ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1913.

Appendix to the Journals of the House of Representatives, 1914 Session I, H-08

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1914. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1913.

Presented to both Houses of the General Assembly pursuant to the Provisions of the (•'(α-trnment Life Insurance Act, 1908.

Government Insurance Office, Wellington, 19th May, 1914. I have the honour to submit the following report upon the transactions of the Department for the year ended the 31st December, 1913, and its position at that date. The Kevenue Account, Balancesheet, and Statement of Business are appended. New Business, and Amount in Force. —'During the year 4,517 proposals were dealt with for the assurance of £1,259,050, whereas in 1912 the proposals amounted to £1,258,032, showing considerable regularity in the amount of assurance applied for annually. The number of policies actually completed was 3,749, assuring £1,039,077, with annual premiums amounting to £29,047. Nineteen annuities were also granted, on which the purchase - money was £7,255. On only two previous occasions has the new business of the Department exceeded one million in sums assured—viz., in 1912 and in 1883. While no attempts are made to force the new business in an unhealthy manner there is reason to believe that the Department may look forward to an annual new business of about one million sum assured, a result not attained by more than twenty of sixty-two British companies. The average sum assured by each new policy issued has shown a decided tendency to increase for some years past, being £248 in 1911, £263 in 1912, and £275 in 1913. The total business now in force, including 384 immediate and deferred annuities for £21,294 per annum, is 51,343 policies, bearing an annual premium income of £363,721. The sum assured, payable at death or maturity, is £12,211,655, to which have been added reversionary bonuses amounting to £1,327,812. The total business on the books thus amounts to £13,539,467. "^lncome.- —-The total income of the Department was £600,068, being an increase of £9,754 upon that of the previous year. It was made up as follows : Premium income, £359,578 ; interest income, £233,223 ; annuity purchase-money, £7,255 ; fees, £12. The average rate of interest earned by the Department, which was £4 12s. 3d. per cent, in 1910, £4 13s. per cent, in 1911, and £4 14s. 2d. per cent, in 1912, was still further increased to £4 15s. Id. per cent, in the year just closed. Outgo. —During the year 455 policies became void by the deaths of policyholders, the claims amounting to £154,632 ; this amount is considerably under what is provided for in the tables of mortality used by the Department. Five hundred and forty-four policies also matured for £133,756. The total sum which has been paid in respect of claims by death and survival since the foundation of the r Department, forty-four years ago, has amounted to £4,993,170. Land and income-tax absorbed £15,353, as against £15,071 in 1912 ; and for new and renewal commission there was paid £23,504, as against £23,138 in 1912. There was a reduction in the expenses of management from £44,280 to £42,547. Accumulated Funds. —-The total assurance, annuity, and endowment funds, apart from a special investment reserve of £113,663, now stand at £4,980,131.

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The Balance-sheet. —On the 31st December, 1913, the total assets of the Department amounted to £5,135,829, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the previous year for purposes of comparison : —

The above shows an increase of £108,939 in mortgages on freehold property and £33,248 in loans on policies. Overdue interest (which is included above in " Miscellaneous Assets ") has decreased from £1,537 to £882, representing the extremely low rate of 7s. 9d. per cent, of the total interest income. General. —l am pleased to report again that another year's progress of the Department, while not marked by any striking incidents, has been entirely satisfactory. Attention may be specially drawn to a few oustanding features: (1.) The new business has been well maintained. (2.) There have been substantial increases in the income, both from premiums and interest. (3.) The mortality experience has again been favourable. (4.) There has been a decrease in the expenses. (5.) An official valuation of all the policies as they stood at the end of last year disclosed increased profits for dm two years of the current triennium which have elapsed, and affords the best of reasons for thinking that the results of the statutory triennial investigation of the assets and liabilities, to be made at the end of the present year, will prove satisfactory to the policyholders, and that they will again receive increased bonuses. J. H. Richardson, Government Insurance Commissioner.

