ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1903.

Appendix to the Journals of the House of Representatives, 1904 Session I, H-08

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1904. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1903.

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

Government Insurance Office, Wellington, 31st May, 1904. I have the honour to submit my report on the transactions of the office for the past year, together with the accounts and yearly returns of policies issued and discontinued. During the year 4,119 proposals were received, for the sum of £906,847 ; the number of policies issued was 3,137, assuring the sum of ,£702,350; which represented an increase of £22,947 on the previous year. Twenty-three annuities were also granted during the year, the purchase-money for which amounted to £8,658. The premiums on the new policies amounted to £23,438 per annum. The income of the Department was £463,380, comprising £311,023 from premiums, and £152,353 from interest. The sum assured by the Department is now £10,060,262, or, including bonuses, £11,111,807. Three hundred and twenty-seven policies, representing, with bonus additions, the sum of £117,415, became claims during the year through the death of the persons insured, which is £4,468 less than in the previous year. Three hundred and thirty-eight endowment policies also matured during the year for the sum of £77,024. The total amount paid by the Department since 1870 in respect of death claims and matured endowments has been £2,571,019. The consideration for policies surrendered during the past year has exceeded the corresponding item in 1902 by a little over £7,000. The increase has been occasioned by the exodus of a number of railway servants hitherto insured with the Department who have surrendered their policies on the occasion of joining the Railway Superannuation Scheme. On 31st December, 1903, the total assets of the Department amounted to £3,610,299, and were invested as follows, the table showing the figures of the previous year for comparison : —

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At 31st December, 1902. At 31st December, 1903. Amount. Percentage of Total Assets. Class of Investment. Amount. Percentage of Total Assets. £ 1,808,683 668,923 607,588 131,178 123,575 98,909 33.445 . 1,833 52-1 per cent. 19/2 17-5 3-8 „ 3\5 2-8 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 ... £ 1,886,574 667,936 618,190 i4°>3 2 5 123,580 99,172 73.4 8 9 1,033 52-3 per cent 18-5 i7'i 3'9 3'4 2-8 „ ro „ 2"0 O'l „ OO „ , I IOO'O ier cent. Total £"3.610,299 ioo-o per cent.

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There is an increase of in loans on mortgage, and in'loans on policies. The rate of interest earned on the funds is £\ Bs. sd. per cent., as contrasted with £\ Bs. 6d. for 1902 and £\ Bs. sd. for igoi. There are indications that the fall in the rate of interest, which the Department in common with other financial institutions has had to face of late years, has, for the time at any rate, been arrested ; and it may be mentioned that the considerable amount of money which the Department had on hand awaiting investment at the close of 1903 has, at the date of this report, been invested in satisfactory securities, which are freely offering at a higher rate of interest than has been obtainable for some time past. The satisfactory position of the Department's securities may be gauged by the fact that out of an income from interest amounting to over only £"415 was overdue at the end of the year. The Department has no foreclosed properties on its hands, the small balance appearing in the accounts under that heading representing the balance of purchase-money not yet due in respect of properties sold. J. H. Richardson, Government Insurance Commissioner.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1903. £ s. d. I Death olaims under policies, Assurance, £ s. d. Amount of funds at Ist January, 1903 3,382,817 6 8 1 including bonus additions .. .. 117,414 10 0 Renewal premiums — Assurance, An- Endowment Assurances matured, innuity, and Endowment .. .. 276,344 0 9 eluding bonus additions .. .. 75,100 8 0 New premiums (including instalments Endowments matured .. .. 1,923 18 8 of first year's premiums falling due Premiums returned on endowments .. 85 3 8 in the year) .. .. .. 23,462 5 2 Bonuses surrendered for cash .. 12,349 12 6 Single premiums—Assurance and En- Annuities .. .. .. .. 12,236 1 11 dowment .. .. .. 2,558 13 8 Surrenders .. .. .. 31,252 3 2 Consideration for Annuities .. .. 8,657 14 11 Loans released by surrender .. .. 19,050 11 1 Interest .. .. .. .. 152,352 17 2 Commission, new £14,68114 0 Pees . 4 0 6 „ renewal 2,185 7 7 16,867 1 7 Land-and inoome-tax .. .. 9,524 2 8 Expenses of management— Salaries — Head Office .. £11,471 13 11 Branoh offioes and agents .. .. 6,195 9 11 Extra olerical assistance 1,506 9 0 Medical fees and expenses .. .. 4,850 18 4 Travelling-expenses .. 740 1 7 Advertising .. .. 1,202 510 Printing and stationery 1,094 13 8 Rent .. .. 2,175 0 0 Postage .. .. 1,429 10 2 Telegrams .. .. 414 0 6 Exchange .. .. 89 13 7 Office-furniture depreciation .. .. 313 5 0 General expenses .. 2,951 18 0 Triennial expenses .. 3,630 11 8 Compensation for loss of offioe.. .. 266 12 3 38,332 3 5 Amount of funds, 31st Deoember, 1903 3,512,061 2 2 £3,846,196 18 10 £3,846,196 18 10

