ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1910.

Appendix to the Journals of the House of Representatives, 1911 Session I, H-08

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1911 NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1910.

Presented t» both Houses of the General Assembly pursuant to the provisions of the Government Lift Insurance Act, 1908.

Government Insurance Office, Wellington, 15th July. 1911. I have the honour to submit the following report upon the transactions of the Department for the year ended 31st December, 1910, and its position tit that date. The Revenue Account. Balance-sheet, and Statement of Business are appended. New Business, and Amount in Force. —During the year 1.177 proposals were dealt with for the assurance of £986,050, and the number of policies actually completed was 3,422, assuring £820,179. being an advance in the sums assured on the new business of the previous year 1 . The annual premiums on new policies amounted to £25,337. Twenty-six annuities were also granted, on which the purchasemonev was £16.110. The new business of the Department has shown a steady increase for some years past. The total business now in force is 48,561 policies, assuring £11,360,796 (and £1,226.002 bonuses) at death or maturity, together with 371 immediate and deferred annuities for £21,067 per annum ; t In- total business bearing an annual premium income of £342,881. In relation to the new business and amount in force the results are given hereunder for the past seven years : —

It will be seen that the i\ew business litis increased by £125.623. and the business in force by 4,738 policies and £1,101,234 sums assured. Income. —The total income of the year was £561,150 (tin increase of £14,584 on the previous year). made up us follows : — £ New premiums (including single premiums) .. .. .. .. 25,621 Renewal premiums . . .. .. .. .. .. 312,863 Purchase-money for annuities .. .„ .. .. .. 16,110 Interest .. . . .. .. .. .. .. .. 206.552 Fees .. .. .. .. .. .. 1 Total income for 1910 .. .. .. .. £561.150 The income from interest showed an increase <>l £5,225, and (lie average rate of interest earned mi the mean funds was £4 12s. 3d. per cent. In regard to the income from premiums and interest the past seven years results tire given, together with the accumulated funds, and the yearly rates of interest earned by them : —

Year. New Sum assured. r>„ii«:„„ ;„ Sums assured in Policies in • -c tj, Poroe i (excluding Bonuses). .904 .905 .906 907 .908 .909 910 £ 694.556 716,021 729,105 752.065 780.597 795,339 820.179 £ 44,194 10,259,562 45,137 10,468,316 45,981 10,667,591 16,946 10,855,153 47,033 10,955.749 48,016 11.151.091 48,932 11,360.796

Year. Premium Income (excluding Interest Income. Annuities). Total Income. I Accumulated Funds. Kate of Interest on Mean Funds. 1901 1905 1906 1907 190S 1909 1910 x. t 309,239 158,196 314,003 169,153 319,775 175,512 325,903 183,618 330,806 l9.-,.S7t) 330,927 201.327 338,487 206.552 i £ 480,71(1 190.925 507.070 526,713 534,441 546,566 561,150 e 3,665,583 3,822,577 3,991,599 4,147,411 4,264,685 4,405.141 4,554,730 £ s. (I. 4 8 2 4 10 4 4 9 LO 4 10 3 4 12 2 i 12 11 4 12 3

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The return on the growing funds is substantial, and keeps up well, being considerably higher than seven years ago. Outgo. —During the year 429 policies became void by death, for claims amounting to £154,015 (an increase of £18,603), but this amount is considerably under what is provided for in the tables of mortality used by the Department. Four hundred and fifty-six policies also matured as claims during lifetime for £114,921. The total sum which has been paid in respect of claims by death and survival since the foundation of the Department, forty-one years ago, has amounted to £4,177,253. The total expenses were £71,534, the ratio of expenses to premium income being reduced to 20'2 per cent., and to total income to 12-7 per cent. Accumulated Funds. —The net increase in the funds during the year was £149,589, and the total assurance, annuity, and endowment funds at the close of the year (apart from special reserves) amounted to £4,554,730. The Balance-sheet. —On the 31st December, 1910, the total assets of the Department amounted to £4,700,348, 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 £4,472,237, show an increase of £105,858. Tontine Fund No. 2.- The period of the Tontine Fund expired on the 31st December, 1910, and the accumulated amount. £18,563 13s. 9d.. hits been distributed amongst those policyholders whose policies were in force on the Ist January, 1911. The fund was inaugurated by Order in Council, dated 19th January, 1891, and policyholders were permitted to join the scheme from the 29th January, 1891. until the 31st December. 1900, when it was closed for new entrants. Policyholders joining the fund were not allowed to surrender the bonuses allotted to them during the tontine period, and in the event of death or withdrawal the bonuses were transferred to the fund and accumulated at compound interest for distribution amongst those policyholders whose insurances remained in force on the Ist January, 1911. The total number of policies which joined the fund was 6.775, assuring £1,655,700. Of these, 295 became claims by death. 411 were surrendered, and 2.719 were allowed to lapse, leaving 3,350 policies. assuring £802,259, in force at the close of the period and entitled to participate in the special benefits of the fund. The value of the forfeited bonuses comprising tin- special fund was as follows ; £ s. d. By death .. .. *.. .. .. 5,993 19 0 By surrender .. .. 2,057 19 1 By lapse .. .. *.. .. 5,296 5 9 13,348 3 10 Compound interest .. .. .. 5,213 911 £18,561 13 9 This amount has been distributed as a reversionary bonus payable at death or maturity, the total addition to the sums assured being £34,065 Is. The bonuses granted during the time the policies were in the tontine class, tl 12.817 18s.. were released from the tontine conditions, and, together with the special bonus of £34,065 Is., may now be dealt with in the same manner as non-tontine bonuses. <■'< neral. The year was marked by an increase in the new business returns, a decrease in the expense rates, a continuance of favourable mortality, and steady progress in other directions. The usual triennial investigation will be made at the end of this year, when the tenth distribution of bonuses wifl lake place, and tin interim valuation gives every reason to expect a satisfactory surplus for division among the policyholders. J. 11. Richardson, Government Insurance Commissioner.