Revenue Account op the Government Life Insurance Department for the Year ended 31st December, 1913. £ s. d. £ s. d. Amount of Funds at Ist January, 1913 4,829,141 4 9 Death claims under polioies, Assurance, Renewal premiums — Assuranoe, An- including bonue additions.. .. 154,631 16 4 nuity, and Endowment .. .. 328,972 10 1 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 132,029 13 11 of first year's premiums falling due Endowments matured .. .. 1.726 10 0 in the year) .. .. .. 27,430 15 11 Premiums returned on endowments .. 296 18 6 Single premiums—Assurance and En- Bonuses surrendered for cash .. 4,631 11 0 dowment .. .. .. 3,171 6 4 Annuities .. .. .. .. 17,812 9 2 Consideration for Annuities .. .. 7,255 2 7 Surrenders .. .. .. 22,338 16 4 Interest .. .. .. .. 233,223 12 2 Loans released by eurreuder.. .. 34,205 4 0 Fees .. .. .. .. 11 17 1 Commission, new* .. £20,880 17 5 renewal 2,623 10 5 * 23,504 7 10 Land and income tax .. .. 15,353 9 Expenses of management— Salaries— Head Office ..£17,885 15 2 Branoh offices and agents .. .. 8,159 10 1 Extra clerical assistance 66 19 9 Medical fees and expenses .. .. 4,978 12 8 Travelling-expenses .. 925 12 11 Advertising.. .. 1,173 9 2 Printing and stationery 1,493 16 1 Rent .. .. 2,855 3 3 Postage and telegrams 1,629 0 11 Exchange .. .. 11l 18 4 Office-furniture depreciation .. .. 270 9 3 General expenses .. 2,496 16 2 Triennial expenses .. 500 0 0 42,547 3 9 Amount of Funds, 31st Deoember, 1913 4,980,131 8 9 £5,429,209 8 11 £5,429,209 8 11 * Including Agents' allowances.

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Amount. At 31st December, 1912. Percentage of Total Assets. Glass of Investment. At 31st December, 1913. A — j of tSTSKu. £ 3,045,274 808,884 668.089 171,169 136,586 116,467 30,479 61-2 per cent. 16-3 13-4 3-4 2-8 2-3 0-6 Mortgages on freehold property Loans on policies Government securities Local bodies' debentures Landed and house property Miscellaneous assets Cash in hand and on current account £ 3,154,213 842,132 665,900 174,236 136,529 119,374 43,445 61 4 per cent. 164 „ 130 „ 3-4 „ 2-7 „ 2-3 0-8 Total 4,976,948 100-0 per cent. 5,135.829 100-0 per cent.

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Balance-sheet of the Government Life Insurance Department on 31st December, 1913. Liabilities. Asbets. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. 842,132 3 0 dowmenfc Funds (as per Revenue Government securities— Aocount) .. .. .. 4,980,131 8 9 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Debentures issued pleted .. .. .. .. 35,264 19 4! un der the Distrust Annuities .. .. .. .. 413 10 1 Railways PurchasCommission .. .. .. 176 10 11 i n g Act 1885 ExMedical fees .. .. .. 384 6 0 tension and AmendPremium and other deposits.. .. 5,328 8 1 ment Act, 1886 .. 40,000 0 0 Fire-insurance moneys in suspense .. 225 0 0 665,900 0 0 Sundry accounts owing .. 241 1 3 Municipal Corporation debentures .. 125,768 10 2 Investment Fluctuation Reserve .. 113,663 6 1 County securities .. .. .. 4,117 12 7 Harbour Board debentures .. .. 38,400 0 0 Town Board debentures .. .. 5,950 0 0 Landed and house property .. .. 134,620 13 8 Landed and house property (leasehold) 1,908 4 0 Office furniture (Head Office and agencies) .. .. .. 540 18 9 Mortgages on property .. .. 3,154,212 8 0 Properties acquired by foreclosure .. 1,933 111 Overdue premiums on policies in foroe .. £6,883 19 9 Outstanding premiums due but not overdue.. 37,294 12 5 44,178 12 2 Overdue interest .. £881 15 6 Outstanding interest due but not overdue.. 6,368 110 Interest accrued but not due .. .. 61,747 12 5 68,997 9 9 Agents'balances .. .. .. 3,723 13 7 Cash in hand and on current account.. 43,445 2 11 £5,135,828 10 6 £5,135,828 10 6 Government Life Insurance Department, 7th April, 1914. J. H. Richardson, Commissioner. W. B. Hudson, Secretary. Audited and found correct. Robert J. Collins, Controller and Auditor-General

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Statement of Business

Wellington, 6th May, 1914.

