ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1900.

Appendix to the Journals of the House of Representatives, 1901 Session I, H-08

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1901. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1900.

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

Government Insurance Office, Wellington, 16th July, 1901. I have the honour to submit my report for the past year, together with the accounts and return of policies issued and discontinued. New Business. During the year 4,262 proposals were received, for the sum of £"879,005, of which 321 proposals were declined or deferred; of the remainder, 3,201, assuring £"650,129, were completed. The annual premiums on these new policies amount to ,£"21,418, in addition to single premiums of £495. The number of annuities granted was 13, for the sum of £"509 per annum. The number of policies existing at the close of the year was 40,368, securing, with bonus additions, the sum of £"10,639,978 at death or maturity, and annuities, either immediate or deferred, of £27,222 per annum. Income. The income of the Department for the year has been £"286,731 from premiums and £"136,955 from interest, making, with other receipts, a total of ,£"423,700. Claims. Three hundred and seven policies, representing with bonus additions the sum of £"92,675,, became claims during the year through the death of the persons insured, a less amount than has been paid for any of the. previous three years. 196 policies matured during the year, securing, with bonus additions, the sum of £"58,543. Accumulated Funds. 'The Insurance Fund on the 31st December last amounted to £"31139,957, being an increase during the year of £"142,276. Balance-sheet. On the 31st December, 1900, the total assets of the Department amounted to £"3,216,129, and were invested as shown in the following comparative statement: —

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At 31st Di icember, 1899. Percentage of Total Assets. Class of Investment. At 31st Dei :ember, 1900. I Amount. Amount. 1 Percentage of Total Assets. £ i,333,378 787,887 559,562 138,911 122,650 89,433 33-535 6,225 43'4 per cent. 257 18-2 4'5 4-0 2-9 Mortgages on freehold property Government securities Loans on policies Local bodies'debentures ... Landed and house property Miscellaneous assets Cash on current account ... Properties acquired by foreclosure ... £ 1,488,759 727,899 579,494 135,263 122,687 91,522 64,916 5,589 46-3 per cent. 22-6 „ 18-0 4'2 3-8 „ 2"9 2'0 „ 0'2 „ 0-2 3,o7 I ,58i IOO'O Total k"3,2i6,i2g IOO'O II

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It will be seen that there has been a further decrease in Government securities amounting to £"59,988, and an increase of £"155,381 in the amount lent on mortgages of freehold property. This change was authorised by " The Government Life Insurance Acts Amendment Act, 1894," and the amount of Government securities, which at the end of 1894 stood at £"926,923, has from time to time been reduced by £"199,024, and mortgages on freehold property increased by £97*&79Tontine, Fund No. i. The period of the Tontine Fund No. 1 expired on the 31st December, 1900, and the amount, ,£16,752 13s. nd., has been distributed amongst those policyholders whose policies were in force at that date, the addition to the sums assured being £"33,350 3s. The fund was inaugurated by Order in Council, dated September, 1887, and policyholders were permitted to join until the 31st December, 1890, when it was closed for new entrants. Policyholders joining the fund were not allowed to deal with the bonuses allotted to them during the tontine period, and in the event of death or withdrawal the bonuses were forfeited to the fund, and accumulated at compound interest for distribution amongst those policyholders whose insurances remained in force at the 31st December, 1900. During the time the fund was open 6,237 policies, assuring £"1,734,591, joined, of which 275 became claims by death, or about per cent, of the number entering ; 310 surrendered, and 2,103 lapsed, leaving 3,549 policies, assuring £"994,427, in force at the close of the period. In addition to the special bonus of £"33,350 3s. from the Tontine Fund, the bonuses granted during the time the policies were in the tontine class, £"130,512 75., were released from the tontine conditions, and may now be dealt with in the same manner as non-tontine bonuses. J. H. Richardson, Government Insurance Commissioner.

