ACCIDENT INSURANCE BRANCH OF THE GOVERNMENT INSURANCE DEPARTMENT (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1923.

Appendix to the Journals of the House of Representatives, 1924 Session I, H-08a

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1924. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE GOVERNMENT INSURANCE DEPARTMENT (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1923.

Laid before Parliament pursuant to Section 22 of the Government Accident Insurance Act, 1908.

Government Insurance Office, Wellington, 6th June, 1924. I have the honour to submit my report on the business of the Accident Insurance Branch of the Department for the year ended 31st December, 1923, together with the Revenue Account and Balancesheet. • The gross premium income amounted to £35,560, and, after deducting reinsurances, to £35,268. The claims were £22,402, an increase of £2,072 as compared with the previous year. Owing largely to the increase effected by recent legislation in the benefits under the Workers' Compensation Act, for which no increase has been made in the premiums, the ratio of claims to premiums is higher than usual —namely, 63-5 per cent. In effect this gratuitous increase of benefits is equivalent to a substantial rebate of premiums. The gross return from interest was £7,719, as compared with £7,598 in 1922. The sum of £1,511 was paid in taxes. The ratio of management expenses to premiums was 28-9 por cent., and to total income 24-5 per cent. The average ratio of expenses to premiums in the case of the Department's competitors in 1922 was nearly 37 per cent., so that it will be realized that the Department's business is very economically conducted. The total holding in New Zealand inscribed stock by the Accident Branch is £103,500, in addition to £10,000 debentures under the Finance Act, 1915, the two together representing 75 per cent, of the total invested funds. The statutory Reserve Fund stands at £115,020. The total assets at the end of the year amount to £177,889. The Department has now under attention the periodical actuarial investigation into the equity and correctness of the basic premiums charged to the different industries for insurance against their liabilities under the Workers' Compensation Act. This has always been a notable feature of the Department's activities, the result being that the business of accident insurance, especially workers' compensation, as transacted in New Zealand enjoys, along with life insurance, the distinction of being based on a scientific and equitable foundation. A. T. Traversi, F.1.A., F.C.A.S., Commissioner.

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Revenue Account of the Accident Branch of the Government Insurance Department for the Year ended 31st December, 1923. £ a. A. £ a. A. Amount of Accident Funds, Ist January, Claims .. .. .. .. 22,401 14 7 1923 .. .. .. .. 21,008 15 5 Commission .. .. .. 4,548 7 6 Premiums .. .. £35,550 11 10 Salaries .. .. .. .. 3,940 0 0 Less reinsurance pre- Expenses of management .. .. 1,089 911 miums .. .. 291 19 3 Further appropriation to Reserve for un35,267 12 7 earned premiums .. .. .. 876 0 0 Interest .. .. 7,718 II 9 Amount of Accident Funds, 31st DecemLess land and income ber, 1923 .. .. .. .. 29,088 14 5 tax .. .. 1,510 13 4 — 6,207 18 5 £62,544 6 5 £62,544 6 5 Balance-sheet of the Accident Branch of the Government Insurance Department on 31st December, 1923. Liabilities. £ s. d. Assets, £ s. d. Accident Funds, as per Revenue Account 29,088 14 5 Debentures issued under authority of the Claims admitted (proofs not yet com- Finance Act, 1915 .. .. 10,000 0 0 pleted) .. .. .. . 12,000 0 0 New Zealand Inscribed Stock —War Commission .. .. .. 417 10 0 Loans .. .. .. .. 100,500 0 0 Premium and other deposits .. .. 443 14 (i New Zealand Inscribed Stock .. 3,000 0 0 Sundry creditors .. .. .. 1,713 18 2 Mortgages on property .. .. 38,805 0 0 Officers' Fidelity Fund .'. .. 400 0 0 Overdue interest .. .. Nil. Reserve for unearned premiums .. 15,805 0 0 Outstanding interest due £ s. d. Investment Fluctuation Reserve .. 3,000 0 0 but not overdue .. 105 16 3 Reserve Fund constituted under sec- Interest accrued but not due 1,620 0 3 tion 20 of the Government Accident 1,725 16 6 Insurance Act, 1908 .. .. 115,019 19 11 Agents'balances .. .. .. 697 8 7 Cash in hand and on current account .. 23,100 II 11 £177,888 17 0 £177,888 17 0 Government Insurance Department, 26th May, 1924. A. T. Traversi, F.1.A., F.C.A.S., Commissioner. G. A. Kennedy, 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. F. C. Campbell, Controller and Auditor-General.

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