. Unfortunately, in the case of one of the policyholders, the insurance had been allowed to lapse, but in the case of the others the policy-moneys will no doubt afford acceptable assistance to the widows and orphans so suddenly deprived of their breadwinners. Although not falling within the operations of the year, the magnitude and recent of the disaster are my excuse for making this reference thereto. So far as I can ascertain, the insurances held by private companies only amounted to four. The actuarial valuation, which is due at the end of the current year, is now in progress, and efforts will be made to declare the triennial bonus as early as possible next year. Josephus H. Richardson, Commissioner.

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Class of Investment. Amount. Percentage of Total Assets. Government securities Mortgages on freehold property Loans on policies Local bodies' debentures Landed and house property Miscellaneous assets ... Cash on current account £ 916,988 662,315 441.959 i67,435 164,986 77-934 67,573 36'7 per cent. 26'5 „ 177 67 „ 6-6 3 1 27 ioo'O per cent.

Year. Insurance in Force. 1870 ... i875 •■■ 1880 ... 1885 ... 1890 ... . 1895 •■• 30,OOO I,837,000 4,172, 000 6,552,000 7,808,000 9,345,000

* Year. Insurance in Force. Insurance terminated by Lapse and Surrender during the Year. Percentage of Lapses and Surrenders to Insurance in Force. 1885 1890 I895 £ 6,552,000 7, 808,000 9.345'°°° £ 47y,ooo 408,000 369,000 7 - 3 per cent. 3*9

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Eevenue Account of the Government Life Insurance Department for the Year ended 31st December, 1895. £ s. d. £ s. d. Amount of Funds at 31st December, 1894 2,264,239 4 11 Death claims under policies, Assurance, Renewal premiums — Assurance, An- including bonus additions .. .. 99,688 19 0 nuity, and Endowment .. .. 230,052 711 Endowment Assurances matured, includNew premiums (including instalments ing bonus additions .. .. 27,063 7 0 of first year's premiums falling due in j Endowments matured .. .. 625 8 0 the year) .. .. .. .. 18,951 13 9 i Premiums returned on endowments .. 23 6 8 Single premiums—Assurance and En- Bonuses surrendered for cash .. .. 2,842 3 7 dowment .. .. .. .. 986 15 8 Annuities .. .. .. .. 8,729 18 4 Consideration for annuities .. .. 16,041 11 2 Surrenders .. .. .. .. 22,282 12 9 Interest .. .. .. .. 119,973 4 5 Loans released by surrender .. .. 9,688 2 7 Fees .. .. .. .. 6 810 Commission, new .. £10,946 6 4 renewal .. 1,597 19 5 12,544 5 9 Land-and income-tax .. .. 6,622 14 7 Expenses of management— Salaries—Head Office £10,010 311 „ Branch Offices and Agents 5,490 4 5 Extra clerical assistance 1,729 7 7 Medical fees and expenses 4,185 12 9 Travelling-expenses 674 2 4 Advertising .. 760 2 11 Printing and stationery 1,139 19 10 Rent .. .. 2,208 4 6 Postage .. .. 1,509 13 7 Telegrams .. .. 524 0 3 Exchange .. .. 70 8 0 Office furniture depreciation .. .. 431 7 11 General expenses .. 2,261 18 11 Triennial expenses .. 300 0 0 31,295 6 11 Amount of funds at 31st December, 1895 .. .. .. 2,428,245 1 6 J £2,650,251 6 8 j 6 8

