ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1906.

Appendix to the Journals of the House of Representatives, 1907 Session I, H-08

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1907. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1906.

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

Government Insurance Office, Wellington, nth April, 1907. I have the honour to submit the following report regarding the transactions of the Department for the year ended the 3 isU December, 1906, and its position at that date. The Revenue Account, Balance-sheet, and Statement of Business are appended. New Business. —During the year 3,993 proposals were dealt with, for the assurance of £93°i557> an d the number of policies actually completed was 3,083, assuring £729,105, being £13,084 in advance of the new business for the previous year. The annual new premiums on new' policies amounted to £24,037, in addition to single premiums for £924. Twenty-three annuities were also granted, on which the purchase-money amounted to £11,770. Total Business in Force. —The total business now in force is 45,648 policies, assuring £10,667,591 (and £1,183,901 bonuses) at death or maturity, together with 333 immediate and deferred annuities for £53,588 per annum ; the total bearing an annual premium income of £325,633. In the Civil Service section, which is included in the foregoing total business, there are 789 policies, assuring £120,519 (and £4,600 bonuses), and entitling the survivors, at age 60, to annuities amounting to £38,207 per annum. The annual premium income of this section now amounts to £6,337. . Income.—The income of the year was £33 1 >54 6 for premiums, and £175,512 for interest, making, with other receipts, a total of £507,070, which represents an increase of £16,145 upon the total income of the previous year. The details of the total income are as follows:— £ New premiums (including single premiums) ... ... ... 22,717 Renewal premiums ... ... ••• ••• ••• ••• 297,058 Purchase money for annuities ... ... ... ... 11,770 Interest ... ••■ ••■ ••• ••• ••• ••• 1 7S>5™ Fees ... ••• ••• ••■ ■•• •• - J 3 Total income for 1906 ... ... ... ... £507,070 The income from every source shows a considerable increase upon that of the previous year. Outgo. —Claims by death amounted to £124,239, which represents only £3,549 more than was paid on this account in 1905, and is considerably less than is provided for in the tables of mortality used by the Department. Two hundred and forty-nine policies matured as claims during lifetime for £66,698. ..,,.,. The total amount paid by the Department, since its foundation thirty-seven years ago, in respect of death claims and matured endowments, has been £3,186,183. The total expenditure, including taxes, commission, and triennial investigation expenses, amounted to £67,828, the ratio of expenses (including the land and income tax) to total income being 13-4 per cent, for the year.

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Accumulated Funds. —The net increase in the funds during the year amounted to £169,022, and the total assurance, annuity, and endowment funds now stand at £3,991,599- The following statement shows the growth of the Department in this and other respects during the past fifteen years:—

The Balance-sheet. —On the 31st December, 1906, the total assets of the Department amounted to £4,107,929, and were invested as shown in the following comparative statement: —

It will be noticed that foreclosed properties, after being gradually reduced from the maximum of £37,684 in 1892, have entirely disappeared from the list of assets. Overdue interest now stands at the remarkably low figure of £382, being less than J- per cent, of the total interest charges. The progress of the Department has been well maintained through the operations of the year. The new-business returns have again improved, and there have been satisfactory increases in both the interest and premium income. The mortality experience has continued to be favourable, and an interim actuarial valuation of the liabilities under policies in force shows that the profit resulting from the year's business has been highly satisfactory, auguring well for the bonus-distribution due at the end of next year. J. H. RICHARDSON, Government Insurance Commissioner.

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Year. Number. Sum Assured. Bonuses. Annuities in^™'^,!'' Policies in Force. Revenue from Interest. Ratio of Total Accumulated Expenses Funds. (including Taxes) to Total Income. 1891 .. 1906 .. 29,226 45,981 £ 7,782.734 10,667,591 £ 608,069 1,183,901 £ 6,347 53,588 £ 234.496 331.546 £ 96,379 175,512 £ 1.847.797 3.991,599 Per cent. 161 •34 improvement in 15 years •6-755 2,884,857 ! 575.832 47,241 97,050 79,133 2,143,802 27 (Decrease).

