ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1921.

Appendix to the Journals of the House of Representatives, 1922 Session I, H-08

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1922. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1921.

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

Government Insurance Office, Wellington, 14th June, 1922. I HAVE the honour to submit the following report upon the transactions of the Department for the year ended the 31st December, 1921, and its position at that date. The Revenue Account, Balancesheet, and Statement of Business are appended. New Business and Amount of Business in Force. —During the year 5,553 proposals were dealt with, for the assurance of £1,821,100. The number of policies actually completed was 4,963, assuring £1,631,250, with annual premiums amounting to £50,734. Twenty-three annuities were also granted, on which the purchase-money was £11,136. The total business now in force, including 434 immediate and deferred annuities for £23,744 per annum, is 59,189 policies, bearing an. annual premium income of £474,151. The sum assured, payable at death or maturity, is £15,721,088, to which are attached reversionary bonuses amounting to £1,558,646. The total business on the books thus amounts to £17,279,734. Income. —The total income of the Department was £755,519 —viz., premium income, £460,302 ; interest income (less land and income tax), £284,081 ; annuity purchase-money, £11,136. The total income for the year is greater than that of last year by £24,611. Outgo for Claims. —During the year 894 policies matured, for £219,756, and 442 policies became claims by the death of policy-holders, the amounts payable being £159,007. The outgo for death claims is smaller than for any year since 1913, and this notwithstanding the increased sums assured on the -books. Accumulated Funds. —The total assurance, annuity, and endowment funds, apart from a special investment reserve of £288,730, now stand at £5,726,356, an increase of £183,804 over the amount at the end of 1920. The Balance-sheet, —On the 31st December, 1921, the total assets of the Department amounted to £6,090,101, 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 : —

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At 31st December, 1920. At 31st lecember, 1921. Percentage Amount. of TotnJ As^ets Class of Investment. Amount. Percentage of Total Assets. £ 2,750,026 46-4 per cent. 735,739 12-4 1,869,800 31-6 210,241 3-5 134,799 2-3 124,337 2-1 102,615 1-7 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 £ 2,743,405 794,546 1,960,400 224,909 136,016 145,918 84,907 45-1 per cent. 13-0 32-2 3-7 2-2 24 14 Total 5,927,557 100-0 per cent. 6,090,101 100-0 per cent.

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The rate of interest realized on the mean funds, after deduction of land and income tax from interest, was £5 Os. iOd. per cent. General. —The progress during the year has been very gratifying. In respect of the number of new policies issued and the amount assured thereby, the year just falls short of being a record year. The lapses decreased from 1,340 policies, for £376,300, to 956 policies, for £299,220—a satisfactory feature, following as it does a year of exceptional new business. The income for the year constitutes a record for the Department, and there is every indication that the year has been a most profitable one. Taking into account the present financial stringency the result of the year's operations has been satisfactory. J. H. Richardson, Commissioner.

Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1921. £ s. d. £ a. d. Amount of funds at Ist January, 1921 5,542,551 19 7 Death claims under polioies, Assurance, Renewal premiums — Assurance, An- including bonus additions .. .. 159,006 19 0 nuity, and Endowment .. .. 412,759 17 7 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 213,691 11 0 of first year's premiums falling due Endowments matured .. .. 6,064 0 0 in the year) .. .. .. 46,752 14 2 Premiums returned on endowments .. 395 2 7 Single premiums—Assurance and En- Bonuses surrendered for oash .. 12,468 18 2 dowment .. .. .. 789 8 0 Annuities .. .. .. .. 21,201 17 1 Consideration for Annuities.. .. 11,136 9 7 Surrenders .. .. .. 26,479 19 10 Interest and rent ..£293,192 15 3 Loans released by surrender.. .. 28,691 12 1 Less land and income Commission, new* .. £31,981 6 9 tax, £4,618 3s. IOd.; , renewal 3,054 6 7 property expenses, 35,035 13 4 &c, £4,494 2s. lOd. 9,112 6 8 Expenses of management— — 284,080 8 7 Salaries— £ s. d. Head Office .. 26,686 910 Branoh offioes and agents .. .. 12,766 0 3 Extra olerical assistance 902 3 2 Medical fees and expenses .. .. 6,326 18 0 Travelling-expenses .. 1,347 5 2 Advertising .. .. 481 13 6 Printing and stationery 2,718 3 6 Rent .. .. 4,165 14 2 Postage and telegrams 2,861 10 1 Exchange .. .. 38 16 10 Goneral expensos .. 4,318 14 3 Triennial oxpenses .. 3,422 7 10 66,035 16 7 Marryatt Defalcation Aooount .. 2,643 0 2 Amount of funds, 31st Deoember, 1921 5,726,356 7 8 £6,298,070 17 6 £6,298,070 17 6 * Including agents' allowances.

