ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1911.

Appendix to the Journals of the House of Representatives, 1912 Session II, H-08

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Session 11. L 912. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1911.

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

Government Insurance Office, Wellington, 18th May, 1912. I have the honour to submit the following report upon the transactions of the Department tor the year ended 31st December, 1911, and its position at that date. The Bevenue Account, Balancesheet, and Statement of Business are appended. New Business, and Amount in Force.— During the year 4,311 proposals were dealt with for the assurance of £1,060,672, and the number of policies actually completed was 3,520, assuring £871,954, being an advance in the sums assured of upwards of £50,000 on the new business of the previous year. The annual premiums on new policies amounted to £27,134. Thirty-four annuities were also granted, on which the purchase-money was £17,339. The new business of the Department has shown a steady increase for some years past. The total business now in force is 48,999 policies, assuring £11,514,657 (and £1,168,620 bonuses) at death or maturity, together with 377 immediate and deferred annuities for £21,405 per annum ; the total business bearing an annual premium income of £348,285. In relation to the new business and amount in force the results are given hereunder for the past eight years : —

It will be seen that the new business last year was greater by £177,398 than was the case in 1.904, and that the total business in force increased during the same period by 5,182 policies and £1,255,095 sums assured. , Income. —The total income of the year was £575,849 (an increase of £14,699 on the previous year), made up as follows :— £ Few premiums (including single premiums) . . . . . . . . 26,803 Renewal premiums .. . . . . 316,174 Purchase-money for annuities . . . . . . 17,339 ' Interest . . .. • • .. . ■ 215,530 Fees . . . . • • • • . . 3 Total income for 1911 .. .. .. .. £575,819 The income from interest showed an increase of £8,978, and the average rate of interest earned on the mean funds was £4 13s. per cent. I—H. 8.

Year. i | New Sum I Policies in j Sums sssured in assured. Poroe. > , , ,r " rc ® ; (excluding Bonuses). . J I 1904 1905 1906 1907 1908 1909 1910 1911 "! • • i £ I £ 694,556 44,194 10,259,562 716,021 45,137 10,468,316 729,105 45,981 10,667.591 752,065 I 46,945 10.855,153 780,597 47,033 10,955.749 795,339 48,016 j 11.151,094 820,179 48,932 11,360,796 871,954 49,376 11,514,657

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In regard to the income from premiums and interest, the past eight years' results are given, together with the accumulated funds and the yearly rates of interest earned by them :—

The return on the growing funds is substantial and keeps up well, being considerably higher than eight years ago. ° 6 Outgo. -During: the year 899 policies became void by death, for claims amounting to £126,813 (a decrease of £27,201) and this amount is considerably under what is provided for in the tables of mortality used by the Department. Pour hundred and thirty-two policies also matured as claims during hfettme for £106,762. The total sum which has been paid in respect o7 claims byleX £4 410T14 SmCe foUndatlon of the Department forty-two years ago has amounted to moJ?* 1 ™ ° £ i he tri f nial . distribution of profits, and having regard to the increase in the investC fl rv P hr^nnon PaS Th Perlod ' '* hM b °?n thought wise to increase the Investment Fluctuation Reserve by £30,000. This reserve now stands at £113,663. Accumulated Funds—The net^ increase in the funds during the year was £145,240, and the total assurance annuity, and endowment funds at the close of the year (apart from special reserves) amounted to £4,699,970. <»P<"u ironi special £4 n^ nee : sh / et -- 0a 31st December, 1911, the total assets of the Department were ±,4,856,102, invested as shown in the following comparative statement:—

