ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1904.

Appendix to the Journals of the House of Representatives, 1905 Session I, H-08

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1905. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1904.

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, 1905. In compliance with statutory provisions, I have the honour to submit the following report concerning the transactions of the Department for the year ending 31st December, 1904, and its position at that date. The revenue account, balance-sheet, and statement of business are appended. New Business and Net Increase. —The number of proposals received was 4,010, for the sum of £"851,298, and the number of policies actually completed was 3,227, assuring £"694,556, on which the new annual premiums amounted to £"23,487, in addition to single premiums for £"1,631. Twenty-three annuities were also granted during the year, the purchase-money for which amounted to £"13,272. The result was a net increase for the year of 1,067 policies for £"199,300, against ,£"163,690 in 1903 and £"154,470 in 1902, figures which indicate an increasing stability in the business obtained by the Department. Total Business in Force. — The total amount of business now in force is 43,873 policies, assuring £"10,259,562 (and £"1,001,518 bonuses) at death or maturity, together with immediate and deferred annuities for £44,664 ; the whole bearing an annual premium income of ,£"312,396. In the Civil Service section, which is included in the foregoing total business, there are now 658 policies in force, assuring £"96,469 (and £"2,472 bonuses), and entitling the survivors, at age 60, to annuities amounting to £"30,633. The premiums paid in this section are now £"5,031 per annum. Income and Outgo. —The income of the year was £"480,716, derived from the following sources: — New premiums (including single premiums) ... ... ... 22,550 Renewal premiums ... ... ... ... ... ... 286,689 Purchase-money ior annuities ... ... ... ... 13,272 Interest ... ... ... ... ... ... ... 158,196 Fees ... ... ... ... ... ... ... 9 Total income for 1904 ... ... ... £"480,716 The purchase-money received as consideration for annuities, £"13,272, shows a large increase on the previous year, when the amount was £"8,658. The increase of £"10,345 in the renewal premiums is very satisfactory, being greater than for many years past. Claims by death amounted to £"140,959, which, though representing a considerable increase on the previous year, is well within the amount provided for in the tables of mortality used by the Department. Claims by maturity amounted to £"80,241. The total amount paid since 1870 in respect of death-claims and matured endowments has been £"2,792,219. I—H. 8.

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Surrenders show a decided improvement, the outgo on that account having been only £"29,237, as against ,£50,303 in 1903. The lapse experience has also been highly favourable. A great, saving has been effected in the expenses, the total expenditure, including taxes and commission, having amounted to ,£"60,490, as against £"64,723 in 1903 ; and the gratifying result being that the ratio of expenses to premium income has been brought down from 20-8 per cent, to iB - 8 per cent., the lowest rate for the past twenty years. The Balance-sheet. — The total assets of the Department amounted to on the 31st December, 1904, and were invested as follows, the tables showing the figures of the previous year for comparison :—

The total assurance, annuity, and endowment funds now stand at £"3,665,583, having increased during the year by £"153,522. The progress of the Department during the year, although not marked by any striking incidents, has been of a thoroughly satisfactory character. The chief points to be observed are a well-maintained new business, large increases in income and accumulated funds, a striking diminution in surrenders and lapses, and a marked decrease in the expenses of management. In conclusion I may state that there are good reasons for thinking that the results of the forthcoming triennial investigation of the assets and liabilities, to be made at the end of the current year, will prove satisfactory to the policyholders and all concerned. J. H. RICHARDSON, Government Insurance Commissioner.

