ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1918.

Appendix to the Journals of the House of Representatives, 1919 Session I, H-08

H.—B

1919. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1918.

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

Government Insurance Office, Wellington, 29th July, 1919 I have the honour to submit the following report upon the transactions of the Department for the year ended the 31st December, 1918, 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 4,817 proposals were dealt with for the assurance of £1,447,125. The number of policies actually completed was 4,235, assuring £1,252,538, with annual premiums amounting to £46,778. These figures constitute a record for the Department. Twenty-eight annuities were also granted on which the purchase-money was £11,406. The total business now in force, including 417 immediate and deferred annuities for £22,388 per annum, is 53,803 policies, bearing an annual premium income of £404,965. The sum assured, payable at death or maturity, is £13,257,682, to which have been added reversionary bonuses amounting to £1 512,861. The total business on the books thus amounts to £14,770,543. Income. —The total income of the Department was £654,316 —-viz., premium income, £399,673 ; interest income (less land and income tax), £243,237 ; annuity purchase-money, £11,406. Outgo.-- During the year 711 policies matured, for £177,199, and 1.291 policies became claims by the death of policyholders, the amounts payable being £337,767. Of these claims, 540, for £107,558, represent deaths through wounds or sickness amongst the oversea Forces, and approximately 300, for £72,000, the claims arising out of the death of soldiers and civilians in New Zealand through the recent influenza epidemic. The number of claims from these two sources amount to 42 per cent, and 23 per cent, respectively of the total deaths, or 65 per cent, in all. Further influenza claims have been notified since the close of the year, and the sum payable through the epidemic will probably amount to about £90,000. The total amount paid in war claims from August, 1914, to 31st December 1918, has been £332,821, representing 1,640 policies. The total sum which has been paid in respect of claims by death and survival since the foundation of the Department forty-nine years ago now amounts to £7,054,732. Accumulated Funds. —The total assurance, annuity, and endowment funds, apart from a special investment reserve of £288,825, now stand at_£5.191,745.

I—H. 8.

H.-8

2

The Balance-sheet.- Cn the 31st*December, 1918, the total assets of the Department amounted to £5,672,981, 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 :- —

During the year the Life Branch's subscriptions to war loans were increased by £195,(XX), the last instalment (£50,000) of its 1917 subscription having been paid over, together with a further amount of £145,000. In addition to completing this 1918 subscription the Branch has already this year taken up a further- sum of £2-10,000 in War Loan stock. The total amount taken up by the Branch in War Loan stock to date is £785,000, in addition to SAOfiOO taken rip in debentures under the finance Act. 1915. The rate of interest realized on Ihe mean funds, after deduction of land and income tax from interest, was £4 13s. Bd. The Staff. —As the war- has now ended, 1 should like, to place on record the fact that fifty-eight of the Department's officers joined the Expeditionary Forces, of whom four were killed in action and twenty-three were, wounded. .1. H. RICHARDSON, Government Insurance Commissioner.

Revenue Account ok thk, Government Life Insurance Department for the Year ended 31bt December, 1918. £ 8. d. j £ s. d. Amount of Funds at Ist January, 1918 5,199,320 1 0 ■ Death claims under polioies, Assurance, Renewal premiums—Assurance, An- including bonus additions .. .. 387,767- 3 0 nuity, and Endowment .. .. 8.65,724 6 7 ' Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 173,800 "> 0 of first year's premiurrrs falling due Endowments matured .. .. 3,398 10 0 in the year) .. .. .. 33,316 1 11 Premiums returned on endowments .. 185 0 9 Single premiums—Assurance and En- Bonuses surrendered for cash .. 9,936 13 7 dowment .. .. .. 631 15 9 Annuities .. .. .. .. 19,147 5 (1 Consideration for Annuities.. .. 11,406 6 2 Surrenders .. .. .. 15,405 2 8 Interest .. .£273,474 7 3 Loans released by surrender.. .. 31,122 5 2 Less land and in- Commission, new* .. £22,760 i 0 come tax .. 30,237 5 0 » renewal 2,594 8 7 243,237 2 3 25,360 12 7 Expenses of management— Salaries— Head Office ..£16,191 3 0 Branoh offioes and agents .. .. 7,741 15 10 Extra clerical assistance 3,969 12 1 Medical fees and expenses .. .. 5,219 2 (i Travelling-expenses .. 287 18 8 Advertising .. .'. 464 1 2 Printing and stationery 2,251 10 11 Bent .. .. 2,911 6 1 Postage and telegrams 2,202 9 7 Exchange .. .. 44 18 11 General expenses .. 2,267 4 2 Triennial expenses .. 2,216 7 1 45,767 10 0 Amount of fundß, 31st December, 1918 5,191,744 19 5 £5,853,635 13 s\ £5,853,635 13 8 * Including Agents' allowftnees»