TOTAL. Whole-life and Term Assurances. YEAR 1913. Anuual Sum Rever- Premiums. Annuities. No - assured. -aSnusls 1 - Ordinary. 1. Immediate -J. Extra. 2, Deferred. Annual Sum Kever- Premiums. No- assured . ™y L ordinary. I J 2. Extra. POLICIES ISSUED AND DISCON- £, £ £ s. d. £ b. d. £ £ £ s. d. Policies in foroe at 31st 50,45811,865,462 1,406,236 1 353,719 1 6 December, 1912 ( 2,216 1 2 New Business.. .. 3,768 1,039,077 .. I 29,017 16 10 1 28 15 0 Bonus allotted Total.. .. 54,226 12,904,539 1,406,236;} 382,736 18 4 I 2,244 16 2 Polioies discontinued 2,883 692,8841 78,424 j 21,181 18 6 during 1913 1 181 14 10 17,695 0 4 1 3,990 0 8 f 685 11 4 1 17 2 10 J 11,473 3,401,903 537 220,900 785,077 (78,129 3 0) 1 1,402 2 OJ I 5,036 12 0 I 1 15 19 6 ) 18,380 11 8 I 4,007 3 6J 12,010 3,622,863: 785,077 ( 83,165 15 0 1 ( 1,418 1 6J 968 5 0 1 125 10 8 1 544: 164,319 37,340 f 4,320 15 11 ) ( 89 4 5 f _ l 1 'otal policies in force at 51,343 12,211,655 1,327,812 I 361,554 19 11 31st December, 1913 1 2,063 1 4| 17,412 6 8 1 3,881 12 10 J Il,466i3,458,544 747,737 f 78,844 19 1 1 \ 1,328 17 1 J Pj How discontinued. particula: S OF POLICIES DISCONSyDeath .. .. 478 123,826 28,920 1 3,770 15 11 1 T7f\ t A f\ I !y Death .. .. 478 I 79 14 Of Maturity .. 544 Maturity .. 544 108,185 23,883 ( 4,084 6 10) 1 23 3 41 478 544 I 3,770 15 1) 1016 18 0 I 79 14 OJ j 4,084 6 10) t 23 3 4)' J 4,804 16 01 76 17 8 ( 18 10 11) 278 87,078 25,276 f 2,278 6 10 1 1 57 19 5 } Surrender .. 706 ( Z3 a a) Surrender .. 706 158,912 10,498 J 4,804 16 01 I 18 10 11 706 106 27,591 4,741 j 648 19 9 ) t 2 0 6 1 I IB iu ii) Surrender of Bonus.. .. .. 7,863 Surrender of Bonus 4,876 Lapse .. .. 1,153 Lapse .. .. 1,153 300,761 7,260 ( 8,130 12 111 22 9 31 Expiry of Policy .. 2 ( 22 y o) Expiry of Policy .. 2 1,200 .. I 15 5 0 Expiry of Premium.. T?» H ]*. a < ~ C "T3 — w». ■ ■■ mi { U "* "* l\ 1,153 2 ( 8,130 12 111 ( 22 9 3) ] I 15 5 0 85 5 6 29o' 17 11 I 37 17 4| 158 2 48,450 1,200 2,447 f 1,082 7 10 1 ( 3 6 6 J J 15 5 0 \ I 8015 4! f 215' 1 2 ) 1 25 18 0 / Expiry of Premium.. .. .. .. 85 5 6 » r ? _ 11 - 1 nrtA "t 1 MiRMllanfions ( 290 17 II miscellaneous .. .. .. .. 1 zau i< 11 Miscellaneous Qf7 1 17 A \ Total .. 2,883 692,884 78,424 ( 21,181 18 51 1,093 15 8 1 181 14 10 1. 544: 164,319 37,340l( 4,320 15 111 1 J] 89 4 5 [ 544: 164,319 1 . PROG] RESS O] -f !■ BUS! NESS OF THE GOVE] INMENT LIFE INSURANCE 41,260:12,305,3461,714,585 j 10 HI 29,79418,846,802; 966,848j j 243 '™? 11 10 j 'otal issued .. .. 125,581 'otal void .. .. 74,238 30,615,781 2,907,530 1942,692 10 81 qo .„„ w . \ 14,648 12 4) 90 ' 590 10 4 j 581,137 10 9) gg 2g6 10 10 1 12,585 11 0)! bSM9b 10 1U 18,404,126 1,579,718 Total in force .. 51,343 12,211,655 1,327,812 361,554 19 11 21,293 19 6 11,466 3,458,544 747,737: 78,884 19 1 Extra Premiums Keduotton of Premiums by Bonus, &c. 2,063 1 4 103 5 5 1,328 17 1 £363,721 6 8 Note.—The Ordinary Premium is the premium charged

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at end of Year 1913.