At 31st December, 1905. At 31st Dei :ember, 1906. Amount. Percentage of Total Assets. Class of Investment. Amount. Percentage of Total Assets. £ 2,132,039 667,965 679.493 67,614 '54.334 122,436 103,119 804 54-3 per cent. 17-0 „ "7'3 17 3*9 3*i 2-7 0-0 „ Mortgages on freehold property Government securities Loans on policies Cash on current account ... Local bodies' debentures ... Landed and house property Miscellaneous assets Properties acquired by foreclosure... £ 2,171,237 667,980 694,847 183,102 163,444 122,436 104,883 52-8"per cent. 16-3 16-9 „ 4-5 4'o 3*o 2*5 £"3,927,804 ioo-o per cent. Total ... £4,107,929 ioo-o per cent.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1906. £ 8. d. Death claims under policies, Assurance, £ a. d. Amount of Funds at lst January, 1906 3,822,576 15 7 inoluding bonus additions .. .. 124,239 0 4 Renewal premiums — Assurance, An- Endowment Assurances matured, innuity, and Endowment .. .. 297,057 11 4 oluding bonus additions .. .. 64,368 13 10 New premiums (including instalments Endowments matured .. .. 2,329 12 2 of first year's premiums falling due Premiums returned on endowments .. 41 8 7 in the year) .. .. .. 21,793 14 4 Bonuses surrendered for oash .. 12,396 14 9 SiDgle premiums—Assurance and En- Annuities .. .. .. .. 13,918 11 5 dowment .. .. .. 923 18 11 Surrenders .. .. .. 32,809 12 5 Consideration for Annuities .. .. 11,770 12 1 Loans released by surrender.. .. 20,116 7 4 Interest .. .. .. .. 175,511 15 3 Commission, new .. £14,996 13 4 Pees .. .. .. .. 12 16 10 „ renewal 2,333 16 0 17,330 9 4 Land and Inoome Tax .. .. 10,613 9 10 Expenses of management— flfl 1 ftt*i nn Head Offioe .. £12,652 16 0 Branch offices and agents .. .. 6,695 5 11 Extra clerical assistance 1,466 19 0 Medical fees and expenses .. .. 4,420 12 9 Travelling-expenses .. 552 14 3 Advertising.. .. 1,571 11 1 Printing and stationery 1,554 19 6 Rent .. .. 2,485 0 0 Postage .. .. 1,494 15 3 Telegrams .. .. 407 9 8 Exchange .. .. 86 13 1 Office-furniture depreciation .. .. 270 9 3 General expenses .. 3,483 10 2 Triennial expenses .. 2,188 16 9 Compensation for loss of offioe .. .. 552 16 9 39,884 9 5 Amount of Funds, 31st December, 1906 3,991,598 14 11 £4,329,647 4 4 £4,329,647 4 4 Balance-sheet of the Government Life Insurance Department on 31st December, 1906. Liabilities. Assets. m. , , £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. .. 694,847 1 6 dowment Funds (as per Revenue Government securities— Aocount) .. .. .. 3,991,598 14 11 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Railway debentures pleted .. .. .. .. 30,285 1 8 (guaranteed by GoAnnuities .. .. .. .. 99 3 2 vernment) .. 40,000 0 0 Commission .. .. .. 176 3 2 Debentures issued Medical fees .. .. .. 345 9 0 under " The ImmiPremium and other deposits.. .. 5,268 11 3 gration and Public Fire-insurance moneys in suspense .. 5,001 1 0 Works Act, 1870" 2,080 0 0 Tontine Savings Fund No. 2 .. 11,345 15 4 667 980 0 0 Investment Fluctuation Reserve .. 63,808 19 11 Municipal Corporation debentures .. 121 3 3 County securities .. .. .. 516 3 6 Harbour Board debentures .. .. 39,000 0 0 Town Board debentures .. .. 2,200 0 0 Landed and house property .. .. 122,436 4 11 Office furniture (Head Office and agencies) .. .. .. 2,434 3 6 Mortgages on property .. .. 2,171,236 18 4 Properties acquired by foreclosure .. Nil. Overdue premiums on policies in force .. 6,054 17 1 Outstanding premiums due but not overdue.. 38,770 0 4 44,824 17 5 Overdue interest .. 381 15 5 Outstanding interest due but riot overdue.. 5,966 11 11 Interest aoorued but not due .. .. 47,667 11 5 54,015 18 9 Agents' balanoes .. .. .. 2,896 411 Sundry aocounts owing .. .. 711 19 3 Cash in hand and on current aocount.. 183,101 9 1 £4,107,928 19 5 £4,107^92819~5 Government Life Insurance Department, 14th March, 1907. J. H. Richardson, ~ , , , n Commissioner. Audited and found correct. „ 7 -,-, TT W. B. Hudson, J. K. Warburton, Secretary. Controller and Auditor-General.

