ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1898.

Appendix to the Journals of the House of Representatives, 1899 Session I, H-08

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1899. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1898.

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 June, iBgg. I have the honour to submit my report upon the working of the Government Insurance Department for the year 1898, together with the customary accounts and statement of progress. New Business. —During the past year 4,461 proposals, for the insurance of were dealt with, of which number 3,361 were completed and became policies, insuring and the annual premiums thereon amounted to in addition to single premiums for Twenty-four immediate annuities were also granted, for which the purchase-money was and one deferred annuity. Discontinued Business. —-A great improvement has again been shown in the number and amount of policies which have been lapsed and surrendered, as will be readily seen from the following table : —

Further improvement in this direction cannot, of course, be expected every year, but the keenest efforts are continually made to prevent policies being given up in this manner, and the experience of the Department compares favourably with that of the other Australasian life insurance offices. Net Increase. —ln consequence of the substantial increase in the new business and the decrease in the discontinued business, the net addition to the sum assured for the year amounted to which is larger than for many years past. Business in Force. —There are now 37,848 policies in existence, insuring (and bonuses) at death or maturity, and annuities—immediate and deferred—for per annum, the total annual premiums being Progress of Business. —A fully detailed statement of the progress of the business of the Department for the year is, as usual, appended to this report. Income and Outgo. —The income of the Department amounted to during the year and was derived from the following sources:— New premiums (including single premiums) ... ... ... 23,006 Renewal premiums ... ... ... ... ... ... 247,625 Consideration for annuities ... ... ... ... ... 8,317 Interest ... ... ........ ... __ ... ... 131,188' Fees ... ... ... ... ... ..-. ... 12 Total income for 1898 ... ... ... ...^410,148 I—H. 8.

Lapsed Policies. Surrendered Policies. Year. No. Sum assured. No. Sum assured. 897 898 898 815 £ 199,204 *77>49* 376 355 £ 93,108 84,947 Decrease • 83 ~21,713 „"8,i6i. 21

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The premium income is quite satisfactory, the renewal premiums having increased by and the new premiums by The interest earned has increased by and, although the average rate has slightly declined—to £\ 13s. nd. per cent. —this has been the general experience of financial institutions during recent years, and the Department is making full provision to meet the situation by assuming the low rate of 3 \ per cent, in the triennial valuation now proceeding. The outgo for claims by death and maturity was somewhat higher than in the previous year, but was fully provided for, as the maturing claims were practically known in advance, and the claims by death were well within the expectation. The expenses were less than in 1897, although a much greater amount of business was done, and the ratio of expenses (including the land- and income-tax) to total income fell from 14-86 per cent, to i4'34 per cent. Accumulated Funds. —The funds now stand at 861,534, representing an increase of during the year. There seems good reason to anticipate that the close of the present year will show an accumulated fund of three millions sterling. The following table will show the growth of the funds since the foundation of the Department in 1870: —

.The Balance-sheet. —On the 31st December, 1898, the total assets amounted to and were invested as shown in the following comparative statement: —

The chief features of interest in the balance-sheet are: (i) A decrease of in cash in hand and on current account; (2) an increase of in loans on policies; and (3) an increase of in mortgages on freehold property. Although not appertaining to a review of last year's transactions I cannot close this report without a passing reference to the untoward accident which it now seems impossible to doubt has overtaken the Union Steam Ship Company's s.s. " Ohau." It will be remembered that on the occasion of the disaster in the Brunner mine the lives of no less than eighteen of the victims were insured in this Department. Similarly in the case of the missing steamer six of the ship's company have policies in this office, some taken out under special arrangements with the Union Company and some on the policy-holders' own initiative. So completely do the ramifications of the Department's business permeate all New Zealand interests that it is safe to assert that scarcely any event can happen adversely or beneficially affecting any section of the community without its reflex being almost immediately felt in the Department's individual experience. Oh occasions such as the disaster to the " Ohau " it is some consolation to know that, while the loss to the Department is relatively a trivial matter and one which it is its special function to meet, the insurance moneys will to some extent mitigate the privations of those who have been so suddenly and painfully bereaved. J. H. Richardson, Government Insurance Commissioner.