Triennial Investigation.-The valuation of the Department's liabilities on the 31st December 1911, was completed early this year, and full particulars are contained in the Actuary's Be^rt' After strengthening the valuation basis, thereby making it equivalent to an H» 3i-r>er-eent valuation, an £30 000 to the Investment Fluctuation" Beserve, there remained of T dmded amoa B st th ? policyholders by way of bonus, and the balance of £8,966 carried forward. As on former occasions, the surplus divided was allotted as a compound reversionary bonus on the sum assured and bonuses in force, thus Kg tonnes increasing with the duration of the policies to those policyholders who had not snfSered their previous bonuses The bonuses so allotted range from 21s. to 31s. per cent. PS™ num on tS sums assured, and show a substantial increase all round compared with those for the laTtrLnium with the exception that, whereas the bonuses in the Temperance Section were slightlyh gher nan sect Tons S6Ctl ° n ■'* PreVi ° US ValUati ° n ' ° n tWs OCCasion in the two of thjDVpttme e n?TnT8 a 7 r 0 y 0 " 63 thiS J 6 *' k amou » ted *> Since the inception ««™j- IJe P™ ent m 1, 870 > £1,598,377 in casn has been distributed by way of bonus the corre sponding additions to the sums assured being £2,907,530. «,« J n sumi ? arizi I D g the Potion it may be stated that the valuation basis has been strengthened the bonuses have been increased, and the strong reserves indicate still larger bonuses in the future' J. H. BICHAKDSON. Government Insurance Commissioner.

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Year. Premium Income (excluding Annuities). Interest Income. Total Income. Accumulated Funds. | Rate of Interest on ' : Mean Funds. 1904 1905 1906 1907 1908 1909 1910 1911 £ 309,239 314,003 . I 319,775 325,903 330,806 330,927 338,487 342,977 £ 158,196 169,153 175,512 183,618 193,870 201,327 206,552 215,530 £ 480,716 490,925 507,070 526,713 534,441 546,566 561,150 575,849 £ 3,665,583 3,822,577 3,991,599 4,147,411 4,264,685 4,405,141 4,554,730 4,699,970 I £ s. d. ; 4 8 2 4 10 4 4 9 10 4 10 3 4 12 2 4 12 11 4 12 3 4 13 0

At 31st December, 1910. I Class of Investment. Amount. . Percentage ■• of Total Assets. ~£ | "~f~ 2,723,876 ; 57-9 per cent. Mortgages on freehold property 775,190 ; 16-5 „ Loans on policies 668,049 ! 14-2 ,, Government securities.. 168,436 3-6 ,, Local bodies' debentures 135,334 i 2-9 ,, Landed and house property 111,577 2-4 „ Miscellaneous assets 117,886 2-5 ,, Cash on current account 4,700,348 100-0 per cent. Total ' At 31st December, 1911. i Amount. , £ e ™° n ' a 8 e ; of Total Assets. £ .. ! 2,899,753 59-7 per cent. 791,704 16-3 668,069 13-7 .. , 168,208 3-5 135,879 2-8 114,808 2-4 77,681 1-6 „ •. 4,856,102 | 100-0 per cent. i