Balance-sheet of the Government Life Insurance Department on 31st December, 1903. Liabilities. Assets. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. .. 618,189 13 9 dowment Funds (as per Revenue Government securities— Account) .. .. .. 3,512,061 2 2 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Railway debentures pleted .. .. .. .. 25,719 3 0 (guaranteed by GoAnnuities .. .. .. .. 24 13 11 vernment) .. 40,000 0 0 Commission .. .. .. 64 4 8 Debentures issued Medical fees .. .. .. 489 4 6 under " The ImmiPremium and other deposits.. .. 7,892 13 6 gration and Public Tontine Savings Fund No. 2 .. 7,452 6 9 Works Act, 1870" 2,036 6 7 Investment Fluctuation Reserve .. 56,595 2 8 667,936 6 7 Municipal Corporation debentures .. 100,103 2 4 County securities .. .. .. 722 5 3 Harbour Board debentures .. .. 39,000 0 0 Town Board debentures .. .. 500 0 0 Landed and house property .. .. 123,579 17 8 Office furniture (Head Office and agencies) .. .. .. 2,703 4 10 Mortgages on property .. .. 1,886,573 12 3 Properties acquired by foreclosure .. 1,033 1 2 Overdue premiums on policies in force .. 4,606 0 9 Outstanding premiums due but not overdue.. 36,395 10 7 41,001 11 4 Overdue interest .. 414 13 1 Outstanding interest due but not overdue.. 5,239 4 2 Interest aoorued but not due .. .. 43,108 19 8 48,762 16 11 Agents'balances .. .. .. 3,073 19 7 Sundry accounts owing .. .. 3,630 0 4 Cash in hand and on current account.. 73,488 19 2 £3,610,298 11 2 £3,610,298 11 2 Government Life Insurance Department, 14th March, 1904. J. H. Richardson, Audited and found correct. Commissioner. W. B. Hudson, J. K. Warburton, Secretary. Controller and Auditor-General.

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Statement of Business

YEAR 19O3. TO" <,„„, ReverNo - sionary - Assured. Bonus , . TOTAL. TAL. Annual Premiums. 1. Ordinary. 2. Extra. WJiole-life and Term Assurances. ASSURANCES. Annuities. N °- A. B . n n ?ed ! S - Assured | Borm8 , I Annual Premiums. J. Orduwry. S. Extra. 1, Immediate. 2. Deferred. POLI IES ISSUED AND DISCONPolioies in force at 31st December, 1902 New business, 1903 . • 42,406 I 9,896,572 £ 838,088 £ *■ d. J 296,602 2 3 J 3,383 7 3 f 23,378 9 2 I 59 16 7 12,117 16 3) 24,273 18 if 836 1 4 > 4,304 10 11J 15,744 S, £ 4,584,630 591,966 2,688 £ s. d. [112,259 9 9) 1 2,532 2 2)' I 59 0 9| 1 6 2 6/ 3,160 702,350 6 Bonus allotted 290,073 155,537 Total .. Polioies discontinued during 1903 1 45,566 2,450 10,598,922 538,660 1,128,161 76,616 f319,980 11 5 1 3,443 3 10 j 17,618 3 1 { 251 o 8 12,953 17 7l 28,578 9 of 491 9 3) 859 6 oj 15,750 625 4,587,318 747,503 183,308| 46,558| ' (112,318 10 6) I 2,538 4 81 ( 5,069 2 Si 1 184 3 2[ (107,249 8 4) I 2,354 1 Of I Total Policies in force at 31st De- i oember, 1903 J j 43,116 10,060,262 1,051,545 I 30-2,302 8 4 I 3,192 3 2 12,462 8 i\ 27,719 3 Of 15,125 4,404,010 700,945 4,404,010 'ARTICUL. RS F PO ICIES DISCONHow Discontinued. By Death 18,691 j 2,969 9 1 63 9 5 2.734 r 4 9 14 5 7 4,329 8 11 40 1 1 491 9 3 1 78 6 2 J 211 76,211 16,907 ( 2,133 13 0) 60 7 4J 341 98.57° Maturity 338 63,960 12,907 I Surrender 659 138,252 9,733 6OO 5 2 j 221 54,844 5,780 I 1,395 4 11) 25 17 5/ Surrender of Bonus .. 23,812 17,326 Lapse' 1,112 237,878 11.473 f 1 7.253 17 ° 71 7 5 180 14 8 J 193 52,253 6,545 j I 1,232 1 31 40 15 1/ Expiry of Policy Expiry of Premium .. f 275 1 o 4 11 8 55 12 4 57 5 6 I • • ( 275 1 0| 4 11 8/ 33 2 01 52 11 8[ Miscellaneous Total .. 1 17,618 3 1 251 0 8 491 9 81 859 6 ()J I 5,069 2 2) 184 8 2) 2,450 538,660 76,616 625 183,30! 46,558 ;ess o 'ROG BUS NESS OF T: IE GOVE INMENT LIFE INS 5URANCE 'otal issued 'otftl void Total in force .. 191,238 22,374,624! 1,919,819! .. 48,122 12,314,362 868,274 .. 43,116 10,060,262 1,051,545 I I 687,220 13 I) 1 13,959 15 3) ( 384,858 4 9} \ 10,767 12 I J 52,143 18 10 89,69811,694,1X81,294,745 (308,313 5 6| 1 10,784 18 8| (201,063 17 2{ I 8,430 16 9/ 11,962 7 6 24,468 7,290,105 593,800 1,051,545 302,362 8 4 40,181 11 4 15,125 4,404,010 I 700,945 j107,249 8 4) ( 2,354 1 6/ Extra Premiums Beduction o£ Premiums by Bonus, &c. 3,192 3 2 253 15 o NOT] :.—The Ordinary Premium is the premium charged r £305,808 6 6 Wellington, 15th March, 1904.