Balance-sheet of the Goveenment Life Insurance Depaetment on 31st December, 1895. Liabilities. Assets. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and Endow- Loans on policies .. .. 441,959 3 9 ment Funds (as per Revenue Account) 2,428,245 1 6 Government securitiesClaims admitted, proofs not yet com- Consolidated stock .. 670,116 0 0 pleted .. .. .. .. 15,243 19 0 Treasury bills .. 140,000 0 0 Commission .. .. 839 2 11 Debenturesissued under Medical fees .. 647 17 0 " The Government Premium and other deposits .. .. 3,256 12 7 Loans to Local Bodies Tontine Savings Funds .. .. 7,957 13 0 Act, 1886" .. 10,000 0 0 Reserve for possible depreciation in free- Railway debentures hold and mortgage securities .. 43,000 0 0 (guaranteed by Government).. .. 79,925 0 0 Debentures issued under " The Native Land Purchases Act, 1892 " 15,000 0 0 Debentures issued under "The Immigration and Public Works Act, 1870" .. 1,947 1 0 916,988 1 0 Municipal Corporation debentures .. 106,691 6 1 County securities .. .. .. 1,000 0 0 Otago University debentures .-. .. 15,000 0 0 Harbour Board debentures .. .. 43,809 210 River Board debentures .. ..- 435 0 0 Town Board debentures .. .. 500 0 0 Landed and house property .. .. 132,586 10 11 Office furniture (Head Office and Agencies) 3,882 11 3 Mortgages on property .. .. 662,314 10 6 Properties acqui)id by foreclosure .. 32,399 19 5 Overdue premiums on policies in force .. £7,359 3 3 Outstanding premiums due in December, 1895 29,166 7 0 ■ 36,525 10 3 Interest outstanding .. 3,476 19 0 Interest accrued, but not due .. .. 28,940 9 3 • 32,417 8 3 Agents'balances .. .. 3,624 9 8 Sundry accounts owing .. .. 1,483 17 1 Cash in hand and on current account .. 67,572 15 0 £2,499,190 6 0 £2,499,190 6 0 Government Life Insurance Department, 21st February, 1896. Josephus H. Richardson, Commissioner. W. B. Hudson, Audited and found correct. Secretary. James Edwaed FjtzGekald, Controller and Auditor-General.

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Statement of Business

POLICIES ISSUED AND DISCON-

PARTICULARS OF POLICIES DISCON-

PROGRESS OF BUSINESS OF THE GOVERNMENT INSURANCE

ASSURANCES. TOTAL. Whole-life and Term Assurances. YEAR 1895. ■Kγ- Sum N °- Assured. Reversionary — Bonus. Annual Premium. 1. Ordinary 2. Extra. Annual Premium. 1. Ordinary. 2. Extra. — Annuities. o,,™ ReverNo. Awmrfifl sionary _ Assured. Bonus , Annual Premium. 1. Ordinary. 2. Extra. Annual Premium.

£ £ £ s - d - (245,593 10 1] 1 4.486 15 7J £ s. d. £ £ £ 5. d. (138,199 15 9) { 3,653 11 4/ 'olicies in force at 31st De-1 cember, 1894 J 32,907 8,506,289 726,254 10,850 16 10 18,603 5,510,273 521,324 lew Business, 1895 2,874 608,048 ( 18,966 3 7] \ 158 16 2/ 3.565 1 5 964 235,395 ( 6,143 19 81 t 106 5 1J Total 35.781 9."4.337 726,254 (264,559 13 81 \ 4,645 11 9/ 14,415 18 3 19,567 5,745,668 521,324 (144,343 15 5) 1 3,759 16 5/ 'olioies discontinued during) 1895 • • J 1,813 462,370 32,992 S 14.568 3 8} I 318 16 2/ 347 9 4 1,050 306,155 22,278 f 8,570 18 9) 1 252 3 3} 'otal Policies in force at 31st) December, 1895 J 693,262 1 249,991 10 0) 1 15 7J 14,068 8 11 18,517 5,439,513 499,046 (135,773 1 81 1 3,507 13 2 J 33,968 8,651,967

How Discontinued. By Death 277 88,270 10,134 J ( 2,787 18 7} 7i 5 8} 1,158 10 7) 16 13 4) 3,219 9 4) 54 8 2} 347 9 4 208 74,260 8,622 f 2,233 15 7) I 64 10 8J Maturity 104 23,689 4,!5O Surrender 398 103,494 7,014 216 63,519 4,868 f 1,678 16 111 \ 42 2 8J Surrender of Bonus 5,746 { f J 1 6,674 8 5) 100 11 4 J 1 1 11 597 9 7l 30 11 9) 129 5 31 45 5 11 j 4,101 f 3,980 12 10) I 76 19 9 J 1 1 11 f 597 9 7) 1 30 11 9) J 78 16 11) \ 37 18 5/ ( 8,570 13 91 \ 252 3 3/ Lapse 1,033 246,817 5,948 625 168,277 4,687 Expiry of Policy 1 100 1 100 Expiry of Premium Miscellaneous -(1) 1,813 462,370 32,992 f 14,568 3 81 1 318 16 2) 347 9 4 1,050 306,155 22,278