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Date. Accumulated Funds. 30th June, 1870 30th June, 18S0" — 31st December, 1890 31st December, 1898 £ Nil 459.336 i,7i5.193 2,861,534

At 31st December, 1897. At 31st December, 1898. Class of Investment. Amount. Percentage of Total Assets. •Amount. Percentage of Total Assets. £ 983.452 827,829 499.53! 151,678 145,264 35-2 per cent. 297 I7-9 5'5 5'2 Mortgages on freehold propertyGovernment securities Loans on policies Local bodies'debentures ... Landed and house property, and properties acquired by foreclosure Miscellaneous assets Cash on current account ... £ 1,130,609 827,858 54 J >474 150,829 140,708 38-7 per cent. 283 18-5 „ 5' 2 4*8 77,454 103,462 2-8 85.151 47,735 2-9 r6 37 '2,788,670 ioo-o II Total lOO'O it

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Revenue Account of the Government Life Insurance Department for the Year endßtl 31st December, 1898. £ s. d. £ s. d. Amount of funds at Ist January, 1898 2,725,105 18 3 Death claims under policies, Assurance, Renewal premiums — Assurance, An- including bonus additions .. .. 109,090 6 2 nuity, and Endowment .. .. 247,625 6 6 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 60,806 4 0 of first year's premiums falling due Endowments matured .. .. 1,317 4 10 in the year) .. .. .. 22,052 3 4 Premiums returned on endowments .. 52 6 0 Single premiums—Assuranoe and En- Bonuses surrendered for cash .3,,,0.14.13. .5 dowment .. .. .. 953 12 2 Annuities .. .. .. .. 10,978 2 6 Consideration for Annuities .. .. 8,317 4 4 Surrenders.. .. .. .. 20,255 13 3 Interest .. >;. .. .. 131,187 19 2 Loans released by surrender.. .. 4,730 7 9 Fees '. ■ ■• •'•' •• 11 16 2 Commission, new ..£13,079 1 2 renewal .. 1,894 11 11 14,973 13 1 Land-and income-tax ... ~ 8,750 2 0 Expenses of management— fin 1 jlti n*" 1 . Head Office .. £11,249 7 9 V Branch offices and agents .. .. 6,267 15 9 Extra clerical assistance 1,470 15 3 Medical fees and expenses .. .. 5,077 10 6 Travelling-expenses .. 880 4 8 Advertising .. .. 834 18 5 Printing and stationery 1,195 17 9 Rent .. .. 2,318 16 5 Postage .. .. 1,548 8 3 Telegrams .. .. 550 10 9 Exchange .. .. 63 11 10 Office furniture depreciation .. .. 339 11 5 General expenses .. 2,472 14 4 Triennial expenses .. 830 14 0 35,100 17 1 Reserve for possible depreciation in freehold and mortgage securities .. 4,650 0 0 Amount of funds, 31st December, 1898 2,861,534 9 10 £3,135,253 19 11 £3,135,253 19 11

Balance-sheet of the. Government Life Insurance Department on 31st December, 1898. Liabilities. Assets. £ a. A. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. .. 541,473 16 8 dowment Funds (as per Revenue Government securities— Account) .. .. •• 2,861,534 910 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Treasury bills .. 140,000 0 0 pleted .. .. .. .. 15,149 1 1 Railway debentures Annuities ".. .. •• .. 148 6 11 (guaranteed by GoCommission .. ... .. 614 1 2 vernment) .. 44,981 5 0 Medical fees .. .. .. 549 11 5 Debentures issued Premium and other deposits.., .. 3,474 0 0 under " The Native Fire-insurance moneys in suspense .. 50 0 0 Land Purohases Tontine Savings Funds .. .. 15,159 2 8 Aot, 1892" ... 15,000 0 0 Reserve for possible depreciation in Debentures issued freehold and mortgage securities .. 27,684 18 9 under " The Immigration and Public Works Aot, 1870" 1,976 9 7 827,857 14 7 Municipal Corporation debentures .. 106,780 17 10 County securities .. .. .. 1,000 0 0 Harbour Board debentures .. .. 42,548 11 6 Town Board debentures .. .. 500 0 0 Landed and house property .. .. 120,937 15 7 Office furniture (Head Office and agencies) .. .. .. 3,057 3 11 Mortgages on property .. .. 1,130,608 10 1 Properties acquired by foreclosure .. 19,769 16 8 Overdue premiums on policies in force .. 6,014 10 8 Outstanding premiums due but not overdue.. 31,620 4 7 37,634 15 3 Overdue interest .. 1,360 4 4 Outstanding interest duebut not overdue.. 4,070 13 4 Interest accrued but not due 35,600 11 7 41,031 9 3 Agents'balances .. .. .. 2,382 17 4 Sundry accounts owing .. .. 1,045 1 5 Cash in hand and on current aocount.. 47,735 1 9 £2,924,363 11 10 £2,924,363 11 10 Government Life Insurance Department, 14th February, 1899. J. H. Richardson, Commissioner W. B. Hudson, Audited and found correct. Secretary. J. K. Warburton, Controller and Auditor-General.