At 31st December, 1917. Class of Investment. At 31st December, 1918. . Percent age Amount, j of ToU , 3,141,294 561 per cent. Mortgages on freehold property 780,976 139 . „ Loans on policies 1,055,900 i 18-9 „ Government securities 209,277 3'7 „ Local bodies'debentures 134,898 i 2-4 „ Landed and house property 1.30,064 2-3 „ Miscellaneous assets 150,462 2-7 „ Cash in hand and on current account I 3, 1, . I I £ 3,038,552 53-6 per cent. 738,018 13-0 1,250,900 22-0 211,711 3-7 134,864 , 2-4 128,593 : 2-3 170,343 ! 30 5,602,871 100-0 per cent. Total 1 5, 5,672,981 j 100 0 per cent.

3

H.-8

Balance-sheet of the Government Life Insurance Department on 31st December, 1918. Liabilities. Assets. £ s. d. I £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. 738,017 9 3 dowment Funds (as per Revenue Goverrrment securities--Aocount) .. .. .. 5,191,744 19 5 Consolidated stock ..625,900 0 0 Claims admitted, proofs not yet com- Debentures issued P leted 182,543 50| under the D i str ict Annuities .. .. .. .. 357 8 5 Railways PurchasCommissron .. .. .. 1,360 5 0 ing Aot ]885 Ex . Medical fees .. .. .. 458 1 11 tension and Amend. Premium and other deposits.. .. 5,407 3 0 ment Act, 1886 .. 40,000 0 0 Fire-insurance moneys in suspense .. 1,450 0 0 Debentures issued Sundry accounts owing .. .. 834 4 8 under the authority Investment Fluctuation Reserve .. 288,825 6 1. 0 f t i u , Finance Act 1915 .. ..' 10,000 (I 0 New Zealand Inscribed Stock—War Loans 545,000 0 0 1,250,900 0 0 Municipal Corporation debentures .. 117,044 13 0 County securities .. .. .. 8,372 9 9 Harbour Board debentures .. .. 36,300 0 0 Town Board debentures .. .. 26,450 0 0 1 Road Board debentures .. .. 21,500 0 0 Drainage Board debentures .. .. 2,044 I 11 Landed and house property .. .. 133,120 13 8 Landed and house property (leasehold) 1,743 14 0 Mortgages on property .. .. 3,038,551 17 10 Properties acqurred by foreclosure .. 3,000 5 2 Overdue premiums on policies in force .. £4,564 8 5 Outstanding premiums due but not overdue.. 41,353 15 7 45,y18 4 0 Overdue interest .. £2,940 17 11 Outstanding interest due but not overdrre.. 7,554 1 10 Interest aoorued but not due .. .. 66,991 16 2 77,486 15 11 Agents'balanoes .. .. .. 2,187 11 11 Cash in hand and on current aooount.. 170,342 17 1 £5,672,980 13 6 £5,672,980 13 6 Government Life Insurance Department, 23rd April, 1919. J. H. Richardson, Commissioner. W. B. Hudson, Secretary. Audited and found correct. Robert J. Collins, Controller and Auditor-General.

'2—H. 8.