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At 31st December, [903. At 31st December, 1904. Amount. Percentage of Total Assets. Class of Investment. Amount. Percentage Amount. of Total Assets. £ 1,886,574 667,936 618,190 140,325 123,580 99,172 73.489 1.033 52-3 per cent. i8-5 . 17-1 3'9 3 - 4 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... £ 1,966,913 667,950 660,262 135.768 123,580 . 102,383 103,659 1,004 52'3 per cent. 17-8 » i7-5 3-6 . 3'3 27 2-8 2-0 „ o-o O"O „ Total ... 3.76i.519 3,610,299 ioo-o per cent. ioo-o per cent.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1904. £ s. d. Death-claims under policies, Assuranoe, £ a. d. Amount of Funds at Ist January, 1904 3,512,061 2 2 including bonus additions .. .. 140,958 18 9 Renewal premiums — Assurance, An- Endowment Assurances matured, innuity, and Endowment .. .. 286,689 2 6 eluding bonus additions .. .. 78,068 8 1 New premiums (including instalments Endowments matured .. .. 2,172 14 6 of first year's premiums falling due Bonuses surrendered for cash .. 3,524 0 1 in tho year) .. .. .. 20,918 9 8 Annuities .. .. .. .. 12,742 0 4 Single premiums—Assurance and En- Surrenders .. .. .. 24,646 4 5 dowment .. .. .. 1,631 9 2 Loans released by surrender.. .. 4,591 8 8 Consideration for Annuities .. .. 13,271 19 0 Commission, new £13,709 17 9 Interest .. .. .. .. 158,195 18 4 , renewal 2,238 15 7 Pees .. .. .. .. 8 15 5 15,948 13 4 Land and Income tax .. .. 9,755 5 7 Expenses of management— Salaries — Head Office .. £11,908 13 10 Branch offioes and agents .. .. 6,376 11 6 Extra clerical assistance 1,512 0 0 Medical fees and expenses .. .. 4,510 4 1 Travelling-expenses .. 630 13 6 Advertising .. .. 926 10 11 Printing and stationery 1,126 6 5 Rent .. .. 2,245 16 8 Postage .. .. 1,240 4 1 Telegrams .. .. 371 10 8 Exchange .. .. 113 0 0 Office-furniture depreciation .. .. 320 11 1 General expenses .. 2,896 14 2 Triennial expenses .. 525 16 0 Compensation for loss of office.. .. 81 12 8 34,786 5 7 Amount of Funds, 31st December, 1904 3,665,582 16 11 £3,992,776 16 3 £3,992,776 16 8

Balance-sheet of the Government Life Insurance Department on 31st December, 1904. Liabilities. Assets. £ s. d. £ s. d. £ s. d lotal Assurance, Annuity, and En- Loans on policies .. .. .. 660,262 0 0 dowment Funds (as per Revenue Government securitiesAccount) .. .. .. 3,665,582 16 11 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Railway debentures P'eted .. .. .. .. 22,114 0 5 (guaranteed by GoAnnuities .. .. .. .. 19 5 3 vernment) .. 40,000 0 0 Commission .. .. .. 397 10 8 Debentures issued Medical fees .. .. .. 486 3 0 under " The ImmiPremium and other deposits.. .. 6,963 18 2 gration and Public Fire insurance moneys in suspense .. 350 0 0 Works Act, 1870" 2,050 3 6 Tontine Savings Fund No. 2 .. 8,749 7 2 667,950 3 6 Investment Fluctuation Reserve .. 56,855 16 5 Municipal Corporation debentures .. 95,611 6 4 County securities .. .. .. 656 18 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 agenoies) .. .. .. 2,582 16 3 Mortgages on property .. .. 1,966,912 19 2 Properties acquired by foreclosure .. 1,003 14 11 Overdue premiums on policies in force .. 5,543 8 1 Outstanding premiums due but not overdue.. 37,085 14 11 42,629 3 0 Overdue interest .. 504 4 4 Outstanding interest due but not overdue.. 5,923 11 9 Interest aoorued but not due .. .. 44,467 17 8 ~, , 50,895 13 9 Agents balances .. .. .. 2,959 9 4 Sundry accounts owing .. .. 3,315 17 9 Cash in hand and on current account.. 103 658 18 1 £3,761,518 18 0 j £3,761^51818~0 Government Life Insurance Department, 24th March, 1905. J. H. RIOHABDSON, Audited and found correct. Commissioner. J. K. Wabbubton, W. B. Hudson, Controller and Auditor-General. Secretary

