ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1923.

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

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1924. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1923.

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

Government Insurance Office, Wellington, Ist July, 1924. Pursuant to the Government Life Insurance Act, 1908, I beg to make the following report upon tho transactions of the Department for tho year ended 31st December, 1923 :— - As foreshadowed in the last annual, report, J. H. Richardson, Esq., C.M.G., who controlled for so long a period the destinies of the Department, retired from the Commissionership during the year; and I was appointed to succeed him. on the Ist June, 1923. Staff. —Considerable inconvenience has been caused to the Department by the difficulty experienced in securing qualified actuarial assistance. It has taken twelve months to get the position of Assistant Actuary filled, and then only by sending to Great Britain. Not a single qualified candidate was available in New Zealand, and the reluctance of young New-Zealanders to qualify, notwithstanding exhortation, and in the face of obvious opportunities, must apparently be accounted for by their unfavourable verdict upon weighing the monetary inducement against the difficulty and lengthiness of the study, ranging over the whole field of insurance, economics, accounting, banking, and finance, and consuming mi the average about seven years. Whatever the cause, the result, following as it did after a similar and even longer delay in securing a previous appointee from Australia, has seriously hampered the work of the Department, as it concerns the best scientific and most indispensable assistance available to a life-insurance office. It has also had its effect upon the important actuarial work performed by this Department for other Departments of the State. Business. —The year has been a good one, as is evidenced by the following comparison with the previous year : — New policies issued— 1922. 1923. (a.) Number .. .. .. .. .. 3,797 4,754 (6.) Insuring .. .. .. .. .. £1,286,609 £1,581,722 Business in foree — (a.) Number .. .. .. .. .. 59,487 60,545 (6.) Insuring (exclusive of bonus) .. ..£15,995,235 £16,549,451 Income — £ £ (a.) Premiums .. .. .. .. 473,141 489,171 (b.) Interest .. .. .. .. .. 294,914 315,425 (c.) Annuity purchase-money .. .. .. 10,593 10,042 (ci.) Total income .. .. .. .. 778,915 814,638 Outgo for claims — (a.) Deaths .. .. .. .. .. 204,791 166,797 (&.) Matured policies . . .. .. .. 198,131 235,409 Accumulated funds .. .. .. .. 5,922,825 6,222,485 Insurance without Medical Examination. —During the year a system was instituted whereby insurance within certain limits may be effected without medical examination. It is particularly useful in out-of-the-way localities where no doctor is available. The results so far have been very satisfactory. Though a large number of policies has been effected, there has not up to the time of writing been a single claim. The Balance-sheet.— On the 31st December, 1923, the total assets of the Department amounted to £6,489,868. The following statement gives the distribution of the assets at the end of the year as compared with the previous year : —

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At 31st December, 1922. At 31st E )ecember, 1923. , , Percentage Amount. (]f ToU1 £ 2,743,870 43-7 854,240 13-6 1,982,900 31-6 233,025 3-7 136,895 2-2 162,941 2-6 162,148 2-6 Class of Investment. Amount. Percentage of Total Afsets. Mortgages on freehold property Loans on policies Government securities Local bodies' debentures Landed and house property Miscellaneous assets (lash in hand and on current account £ 2,674,831 874,657 2,180,270 252,601 142,131 160,236 205,142 41-2 13-5 33-6 3-9 2-2 2-5 3-1 6,276,019 100-0 Total .. 6,489,868 100-0