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Bbvenue Agooust op the Government Life Insubanob Department for the Year ended 31st December, 1911. £ s. d. £ s. d. Amount of Funds at Ist January, 1911 4,554,729 17 2 Death claims under polioies, Assuranoe, •Tontine Savings Fund No. 2, trans- including bonus additions.. .. 126,813 2 0 ferred at maturity .. .. 18,561 13 9 Endowment Assurances matured, inRenewal premiums — Assurance, An- eluding bonus additions .. .. 105,138 10 0 nuity, and Endowment .. .. 316,174 9 0 i Endowments matured .. .. 1,623 0 0 New premiums (including instalments j Premiums returned on endowments .. 86 10 6 of first year's premiums falling due Bonuses surrendered for cash .. 9,649 9 10 in the year) .. .. 25,101 1 6 Annuities .. .. .. .. 16,665 0 7 Single premiums—Assurance and En- Surrenders, ordinary .. .. 35,438 3 10 dowment .. .. .. 1,701 14 8 Surrenders—Tontine polioies at maConsideration for Annuities .. .. 17,338 12 10 turity of their tontine periods .. 27,000 11 0 Interest .. .. .. .. 215,529 19 1 Loans released by surrender.. .. 22,542 18 0 Fees .. .. .. .. 217 7 Commission, newf .. £17,383 13 11 renewal 2,539 15 6 19,923 9 5 Land and income tax .. .. 14,042 15 9 Expenses of management— Salaries — Head Office ..£16,515 5 7 Branch offices and agents .. .. 7,575 9 10 Extra clerical assistance 245 19 2 Medical fees and expenses .. : ... 4,697 10 5 Travelling-expenses .. 892 10 11 Advertising.. .. 1,109 211 Printing and stationery 1,445 19 10 Rent .. .. 2,684 3 2 Postage and telegrams 1,507 15 7 Exchange .. .. 63 1 11 Office-furniture depreciation .. .. 270 9 3 General expenses .. 2,198 12 4 Triennial expenses .. 1,041 2 0 — 40,247 2 11 Investment Fluctuation Reserve .. 30,000 0 0 I Amount of Funds, 31st December, 1911 4,699,969 11 9 £5,149,140 5 7 £5,149,140 5 7 ' The equivalent of this amount has been allotted as reversionary bonuses, amounting to £31,065 is., to policies participating in the Tontine Savings Fund No. 2. + Including Agents' allowances. Balance-sheet of the Government Life Insurance Department on 31st December, 1911. Liabilities. Assists. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. 791,703 11 11 dowment Funds (as per Bevenue Government securitiesAccount) .. .. .. 4,699,969 11 9 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Debentures issued pleted .. .. .. .. 33,223 14 8 under the District Annuities .. .. .. .. 277 12 5 Bailways PurcbasOommission .. .. .. 215 16 5 ing Act 1885 ExMedical fees .. ... .. 324 9 0 tension and AmendPremium and other deposits.. .. 6,266 8 9 ment Act, 1886 .. 40,000 0 0 Fire-insurance moneys in suspense .. 1,300 0 0 Debentures issued Sundry accounts owing .. .. 861 011 under the ImmiInvestment Fluctuation Reserve . . 113,663 6 1 gration and Public Works Act, 1870 2,168 16 0 668,068 16 0 Municipal Corporation debentures .. 123,161 710 County securities .. .. .. 97 0 3 Harbour Board debentures .. .. 39,000 0 0 Town Board debentures .. .. 5,950 0 0 Landed and house property .. .. 135,590 18 8 Landed and house property (leasehold) 287 14 3 Office furniture (Head Office and agencies) .. .. .. 1,081 17 3 Mortgages on property .. .. 2,899,753 0 7 ; Properties acquired by foreclosure .. 1,933 111 Overdue premiums on policies in force .. £5,647 18 2 Outstanding premiums due but not overdue.. 39,028 17 11 44,676 16 1 Overdue interest .. £1,268 1 7 Outstanding interest due but not overdue.. 6,918 5 7 Interest accrued but not due .. .. 55,876 16 2 64,063 3 4 Agents'balances .. .. .. 3,053 0 3 Cash in hand and on current account.. 77,681 11 8 £4,856,102 0 0 £4,856,102 0 0 Government Life Insurance Department, 29th February, 1912. J. H. Eichardson, Commissioner. W. B. Hudson, Audited and found correct. Secretary. Bobert J. Collins, Controller and Auditor-General.