'otal issued 'otal void 65,099 3* t^1 16,964,895 8,312,928 1,117,670 424,408 (508,589 o 5) \ 12,843 16 if (258,597 10 5) 1 8,517 ° 6J 17,515 3 5 36,161jl0,819,086 804,767 j 2^; 271 3 3} 3,446 14 617,644 5,379,573 305,721 { 14 jj ■ "j 14,068 8 11 18,5175,439,513499,046 | Total in force .. 33,968 8,651,967 693,262 249,991 10 0 Extra Premiums Reduction of Premium by Bonus, &o. 4.326 15 7 307 1 o Note.—The Ordinary Premium is the premium charged £254,625 6 7 Wellim ■ton, 15th February, 1896.

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at end of Year 1895.

TINUED DURING THE YEAR 1895.

TINUED DURING THE YEAR 1895.

DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1895.

JOSEPHUS H. RICHARDSON, Commissioner. MORRIS FOX, Actuary.

By Authority: John Mackay, Government Printer, Wellington.—lB9C. Price 6d.] 2—H. 8.

ASSURANCES. Endowment Assurances. Annuity Assurances. Annual NO. J s U Za *™l; m i U --—. No. AB^»a Annuities. p^^ Assuied. Bonus> j ordinary. Assured. rremiura. g. Extra. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, &C. Annuity Assurances. N °- l"m annuities. j. Sum Annual Assured. Premium.

£ £, £ s. d. (105,867 6 9) \ 833 4 3/ £ £ s. a. £ s. a. £ s. d.j £ s. d. £ £ s. d. 13,695 2,961,011 204,930 42 5,300 1,927 5 1 281 6 0 181 43 12 S 8,923 11 9 386 29,705 1,201 9 5 1,801 363,249 f 12,346 6 0) I 52 11 1/ 6,000 2,052 9 0i ■ 1326 14 0 I 18 0 0| 1,512 12 5 3,404 131 3 11 41 38 30 15,496 3,324,260 204,930 f118,213 12 91 \ 885 15 4j SI! 11,300 3,979 14 1 608 0 219! ! G1 12 2 10,436 4 2 416 33,109 1,332 13 4 718 153,837 10,714 f 5,881 3 11 \ 66 12 11/ 347 9 4 39 2,378 116 6 10 14,778 3,170,423 194,216 (112,332 9 8) I 819 2 5j s;», 11,300 3,979 14 1 608 0 0 213: 61 12 2 10,088 14 li 377 30,731 1,216 6 6

! 63 86 14,010| 1,512 I 23,064i 4,150 38,923 2,146| f 554 3 0} 1 6 15 0/ I 1,125 10 8) 1 16 13 4/ I( 1,486 0 2) 1 12 5 6} • • 6 347 9 4 18 625 32 19 11 167 15 1,052! 54 12 3 402 1,645! 77,840 1,261 f 2,665 0 11} \ 23 11 7/ V 700 28 14 8 6 I j f 50 8 4) I 7 7 6} ( 5,881 3 1) t 66 12 11j 1 .. 718| 153,8371 10,714 I :S47 9 4 39 2,378 116 6 10

26,69816,034,977;312,903 12 10} ll,9202,864,554J118,687 J}"} 14,7783,170,423J194, 216 j 2 5} 84 11,400 4,029 5 11 J 1 100 49 11 10 83 11,3003,979 14 1 1 613 0 0 i500 285175 7 5 72113 15 3 13,485 17 6 3,397 2 8 1871 1494 99,432 4,742 8 11 68,7013,526 2 5 30,7311,216 6 6 14,778 3,170,4231 11,300 3,979 14 1 608 0 0 213 61 12 210,088 14 10 377 at the true age; the extra, the additional premium imposed for any reason whatsoever.