ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1916.

Appendix to the Journals of the House of Representatives, 1917 Session I, H-08

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1917. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1916.

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

Government Insurance Office, Wellington, 27th April, 1917. I have the honour to submit the following report upon the transactions of the Department for the year ended the 31st December, 1916, and its position at that date. The Revenue Account, Balancesheet, and Statement of Business are appended. New Business and Amount in Force. —During the year 3,994 proposals were dealt with for the assurance of £1,080,450. The number of policies actually completed was 3,276, assuring £883,396, with annual premiums amounting to £28,948. Twenty-six annuities were also granted, on which the purchase-money was £10,767. The total business now in force, including 387 immediate and deferred annuities for £21,970 per annum, is 53,208 policies, bearing an annual premium income of £383,948. The sum assured, payable at death or maturity, is £12,874,754, to which have been added reversionary bonuses amounting to £1,384,618. The total business on the hooks thus amounts to £14,259,372. Income. —The total income of the Department was £634,167 —viz., premium income, £378,844; interest income (less land and income tax), £244,556; annuity purchase-money, £10,767. Outgo. —During the year 836 policies became void by the deaths of policyholders, the claims amounting to £225,295. The claims arising out of the war amongst the oversea forces numbered 360, or 43 per cent, of the total, representing in sums assured and bonuses £72,600. Six hundred and fifty policies also matured for £163.592. The total sum which has been paid in respect of claims by death and survival since the foundation of the Department forty-seven years ago has amounted to £6,115,554. The expenses of management, including commission, amounted to £61,955, a reduction of £7,410 as compared with the previous year. The ratio of expenses (excluding land and income tax) to total income was 9-8 per cent. Accumulated Funds. —The total assurance, annuity, and endowment funds, apart from a special investment reserve of £189,121, now stand at £5,202,898.

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The Bala\tee-sheet. —On the 31st December, 1916, the total assets of the Department amounted to £5,481,732, 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 :—

It will be noticed that Government securities have increased by £170,000, represented by the final instalment (£20,000) of the Department's Life Branch subscription to the 1915 local loan, and £150,000 out of £200,000 of the war bonds subscribed in 1916. The final instalment of these war bonds (£50,000) was paid over when it became due early in the present year. The rate of interest realized on the mean funds, after the deduction of land and income tax from interest, was £4 15s. Id. per cent. The Staff. —In common with those of other institutions the Department's staff has been seriously depleted by the enlistments of its officers in the New Zealand Expeditionary Forces. The total number who had enlisted up to the end of last year was thirty-three, whilst during the present year eleven more gentlemen have gone into camp or are on the point of being called up. It has been the consistent aim of the Department to encourage its officers to respond to the call of duty, and in spite of serious inconveniences no applications for exemption from service have hitherto been made on behalf of any members of the staff. Unfortunately the situation has become seriously aggravated by numerous transfers of experienced officers to' other Departments of the Public Service, but the Department will endeavour to continue its past policy as regards enlistments, and will not appeal for the exemption of any of its remaining officers from military service so long as it can possibly avoid doing so. J. H. Richabdson, Government Insurance Ccmn issior.er.

Revenue Account of the Government Life Insurance Department for the Year ended 31 st December, 1916. & S. d. £ s. a. Amount of Funds at Ist January, 1916 5,089,868 12 8 Death claims under policies, Assurance. Reuewal premiums — Assurance, An- including bonus additions .. .. 225,294 17 6 nuity, and Endowment .. .. 350,397 I 6 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 160,234 611 of first year's premiums falling due Endowments matured .. .. 3,357 5 0 in the year) .. .. .. 26,867 4 3 Premiums returned on endowments ~ '153 12 0 Single premiums-- Assurance and En- Bonuses surrendered for oash 2,400 4 6 dowment .. .. .. 1,578 18 8 Annuities .. .. .. 18,835 15 2 Consideration for Annuities .. .. 10,767 4 2 Surrenders .. .. .. 14,704 1.3 4 Interest .. £256,504 15 8 Loans released by surrender.. .. 34,141 10 9 r.esx land and in- Commission, new* .. £19,004 9 5 come tax .. 11,948 14. 3 „ renewal 2,813 9 7 244,556 1 5 21,817 19 0 Expenses of management— Salaries— Head Office ..£17,572 19 5 Branoh offioes and agents .. .. 8,072 15 3 Extra olerioal assistance 837 7 0 Medioal fees and expenses .. .. 4,128 9 6 Travelling-expenses .. 384 3 3 Advertising .. .. 579 13 8 Printing and stationery 1,233 9 7 Rent .. .. 2,841 10 1 Postage and telegrams 1,837 0 2 Exohange .. .. 59 8 10 General exponses .. 2,289 18 9 Triennial expenses' .. 300 0 0 4.0,136 15 6 Amount of Funds, 31st, December, 1916 5,202,898 6 0 5 8 £5,724,035 5 8 v Including Agents' allowances.

