ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1909.

Appendix to the Journals of the House of Representatives, 1910 Session I, H-08

H.—B

1910. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1909.

Presented to both Houses of the General Assembly pursuant to the Provisions of the Government Life Insurance Act, 1908.

Government Insurance Office, Wellington, 30th May, 1910. I have the honour to submit the following report upon the transactions of the Department for theyear ended the 31st December, 1909, and its position at that date. The Revenue Account, Balancesheet, and Statement of business are appended. New Business. —During the year 4,268 proposals were dealt with, for the assurance of £985,550, and the number of policies actually completed was 3,451, assuring £795,339, being an advance in both number of policies and sums assured on the new business of the previous year. The annual premiums on new policies amounted to £24,923. Twenty-three annuities were also granted, on which the pur-chase-money was £14,306. The new business of the Department has shown a steady increase for some years past, as will be seen from the following : —New sums assured : 1903, £702 350 ; 1905 £716 021 • 1907, £752,065 ; and 1909, £795,339. Total Business in Force. —The total business now in force is 47,654 policies, assuring £11.151,094 (and £1,296,654 bonuses) at death or maturity, together with 362 immediate and deferred annuities for £20,590 per annum ; the total business bearing an annual premium income of £336,873. Income. —The total income of the year was £546,566, an increase of £12,125, made up as follows : I ■ New premiums (including single premiums) .. .. .. ~ £23,384 Renewal premiums . . .. .. .. .. * . . 307,543 Purchase-money for annuities .. .. .. .. .. 14,306 Interest .. ...... .. .. .. .. .. 20L327 Fees .. . . . . .. .. .. .. ... 6 Total income for 1909 .. .. .. .. £546,566 The income from interest showed an increase of £7,457 and the average rate of interest earned on the mean funds increased from £4 12s. 2d. to £4 12s. lid. per cent. Outgo. —During the year 396 policies became'void by death, for claims amounting to £135,412. being considerably under what is provided for in the tables of mortality used by the Department! Four'hundred and eleven policies also matured as claims during lifetime for £111,216. £3,908,291 has been paid in respect of claims by death and survival since the foundation of the Department forty years ago. Ordinary surrenders amounted to £38,143, bonus surrenders to £13,041, and loans released by surrender to £20,601. The total expenses were £72,120, the ratio of expenses to piemium income being 20-9 per cent, and to total income 13-2 per cent. Accumulated Funds. —The net increase in the funds during the year was £140,456, and the total assurance, annuity, and endowment funds at the close of the year (apart from special reserves)' amounted to £4,405/141.

I—H. 8.

H.—B

The Balance-sheet— -On the 31st December, 1909, the total assets of the Department amounted to £4,536,117, and were invested as shown in the following comparative statement :—

It may be mentioned that " Foreclosed properties " are again nil, and that the total investments now amounting to £4,366,379 show an increase of £89,909. The progress of the Department has been well maintained throughout, the new business having been increased and the position generally being eminently satisfactory, especially in view of the financial stringency that'occurred in the early part of the year under review. An interim actuarial valuation of the liabilities under policies in force shows that the year's profit has been very favourable. J. H. KICHAEDSON, Government Insurance Commissioner.

Bevenue Account of the Government Life Insurance Department for the Year ended 31st December, 1909. £ ' 8. d. I £ s. d. Amount of Funds at 1st January, 1909 4,264,684 19 2 Death claims under policies, Assurance, Renewal premiums - Assurance, An- ' including bonus additions .. .. 135,412 7 5 nuT, and Endowment .. .. 307,542 15 10 Endowment Assurances matured, inNew premiums (including instalments eluding bonus addition* .. .. 109,544 2 0 of first year's premiums falling due , Endowments matured .. .. 1,672 0 0 the vearl •• 22,342 6 6 Premiums returned on endowments .. 13 5 9 Single premiums-Assurance'and En- Bonuses surrendered for cash .. 13,040 15 4 ■fi r . . 1,041 8 8 Annuities .. .. .. .. 15,562 13 8 r>„„o^T»«H n r. for Annuities '! .. 14,306 9 9 Surrenders .. .. .. 38,143 8 3 Oons.derat.onforAnnuit.es.. 201!326 18 4 Loans released by surrender.. .. 20,601 8 8 lnteresi .. 6 0 1 Commission, new* .. £16,505 13 9 Bees "• , renewal 2,356 13 7 • 18,862 7 4 Land and income tax .. .. 12,447 0 9 Expenses of management— Salaries— Head Offioe .. £16,015 2 1 Branch offices and agents .. .. 7,176 0 11 Extra clerioal assistance 186 16 0 Medical fees and expenses .. .. 5,191 7 4 Travelling-expenses .. 720 0 5 Advertising .. .. 949 7 0 Printing and stationery 1,540 IS 1 Rent .. .. 2,739 2 6 Postage and telegrams 1,600 10 9 Exchange .. .. 75 1 4 Office-furniture depreciation .. .. 270 9 3 General expenses .. 2,269 3 5 Triennial expenses .. 2,076 7 4 40,810 6 5 : Amount of Funds, 31st December, 1909 4,405,141 2 9 £4,811,250 18 4 £4,811,250 18 4 * Including Agents' allowances.