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At 31st December, 1909. Glass of Investment. At 31st December, 1910. , _ Percentage Amount. , m , , . ° of Total Assets. . Percentage Amount. of Tota , A « et( . 2,620,595 57-8 per cent. Mortgages on freehold propertv 764,279 ; 16-8 Loans on policies 668,030 14-7 ,, Government.securities. . 179,303 4-0 Local bodies'debentures 132,549 2-9 Landed and house property 109,635 2-4 ,, Miscellaneous assets 61,726 1-1 ,, Cash on current account 4,536,117 | 100-0 per cent, j Total.. £ 2,723,876 57-9 per cent. .. : 775,190 I 16-5 668,049 ; 14-2 168,436 ] 3-6 135,334 ! 2-9 111,577 2-4 117.886 2-5 4,700.348 100-0 per cent.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1910. £ s. d. £ a. d Amount of Funds at Ist January, 1910 4,105.141 2 9 Deatb claims under polioies, Assurance, Renewal premiums — Assurance, An- including bonus additions.. .. 154,014 10 4 nuity, and Endowment .. .. 312,863 12 6 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. 113,246 6 0 of first year's premiums falling due Endowments matured .. .. 1,675 0 0 in the year) .. .. .. 23,346 8 6 Premiums returned on endowments .. 25 7 6 Single premiums—Assurance and En- B muses surrendered for oasli .. 2,021 12 2 dowment .. 2,277 7 7 Annuities .. .. .. .. 15,716 14 9 Consideration for Annuities .. .. 16,109 13 3 Surrenders .. .. .. 32,092 3 2 Interest .. .. .. 206,552 3 11 Loans released by surrender.. .. 21,235 17 8 Fees .. .. .. 13 1 Commission, new* .. £16,836 2 6 renewal 2,529 1 7 — 19,365 4 1 Land and income tax .. .. 12,661 14 1 Expenses of management — Salaries— Head Office ..£16,22119 0 Branch offices and agents .. .. 7,329 12 7 Extra clerical assistance 196 7 4 Medical fees and expenses .. .. 4,861 5 9 Travelling-expenses .. 623 10 1 Advertising .. .. 915 7 0 Printing and stationery 1,515 17 0 Rent .. .. 2,813 10 0 Postage and telegrams 1,521 16 4 Exchange .. .. 72 16 11 Office-furniture depreciation .. .. 270 9 3 General expenses .. 2.557 18 11 Triennial expenses .. 606 14 6 39,507 4 8 Amount of Funds, 31st December, 1910 4,554,729 17 2 81,966,39111 7 U, 966,291 11 7 * Including Agents' allowauces. Balance-sheet of tin- Government Life Insurance Department on Hist December. 1910. Liabilities. \>si t-. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. 775,189 11 11 dowment Funds (as per Revenue Government securities— Aocount) .. .. .. 4,564,729 17 2 I Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Debentures issued pleted .. .. .. 35,888 9 0 under the District Annuities .. .. .. .. 40 19 3 Railways PurchasCommission .. .. 287 2 10 j ing Act 1885 ExMedioal fees .. .. .. 399 0 0 tension and AmendPremium and other deposits.. 0,057 17 2 ment Act, 1886 .. 40,000 0 (i Fire-insurance moneys in suspense 075 0 0 1 Debentures issued Tontine Savings Fund No. 2 .. 18,561 13 9 I under the ImmiInvestment Fluctuation Reserve .. 53,663 ('. 1 gration and Public Works Act, 1870 2,149 « 0 668,049 5 0 Municipal Corporation debentures .. 123,296 17 6 County securities .. .. .. 189 5 9 Harbour Board debentures .. .. 39,000 0 0 Town Board debentures .. .. 5,950 0 0 ! Landed and house property .. .. 135,333 14 10 Office furniture (Head Office and agencies) .. .. .. 1,352 0 6 Mortgages on property .. .. 2,723,876 3 7 Properties acquired by foreclosure Nil. Overdue premiums on policies in force .. £5,705 8 8 i Outstanding premiums due hut not overdue.. 37,594 9 5 48,299 18 1 Overdue interest .. CI. 410 1 8 Outstanding interest due but not overdue.. 7,130 8 6 Interest accrued but not due .. .. 54,819 18 11 03,300 9 1 Ageuts'balances .. .. .. 3,561 14 8 Sundry accounts owing .. .. 219 3 Cash iii hand and on current aocount.. 117,885 19 7 84,700,348 5 9 I £4,700,348 5 9 Government Life Insuranoe Department, 13tb February, 1911. ■I. H. Richardson, Commissioner. W. B. Hudson, Audited and found correct. Secretary. Robert J. Collins, Controller end Auditor-General.