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At 31st December, 1915. Amount. , %?"**> of Total Assets, Class of Investment. At 31st December, 1916. , , Percentage Amount. , , n . , . ° . of Total Assets. £ 3,312,418 61-9 per cent. 832,301 15-6 685,900 ' 12-8 204,019 ; 3-8 134,963 25 125,108 2-3 55,834 1-1 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 .€ 3,227,796 58-9 per coot. 809,533 14-8 855,900 15-6 210,487 ! 3-8 134,930 2-5 131,882 ; 2-4 111,204 2-0 5,350,538 100-0 per cent. Total 5,481,732 100-0 per cent.

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ISalanoe-nhiokt of the Government Life Insurance Department on 31st December, 1916Liabilities. Assets. Total Assurance Annuity, and En- Loans on policies .. *..*'*' \ 3 dowmen Funds (as per Revenue Government securitiesAccount) . .. .. 5,202,898 6 0 Consolidated stock .. 625,900 0 0 Claims admitted, proofs not yet com- Debentures issued P' et °? ' ■• 6 0 under the District ;V lnU,t,es Hallways PurehasCommission .. .. .. 48 0 9 in „ 4( i ,00c Wv K alfee % .H Vi .♦" - , Q S£,S2 ten^and'Amend: Premium arm other deposits.. 12,280 17 3 ment Act, 1880 .. 40,000 0 0 Fire-insurance moneys in suspense .. 535 0 0 Debentures issued Investment Fluctuat.on Reserve 189,121 (, 1 under the authority of the Finance Act, 1915 .. .. 40,000 0 0 War Bonds issued under the authority of the Finance Act, 1916 .. .. 150,000 0 (I 855,M00 0 0 Municipal Corporation debentures .. 117,423 9 2 County securities .. .. .. 9,736 2 7 Harbour Board debentures .. .. 37,300 0 0 ; Town Board debentures .. .. 25,450 0 0 Road Board debentures .. .. 18,500 0 0 Drainage Board debentures .. .. 2,077 4 6 Landed and house property .. .. 133,120 18 8 Landed and house property (leasohold) 1,809 10 0 Mortgages on property .. .. :i, 227,795 9 0 Properties acquired by foreclosure .. 2,848 9 9 Overdue premiums on policies in force .. £5,800 3 9 Outstanding premiums due but not overdue.. 41,669 910 17,469 13 7 Overdue interest .. £1,933 5 5 Outstanding interest • duo but not overdue.. 10,389 7 8 Interest aoorued but not due .. .. 66,943 17 2 79,266 10 8 Agents'balances .. .. .. 2,157 13 6 Sundry aocounts owing .. .. 139 10 4 Cash in hand and on current aooount,. 111,204 1 9 £5,481,731 13 4 £5,481,731 13 4 Government Life lusurauce Department, 6th March, 1917. J. 11. Richaudson, Commissioner. W. 13. Hudson, Secretary. Audited and fouud correct. Robert J. Collins, Controller and Auditor-General.