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Statement of Business

TOTAL. YEAR {911. 1 — Annual i „ Rever- i Premiums. Annuities. >r n blUU ctinnarv ' ""• assured. Bonuses l. Ordinary. l. Immediate. 2. Extra. j 2. Deferred. Whole-life and Term Assurances. Annual Sum Rever- Premiums. No- asaured . SJ j 3. Extra. Annual Premiums. POLICL SS ISSUED AND DISCON- £ k & s. d. £ g. d. U £ £ s. d. Policies hi force at 31st 48,98211,860,7961.226,003 1 340,318 6 716,520 2 61 December, 1910 ( 2,415 7 5 4,546 16 10 f New Business .. .. 3,554 871.954 I 27,145 10 11 1,643 16 8 1 ] 71 9 1 141 5 8 j Tontine bonus allotted.. .. .. 84,065 11,947:3,468,466 738,802 / 80,809 0 7 1 1 1,565 15 8 J I 2,165 5 9 I 1 20 15 0 | ' 316! 94,700 22,912! ! Total.. .. 52,48612,232,7501,260.068 ( 367,463 17 ft 18,163 19 2 1 I 2,486 16 6 4,688 2 6 j j Polioiea discontinued 3,110 718,093 91,448Jj 21,638 19 11 1,17116 4 1 during 1911 | j 157 10 5 274 15 6 ) Total policies in force at 49,376 11,514,657 1,168,620; I 345,824 17 T 16,992 2 10 | 31st December. 1911 1 2,329 6 1 4,413 7 0 j 12,263 3,568,166 807; 209,256 761,2141 56,9981 / 82,974 6 4 1 ( 1,586 10 8 ] f 5,121 17 2 1 ( 87 8 2 f j U,456J3,353,910; i ! 704,2161/ 77,852 9 21 \\ 1,499 2 6} I I ! J L_ •_ PARTICULA] How discontinued. as op pol JCIES DISCONi By Death .. .. 427 104,615 19,619 I 3,205 1 111 1,242 4 0 I 68 15 3 J Maturity .. 482 87,030 17,459 1 3,576 14 71 | 16 0 0J Surrender .. 703 164,862 8,489 f 4,934 9 0 ! 203 15 10 | 24 i 10) 253 71,715 16,918/ 1,939 8 8 1 1 59 17 4 j 91 28,555 4,672 / 684 12 6 I I 10 4 2) Surrender of Bonus.. .. .. 20,904 Lapse .. .. 1,115 263,636 7,339 i 7,499 7 21 I 33 13 6) ■ Winding-up Tontine 432 96,950 17,638 ( 2,243 8 2J No. 2 \ 13 12 Of Expiry of Polioy .. 1 1,000 .. 15 15 0 98 25,336 364 82,650 1 1,000 16,105 3,698 / 577 14 9 1 ( 6 6 6 f 15,605/ 1,806 3 51 1 11 0 0/ .. •- 15 15 0 Expiry of Premium.. .. .. .. 88 4 4 88 4 4 Miscellaneous .. .. .. .. ' K 19 91 0 12 0 | I 1 4 10J Total .. 3,110 718,093! 91,448; j 21,638 19 111 1,446 1110 St 157 10 5j" | .. ' / 9 18 6 1 \ 0 0 2) 8071 209,256 I 1 56,9981 / 5,121 17 2 I \ 87 8 2 f PROGRESS OF BUSINESS OF THE GOVEK Total issued .. .. 117,819 28,584,440 2,573,536 ** gj- 88,510 8 4 Total void .. .. 68,443 17,019,783 1,404,916 j X H 67,104 18 6 Total in force .. 49,376 11,514,657 1,168,6201 345,824 17 7 21,405 9 10 &NMENT LI] 40,15911,877,6971 I I 28,703| 8,523,787; FE INS 1,592,044 iURANCE (312,692 14 101 | 10,833 3 i\ J 234,840 5 81 | 9,334 0 10/ f 77,852 9 21 I 1,49J 2 6 J 887,828 11,456 3,353,910 704,211 Extra Premiums .. .. ..I 2,329 6 1 Note.Reduction of Premiums Dy Bonus, <Sn:. .. 130 12 11 2,329 6 1 130 12 11 Note.—The Ordinary Premium is the premium charged Wellington, 29th February, 1912. £348 » 28416 .JL\ £348,284 16 7 j

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at end of Year 1911.

J. H. Richardson, Commissioner. Morris Fox, Actuary.

Approximate Cost of Poper.—Preparation, not given ; printing (5,500 copies), £10,

By Authority! John MaoKay, Government Printer, Wellington.-- 19J2.

Price 6d."\ 2—H. 8.