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Statement of Business

Wellington, Llth February, 1911.

TOTAL. YEAR 191O. Annual Sum Rever- Premlnms. ; No - assured. •■ Or.n,^,,. Whole-life mid Term Assurances. Annual Annuities. 8um Kever- Premiums. 1. Immediate. assured. Bonuses ' 1- Ordinary. H. Deferred. 2. Extra. POLICIES ISSUED AND DISCON- £ £ t s. d. £ s. d. a £, £ s. d. £ s. d. £ £ £ s. d. Polieioe in force at 31st 4S,016 11,151,094 1,296,054 334,172 7 1[ December, 1909 ■' 2,529 14 9 ) New Business, 1910 .. 3.448 820,179 .. 25,264 7 2) 72 9 6 J 15,676 5 3 112.1993,539,363 775,993 82,757 7 61 4,913 16 0 J 1,687 10 8 ] 1,473 9 8 I 227 76,550 .. 1.752 10 5 I 4 13 4 ) 15,076 5 3 1 4,913 16 0 J 1,473 9 8 I 12,199:3,539,363 227' 76,550 775,993 82,757 7 6| 1,687 10 8 J 1.752 10 5 i 4 13 4 j I Total.. .. 51,40411,971,2731,296,654 359,436 14 3 1 2,602 4 3 j 17,149 14 11 I 4,913 16 0 j 17,149 14 11 I 4,913 16 0| 12,426 3,015,913 I 775,993 84,509 17 11 i 1,693 1 ffj Polioies discontinued 2,532 610,477 70,652 19,118 7 8 \ during 1910 186 16 10 I Total policies in force at 4X082 l|,:jlill,T!lli 1.226,002 840318 6 7 1 31st December, 1910 ■ 2,410 7 5 J 673 15 5 I 322 16 2 f 16,475 19 6 I 4,590 1!) 10) 673 15 5 I 322 16 2 f 479i 147,447 37,692 3,700 17 4 ) 126 8 4 f 11,947|3,468,466 738,301 80,809 0 7 ) 1,565 15 8} PA A.RTICULA: JS OF POL JCIES DISCONHow discontinued. By Death .. .. 446 122,692; 29,288 3,464 2 11) 100 9 11 J! Maturity .. 456 34,846 19,183 3,832 3 3 I ; 24 11 8)1 Surrender .. G00 138,432 8,489! 4,352 12 4 28 6 5 Surrender of Bonus.. .. .. 3,738 673 14 1 I I :: , 322 16 2 ( 276 92,042 •26,086 2,222 10 11 ) 94 12 5 [ 108: 29,715 4,Kill 750 6 10 ) 15 17 9 f •2,087 4,628 554 16 '2 } 15 2 10 f Lapse .. .. : l,0'24 265,008 9,1)54 7.182 19 35 6 4 f Expiry of Policy .. I 96 -25,690 Expiry of Premiums .. ... .. 11> 1 12 4 I Miscellaneous .. .. ;. .. 124 17 7 | 3 3 6)| 0 14| ) 152 8 3 ) 20 15 2 I 0 15 4 )" Total .. 2,582 ■ ii 10,477 70,652 19,118 7 8) 678 16 51 *79 147,447 37,092 3,70017 4| 180 16 II! I 822 16 8 1 126 8 4 \ 479 147,447 87,092 3,700 17 4| 12(1 8 4 I" PROG] RESS OF BUSINESS OF THE GOVERNMENT LIFE INSURANCE LNMENT LIFE INSURANCE Total issued .. .. 114,265 27,662,486 -2,539,470 j 8 ?*?'?™ ,'t ]\ 86,726 f. 0 39,84311,782,996 1,569,132 j 3 ??'q?o q II 16,3Ol,69oj 1,313,468 j 5 j2'o7g " jiji 65,658 6 8 27,896 8,814,580 830,831 1 22 g'™ H 39,84311,782,996 1,569,132 J I II 27,896;8,314,530- 830,831 1 22 g'™ jjl Total void .. .. 05,333 Total in force .. j 48,932 11,8150,796 1,226,002 840,318 6 7 , 21,066 ID i 11,947 8,468,466 738,301 | 8 °' 8 °j? £ £} 11,947 3,468,466j 7 oo o 01 (80,809 0 71 738 ' 301 j\ 1,565 15 8/ Extra Premiums Reduction of Premiums b i i 2 415 7 5 Note.—The Ordinary Premium is the premium charged iy Bonus, *c. .. 'l46 18 1 „, , an £842.880 12 1