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Statement of Business

YEAR 1916. TOTAL. Annual Sum Rever- Premiums. No * assured. Bonuses *■ Ordinary. #, Extra. Wi Annuities. No. 1. Immediate. | 2. Deferred. ole-life and Term Assurances. Annual Sum Sever- Premiums, assured. g°™*£. Inordinary. | 2. Extra. POLICIES I SUED AND DISCON- £ £ £ s. d. £ s. d. £ £ £ s. d. Policies in force at 31st 52,950 December, 1915 New Business .. .. 3,302 12,754,151 1,466,794 ( 372,578 19 0 ( 6,128 10 10 ( 25,041 17 8 1 3,905 18 81 18,787 3 11 1 3,557 4 Of 1,119 4 0) 17 15 10 } 11,612! 13,517,877 760,492 I 79,798 1 9 I | 3,124 12 6f J 4,658 17 8 I 1 945 6 9 / 883,396 504 193,550 Bonus allotted 17 17 Total.. .. 56,252 13,637,547 1,466,811 ( 397,620 16 8 | 10,034 9 6 19,906 7 11 I 3,575 0 4/ 12,116 3,711,427 760,509 ( 84,456 19 5 I | 4,069 19 3 ) Polioies discontinued 3,044 during 1916 762,793 82,193 j 22,828 17 1 ( 946 11 8j 1,418 4 6 1 92 15 10 f 6701 217,253 35,543 J 5,143 1 9) ( 410 13 4 f Total Policies in force at 53,208 31st December, 1910 12,874,754 1,384,618 i 374,791 19 7 | 9,087 17 10 18,488 S 5 | 3,482 4 6 I 11,446 !3,494,174j 724,966 ( 79,313 17 8 | | 3,659 5 11 ) How discontinued. Pj kRTICULA: S iF POLICIES DISCONBy Death .. .. 861 Maturity .. .. 650 189,158 133,211 33,586 28,420 f 6,157 5 9) I 463 2 9f ( 5,301 14 91 1 24 13 4) I 3,130 13 5 | 19 17 10) 1,511 0 4 311 90,461 25,973 ( 2,317 8 6 1 I 203 0 11 ( Surrender .. .. , 457 101,744 6,574 71 18,638 2,436 ( 425 7 11 I 1 7 8 6 \ Surrender of Bonus Lapse .. .. 1,068 3,783 2,170 Expiry of Polioy .. 8 Expiry of Premium.. 336,639 1,500 9,812 f 7,890 7 91 ( 186 12 3) j IB 1 8 40 0 0/ 71 10 4) 259 3 10) t 212 5 6f 280 8 106,189 1,500 4,947 ( 2,303 1 3 ) ( 127 12 10 f J 18 1 3 ) ( 40 0 0 | 48 18 6 i 30 4 4 1 I 32 11 1 j Miscellaneous 541 18 465 17 Total .. 3,044 762,793 82,193 I 22,828 17 1) 1 946 11 8) 1,511 0 670 217,253 35,543 ( 5,143 1 I 410 18 9] 4 I j | | PROGRESS OF BUSH NESS OF T] SE gove: tNMl 3NT LIFE INS iURANCE Dotal issued .. .. 136,740 33,656,697 3,246,220 fotal void .. .. 83,532 20,781,943 1,861,602 J 1,026,955 10 6 I 22,989 14 7 ( 652,163 10 11 I 13,901 16 9 j95,052 5 I j 73,081 17 I 13,211, 31,765 i "; I 13,032,446:1,824,685 ; (339,451 0 01 I 13,815 10 7| 1260,137 2 9) \ 10,156 4 8) 9,088,2721,099,719 Total in force . . 53,208 12,874,754 1,384,618 374,791 19 7 21,970 7 11 9,087 17 10 68 7 8j 11,446 1,44613,494,174' 724,966j 79,313 17 8 . _J I Extra Premiums Keduction of Premiums by Bonus, &c. 3,659 5 11 The Ordinary Premium is the premium charged £383,948 5 1 NOTK. Wellington, 24th February, 1917. , 1917.

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at End of Year 1916.

Approximate Cott of Paper. Preparation, uot given ; printing (1,050 copies), £0.

Authority : Marcus F. Marks, Government .Printer, Wellington.—l9l7.

Price 6d.~]