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Statement of Business

AS; URAN :ES. TAL. Whole-life a; id Ter, Assurances. YEAR: 1898. Eeversionary Bonus. Annual Premium. Annuities. Beversionary Bonus. Annual Premium. No. Sum Assured. No. Sum Assured. 1. Ordinary. 8. Extra. 1. Immediate. 2. Deferred. 1. Ordinary. 3. Extra. POLICI IS I SUED AND DISCON- £ 9,002,601 £ £ s. d. ( 262,246 15 5 X 4,030 5 11 f 23,137 10 6 ( 176 17 o 10,960 9 hi 8,525 15 4J 817 10 2) 1,785 3 51 £ £ £ s. d. (132,460 11 5) \ 3,290 7 9} ( 6,006 15 1» 1 93 0 if 'olioies in (oioe, 31st December, 1897 36,174 854,401 18,266 5,337,134 604,458 Jew business, 1898 .. .. 3.386 713,489 836 218,976 -45 Total 39,560 9,716,090 854,409 f 285,384 5 11 \ 4,207 2 11 11,778 o ij 10,310 18 9J 19,102 5,556,110 604,413 (138,467 6 6) 1 3,383 8 l\ ( 5,990 5 11) \ 158 3 6J 'olioies discontinued during 1898 1,712 4" ,349 34,923 f 13,661 2 10 229 7 9 790 15 81 392 7 6J 750 208,488 20,043 'otal Polioies In force at 31st December, 1898 37,848 9,304,741 819,486 271,723 3 1 3,977 15 2| 10,987 4 51 9,918 11 3J 18,352 5,347,622 584,371 (132,477 0 7) t 3,225 4 71 RTICULARS O pol: CIES DISCONHow Discontinued. !y Death 338 97,001 11,363 3,061 3 4 87 12 4 2,342 4 o 20 4 3 2,729 2 o 42 ! 3 790 15 81 225 76,351 9,696 ( 2,267 15 6) 1 79 11 4/ Maturity 204 51,910 9,397 ) Surrender 355 84,947 4,949 336" 3 8} 159 43,896 3,334 / 1,142 6 3) { 28 6 5| Surrender of Bonus 5,536 4,091 Lapse 815 177,491 3,678 5,067 8 10 57 8 4 56 3 ioj" 366 88,241 2,922 ( 2,140 9 3) 1 36 15 8J Expiry of Policy Expiry of Premium 416 19 7 1 14 6 44 5 I 20 7 1 ) I f 406 3 7) ( 1 14 6f 1 33 11 4) t 11 15 l) Miscellaneous .. 1,712 411,349 34,923 13,661 2 10 229 7 9| 790 15 8) 392 7 61 750 208,488 20,043 J 5,990 5 11) 1 158 3 6J 1 PROGRE ;s of busin: ISS OF THE GOVERNMENT LIFE INSURANCE 'otal issued 'otal void Total in force •• 74,5™ .. 36,662 .. 37,848 18,950,268 9,645,527 1,375,589 556,103 j 572,666 11 11 I 13,308 16 11 ] 300,943 8 10 1 9,33i 1 9 J 27,095 o io38,70511,470,101 I 6,189 5 2 20,353 6,122,479 973,259 388,889 (302,337 16 6) t 10,555 2 4f ] 169,860 15 11) \ 7,329 17 9 J 9,304,741 819,486 271,723 3 1 (10,987 4 51 1 9,918 11 3J 18,352 5,347,622 584,370 (132,477 0 71 \ 3,225 4 7f 4 Extra Premiums Reduction of Premium by Bonus, &o. 3,977 15 2 263 15 6j Note.—The Ordinary Premiui is the premium charged Wellington, 1st March, 1899.