2

At 31st December, 1908. I Glass of Investment. , . i Percentage Amount. rf ToU1 Afl 6 gets _ At 31st December, 1909. Percentage Amount. of Total As8( Percentage of Total Assets. £ .2,571,865 58-5 per cent. Mortgages on freehold property 730,865 16-6 „ Loans on policies 668,013 : 15-2 „ Government securities 179,509 4-1 „ Local bodies'debentures 124,325 2-8 „ Landed and house property 107,983 24 ,, i Miscellaneous assets 17,288 0-4 ,, I Cash on current account £ 2,620,595 57-8 per ci 764,279 16-8 668,030 14-7 179,303 4-0 132,549 2-9 109,635 2-4 61,726 14 57-8 per cent. 16-8 14-7 4-0 2-9 24 1-4 „ £4,399,848 100-0 per cent. , i i_ £4,399,848 100-0 per cent. Total £4,536,117 100-0 per c< £4,536,117 100-0 per cent.

H.—B

3

Balance-sheet of the Government Life Insurance Department on 31st December, 1909. Liabilities. Assets. £ s. d. £ 8. d. £ s. d. "Total Assurance, Annuity, and En- Loans on policies .. .. 764,278 15 3 dowment Funds (as per Revenue Government securitiesAccount) .. .. .. 4,405,141 2 9 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Debentures issued pleted .. .. .. .. 21,830 16 6 under the District Annuities .. .. .. .. 212 17 1 Railways PurchasCommission .. .. .. 662 8 9 ing Act 1885 ExMedical fees .. .. .. 477 15 0 tension and AmendPremium and other deposits.. .. 6,985 10 4 ment Act, 1886 .. 40,000 0 0 Fire-insurance moneys in suspense .. 200 0 0 Debentures issued Sundry accounts owing .. .. 587 4 3 under the ImmiTontine Savings Fund No. 2 .. 16,356 2 9 gration and Public Investment Fluctuation Reserve .. 83,663 6 1 Works Act, 1870 .. 2,130 12 9 668,030 12 9 Municipal Corporation debentures .. 137,825 10 1 County securities .. .. .. 277 3 0 Harbour Board debentures .. .. 39,000 0 0 Town Board debentures .. .. 2,200 0 0 Landed and house property .. .. 132,549 4 2 Office furniture (Head Office and agencies) .. .. .. 1,622 15 9 Mortgages on property .. .. 2,620,594 13 7 Properties acquired by foreclosure .. Nil. Overdue premiums on policies in force .. £5,478 18 11 Outstanding premiums due but not overdue.. 38,118 18 9 43,597 17 8 Overdue interest .. £1,329 18 11 Outstanding interest due but not overdue.. 6,108 1 8 Interest accrued but not due .. .. 53,329 5 1 60,767 5 8 Agents'balances .. .. .. 3,647 8 10 Cash in hand and on current account.. 61,725 16 9 £4,536,117 3 6 £4,536,117 3 6 Government Life Insurance Department, 28th February, 1910. J. H. EICHARDSON, Commissioner. W. B. Hudson, Secretary. Audited and found correct. E9BERT J. Collins, Controller and Auditor-General.