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During the year some difficulty arose in dealing with the investment of the Department's funds. A falling-off occurred in the demand for mortgage loans of the smaller amounts, and this, combined with an unprecedented increase in the Department's income, with resultant rapid accumulation of funds, caused the statutory limitations upon the Department's lending-powers to be more severely felt than hitherto. Under the circumstances special action was initiated, with the satisfactory result that at the end of the year the whole of the funds available were definitely contracted for. Jm Interest. —The net effective rate of interest credited to the Insurance Fund, after deduction of land and income tax from interest, was £5 6s. Bd. per cent. Investment Fluctuation Reserve. —It will be remembered that, owing to conditions arising out of the world war, it was deemed advisable in 1917 to set aside the sum of £99,704 to strengthen the Investment Fluctuation Reserve Fund. After full consideration of the improved financial outlook and all the other factors involved, and more particularly in view of the fact that the basis of valuation of the actuarial liabilities of the Department was being strengthened by approximately £250,000, it was decided that the best interests of the Department would be served by a repayment to the Assurance Fund, and accordingly £75,788 was transferred Fluctuation^Reserve Fund. ■ Triennial Investigation. —Tho triennial valuation of the Department's liabilities and assets as at 31st December, 1923, was completed by the Actuary early this year. The most important features of the valuation —the results of which are set out fully in the Actuary's report —are(l.) The valuation has been made upon the very severe basis of Om 3 per cent, as against the former Hm 3J per cent. —that is to say, not only is a more stringent mortality table employed, but a future interest-earning power of only 3 per cent, has been taken credit for in place of the former 3-J per cent. The result is a strengthening of the actuarial reserves by approximately a quarter of a million pounds, against which must bo reckoned the transfer from the Investment Fluctuation Fund mentioned above, the net strengthening of the total reserves being approximately £173,000. (2.) The material increase in the rate of compound reversionary bonuses provided by the record surplus of £336,350. The amount of cash surplus distributed to policyholders was £317,563, which is greater by £99,857 (or nearly 50 per cent.) than the amount divided at the last triennial investigation. It is extremely gratifying to be able to report that, as indicated above, the Department was able to place its rcservesjjupon so very strong a basis and simultaneously to declare bonuses in excess of anything done before. General. —The impregnable position disclosed by the actuarial valuation, including the very satisfactory margin existing between the rate of interest assumed (3 per cent.) and the actual earning-power of the Department's funds, which gives every promise of satisfactory continuance, indicates the virility of the Department and constitutes the best possible augury of future prospects. A. T. Teaveesi, F.1.A.,[ Commissioner.

Revenue Account oe the Government Life Insurance Department foe the Yeae ended 31st December, 1923. £ s. d. £ s. d. Amount of Funds at Ist January, 1923 5,922,824 13 4 Death claims under assurance policies, Renewal premiums — Assurance, An- including bonus additions .. 166,657 7_£o nuity, and Endowment .. .. 444,539 7 3 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 229,865 15 0 of first year's premiums falling due Endowments matured .. .. 5,542 15 0 in the year) .. .. .. 42,854 14 1 Premiums returned on endowments .. 139 8 3 Single premiums—Assurance and En- Bonuses surrendered for cash .. 2,416 12 5 dowment .. .. .. 1,777 2 4 Annuities .. .. .. 20,630 3 7 Consideration for Annuities .. 10,042 S 9 Surrenders .. .. .. 30,899 14 1 Interest and Rent .. £320,901 5 9 Loans released by surrender .. 43,589 12 9 Less land and income Commission, new* .. £30,501 8 10 tax, £8,098155. 4d.; „ renewal 3,148 18 9 property expenses, |§ 33,650 7 7 &c, £3,377 10s. 6d. 11,476 5 10 Expenses of management— 315,424 19 11 Salaries— £ s. d. Transfer from Investment Fluctuation Head Office .. 23,088 12 9 Reserve Account .. .. 75,788 0 0 Branch offices and agents ..12,499 1 8 Extra clerical assistance .. .. 629 0 8 Medical fees and expenses .. .. 6,225 15 8 Travelling-expenses 562 5 7 Advertising .. 484 0 8 Printing and stationery 1,904 13 11 Rent .. .. 5,236 18 10 Postage and telegrams 1,892 3 1 Exchange .. 43 17 8 General expenses .. 3,600 8 4 Triennial expenses .. 1,207 18 2 57,374 17 0 Amount of funds, 31st December, 1923 6,222,484 13 0 £6,813,251 5 8 £6,813,251 5 8 * Including agents' allowances.