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Revenue Account of the Government Life Insubancb Depabtment for the Year ended 31st December, 1900. £ s. d. . £ s. d. Amount of funds at Ist January, 1900 2,997,681 0 4 Death claims under policies, Assurance, Renewal premiums — Assurance, An- including bonus additions .. .. 92,675 4 0 nuity, and Endowment .. .. 261,457 12 6 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 57,357 16 0 of first year's premiums falling due Endowments matured .. .. 1,185 13 10 in the year) .. .. .. 20,145 1 9 Premiums returned on endowments .. 90 7 10 Single premiums—Assurance and En- Bonuses surrendered for cash .. 10,496 12 2 dowment .. .. .. 494 10 1 Annuities .. .. .. .. 11,393 12 6 Consideration for Annuities .. .. 4,633 14 6 Surrenders.. .. .. .. 27,360 19 9 Interest .. .. .. .. 136,955 711 Loans released by surrender.. .. 19,432 9 S ■pees . 13 19 10 Commission, new ..£12,391 17 1 renewal .. 1,996 0 8 j . 14,387 17 9 Land-and income-tax .. .. 9,741 1 1 Expenses of management— Salaries— Head Office .. £11,076 10 8 Branch offices and agents .. .. 6,439 6 2 Extra clerical assistance 1,847 6 9 Medical fees and ex- ! penses .. .. 4,753 14 1 Travelling-expenses .. 1,134 10 7 Advertising .. .. 842 7 10 Printing and stationery 1,117 4 9 : Bent .. .. 2,183 0 0 Postage .. .. 1,824 14 9 Telegrams .. .. 417 17 9 Exchange .. .. 77 17 7 Office furniture depreciation .. .. 338 9 11 General expenses .. 2,222 3 4 Triennial expenses .. 2,700 5 7 Compensation for loss of office .. .. 327 9 6 37,302 19 3 Amount of funds, 31st December, 1900 3,139,956 13 6 £3,421,381 6 11 £3,421,381 6 11

Balance-sheet of the Government Life Insueance Department on 31st December, 1900. Liabilities. Assets. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. .. 579,493 19 5 dowment Funds (as per Revenue Government securities— Account) .. .. .. 3,139,956 13 6 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Treasury bills .. 60,000 0 0 pleted .. .. .. .. 12,625 0 5 Railway debentures Annuities .. .. .. .. 67 11 8 (guaranteed by GoCommission ~ .. .. 159 4 6 vernment) .. 40,000 0 0 Medical fees .. .. .. 506 19 8 Debentures issued Premium and other deposits.. .. 4,325 4 0 under "The Immi-Fire-insurance moneys in suspense .. 1,365 0 0 gration and Public Tontine Savings Funds ... .. 20,826 7 7 Works Act, 1870" 1,998 13 3 Investment Fluctuation Reserve .. 36,296 19 7 ■ 727,898 13 3 Municipal Corporation debentures .. 94,863 511 County securities .. .. .. 900 0 0 Haibour Board debentures .. ... 39,000 0 0 Town Board debentures .. .. 500 0 0 Landed and house property .. .. 122,686 19 4 Office furniture (Head Office and agencies) .. .. .. 2,798 8 11 Mortgages on property .. .. 1,488,758 17 2 Properties acquired by foreclosure .. 5,589 13 1 Overdue premiums on policies in force .. 4,611 16 3 Outstanding premiums due but not overdue.. 35,347 9 1 qq oca) 5 A w IS f *s *-J \J "J Overdue interest .. 653 5 6 Outstanding interest due but not overdue.. 5,108 17 9 Interest acorued but not due .. .. 38,451 16 11 44,214 0 2 Agents'balances .. .. ... 3,203 17 1 Sundry accounts owing .. .. 1,346 5 11 Cash in hand and on current account.. 64,915 15 4 £3,216,129 0 11 £3,216,129 0 11 Government Life Insurance Department, 15th February, 1901. J. H. Eichardson, Commissioner. W. B. Hudson, Audited and found correct. Secretary. J. K. Warburton, Controller and Auditor-General.

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Statement of Business

Wellington, 26th March, 1901.