AOOURAIN^CO. Endowment Assurances. Annuity Assurances. ANNUITIES, SIMPLE ENDOWMENTS, INVESTMENTS, ETC. Annual 1. Sum finvn Kever- Premiums. aanured, rmtarvafl 4nminl No- «S5d. £«a h0rMmrv , No, » mu^9 . Premiums. 2. Extra. Bonuses, No. I Annuities. Annual • Premiums. ' ;. immediate. 2. Deferred. 1. Sum assured. Annua] No. 2. .Sever- Premiums, sionary Bonuses. TINUED DURING THE YEAR 1916. I £ s. d. £ s. d. J 385 .. 18,787 8 11 1 II 6 0 6 20 0 Of (26 ,. | 1,119 4 0 1 i £ £ £ s. d. £ £ s. ' d. £ s. d. £ £ s. d. 39,2878,949,317! 703,786 (284,184 9 10) 69(16,322) 3,537 4 6 847 6 1 ( 3,003 18 4 f \ 2,077 f 2,534 633.296 .. 113,681. 15) .. j 200) 17 15 10 .10 14 0 1 2,960 11 11 } ( .. j : : : i_ 41,8219,582,613 703,786(302,865 11 3 1 69(16,522) 3,555 0 4 858 0 1 f 5,964 10 3 f \ 2,077 J 2,229 521,890 46,309 J 17,035 9 7) 2 j 850 I 92 15 10 43 14 4 I 535 18 4 ) \ 84 J 1,596 (270,6351 7,743 0 10 1 439 f 238' j 56,3501 1,691 4 7 ■•{ :: I - 858 0 1 43 14 4 (4111 .. 19,906 7 11)1,834(326,985)9,434 5 5 1 l 1 6 0 6 20 0 Of t 439f J 25 .. 1,418 4 6 118 J 22,800) 606 11 5 1 JL _•;_ -j_ I 1 257} (386 .. 18,488 3 5 11,710(304,18518,827 14 0 1 lj 6 0 6 20 0 Of ( 182) 39,592 9,060,723 657,477 (285,830 1 81 67 I 15,672 | 3,462 4 6 814 5 9 1 5,428 11 11) | 1,993f 657,477 (285,830 181 67 I 15,672 | 3,462 4 6] 814 5 9 1 5,428 11 11) I 1,993f TINUED DURING THE YEAR 1916. DURING THE YEAR 1916. 523 97,847 7,534 ( 3,797 7 3) 2 j 850 1 92 15 10 42 10 0 260 1 10 f * 79 7,534 ( 3,797 7 3) 2 1 850 1 92 15 10 42 10 0 ( 260 1 10 f I * 79 j 28,163 5,162 13 6 1 1 24 13 4 f 4,138 j 2,358 15 2 ) .. ( 12 9 4 J' 25 .. 1,418 4 6.. 625J 130,111 28,168 5,162 13 61 24 IH 4 1 25 f 3,100 ) 139 1 3 1 257} 60 J 11,400 1 346 10 4 25 vi ia i ) 71,706 4,138 ( 2,358 15 2) .. .. ' I 1 O O A \ 60 I 12 9 4 I { i a y <t ) .. | .. g} 755 222,150 1,865 ( 5,484 3 8 I i 5H in 5 1 .. I .. g | 88 1,865 ( 5,484 3 8 I .. \ 58 19 5 f 33 f 8,300 ) 103 2 10 ( d» i» I) j i I U O J.U I . . 76 1 J 226 3 2 ) .. .. 14 4 ( 179 14 5 f 2,229 521,890 46,309(17,035 9 71 2 1 850 1 92 15 10 43 14 4 1 nor. ia 4 r 1 H4 J 6 6 10 1 1 j 226 3 2 ) .. .. 14 4 ( 179 14 5 f 46,309(17,035 9 71 2 1 850 1 92 15 10 43 14 4 ( 535 18 4 f ( 84 ( 16 5 0 1 12 0 25 .. 1,418 i 6 118)22,800 1 606 11 5 I 257 J 118 ( 535 18 4 | ( 84 | DEPARTMENT SINCE DATE OF ESTABLISHMENT TO I 86,998:19,907,5121,414,367 j 4 } 1106 | 57,375 9 08,451 2 6 47,40610,846,789 756,890 j \\ f| 1039 | 14^ j53, 9ia 4 67,636 16 9 MENT SINCE DATE OF ESTABLISHMENT TO J 1,414,367 j *( 1106 ( 15^50[ 5 7,375 9 08,451 2 6 706,890 ("g 1 {I SJ "W H'SIljk 9 " 4 67 ' 63616 9 list DECEMBER, 1916. 819| 348 0 10 j 37,676 16 0 4,606 j 568 >|j| J- 48,785 10 5 432 342 0 4 i 19,168 12 7 2,890 j 254, g°* } 9,957 16 5 387 6 0 6 18,508 3 5 1,716 j 304 8i821 u Q 4,606 2,890 V "I"" " "1 V .,- —, 19,592 9,060,723 657,477 285,830 1 8 67 | 3,462 4 6 814 5 9 387 6 0 6 | 18,508 3 5 1,716 5,428 11 11 .t the true age; the Extra, the additional premii un charged for any reason whatsoever. •J. H. Kichardson, Commissioner •J. H. Kichar: DSON Percy Muter, Actuary. Percy Muter ,, Ac