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Statement of Business

ASSURANCES. YEAR 1906. TOTAL. „ Annual Sum Rever- Premiums. No - Assured sionary /vaauieu. Bonuses. 1. Ordinary. j 2. Extra. Annuities. 1. Immediate. \ 2. Deferred. Whole-life 1 I id Term Assurances. Annual Rever- Premiums. sionary Bonuses. i. Ordinary. 2. Extra. No. 4 Sum , Assured. POLIC IIES ISSUE AND DISCON'olicies in force at 31st December, 1 1905 1.45,137 £ 10,468,316 £ 954.751 £ s. d. ( 316,062 1 5 ( 2,936 2 4 { 23,948 4 1 1 88 14 6 £ s. d. 13.548 2 7I 35,756 16 1/ 1,304 16 10) 6,546 4 1/ 14,120 £ 4,099,882 £ £ s. d. co cn ( 98,403 9 1) 643,611 j 2 ; ogl 16 4) l 87 17 91 I 8 18 4) 142,244 lew business, 1906 .. .. 3,106 729,105 6 2,900 tonuses allotted 302*910 Total .. .. .. 48,243 'olicies discontinued during 1906 2,262 11,197,421 529.830 1,257,661 73.76o { 340,010 5 6 ( 3,024 16 10 J 17.394 6 " 1 213 14 8 14,852 19 5) 42,303 o 2/ 700 nil) 2,867 I0 7,i 14,126 4,102,782 785 98 > 491 6 10 ' 785,855 j 2)100 u g - 41 454 ! | 4 ' 068 19 7 1 il ' M ,\ 102 13 2/ 519 150,827 'otal Policies in force at 31st De-1 ., ... cember, 1906 / 40 ' JBI 10,667,591 1,183,901 j 322,615 18 7 I 2,811 2 2 14,152 7 61 39,435 9 71 lis , 607l 3,951,955! „.. ... f 94,422 7 3} 744 ' 401 jl VJ98 1 6J 'ARTICUL, f\RS 1 OF POI ICIES DISCONHow Discontinued. By Death .. I 105,100; 55,76l i8,575 10,904 I i I I 3,325 o 6 _„ r 7°o 11 11 79 3 10 / 2,670 13 7 ) 17 7 11 f 3 ' 9 42 18 I0 7 j 2 '7 6 5 '9 3 1R ... { 2,114 3 21 16,317 j 62 9 x | 392 257 77,970 16,317 Maturity 249 Surrender .. ... 5io 118,761 io,557 22,808 116 36,649 . ... f 964 19 9} 6 ' 464 j 14 16 3} 6,464 Surrender of Bonus 13,481 13,481 Lapse Expiry of Policy 1,109 2 249,608 600 10,916 f I I I I 7,280 o 4 I] 53 2 1 j IQI » 4 10 211!) o 13 6 { 103 7 7 ) 20 8 o ) 76 4 2 ) 009) 144 2 35,608: 600: 5,192 ( 10 2 11) 1 0 13 6/ ( 100 3 3) j 13 7 10/ ( 19 14 51 ( 0 0 7f 5,192 Expiry of Premiums Miscellaneous Total .. 2,262! 529,830 73,760 73 760 I 17 ' 394 6 11 IS ' m 1 213 14 8 ( 4,068 19 71 1 102 13 2) 3,568 2 6 519| 150,827 41,454 PROG ,ESS O BUSINESS OP TI E GOVEI ,NME NT LI] 'E INS iURANCE Total issued Total void .. 10071024,514,305 •• 54.72913,846,714 ' 24.514.305 13,846,714 2,222,729 {758,005 12 10) \ 14,201 3 6/ 1435,389 14 3} I 11,390 1 4/ 72,922 7 7 39,606 11,699,4951,436,989 7,747,540 692,588 (308,559 5 31 ( 10,797 14 11) {214,136 18 Oi t 8,799 13 5/ 1,038,828! 19,334 10 6 25,999 Total in force • • 45,981 10,667,591 I 1,183,901 322,615 18 7 (14,152 7 61 (39,435 9 7/ 13,607 3,951,955 744,401 i ( 94,422 7 31 1 1,998 1 6/ Extra Premiums Reduction of Premiums by Bonus, &c. 2,811 2 2 206 5 11 Note.—The irdinary Premium is tl ie premium charged £325,633 6 8 Wellington, 1st March, 1907.