EL—B

4

Statement of Business

ASSURANCES. TOTAL. TOTAL. Whole-life and Term Assurances. YEAR 1909. ■ Annual Sum Rever- I Premiums. No - Aasni-prl sionary assured. Bonuses 2 Ordinary. 3. Extra. _ Annual * ... No- J™* *™ P JL e J nmms. Annultae^ : ___sui_u. Bonuses. I. Ordinary. 1. Immediate. I 8. Extra. 2. Deferred. POLIC IES ISSUED AND DISCONPolicies in force at 31st December, 1908 New business, 1909 .. Bonuses allotted .. .. £ £ I £ s. d. jg s. d. 47,03310,955,7491.068,950! 329,007 12 7] 115,406 6 71 2,620 14 0J 5,272 14 0J 3,474 795,339 .. 24,853 16 51 | 996 9 8) 69 9 43 46 6 8J 316,742 £ £ £ a. d. 12,6513,676,666 688,957| 86,649 15 31 1,791 7 2) 4 3,389 .. 72 11 101 0 0 if 132,144 i Total .. .. .. 50,50711,751,0881,385,692! 353,861 9 01 16,402 16 31 9 690 3 4f 5.319 O ftf Total .. 50,50711,751,0881,385,692 353,861 9 0) 16,402 16 3) 9 690 3 AI 5 319 O ftf 1,385,692 89,033 353,861 9 01 2,690 3 4f 19,689 1 11) 160 8 7 f 16,402 16 31 5,319 0 8[ 726 11 0) 405 4 8f 12,655 3,680,055 821,101 j 86,722 7 1) 1 791 7 a f 12,655 3,680,055 140,692 1 821,1011 45,108; 86,722 7 11 1,791 7 8f 3,964 19 71 103 16 7f 3 4 0,319 0 « Policies discontinued during 1909 .. 2,491 599,994 89,033 19',689 1 11) ■ '726 11 0) 1 an q r? r Af\x a a r Policies discontinued during 1909 .. 3 4) 0,319 O S| 2,49lj 599 ,'994 89,033 19,689 1 11) 726 11 0] 160 8 7f 405 4 8f _56| 140,692 45,108: 19 7) 1 ao ie rr r 456| 160 8 7) 405 4 8 J Total Policies in force at 31st De- 48,016 11,151,094 1,296,654 334,172 7 11 15,676 5 31 cember.1909 2,529 14 9f 4,913 16 Of Total Policies in force at 31st December, 1909 I ' ' 48,016 11,151,094 1,296,654 334,172 7 11 15,676 5 31 2,529 14 \)\_ 4,913 16 Of 103 16 7f I 12,19913,539,363' 775,993 82,757 7 6) , 1,687 10 8 J L2,199 3,539,363' 775,993 82,757 7 6) , 1,687 10 8 J 12,199 PARTICUL_ PARTICUL, fLRS OF POLICIES DISCONLRS OF POLICIES DISCONHow Discontinued. By Death .. .. ..I 415 110,922 : 23,974! 3,355 12 0) 747 19 8 68 6 5J Maturity .. .. .. 411 91,390! 19,5361 3,913 4 10) j 22 5 2f Surrender .. ..•'■ .. 629 149,262 11,300! 4,80118 1) 383 16 0 30 1 9; Surrender of Bonus .. .. .. .. 23,374 Lapse .. .. •• 1,033 247,070 10,854i 7,214 17 61 22 1 8i" Expiry of Policy .. .. 3 1,350 .. 19 6 10 Expiry of Premiums .. .... .. .. 328 13 0) 17 12 8) Miscellaneous .. .... .. .. 55 9 81 0 0 lit '257 82,722 21,164 2,219 8 01 62 15 7/ 115! 35,200 6,014 944 15 71 21 15 2) 13,397 81 21,420 4,533: 494 2 01 8 5 Of 3 1,350 .. 19 6 10 282 3 01 11 0 0J 5 4 2) 0 0 10 f '257 82,722 21,164 2,219 8 0) 62 15 7/ 115! 35,200 6,014 944 15 71 21 15 2) 13,397 81. 21,420 4,533; 494 2 01 8 5 0) 3 1,350 .. 19 6 10 282 3 01 11 0 0J 5 4 21 0 0 10 f Total .. .,.. ... 2,491 599,994 89,038 19,689 1 111 1,131 15 8 ' I 160 8 7 f 456 140,692 45,108 ; 3,964 19 7) j 103 16 7) 456 140,692 45,10* 3,964 19 7) j 103 16 71 PROGRESS OF BUSINESS OF THE GOVER tNMENT LIFE INSURANCE ;NMENT LIFE INSURANCE Totalissued .. , .. .. 1110817 26,842,307 2,539,471 | j 85,251 16 4 Totalvoid .. .. .. 162,80115,691,213 1,242,8171 -j 3? fl 64,66115 1 j i 11, oyl 11 LI 39,616!u,706,4461,569,1323 3 °q'™ j 8 j3 27,41718,167,083: 793,139 j 22^' ll A 2 1 : ( 9,120. 4 4) 3y,616|ll,706,4461,569,1323 3 °Q'™ j 8 793,139 j 22^' ll A 2 1 :( 9,120. 4 4j Totalinlorce .. .348,016 11,151,094 1,296,654! 334,172 7 1 20,590 1 3 12,199 8,539,363 775,993:1 8 ?'5_I 3 _1 ( 1,687 10 8j Extra Premiums .. .. .. .. .. 2,529 14 9 Note. Reduction of Premiums by Bonus, &c. .. .. 170 17 3 £336,872 19 1 Wellington, 22nd February, 1910. ~—= !.—The Ordinary Premium is the premium charged

H.-8

5

at end of Year 1909.