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Balance-sheet of the Goveenment Life Insurance Department on 31st December, 1923. Liabilities. Assets. £ s. d. £ s. d. £ a. d. Total Assurance, Annuity, and En- Loans on policies .. .. 874,656 18 1 dowment Funds (as per Revenue Government securiAccount) .. .. .. 6,222,484 13 0 tiesClaims admitted, proofs not yet com- Consolidated stock 625,900 0 0 pleted .. .. .. 45,212 3 0 Debentures issued Annuities .. .. .. 548 12 0 under the au(Jommission .. .. .. 2,2C0 16 5 tliorityof theFiMedical fees .. .. .. 490 7 0 nance Act, 1915 40,000 0 0 Premium and other deposits .. 6,924 11 9 New Zealand InSundry creditors .. .. .. 3,782 8 8 scribed Stock— Officers' Fidelity Fund .. .. 1,200 0 0 War Loans .. 1,204,370 0 0 Investment Fluctuation Reserve .. 207,024 6 0 New Zealand Inscribed Stock — FinanceAct,l9l9 50,000 0 0 New Zealand Inscribed Stock— Discharged Soldiers Settlement Loan .. 110,000 0 0 New Zealand Inscribed Stock issued under the Aid to Public Works and Land Settlement Act, 1921 .. 150,000 0 0 2,180,270 0 0 Municipal Corporation debentures .. 149,256 4 4 County securities .. .. 17,312 18 8 Harbour Board debentures .. 33,100 0 0 Town Board debentures .. .. 29,180 4 8 Road Board debentures .. .. 21,800 0 0 Drainage Board debentures .. 1,945 10 0 Landed and house property .. 134,089 11 10 Landed and house property (leasehold) 1,579 4 0 Mortgages on property .. .. 2,674,830 14 8 Properties acquired by foreclosure .. 6,462 10 8 Overdue premiums on £ s. d. policies in force .. 7,496 17 7 Outstanding premiums due but not overdue 43,625 4 2 51,122 1 9 Overdue interest .. 8,067 5.5 Outstanding interest due but not overdue 7,634 13 6 Interest accrued but not due .. .. 79,870 5 8 95,572 4 7 Agents'balances .. .. .. 10,198 18 11 Sundry debtors .. .. .. 3,343 3 6 Cash in hand and on current account (held against definite commitments) 205,141 12 2 £6,489,867 17 10 £6,489,867 17 10 A. T. Tr&veesi, F.1.A., Commissioner. G. A. Kennedy, Secretary. Government Life Insurance Department, 24th May, 1924. 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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Statement of Business

TOTAL, Whole-life and Term Assurances. YEAR 1923. Annual Sum Rever- j Premiums. No - assured. | I- Ordinary. tSOnuses.j 2 . Extra. Annuities. 1. Immediate or entered upon2. Deferred. Sum BeverNo. aaauSd Nonary assured. Bon uses. Annual Premiums. 1. Ordinary. 2. Extra. HES ISSUED ANE DISCONPOLI £ £ £ s. d. £ s. d. £ £ £ s. d. 'olicios in force at 31st December, 1922 59,487 15,995,235 1,453,866 ( 481,366 13 11 1 1,980 19 9 21,136 16 11 \ 2,478 18 6 / 11,264 3,771,160 651,123 f 88,668 18 0 \ t 1,018 7 4) few Business 4,754 1,581,722 [ 48,689 19 10 1 125 1 0 1,072 14 6 \ (-) 12 0 4 j 720 372,850 j 10,174 9 1 | 1 48 10 4 j Total.. 64,241 17,576,957 1,453,866 ( 530,056 13 9 I 2,106 0 9 22,209 11 2,436 18 5! 2) 11,984 4,144,010 651,123 ( 98,843 2 1 I 1 1,066 17 8 f 'olioies discontinued during 1923 3,696 1,027,506 96,705 j 30,723 4 3 1 118 11 11 1,536 19 85 11 21 227,139 35,570 ( 5,414 3 11 ) I 70 1 0 f 612 'otal Policies in force at 31st December, 1923 60,545 16,549,451 1,357,161 ( 499,333 9 6 1 1,987 8 10 20,672 12 51 2,351 6 10 j 11,372 3,916,871 615,553: ( 93,428 18 2 I \ 996 16 8 J PARTICULARS OP P< LICIE 1 DISCON How discontinued. By Death 484 129,525 33,998 J 3,712 18 8 I 49 0 7 ( 7,176 12 71 \ 16 16 2| I 7,745 3 7 | 7 14 6 I 1,164 1 81 1 0 8 8f 1,536 19 Oj 270 89,914 29,865 ( 2,164 5 8 1 { 46 17 0/ Maturity 945 189,948 40,711 Surrender 952 260,959 9,969 85 11 4( 100 32,300 2,456 f 746 12 1 | ( 110 0 1 j 51 7 7 { \ •• I Cancellation 150 41,500 9 2,200 Surrender of Bonus.. 3,618 1,410 Lapse 1,165 405,450 7,923 j 10,579 10 31 1 34 19 If | 120 3 2) j 224 14 4) | 9 12 11/ 233 102,650 1,451 f 2,360 15 10 ) 1 14 10 8 / I 7 11 0 ) 83 12 2 1 I 7 3 4 [ Expiry of Premium.. 6 Miscellaneous 124 480 75 388 Total discontinued during year 1923 3,696; 1,027,506 96,705 ( 30,723 4 3 I 118 11 11 1,536 19 0) 85 11 4) 612 227 , 139 35,570 ( 5,414 8 11 1 70 1 0 I PRO* GRESS 3F BUi 5INESS OF ' THE GOVE 3RN3V IENT LIFE LIS rSURANCE Total issued .. 167,395 43,470,871 3,907,697 I 1,335,334 15 3 1 39,035 8 8 j 836,001 5 9 1 37,047 19 10 j 105,586 16 2 J 82,562 16 11 47,861 15,057,159J2,000,979] 11,140,28811,385,426 (391,623 17 91 ( 18,042 2 6( (298,194 19 7J \ 17,045 5 10/ Total void 106,850 26,921,420 2,550,536 36,489 Total in force 60,545 16,549,451 93,428 18 2 1,357,161 499,333 9 6 23,023 19 3 11,372 3,916,871 615,553 Extra Premiums Reduction of Pre: 1,987 8 10 996 16 8 liums I ly Bonus, ;o. £501,320 18 4 £94,425 14 10 Note.—The Ordinary Premium is the iremium charged 1 Wellington, 13th June, 1924.