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at end of Year 1906.

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

Approximate, o<»t of Papttr.— Preparation, not. given ; printing (6,450 copies), £H 15b. By Authority: John Mackay, Government Printer, Wellington.—l9o7 Price 6d.]

By Authority : John Mackay, Government Printer, Wellington 1907 Price 6d.] * '

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ASSUR. NCES. Endowment Assurances. Annuity Assurances. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, ETC. 1 Annual v. Sum Rever- ; Premiums. No - Assured, "onaryl Bonuses 1. Ordinary. ! a. Extra. 1. Sum No. 2. Rever- Deferred Annual sionary Annuities. Premiums. Bonuses. No Annual Annuities. • Premiums. , immediate. 2. Deferred. I. Sum Assured. «_„„„< No. 2. Rever- Pr A e^ a m8 sionary Premiums. Bonuses. TINUED DURING THE Y! JAR 1906. £ 29,305 6,183,251 £ £ s. d. 30Q 257 J209.128 1 0) { 22,482 10 7 " ( 79 16 2/ 158,374 688 £ £ s. d.l £ a. d. j °i^b°3} 35,564 14 5|5,144 7 2 j 17,550) 6616 1 J g66 2 Q f 321 1 7 J 22 £ s. d. £ s. d. 1.3,548 2 7 77 10 7 I 192 1 8 1,304 16 10 30 3 0 j 696 I" £ 88,183 £ s. d. 3,308 13 7 2.S72 698,105 124 10,550 421 14 9 2,282 10 32,177 6,881,356 1,602 364,828 ..„ .„,: (231,610 1.1 7) 467,631: j ' g24 2 2 j. 31 12 ' 656 13 6 l dl ' aB "( 111 1 6[ 812 J 42,080 15 6'6,100 8 2 -j 7 'gjg| 2,867 10 7 421 6 10 351 77 10 7 15,075 4 1 777 { 98,733 ) 10/ { 6,370/ 10/ 3,730 8 4 61 18 700 11 11 62 247 7 0 30,575 6,516,528 ,„h fi .J {218,953 18 1) 430,6,11 j 813 Q 8 < 751 i^Mlg} 39 ' 213 4 HJ5.679 1 4 3331 77 10 7 I 14 ' 152 7 6 " |( 222 4 8 j 715 92,363 3,483 1 4 TINUED DU: :ING THE Y 1906. 117 27,130 { I ( 1,210 17 4{ 16 14 9) 2,569 16 8) 17 7 11/ 2,444 4 1) 28 2 4/ ) 2,258 1: 700 11 11 222 53,441 . 10,894 27 , f 2,320 ) I 10 f I 3,150 100 16 11 308 71,457 ' 3,784 58 I 7,505) 309/ 2,765 19 3 405 1 5 28 114 12 7 9,327 965, 212,-800 5,717! I 6,375 15 1) 41 16 2/ 3 1 300/ 7/ 101 11 4 15 16 0 7 900 28 13 2 ( I 7 0 2/ 56 0 4) 0 0 2/ 3 4 4 0 9 5 1,602: 364,828 !( 6,370/ I 10 / ! 31,980 J 12,656 13 6) 1 111 1 6/ 61 I 7,805) 316/ 2,867 10 7 421 6 10 18 700 11 11 62 247 7 0 I DEPARTI MENT ' SINCE DA ra OF ES TABLISH] :ent t .st DEC MBER, 19 16. 56,875|l2,472,671!7 781,167 (433,166 8 10{ 1 3,403 8 7/ (214,212 10 9{ 1 2,590 7 11/ 935 {131,600{ j 4,503/ { 24,855/ I 7141 48,327 10 5 6,998 18 6 552 265 2 0 24,594 17 2 1,742 ( 210,539 | 1 10/ I 118,176 I 1 10/ 9,015 18 3 26,300 5,956,143S 345,516 184 9,114 5 6 1,319 17 2 219 187 11 5 10,220 5 0 !,027 [5,532 16 11 10,575 6,516,528 !435,65l| (218,953 18 1{ } 813 0 8/ 751 (106,745) 1 3,849/ 39,213 4 11 5,679 1 4 333 77 10 7 {14,152 7 6 { 222 4 8 \ 715 92,363 3,483 1 4 it the t: -ue age; thi Extra, .he additional preirii ium ii iposed for any reason whatsoever.