ASSURANC Endowment As. :es. 'ES ' ! 1 AN N UITIES. iuranoes. Annuity Assurances. Annual 1. Sum ; Annuities. Premiums. assured. , De f e rred Annual N Annual \ TTk*™™ " Kever- Annuities. Premiums. ""• Premiums. | i, immediate. 1. Ordinary. sionary „ T)/ , f „.„.i 2. Extra. Bonuses. 1 u^erml - .urances. 1. Sum j assured. Annual - No. | 2. Eever- Premiums, sionary \ Bonuses. SIMPLE ENDOWMENTS, INVESTMENTS, ETC. 1 ~ ReverNo - assured nonary assurea. Bonuses . TINUED DUR1 NG THE YEAR 1911. I £ s. d. £ £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ £ s. d.. £ s. d. £ s. d. £ £ s. d. £ £ (369 ( 2 18 1 li (32 \ 2 82 18 10 35,609 7,749,190 486,406 (253,894 10 101 92)18,921) 4,514 16 101,015 15 9(369 .. 16,520 2 6) 849 11 9) I 1 1,285) ( 2 18 1 1 32 0 0) 23 998 18 41 .. 600 67 5 S 33 17 0/ 32 .. 1,643 16 8| 50 14 1) ' I 2 82 18 10 74 0 0) /253, 894 10 101 j 849 11 9) ( 23,998 18 4 I / 50 14 1 | 92 / 18,921) t 1,285) 600 4,514 16 101,015 15 9 913 /124,219) 4,580 18 4 t 10 j 185 27,200 864 11 0 913 185 3,019 749,454 67 5 8 38 17 0 11,153 .. i .. 38,628 8,498,644| 497,559 /277,893 9 21 \ 900 5 10) •M f 19,5211 1 1,285 f 4,582 2 6 1,049 12 9 274 15 6 36 3 6 I 401 "( 4 100 19 11 28 18,163 19 2) 106 0 0) 1,098 / 151,419 I 1 101 5,445 9 4 311 4 2 2,209 500,124) 34,394 / 16,169 15 1/ \ 70 2 3) / 700 1 \ 46) 1,171 16 1 61 / 8,0131 1 10 j 36,419 7,998,521 463,165 /261,723 14 11 \ 830 3 7 J 87. j 18,8211 \ 1,239) 4,307 7 0 1,013 9 3 f 373 \ 4 100 19 11 16,992 2 101 106 0 0) 1,037 143.406 5,134 5 2 TINUED DURING THE YEAR 1911. 145 145 32,750 2,687) 1,258 5 1) 1/ 150) 70 19 8 7 8 2 8 17 11 1 14 32,750 2,687 / 1,258 5 1) \ 8 17 11 f / 3,520 19 11 l | 16 0 0 [ / 4,024 0 8 1 \ 14 0 8 j I 1501 U f 70 19 8 28 .. j 1,171 4 4 416 [ 8 17 11 | | l* I 416 85,417 17,449 3,520 19 11] i i e? t\ c\ X 85,417 17,449 16 ( 1,613) 1 10/ 33 4,750 12 1,650 55 14 8 *' I I 575 \ 16 0 0 ( 575 131,007 3,785/ 4,024 0 81 4/ 550) 203 15 10 28 15 0 1 14 0 8 1 32 131,007 3,785 4 ( \ 550) 32) [ 203 15 10 197 0 10 ( 14 U 8 J { aa) 4,799 4,799 1,005 1,005 236,650 3,641/ 6,867 18 2 1 1 97 7 0 236,650 3,641 / 6,867 18 2 1 \ 27 7 0 ) / 437 4 9 1 \ 2 12 0 f i 53 14 3 68 ( •£! I U ) 68 14,300 2,033/ 437 4 9 } 1 9. 19 0 I 14,300 2,033 ( U 12 U I f 61 6 6 1 .. • ■ • • 0 0 4 i 1 i a f 61 6 61 t 1 4 8J .. ; .. 0 12 0 4 14 5 { 14 8) 2,209 500,124 34,394(16,169 15 1) 5/ 700) 274 15 6 36 3 6 274 15 6 28 .. 1,171 16 4 I 61/ 8,013) 1 IPX 311 4 2 2,209 500,124 34,394 / 16,169 15 1 ) \ 70 J2 3_£ 5 L 7O0| 46 [ \ 70 1 3J \_ 46) DEPARTMENT SINCE DATE OF ESTABLISHMENT TO : 31st DECEMBER, 1911. DEPARTMENT SINCE DATE OF ESTA! LISHM ra ,512W00,654 976,294 { 55 } klOej { 15 g [ 57,279 9 0J8,389 4 6 86,0981 8,202,184 «8,129 j 1? M" 52 ' 965 2 f' 375 15 3 36,419 7,998,5201463,165 ) 261 '[| })\ 87 { j 4,307 7 01,013 9 3 at the true age ; the Extra, the additional premium imposed for any reason whatsoever. 693 '348 0 10 316 247 0 11 31,237 18 10 3,349 I' 298 ' 8 ??' 12,152 16 5 1 ' 2,312 I 155 ' 4 ??! 7,018 11 3 1 54 J; 14,139 16 0 377 100 19 11 17,098 2 10 1,037 143,406 5,134 5 2 I