ASSURAN ES. YEAR 1900. TOTAL. Whole-life and Ter, Assurances. No. Sum Assured. Reversionary — Bonus. Annual Premiums. 1. Ordinary. 2. Extra. Annuities. 1. Immediate 2. Deferred. ,„ EeverNo - Assured 8iona «-y Assured. Bonua , Annual Premiums. 1. Immediate. 2. Deferred. 1. Ordinary. 2. Extra. POLI iES ISSUED AND DISCON'olicies in force at 31 st December I 1899 [ 39,366 £ 9,558,i66 £ 783,536 / s. d. ( 280,425 8 10 t 3, 8 33 5 11 f 21,251 9 8 I 166 19 3 £ s. d. 11,284 3 4) 12,526 I. 3 f 509 o 2) 3,490 14 oj 18,269 £ 5,321,765 & 564,123 £ s. d. (131,918 14 0) \ 3,085 17 4} ( 90 13 91 \ 47 10 0j lew business, 1900 3,214 650,129 7 2,036 Jonus allotted 220,795 139,494 Total .. 42,580 10,208,295 I 301,676 18 6 1 4,000 5 2 ",793 3 61 16,016 15 3j 18,276 5,323,801 703,617 (132,009 7 91 j 3,133 7 4/ 1,004,331 'olicies discontinued during 1900 .. 2,212 511,259 61,389 ( 16,420 8 5 t 3°3 6 7 297 o 81 291 o 6) 862 233,417 38,618 j 6,570 5 7) I 218 19 7} !otal in force at 31st December, 1900 40,368 9,697,036] 942,942 ( 285,256 10 1 3,696 18 7 11,496 2 10) 15,725 14 9 f 17,414 ;5,090,384| 664,999 (125,439 \ 2,884 2 2) 7 9j 'ARTICUL RS >F POLICIES DISCONHow Discontinued. By Death ' Maturity 313; 196 80,568; 48,970 11,825 9,423 f 1 f I I 2 1602 1 2 133 18 3 2,256 o 9 18 2 I 3,3 66 6 7 55 6 5 1 297 o 8) 201 60,031 9,847 I 1,834 13 111 130 4 2} Surrender 430 !o5,363 7, 8 74 291 o 6) 148 44,051 4,892 I 1,243 12 111 44 18 5} Surrender of Bonus 19,447 ( 1 7,821 3 9 68 11 4 14,577 I 3,137 18 7) 49 18 4f Lapse 1,273 276,358 12,820 :| 513 129,335 9,302 Expiry of Policy f ( 334 15 81 2 13 Of 19 4 6) 21 5 8} Expiry of Premium ! ( 1 334 15 8 2 13 o 40 o 6 24 15 6j :} Miscellaneous Total .. J 16,420 8 5 303 6 7 297 0 81 291 0 6J ( 6,570 5 71 248 19 7j 2,212 511,259 61,3891 862 233,417, 38,618 PROGRESS OP BUSINESS OF T :e GOVE NMENT LIFE INSURANCE Total issued Total void ■ .. Total in force •• 81,373 •• 4 I > 00 5 • • 40,368 20,348,825 10,651,789 1 (618,148 5 11) 1,596,394:] I3 ; 6oo / 0 I0 \ 653,452 ! | 332,891 I5 IO jj,tj 9,912 12 3j 35,240 15 6 8,018 17 11 39,56811,686,7191, 112, 763 22,154 6,596,335! 447,764 I (308,092 14 5) | 10,674 17 8J (182,653 12 3) 1 7,790 9 11/ 9,697,036; ™ 285,256 10 1 27,221 17 7 l 5,090,384 ! 664,999 (125,439 2 2) t 2,884 7 9} 17,414 Extra Premiums .. Reduction of Premium by Bjmus^&o._ 3,696 18 7 254 7 4 Note. —The Ordinary Premium is the premium charged 1289,207 16 0

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at end of Year 1900.