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Statement of Business

-r-r\-TOTAL. ASSURANCES. Tfl I VJ I AL. I N.^ Whole-life c ;d Term Assurances. YEAR 19O4. o 11Ttl ReverNo - Assured s i onar y - Assurea. Bonus. Annual Premiums. 1. Ordinary. 2. Extra. Annuities. I 1. Immediate. I 2. Deferred. Annuities. v Sum N0 - ; Assured. Annual Rever- Premiums. sionary Bonus. 1. Ordinary. 2. Ordinary. 2. Extra. POLK IES ISSUEI D AND DISCON- £ £ ( 302,362 8 4 ( 3,192 3 2 J 23,385 4 9 1 101 ig 1 £ •■ d. i2,462 8 4 1 27,719 3 of 1,162 11 6) 5,160 o of 15,125 £ £ £ s. d. (107,249 8 4) I 2,354 1 61 98 13 OJ I 3 4 8j 'olicies in force at 31st December, | 1903 f 43,ii6 10,060,262! 1,051,545 4,404,010 700,945 few business, 1904 3,250; 694-556J .. 3 1,516 Total .. 46,366 10,754,818 ( 325,747 13 1 I 3,294 2 3 ( 16,629 6 7 1 247 J 7 1 13,624 19 io| 32,879 3 0) 484 17 it i,355 2 of 15,128 4,405,526 700,945 (107,348 1 4) { 2,357 G 21 ( 4,588 16 71 \ 1G7 11 5f i,05i,545 'olicies discontinued during 1904 2,172 495,256 50,027 497 150,952 29,989 'otal Policies in force at 31st De- j cember, 1904 J 44,194 10,259,562 1,001,518 I 309,118 6 1 3,046 5 6 2 13,140 2 91 31,524 1 Of 14,631! 14,254,574 670,956 (102,759 4 91 I 2,189 14 9/ 'ARTICUL. RS F PO JCIES DISCONHow Discontinued. 18,637 ( 2,8G0 3 61 I 92 10 1 J ly Death 414 118,996; 20,408 j I I 3.755 17 10 484 17 1) 98 2 5 .. J 2,872 10 .. 1 23 8 1 .. f 3.391 12 4 I .. I 28 14 4 1,272 1 5) 281 95,346 Maturity 308 65.979 13.362 Surrender 499 107,218 6,732 150 37,056 4,159 f 954 2 10) 1 13 8 8 J Surrender of Bonus 6,213 5,044 Lapse 948 202,063 3.312 1 i 6,132 2 3 .. ) 63 11 7 83 o 7)" 03 17,550 2,149 ( 359 9 81 \ 43 5 8/ Expiry of Policy 3 1,000 15 12 6 3 1,000 15 12 6 Expiry of Premium f 1 I 408 15 10 .. I 3 10 5 •• J 53 4 10 .. I 30 10 3 .. J j 390 16 0| 1 3 10 5J" J 8 12 II 1 14 16 7 [ Miscellaneous Total 495,256' 50,027 [ 1 16,629 6 7 I 247 17 1 484 17 1i 1,355 2 0) I 4,588 16 7) 167 11 5/ 2,172 497 150,952 29,989 .OGRESS OP BUSINESS >F GOVE NT LI 'E IN iURANCE Totnl issued .. 94,488 2 3,o6 9>I 8ox, 9I9 , 8 xJ{7- ; 6o5X7xoJ 58,466 10 4 19,696 11,695,631 1 294 745' '308,411 18 6) i 623 78 n (205,652 13 9) : 623 ' 789 { 8,598 8 2J Total void .. 50,294 13,802 6 7 14,965 7,441,057 Total in force • • 44,194 10,259,562 1,001,518 309,118 6 6 44,664 3 9 14,631 4,254,574 670 q . 6 (102,759 4 9[ : blU,95b 2>lg9 u gj . I Extra Premiums Riductionof Premium by Bonus, &c. 3,046 5 2 231 9 8 Note.—The irdinary Pri emium is the premium charged £312,396 1 4 Wellington, 28th February, 1905.