H.—B

4

Statement of Business

TOTAL. . — Whole-life and Term Assurances. YEAR 1918. t— r— - Annual j Annuities. . Annual ; Sum ! Premiums. \ i. Immediate or No 1 Sum 1 Premiums. No - j assured. KS 1. Ordinary. entered upon. • \ assured. | » ' * 1. Ordinary. | I Bonuses. | Extra. Z. Deferred. \ Bonuses. Extra. POLICIES ISSUED AND DISCON- ___ _ . _ £ £ £ s. d. £ s. d. £ \ £ £ s. d. Policies ill force at 31st 53,05812,884,531 1,304,243 f 374,210 4 J 18,858 8 1)11,2773,468,401 689,157 f 78,999 12 11 ) December, 1917 i ( 13,101 11 1 3,265 1 2 J \ 4,449 4 4f Ne«v Business .. .. 4,263 1,252,538 .. I 38,250 6 1 1,195 1 4 [ 1,176 363,413 .. j 8,599 10 71 1 8,527 12 11 60 10 8 / \ -2,357 11 7) Bonus allotted .. 322,090 .. .. .. .. 93,547 Total.. 57,32114,137;069 1,626,388 f 412,460 10 2 20,053 9 5 112,4533,831,814 782,704(87,599 3 6 I I 21,629 4 0 3,325 11 10 f ( 6,806 15 11 | Polioies discontinued 3,518 879,387 113,472 ] 26,376 19 4 791 2 0 \ 626 209,594 43,213] 5,094 4 3) during 1918 | 1 2,809 15 0 199 13 9 f \ 915 15 3 f Total Policies in force at 53,803 13,257,682 1,512,861 ] 386,083 10 10 19,262 7 5 V 11,827 3,622,220 739,491(82,504 19 3) 31st December, 1918 j | 18,819 9 0 3,125 18 1 j \ 5,891 0 8 j PARTICULARS OF POLICIES DISCONHow discontinued. By Death .. .. 1,304 290,820 45,497 1 9,285 6 8 791 2 0) 361 115,887 29,567 ] 2,862 10 1) 1 1,161 10 9 133 12 3 j ( 31117 9f Maturity .. .. 711 143,398 33,351 ] 5,698 2 7! f 11 0 11f Surrender.. .. 427 107,267 7,696 j 3,314 0 6, .. I 61 21,558 2,955 ] 563 7 10 | 1 27 14 4 1 66 1 6) ( 10 12 0 f Cancellation .. 185 49,900 159 ] 1,174 14 5) .. 26 8,000 105 164 16 0) | 79 10 0 J \ 0 15 o; Surrender of Bonus.. .. .. 16,628 .. .. .. .. 7,594 Lapse .. .. j 891 287,446 9,751 ] 6,436 7 41 .. 178 63,876 2,679 [ 1,41112 8) 1 213 8 0) | 136 9 Of Expiry of Premium.. .. 250 .. j 194 3 10 j .. .. .. .. j 78 10 8 j Miscellaneous .. .. 306 390 J 274 4 01 .. .. 273 313 f 13 7 01 1 1,316 16 Of { 456 1 6J Total .. 3,518 879,387 113,472 1 26,376 19 4 791 2 01 626 209,594 43,213 ] 5,094 4 3 1 1 2,809 15 0 199 13 9f \ 915 15 3 f PROGRESS OF BUSINESS OF THE GOVERNMENT LIFE INSURANCE Total issued .. .. 143,932 35,693,835 3,569,310 | 197,362 5 8 44,82513,566,659j 1,918,232| 3 g| Total void .. .. 90,129 22,436,15.3 2,055,449 j 3 j 74,974 0 2 32,998 9,944,439,1,178,741 j^ Total in force .. 53,803 13,257,682 1,512,861 386,083 10 10 22,388 5 611,827 3,622,220! 739,491 82,504 19 3 Extra Premiums .. .. .. 18,819 9 0 .. .. j .. .. 5,891 0 8 Reduotion of Premiums by Bonus, &c. .. 61 13 10 .. .. .. .. 53 13 6 £404,964 18 8 £88,449 13 5 Note.—The Ordinary Premium is the premium charged Wellington, 31st March, 1919.

H.—B

5

at End of Year 1918.

Approximate Cost of Paper.—Preparation, not given, printing (1,760 copies), £10.

By Authority : Marcus F. Marks, Government Printev, Wellington.—l9ls). Price, 6d ]