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Balance-sheet of t,he Government Life Insurance Department on 31st December, 1921. Liabilities. Assets. £ s. d. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. 794,545 16 1 dowment Funds (as per Revenue Government securiAocount) .. .. .. 5,726,356 7 8 tiesClaims admitted, proofs not yet com- Consolidated stock 625,900 0 0 pleted .. .. .. .. 60,842 0 6 Debentures issued Annuities .. .. .. .. 412 15 8 under the auCommission .. .. .. 2,251 17 8 thority of the FiMedical fees .. .. .. 465 3 0 nance Act, 1915 40,C00 0 0 Premium and other deposits.. .. 3,822 0 8 New Zealand InFire Insurance moneys in suspense .. 850 0 0 soribed Stock —■ Sundry creditors .. .. .. 5,770 16 10 War Loans .. 1,134,500 0 0 Officers' Fidelity Fund .. .. 600 0 0 New Zealand InInvestment Fluctuation Reserve .. 288,729 14 1 scribed Stock — Finance Act, 1919 50,000 0 0 New Zealand Inscribed Stock — Discharged Soldiers Settlement Loan .. .. 110,000 0 0 1,960,400 0 0 Municipal Corporation debentures .. 131,439 14 0 County securities .. .. .. 5,981 1 2 Harbour Board debentures .. .. 34,500 0 0 Town Board debentures. .. .. 29,200 0 0 Road Board debentures .. .. 21,800 0 0 Drainage Board debentures .. .. 1,987 17 6 Landed and house property .. .. 134,089 11 10 Landed and house property (leasehold) 1,645 0 0 Mortgages on property .. .. 2,743,405 2 3 Properties acquired by foreclosure .. 281 8 3 Overdue premiums on £ s. d. policies in force .. 8,326 18 7 Outstanding premiums due but not overdue.. 43,449 14 4 51,776 12 11 Overdue interest .. 8,420 4 5 Outstanding in tor est duo but not overdue.. 7,400 0 9 Interest aoorued but not due .. .. 70,124 5 4 85,944 10 6 Agents'balances .. .. .. 5,258 19 4 Sundry debtors .. .. .. 2,938 1 1 Cash in hand and on ourrent aocount.. 84,907 1 2 £6,090,100 16 1 £6,090,100 16 1 Government Life Insurance Department, 6th April, 1922. J. H. Richardson, Commissioner. Geo. W. Barltrop, Secretary. The Audit Office, having examined the Revenue Account and Balance-sheet, and compared them with the relative books, documents, and securities, hereby certifies them to be in accordance therewith. ; G. P. C. Campbell, Controller and Auditor-General.