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

Approximate Cost of Paper.— Preparation not given; printing (6,500 copies), JSII 3s. 6d.

By Authority : John Mackay, Government Printer, Wellington.—l9lo.

Price 6d.~\

2—H. 8.

ASSURANCES. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, ETC. Endowment A. isttranoes. Annuity Assurances. Sum ? ever - | Aq«nvBfi sionary Assuied. Bonuses ! Annual 1- Sum Premiums. Assured. Deferred Annual No. »• "ever- Annuities. Premiums. 1. Ordinary. sionary g. Extra. Bonuses. No Annual Annuities. • Premiums. L Imme diate. 2. Deferred. j 1. "Sum Assured. . „ , No. 2. Bever- s sionary premium s. Bonuses. No. t: NUED DUR1 iNG THE YEAR 1909. 13,131 £ 7,156,406 £ 379,178 £ s. d. 237,254 18 5) 829 6 10} 24,113 1 2) 69 9 3 f 104 £ 20,4951 815/ 400 £ s. d.| £ s. d. 5,175 1 4J1.111 7 4 3541 5/ 23 £ s. d. 68 10 7f £ s. d. 15,406 6 71 97 12 8f 996 9 8 788 £ £ s. d. 788 102,182 3,923 1 0 3,319 774,650 1 ._ . _ 46 6 8 22 16 0 127 127 16,900 645 7 5 183,974 '580/ 44} 915 119,082) 4,568 8 5 441 57 7,113) 297 17 5 9J 16,450 1,951 7,931,056 450,965 563,152 43,871 261,367 19 7) 898 16 If 15,345 15 8) 56 12 Of 105 7 20,895) 1,395/ 1,224) 50/ 5,221 8 0|l, 134 3 4 383 15 o| 67 19 3 377) 5} 333 3581 4f 68 10 7/ 12 10 0/ 16,402 16 3) 97 12 8/ 726 11 01 21 9 8f 915 57 !4,499j 7,480,091 519,281 246,022 3 111 842 4 If 98 19,6711 1,345) 4,837 13 01,066 4 1 56 '6 7) 15,676 5 31 76 3 Of 858 111,969) 35) 4,270 11 :nued during the !AR 1909. 138 28,000 2,810 396 89,727 19,527 2,810 19,527 1,126 4 0) 5 10 10/ 3,844 10 61 22 5 2 J 3,597 5 Si 8 6 7) i 200 '21 8 8 10 0 0 19 726 11 0 15 35 1,663 ) 9 J 4,750 68 14 4 472 108,288 5,236 5,236 6 1,0241 50/ 362 6 4 56 13 0 1 12 10 0 \ *' 21 9 8 190 14 1 9,977 9,977 945 224,950 6,321 6,321 6,694 15 5) 13 16 8)' 7 700 26 0 1 34 11 4) 6 12 8f 48 9 OJ 0 0 If 11 18 8 16 3 0 10 3 1,951 450,965 43,871 15,345 15 81 56 12 Of 7| 1,224) 383 15 Oj li _l_ 50JJ I 67 19 3 20 12 10 0 748 0 8 57 7,113 ) 9f 297 17 DEPARTMEN1 1 SINCE DA TE OF ESTABLISH! VIENT T< ) 3 .st dec: 1MBER, 19< 09. 66,41914,728,072 : 965,141 (503,444 12 2) i 3,613 10 10/ J257.422 8 3) { 2,771 6 9/ 1106 1 15 g' |;57, 205 3 10 jl008 j 13 }152,367 10 10 8,355 7 6 633 265 2 0 28,046 12 6 3,043 | 251 ' | 10,634 16 2,185 | 139 ' 1 ™ II 6,364 5 31,920 7,247,981445,860 7,289 3 5 271 209 1 5 12,294 4 3 14,499 7,480,091519,281 [246,022 3 111 { 842 4 1/ i 98 I X ?'ill}i 4 ' 837 13 ° 1,066 4 1 362 56 0 7 15,752 8 3 85S { nl ' 9 tl} 4,270 11 it the true age; the Extra, ;he additional prem :um imposed for any reason wha: isoever.