ASSURANCES. SIMPLE ■ ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. ! Annual ' 1- Sum Annuities. 1 ! Annuities. I '■ ! Annual M „ ! Sum Premiums. , 0 as , R ,"™ < ?.' j 1. Entered Annual K Annual j 1. Immediate or „ : Premiums. 1 • : assured. | Bonuse y s 1. Ordinary. h • "gjonarv ' u '"' n Premiums. N<- i Premiums. | entered upon. • ' * \l. Ordinary. J | Boa » Bes - ». Extra. j B"e«. 1 * Wrnd. ■ J _ B T n uM«. I* » TINUED DURING THE YEAR 1918. , . _ j - : £ £ £ p. d. £ £ s. d. £ a. d. £ s. d. £ s. d. £ £ s. d. 39,4159,067,673 613,187(285,050 0 9) 64 115,022 .. I 782 7 1 ( 401 .. 18,858 8 1 ) 1,900 (333,435 9,372 2 10} ( 8,646 16 9 j 1 1,899 3,245 12) t I 6 0 6 20 0 0 f it •• 5 10 Of 2,888 844.375 .. (28,638 0 8) .. .. 1+89 Si 6} .. f 27 .. 1,105 11 10) 171,1 44,750 998 14 10 1 6,170 1 4 / (-89 9 4) \ 1 14 0 0 150 0 0 ) '1 f 227,207 .. ..(..) .. .. .. .. .. | 503 J I 833) 42,3039,912,048 840,394 (313,688 1 5 I 64 ( 15,022 89 9 6| 782 7 1(428 .. 19,963 19 11 )2,071(378,185 10,370 17 8| )14,816 18 If ( 2,402 3,155 11 10]' | 2 20 0 6 170 0 0 f \ 833 5 10 Of 2,746 638,393 69,769 120,358 4 8) 5( 1,200 61 0 2) 69 4 8 j 13 .. 730 1 10 ) 128 1 30,200 855 5 9| I 1,893 19 9 J \ 2 77 199 13 9J )•• •• •• J 1 213 J 39,557 9,273,655 770,625(293,329 16 9) 59 ( 13,822 28 9 4) 713 2 5 ( 415 .. 19,233 18 111,943(347,985 9,515 11 11) t 12,922 18 4) \ 2,125 2,955 18 1J \ 2, 20 0 6 170 0 0 J | 620 5 10 Of TINUED DURING THE YEAR 1918. 927 174,183 15,876 ( 6,407 3 11) 3 j Y50 61 0 2 ) 15 12 8 ( 13 .. 730 1 10) .. | 849 13 0 J 1 54 133 12 3 / | . .. .. J 685, 140,198 32,989! ( 5,555 5 111 .. J .. ) .. .. .. .. .. 26 j 3,200 142 16 8) 1 11 0 11 J I 163 ) ( 199 .. j 297 69,459 4,723j f 2,249 9 0) 2j j 200 .. ) 11 12 10 .. .. .. 67 J 16,050 489 10 101 j 1 17 2 4 M | 18 66 1 6 f | .. j 146 35,000 54 j 915 17 2| .. ..' .. .. .. .. .. 13 I 6,900 94 1 31 1 78 15 0 J 1 .. .. \ 8,992 .. .. ! j .. I 1 42 | 691 219,520 7,0581 ( 4,903 5 1| .. .. .. .. .. .. 22 ( 4,050 121 9 7) j 76 14 0 f I \ 14 .. ) ( 69 13 4 | .. j | 250 j .. 41 17 0 .. .. .. .. .. j 4 2 10j 33 771 257 10 3) .. .. 0 2 2.. .. .. .. .. j 3 4 7) 1 ( 860 14 6 f 1 .. f 2,746 638,393 69,769(20,358 4 8| 5J 1,200) 260 13 11 69 4 8 13 .. 730 110 128 I 30,200 855 5 9} ( 1,893 19 9 [ 1 277 ) 1 213 .. ) DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 19x8. 92,01121,296,6871.641,574 I ® I 1106 j 15 ?'o2o I ! 57,387 1 lo|8,454 1 6 878 362 0 10 39,975 3 10 5,112 j 67 ?'5!c 21,3 Zfj I ( 19,914 3 0) ( 6,838) I [ 1,666 20 10 0) 52,454|12,023,032j 870,949 1 41 \ ®| 1047 -j 144 ' ® | ,54,402 14 57,740 19 1 461 342 0 4 20,571 5 9 3,169 j 39,557 9,273,655 770,625 293,329 16 9 59 j 2 .984 15 713 2 417 20 0 6 19,403 18 1 1,943 ( 347,985) 9,515 11 11 t 8,lag J| _ J 620) .. [ .. I .. 12,922 18 4 .. I .. .. j .. .. .. .. : .. 5 10 0 .. | | 8 0 4 .. | .. .. | .. .. j .. .. .. | £306,260 15 5 £9,521 1 11 at the true age; the Extra, the additional premium imposed for any reason whatsoever. J. H. Richahdson, Commissioner. Percy Muter, Actuary.