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at end of Year 1910.

J. H. EICHAEDSON, Commissioner. MOREIS FOX, Actuary.

Approximate Cunt of Puptsr.— Preparation, not given ; printing (5,500 copies), £9,

Hy Authority : John .\lackay, Government Printer, Wellington.—l9ll. /Vice 6d.\

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ASSURANCES. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, ETC Endowment Assurances. Annuity Assurances. Annual 1. Sinn ,, Revi Premiums. assured. t-» * i * 1 N °- as 8 s-d. g≤ I <>,n Erf •"Jβ. "'- '■ Extra. Bonuses. Annuities. v o Annual - ■ Premiums. ,, immediate. I. l>,!, I. Sum assured. Annual No. 2. Rever- Premiums. Biouary TINUED DURING THE YEAR 1910. £ a. d. £ s. d. £ £ £ s. a. £ e s. a. £ p. a. £ £ s. a. 34,4997,480,091 519,281 246,022 3 11) 98 19,671) 4,887 18 01,066 4 1 842 4 1 1,345 [ 3,074 723,129 .. 22,858 7 51.. 67 16 2 1 858| .. ) 15,676 5 81 41 56 0 7 f 76 3 0/ 26 .. 1,473 9 8 858 111.969 ) 35 [ 121 20,500 4,270 11 0 653 " I 37,573 8,203,220 519,281 268,880 11 4) 08 19,671 I 4,837 13 01,066 4 1 910 0 3 . 1,345 , 384 1 .. 1 17,149 14 11) 4)' 56 0 7 [ 76 3 0 \ 979 132,469 1 35 f 4,924 0 4 1,964 454,030 32,875 14,986 0 6) 6 750] 322 16 2 50 8 4 60 8 6 ) 60 17 1 .. j 673 15 5] 66 8,250 ) 25) 343 2 0 _ j 35,6097,749,190 186,406 258,894 10 10] 92 18,921) 4,511 16 loll ,015 15 9 849 11 9 M 1,28 3671 .. ) 16,475 19 6] 1 1 )'' 76 3 0)' 913! 124,219 I 10) 4,580 : I 1 TINUED DURING THE YEAR 1910. 153 30,650 3,202 1,24112 0) .. .. .. .. 17 .. 673 14 1 5 17 6 I 142 92,695 L9.158 3,760 8 5 I .. 2111 8| 448 102,117 3,558 3,334 16 6J 6 750) 322 16 2 50 8 4.. 7 7 8 j 45 J 1,636 .. .. •• 1 15 I 1)21 228,268 5,3-26 6,588 8 111 20 3 6 } 50 8 4 17 •• 673 14 1 14 1,650 I 25/ 44j 5,550 71 19 10 217 0 8 j . . I » • 8 1,050 39 1-1 2 5 18 0 ) I .. i 55 1 8 ) .. .. .. .. 37 19 6 0 14 2 8 2 / 8 6 1 37 19 6 0 1 4 11 1 3 ~! i 1.964 154,030 32,875 14,986 Oβ) 6 750 1 322 16 2 50 S 4 17 37 19 6 673 15 5 60 8 6/ 60 J J 17 37 19 6 673 15 5 66 8,250 ) 25) 343 2 0 DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1910. 69,49815,451,2011965; 140 1 52 o'fi2? X ? !i'■ 1,106-| 15( r i,(^?'- ,57,205 3 10 8,355 7 6 659 265 2 0 29,520 2 2 33,884.7,702,011 478,734 | 27 2'ggi jg jj- 1,014 | 52,090 7 07,889 11 9 288 2.47 Oil 12,967 19 8 35,609)7,749,190 486,406|j 263, J° X gl 92 J '.514 16 101,015 15 9 371 18 1 1 16,552 2 (i at the true age: the Extra, the additional premium imposed for any reason whatsoever. list DECEMBER, 1910. 3,164 { 3 «.«®} 11,288 5 S 2,251 , ? ] 913 { 124 ' 2 $} 4,580 18 4