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at end of Year 1904.

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

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

Approximate Cost of Paper. —Preparation, not givou; (printing 6,425 copies), iJll 12s.

By Authority : John Mackay, Government Printer, Wellington.—l9os. Price 6i.} ♦ 2—H. 8.

ASSURANCES. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, &C. Endowment Assurances. Annuity Assurances. Nn Annual AnDuities - "°- Premium. ;. immediate. :j. Deferred. No. Annual Sum never- Premiums. *»"«*• SSSSST I. Ormnary. 2. Extra. 1. Sum w<, o S,l T>!ivtv' Deferred Annual N °- 2 Bi?narT Annuities Premium. Bonus, ; No S ?_ m Annual t: :nued during the ye iAR 1904. £ £ £ s. a. (188,457 5 91 1 838 1 8} ( 21,864 5 1 ( 98 14 5} £ (72,450) 1 2,095} (14,600) I •• ) £ s. a. £ s. a. £ s. d. £ s. d. 12,462 8 41 205 9 8f 1,162 11 61 - 17 8 0} 13,624 19 10) 188 1 8/ 484 17 1) ■• I 13,140 2 91 188 1 8} £ £ s. d. 26,510! 2,995 jo, 508,093 661,190 348,505 541 99 27,513 13 4 5,177 8 0 3,820 10 0 775 18 0 j 302 I 8 J 24 1-1 75 15 1 630 130 75,709 17,250 2,759 9 2 646 8 8 29,505 1.553J 6,169,283 I 333,111 348,505 19,929 (210,321 10 10) 1 936 16 1J f 11,558 13 0| t 80 5 8f 640 27 (87,050) 1 2,095} f 3,350) 1 109} 32,691 1 4 1,355 2 0 4,596 8 0 178 17 4 ( 326 1 7 I 314 1 V 75 15 1 15 0 0 760 83 92,959 7,843 3,405 17 10 287 19 8 27,952 5,836,172 328,576 (198,762 17 10) ( 856 10 5} 613 183,7001 1 1,986) 31,335 19 4 4,417 10 8 60 15 1 677 85,116 3,117 18 2 nued dur: :ng the y: 1904. 121 23,650 1,771 i 1 895 14 4) 5 12 4} 2,795 19 0) 23 8 l} 2,122 1 4) 15 5 8} I." 484 17 1\ J 266! 63,806 13,362 42 i 2,173 76 2 0 295 62,942 2,465 25 f 3,150) 1 108} 1,272 1 5 167 11 10 29 4,070 147 16 4 1,169 871 . 182,713 1,162 i 5,710 4 51 20 5 11| 2 I 200) 1 If 83 0 7 10 8 0 " 12 1,600 52 0 2 (:: 15 0 0 :: I 2 19 10 ( 34 13 111 15 13 8} 0 17 6 9 14 1,553 333,111 19,929 I 11,558 13 0) I 80 5 8j a7 I 3,350) 1 109} 1,355 2 0 178 17 4 I. 12 15 0 0 484 17 1) J 83 7,843 287 19 8 d: EPART] MEN! ? SINCE DA , 'E OF E 1TABLIS :ment list DECEMBER, 1 iO4. il, 09611,087,610 !3,144 5,251,438 622,793 1388,756 19 3) j \ 3,273 11 5} (189,994 1 5} \ 2,417 1 0} 705 1 (96,550) 1 2,281} (12,850| 1 295 J 36,025 19 6 5,097 1 2 511 218 2 6 22,440 10 10 2,580 189,3898,121 16 5 I : 294,217 92 4,690 0 2 679 10 6 190 157 7 5 I 9,112 6 5 1,903 104,273 5,003 18 3 17,952 5,836,172 328,576 (198,762 17 10) { 856 10 5/ „„ (83,700) blrf I 1,986/ 81,885 19 4 4,417 10 8 321 60 15 1 13,328 4 5 677 85,116 3,117 18 2 j