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at end of Year 1903.

at the true age; the Extra, the additional premium imposed for any reason whatsoever.

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

Approximate Cost of Payer.— Preparation, not given; printing (4,425 copies), £8 17s. 6d.

By Authority : John Mackay, Government Printer, Wellington.—l9o4. Price 6d.] 2—H. 8.

ASSURANCES. ANNUITIES. SIMPLE ENDOWMENTS, I NVESTMENTS, &C. Endowment Assurances. Endowment Asst Sum ? ever " i Assured. ™fj urances. Annual Premiums. 1. Ordinary. & Extra. Annuity Assurances. 1. Sum No 2 A Eevlr' Deferred Annual Bionary Annuities. Premium. Bonua. Nn Annual Annuities^ ■ Premium. ,_ Imme d ta te. ! S. Deterred. No S As m ' Annual No. :nued dur: :ng the yea: 1903. 15,310 £ 5,181,509 £ 245,346 £ s. a. (178,489 5 8) I 851 5 If ( 22,174 15 5] I 53 14 If 468 £ (63,250) t 770 } 11,400 £ s. d. 24,068 8 5 1 £ 8. d. 3,345 15 6 ( 293 I 8 i 23 £ 8. a. 75 15 1 £ s. a. 12,117 16 3 I 205 9 8 J 836 14 1 583 I £ 67,183 s s. a. 2,431 16 3 2,934 673,812 90 4,304 10 11 590 19 0 I • ■ 107 14,450 553 14 0 133,156 1,380 18,244 5,855,321 378,502 (200,664 1 1) I 904 19 2/ J 12,206 15 4} \ 66 17 6J 558 17 (74,6501 1 2,1561 ( 2,200) 1 61/ 28,372 19 4l '3,936 14 6 ! 316, i 8 I id 75 15 1 12,953 17 7 I 205 9 8 f 491 9 3 J 690J 60 81,633 2,985 10 3 1,734 347,228 29,997 859 6 0 1 116 4 6 ■ 5,924 220 1 1 I 16,510 5,508,093 348,505 1188,457 5 9) 1 838 1 8f 541 (72,450) I 2,095/ 27,513 13 4 '3,820 10 0 I 302J 1 8 i I 75 15 1 12,462 8 4) 205 9 8 ] 630 75,709 2,759 9 2 NUED DUR :ng the y: 1903. 115, 22,209 1,778 { I I 827 13 1) 3 2 1} 2,650 1] 81 4 5 71 2,738 12 9) 14 a 8/ J ISO) 1 11 f 78 6 2 8 3 0 I 14 1 •• I 491 9 3 ) 314 62,036 12,907 24 1,924 84 3 1 899 78,758 3,907; 12 ( 1,6501 1 46) 600 5 2 86 15 8 I 27 3,000 108 15 7 6,486 • • 906 184,225 4,924 I 5,967 18 10) 30 12 if 4 ( '"I] 180 14 8 20 18 0 9 1,000 32 18 11 ( 21 19 0) 4 13 10 f 0 7 10 0 3 6 1,734 347,228 29,997; ( 12,206 15 4) I 66 17 6/ 17 I 2,2001 I 61 [ 859 6 0 116 4 I 14 491 9 3 ) 60 5,924 226 1 1 iPART EN SINCE DA F ESTABLISHMENT T 31 it DECE BER, 190: 48,101 21,591 10,426,420 4,918,327 622 793 1366, 892 14 2) 2,4,288, J 2 ; 336 15 if '348 505 I 188 ' 457 5 9 l | d4S ' dU0 |{ 838 1 8/ 601 6i 54 i | 8 i'o'o?' r 30,848 11 6 4,321 3 i I 9 '?a ( r )l - 8,334 18 2 1 500 13 I la "J { 7 2'o95} 27,513 13 4 3,820 10 488 218 2 6 178 142 7 5 21,298 7 4 8,627 9 4 2,450 1,820 172,139 96,430 7,475 7 9 4,715 18 7 I 26,510 5,508,093 310 75 15 1 12,667 18 0 630 75,709 2,759 9 2 [