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

Approximate Coti o> Paper.— Preparation, not given ; printing (4,500 copies), £» 12s. cd.

Authority : John Mackay, Government Printer, Wellington.—l9l4.

Price 6d.]

ASSURANCES. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, ETC. Endowment Assurances. Annuity Assurances. Annuity Assurances. Annuities. .- I Annual • °- Premiums. ;. immediate. ■J. Deferred. Annual 1. Sum No Bnm I'naTv '■■'— No 2 ™, d r . Deferred ! Annual No - assured. ,. Ordinary. ' N °' *%£?$ , Annuities. Premiums. ■■■ I-■•Ira. _ Bonuses. I \ 1. Sum assured. Annual No. 2. Eever- Premiums. sionary Bonuses. I TINUED DURING THE YEAR 1913. 17,273 3,005 £ £ £ s. d. 8,271,874 619,367 (268,668 17 10) I 813 19 21 774,677 .. ( 22,860 8 5| I 12 15 6) £ £ s. d. £ b. d. 80 f 17,245) 3,970 0 8 924 17 11 1 1,693r .. I 2501 17 2 10 ! 13 1 0 £ f 387 1 1 I i.H : h. d. £ s. d. 17,695 0 4) 6 0 6' 20 0 0/ 685 11 4 [ £ £ s. d. 1,244 174,380) J5,990 2 3 99JI ' 207 43,250) 1.107 15 5 1,451 (217,630) 7,097 17 8 I 99 r 114. f 17,045)1 567 9 1 j 8af ,0,278 2,199 9,046,551 619,367 (291,529 6 31 1 826 14 8J 80 I 17,495) ! 3,987 3 6] 937 18 11 I 1,693)" 3 I 450) 125 10 8 26 9 4 1 37} f 406 I 1 1 23 ! 18,380 11 8) 6 0 6 20 0 Of 968 5 0) 511,070 41,015 j 16,267 4 1) !| 92 10 5J 38,079 8,535,481 578,352 (275,262 H 2) 77 J 17,04 I 734 4 3J t 1,65 77 I 17,0451 3,861 12 io! 911 9 7 t 1,656) f 383: 1 1 17,412 6 8) 6 0 6 20 0 0j" 1,337 (200,5851 6,530 8 7 I 67/ t: INUED DURING THE YEAR 1913. 36,4981 3,627 1,476 15 3 I 21 14 7 I 4,015 8 1 i 23 3 4| ( 3,765 9 9 i ■\ 16 10 5 f 1 f 2501 ' 48 13 0 1 "I 15 13 0 176 28 968 5 0 529 524 106,490 119,621 23,851 5,737 2 ( 200) 76 17 8 1 20f 10 15 0 15 74] 1,695) 32/ 11,5001 68 18 9 379 11 6 2,987 970 248,461 4,813 I I 6,934 15 4 1 t 19 2 9 J 25 f 3,8501 113 9 9 I :: ) 74 15 8) I 11 19 4 J 4 10 2 0 18 11 0 14 ■ ■ 3 I 450) 125 10 8 1 37} 26 9 4 567 9 1 2,199 511,070 41,015 f 16,267 4 1 ) 92 10 5 J 23 968 5 0 114! ( 17,045) I 82} DEPARTMENT SINCE DATE OF ESTABLISHMENT TO i DEPAR 1 list DECEMBER, 1913. 78,63217,767,2961,186,993 18 6 j ] ' 10 M ' 759} 57 ' 295 9 i8 > i05 10 6 40,553 9,231,815 608,641 j u s\ 1,029 53,433 16 67 - 494 ° n 38,079 8,535,481 578,352 275,262 2 2 77 j 3 - 861 12 10 911 9 7 734 4 3 at the true age; the Extra, tbe additional premium imposed for any reason whatsoever. 740 348 0 10 356 342 0 4 384 6 0 6 33,295 1 0 15,862 14 4 17,432 6 8 3,843 2,506 1,337 | 6,530 8 7 rig".'«* * '6.01! 6 9