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at end of Year 1898.

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

Approximate Cost of Paper.— Preparation, not given ; printing (5,375 copies), £8 5s

By Authority: John Mackay, Government Printer, Wellington.—lB99. Price 6d.\ 2—H. 8.

ASSUR NCES. SIMPLE NDOWMENTS, ESTMENTS, &C. ANNUITIES. E INV Endowment Assurances. Annw. 'ty Assura xes. Hl ™ BeverNo - Assumed siouary Assured. Bonns> Annual Premium. 1. Ordinary. 2. Extra. Annual Premium. 1. Sum Assured. No. 2. Reversionary Bonus. Deferred Annuities. Annual Premium. No. .nni lal Annuities. S ° m Annual sured. Premium. 1. Immediate. S. Deferred. TINUED DURING THE Y. 1898. £ £ £ s. d. (127,175 6 7) { 739 18 2/ £ (22,450) I 310/ £ s. d. £ s. d. £ s. d. £ s. d. 10,960 9 11) 550 17 Of £ £ s. a. .7,110 3,609,088 249,641 171 7,974 18 4 1,194 2 10 f 243 I io ( 25 83 16 2 374 33,929 1,332 18 5 2,430 482,968 45 f 16,641 3 9) X 83 16 8/ 4,650 1,815 3 5 242 4 0 6 0 6 817 10 2) -30 0 0J 59 6,895 241 7 2 86 .9,540 4,092,056 249,686 (143,816 10 4) { 823 14 10 f 207 (27,100) 1 310 f 9,790 1 -9 1,436 6 10 f 268 1 io 89 16 8 11,778 0 11 520 17 0| 433 40,824 1,574 5 7 902 198,873 14,868 I 7,475 19 8) 1 71 4 3J f 1,3001 1 12 f 392 7 6 68 2 6 I.! 2 10 16 0 790 15 81 i 40 2,688 115 18 9 ,6381 ,893,1831 1234,818 f 136,340 10 8) | 752 10 7/ 199 (25,800) X 298} 9,397 14 3 1,368 4 4 ( 251 I 1( 79 6 8 10,987 4 5) 520 17 OJ 3931 38,136 1,458 6 10 NUED dur: :ng the y: AR 1898. 101 20,650 1,667 f { | 1 793 7 10) 8 1 Of 2,289 7 3I 20 4 3) 1,461 3 3\ 13 14 10/ 12 f 790 15 81 175 50,593 9,397 29 1,317 52 16 9 178 38,480 1,603 7 ( 1,200) 1 1 2 J 336 3 8 62 10 11 1,371 63 2 0 1,445 448 89,150 756 ( 1 2,921 11 7) 20 12 8f 1 100 56 3 10 5 8 10 16 0 ( 10 9 9) 8 11 6) 0 4 9021 198,873 14,868 I 7,475 19 81 71 4 3} J 1,3001 1 12/ 392 7 6 68 2 6 12 10 16 0 ( 790 15 8) i •• 1 41 2,688 115 18 9 iPARTMENT SINCE DATE OF ES 'ABLISH :ent t st DECEMBER, 18! 8. 13,223 7,339,003 am nr>x J 263,360 11 11) 01 „ 128,000) 402,005 | 2758 u 7 | 213 826 | 167 187 J 127 ' 020 X 8 I 14 J 2 ' 200 l Ibf,lb7 | 2i(x)1 4 Q | 14 | 27| 10,074 5 2 1,486 2 0 879 113 203 11 11 17,020 15 8 1,990 1,597 113,164 75,028 5,278 9 7 3,820 2 9 .4,585 3,445,820 676 10 11 117 17 8 124 11 3 5,512 14 3 .8,638 3,893,183234,818 (136,340 10 8) I 1QQ X 752 10 7j" 1Ja 125,800) X 298f 9,397 14 3 1,368 4 4 ( 256 I 10 79 0 8 10,987 4 5) 520 17 0/ 393 38,136 1,458 6 10 at the true age; the Extra, the additional premium imposed lor any reason whatsoever.