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Statement of Business

TOTAL. YEAR 1921. Annual Annuities, -rj. Sum ' \ Promiums. i. Immediate or JN0- assured. i 1. Ordinary. entered upon, . I Bonuses, j j_ Extra _ o. Deferred. Whole-life and Terr. Sum ' EeverNo- assur ed. | "i Assurances. Annual Premiums. 1. Ordinary. 2. Extra. POLIC !IES ISSUED ANI DISCON- £ £ £ s. a. £ s. a. £ s. a. £ £ £ s. a. Policies in force at 31st 57,32114,924,147 1,335,163 ( 447,152 2 021,381 19 10 1 December, 1920 ( 1,920 2 8 2,776 10 3 J 21,381 19 10 1 2,776 10 3 J 11,372 3,671,771 658,721 f 84,648 11 1 1 { 1,074 .15 7 J New Business .. .. 4,986 1,631,250 .. ( 50,53117 4 1,277 3 4) 1 201 13 3(-)123 11 0 J 1,277 3 4 1 (-)123 11 0 J 563 278,400 I 7,329 14 0 | 1 45 8 11j Bonus allottea .. .. .. 339,388 82,747 Total.. .. 02,30716,555,3971,674,551] 497,683 19 422,659 3 2 1 | 2,121 15 11 2,652 19 3 j 16,555,397 1,674,551 ( 497,683 19 4 I 2,121 15 11 22,659 3 2 I 2,652 19 3 J 11,935 3,950,171 741,468 (91,978 5 1] j 1,120 4 6] Polioies aiscontinuca 3,118 834,309 115,905 I 25,567 3 11 1,403 9 81 during 1921 ( 135 19 8 165 1 1 f 834,309 j 25,567 3 11 ( 135 19 8 1,403 9 81 165 1 If 546 189,229 44,337 ( 4,160 1 9) ( 64 18 4 f 115,905 Total Policies in force at 59,189 15,721,088 1,558,646 I 472,116 15 5 21,255 13 6 I 31st December, 1921 | 1,985 16 3 2,487 18 2 ] 15,721,088 1,558,646 I 472,116 15 5 21,255 13 6 | 1 1,985 16 3 2,487 18 2 J 11,389 3,760,942 697,131 (87,818 3 4) ( 1,055 6 2j PARTICUL. How discontinued. PARTICUL RS OF PC >LICIE£ ; DISCON ByDeath .. .. 475 125,381 33,181 I 3,752 19 8 1,403 9 8] 42 7 8 30 4 11 By Death 125,381 33,181 I 3,752 19 8 1,403 9 8] I 42 7 8 30 4 11) j 6,804 1 111 | 26 12 7f ] 4,956 16 6 .. 1 1 23 5 0 134 16 2) j 1,436 12 21 2G3 80,482 28,246 ( 1,859 5 11 1 35 15 0 f I VI I 8 BU 4 11) Maturity .. .. 894 179,002 40,263 j 6,804 1111 Maturity .. 179,002 40,263 ( _e 12 71 Surrender.. .. 634 175,698 12,190 j 4,956 16 6 .. 1 oq k n iai ifi of Surronaer 175,698 12,190 97 40,805| 5,218 ( 829 0 1 1 I 2 0 8 f ( 128 3 11 \ | i!3 5 0 134 16 2) Cancellation .. 158 53,150 47 j 1,436 12 2) Cancellation 53,150 47 12 5,300 Surrender of Bonus.. .. .. 20,852 Surrenaer of Bonus.. 20,852 8,531 Lapse .. .. 956 299,220 9,013 f 8,288 13 21 1 9.7 fi 9 f Lapse 299,220 9,013 f 8,288 13 2) 1 27 5 2[ I 14 0 01 { 6 12 6| f 148 10 4) J 165 10 2I ( 9 16 9} 173 61,485 2,160 j 1,311 14 4 1 j 14 15 0 j I 14 0 0 ) '( 6 12 6 j Expiry of Polioy Jit 5 A I Expiry of Policy .. 1 1,000 .. ( 14 0 01 6 12 6 1,000 1 1,000; [ U li U| Expiry of Premium.. .. 700 .. j 148 10 4) Expiry of Premium.. 700 Miscellaneous .. .. 158 339 I 165* 10 21 Miscellaneous 15S 339 157 182 ( 17 18 4 1 \ 5 15 2) Total 834,309 3,118 115,905 l 25,567 3 11 ( 135 19 8 1,403 9 8| 165 1 1 ) 546 189,229, 44,337 ( 4,160 1 9 1 1 64 18 4 f PRO JRESS 3F BU! 3INESS OF ' THE GOVI 3RN3Y 1ENT LIFE INSURANCE 'otal issuea .. 'otal voia 158,814 40,602,540 3,907,098 f 1,246,728 9 10 1 38,755 6 9 ( 774,611 14 5 1 36,769 10 6 } 103,249 5 8 | 79,505 14 0 16,592 14,413,909'2,000,980 j I] 10,052,967|1,303,849 { 2 fg||g| \l "j 99,055 24,881,452 2,349,052 35,203 Total in force 59,189 15,721,088 1,558,646 472,116 15 5 23,743 11 11,389 3,760,942 697,131 87,818 3 4 Extra Premiums Beduction of Pre: dums 1 iy Bonus, 1,985 16 3 48 10 0 1,055 0 2 44 17 6 ;o. £474,151 1 8 £88,918 7 0 Note.—The Ordinary Premium is the n-eniium charged Wellington, 15th March, 1922.

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at End of Year 1921.

J. H. Eichakdson, Commissioner. A. T, Tbavbbsi, Actuary.

Approximate Cost of Paper. —Preparation, not given; printing (1,225 copies), £10.

Authority : W. A. G. Skinnhe, Government Printer, Wellington.—l 922.

Price 6d.