J. H. RICHARDSON, Commissioner. P. MUTER, Acting Actuary.

Approximate Cost of Paper.— Preparation, not given; printing (1,375 copies), £5 Ss. 6d.

Bj Authority: John Mackay, Government Printer, Wellington.—l9ol.

Price 6d.]

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ASSURANCES. E SIMF NDOW ESTMI 'LE :nts, &C. ■ent Assurances. ANNUITIES. Endoivn I! Annuity Assurances. No Sum Assured. Reversionary Bonus. Annual Premiums. 1. Ordinary. 2. Extra. 1. Sum No 2 A Kevei-: Deterred Annual sionary Annuities. Premium. Bonus. __ No. Annual Premium. Annuities. No. Sum Assured. Annual Premium. 1. Immediate. 2. Deferred. TINUED dur: :ng the y: EAR 1900. 20.158 £ 4,161,191 £ 219,135 £ s. d. (145,129 19 4| 1 747 8 7} I 20,299 9 3) 1 119 9 3} 249 £ (32,450) t 278} £ s. d.l 12,005 4 3 £ s. a. 1,715 8 8 ( 257 1 10 £ s. d. 79 0 8 £ s. d. 11,284 3 41 520 17 0} 423 I 42,76o! £ s. d. !l,582 6 2 1 3,050 629,793 62 8,900 3,490 14 0 467 13 0 13 509 0 2 82 9.400J ] 393 13 8 80,725 576 I 23,208 4,790,984 299,860 (165,429 8 71 ( 866 17 10} 311 (41,350) 1 854} 15,495 18 3 2,183 1 8 ( 270 1 10 79 0 8 11,793 3 61 520 17 0} 297 0 81 9 12 4} 505 52,100, jl,975 19 10 1,295 273,175 22,741 j 9,635 0 01 ( 54 7 0} j 1,0501 1 30} (40,300> j 824} 281 8 2 55 8 6 1 5 5 0 0 42 3,6171 j 154 14 4 21,913 ,517,809 277,119 (155,794 8 71 1 812 10 10) 305 15,214 10 1 2,127 13 2 ( 264 1 9 74"o 8 11,496 2 101 511 4 8} 463 48,543 1,821 5 6 T] :nued DUR] :NG THE Yi 1900. 105 177 20,517 47,785 1,978 9,423 ( 766 18 71 } 3 14 If j 2,203 10 61 ( 18 2 if ( 2,008 5 10) \ 10 8 0} 6 297 0 8 1 19 20 1,185 0 8 8 52 10 3 262! 58,950 2,952 6 ( 1,050) 1 30} 281 8 2 55 6 0 1 1 5 0 0 1 9 12 4} 13 1 ,312 54 2 10 4,870 ( 4,635 13 61 ( 18 13 0/ 751 145,923 3,518 9 1,100 47 11 8 • • ( 20 11 7 ( 3 9 10 0 3 6 0 0 11 I 1 9,635 0 0) 54 7 0} 6 f 1,050) 1 30} 281 8 2 55 8 6 ?! 5 0 0 297 0 8) 9 12 4} 42 3,617 154 14 4 1,295' 273,175 22,741 DEPART EN 1 SINCE DA 1 'E OF ESTABLISHMENT T 31st DECE MBER, 1900. I 38,922 8,486,89: 1482,730; (301,528 12 11) 1 2,934 13 2j (145,734 4 i\ \ 2,122 2 4} 335 | 45 'yo?l 16,726 3 42,380 5 0 30 j 4 '™[| 1,511 13 3 252 11 10 412 203 11 11 18,514 12 2 2,136,130,164 5,943 1 8 17,009 3,969,08; !205,61l| 139; 129 11 3 i 6,507 4 8 1,673 81,621 4,121 16 2 21,913 4,517,809 277,119 at the true age; the Extra, t (155,794 8 7) \ 812 10 10/ 305 | 40, g2°l 15,214 10 12,12113 2 273 74 0 8 12,007 7 6 463 48,543 1,821 5 6 ;he additional premi am imposed for any reason whatsoever.