AS IURANCES. SIMPLE ENDOWMENTS, INVESTMENTS, ETC. ANNUITIES. Endow >,ent Assurances. Annuity Assurances. No Sunl assured. Reversionary Bonuses. Annual Premiums. 1. Ordinary. #. Extra. No. 1. Sum Annuities. _f S Rever' I 1 - Annual r,;„v,„„,/ l V/O0n. Premiums, sionary , g T)( % prrr(] Bonuses. 1 4t no J orrea - Annuities. N Annual 1. Immediate or Premiums. entered upon. 2. Deferred. 1 1. Sum Annual assured. Premiums. N °- 2 sh?n_rT 1-Ordinary. TI3 TUED I URING THE YEAR .921. £ £ £ s. d. £ £ s. a. £ s. a. £ s. d. £ s. d. £ £ s. a. £ :3,336 10,847,801 674,850 (351,068 17 61 \ 845 7 lj 51 ( 12,685 ( 1,592 6013 10) 2,581 1 3) 739 18 4 f 441 I 3 (441 .. 21,321 6 0) ( 3 20 0 6 195 9 0 f 2; 2,118 1,118 (391,890 10,674 14 7 ) (391,890 4,208 1,307,000 ( 41,874 14 8 ) \ 156 4 4 } •• .1 I ( + )103 11 0 (-)103 11 0 I - { 24 (-)l 24 .. 1,173 12 4 1 -)1 .. (-) 20 0 0) 192 192 ( 45,850 1,327 8 8 1 ( 45,850 253,605 | ■• ] ( 378 j ..(..) | 2,658 J 17,544 12,154,801 928,455 ( 392,943 12 2 I | 1,001 11 5 f 51 i ( 12,685 I 1,970 164 4 101 2,477 10 3) 739 18 4 (465 1 2 20 0 6 22,494 18 4 ) 175 9 0 J 2,310 ( 437,740 \ 2,658 12,002 3 3 j 2,363 608,942 70,420 J 20,264 8 7 ) I 71 1 4 J ( 1,300 1 274 165**1 1} 68 7 0 6 0 6 1,403 9 8 1 173 j 34,838 \ 874 1,068 6 1 | ( 33 .5,181 11,545,859, 858,035 (372,679 3 7) I 930 10 1| 48 f 11,385 { 1,696 164 4 10) 2,312 9 2 J 671 11 4 ( 432 1 2 14 '6 0 Jl,091 8 8) 175 9 ON 2,137 j ( 402,902 10,933 17 2 1 1 1,784 .. J I TINUED DURING THE YEAR 1921. 178 44,749 4,892 ( 1,886 6 9) \ 6 12 8 j j 6,537 2 2 1 t 26 12 7 } j 3,510 7 0] \ 21 4 4 J j 1,253 18 1 1 I I 150 43 *_68 | 450 02 30 *4 11/ 7 7 10 ( 33 1,403 9 8 1 854 173,802 39,251 40 ( 5,200 266 19 9 1 1 864 .. } j 21,688 591 10 3 i ( 1,950 54 10 2 | 429 112,755 6,910 2 134 16 2} 25 19 2 106 138 45,900 47 8 12,320 1. "■.} 764 231,735 6,843 ( 6,861 15 7 I \ 12 10 2 j 19 ( 6,000 115 3 3 1 | 10 .. ] 1 157 | 70 5 1 j j 144*13 11 1 1 4 17/ I 700 1 35 0 0 | 6 0 6| ( 37 4 9 | | 2*17 11 | 2,303, 608,9421 70,420 ( 20,264 8 7 I t 71 1 4 f j 1,300 | 274 165 1 .] 68 7 0 | 33 6 0 6 1,403 9 8 1 173 j 34,838 I 874 1,068 6 1 1 DEPARTM ;nt ilNCE DATE OF ESTAB! T TO 31st DECEMBER, 1921. 104464J25,217,542| 1,895,178 (838,249 0 111 \ 20,792 19 7J (465,569 17 4) \ 19,862 9 6/ 1100 f 160,450 j 7,216 ( 149,065 \ 5,520 225 5 0) i7,272 11 4/ 61 0 21 14,960 2 2J 8,619 15 8 972 362 0 10 45,751 9 4 5,710 j 810,639 \ 4,324 j 407,737 \ 2,540 25,325 13 2 > 20 10 0 f 14,391 16 0 20 10 0 J 59,28313,671,6831,037,143 1058 7,948 4 4 538 348 0 10 24,484 11 8 3,573 45,18111,545,859 858,035 372,679 3 7 48 ( 11,385 ( 1,696 164 4 10 1 2,312 9 2/ 671 11 4 434 14 0 0 21,266 17 8 2,137 I 402,902 1 1,784 10,933 17 2 930 10 1 3 12 6 £373,613 6 2 £671 11 4 £14 0 0 10,93317 2 at the truo age; the Extra, larged for ar iy reason whats the additional prem; loever. ium c'