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at End of Year 1923.

A. T. Tbaversi, F.1.A., Commissioner. C. Gostelow, E.1.A., Actuary.

ASSURANCES. SIMPLE ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. | Annual !; Sum Annuities. ! Annuities. Sum Annual No Sum sionarv Premiums. Rever- L Entered Annual „ Annual , 1. Immediate or N 2 a Revet- P * eI " iums ' assured, j 1. Ordinary. , No ' upon. Premiums. No ' Premiums, i entered upon. NOi 1. Ordinary. | Bonu8es ' ». Extra. j| I 2 ' De f erred ' |,»- Beferrel Bonuses. * Extra • TINUED DURING THE YEAR 1923. £ £ £ s. d. £ £ s. d. £ s. d. £ s. d. £ s. d. £ £ s. d. 45,67211,831,938 800,433(381,579 12 0) 47 / 10,885 250 1 6) 583 17 8 / 422 .. 20,886 15 5 1 2,079 /381,252 10,44218 9) t 962 12 5/ 1 1,561 2,153 9 6[ ( 3 91 12 6 325 9 0 f \ 749 .. J 3,8601,171,772 .. / 37,468 14 10 ) .. .. / ( + )16 11 4 \ .. / 17 .. 1,056 3 2) 158 / 37,100 1.046 15 11 ) 1 76 10 8 ) t(-)16 11 4 J t (—) 1 .. ( —) 25 9 0 / \ .. .. J 49,532 13.003,710 800,433 /419,048 6 10) 47 / 10,885 266 12 10| 583 17 8 / 439 .. 21,942 18 7 ) 2,237 / 418,352 11,489 14 8 } t 1,039 3 1) ( 1,561 2,136 18 2) 1 2 91 12 6 300 0 Of \ 749 .. J 2,886 761,517 60,317(24,199 11 0) 1 / 350 .. » 11 1 0 f 26 .. 1,536 19 0 ) 171 / 38,500 1,098 8 4) 1 48 10 11 J t 69 85 11 4 J J \ 749 .. / 46,6461-2,242,193 740,116 /394,848 15 101 46 / 10,535 266 12 10) 572 16 8 / 413 .. 20,405 19 7 ) 2,066 / 379,852 10,391 6 4 ) ( 990 12 2 j ( 1,492 2,051 6 10/ { 2 91 12 6 300 0 0 J ( .. .. J" I TINUED DURING THE YEAR 1923. 188 39,611 4,133 | 1,548 13 5 j .. .. .. j 26 .. 1.536 19 Oj .. 909 185,148 39,939 f 6,907 0 1)../..) .. .. !! " 36 / 4,800 269 12 6) 1 16 16 2 f I 29 f ( 743 .. J 753 206,759 7,473 / 6,367 12 10 ) 1 / 200 1 11 1 0 .. .. .. 98 / 21,700 619 17 8 ) I 6 4 6} ( 40 85 11 4f ' ( .. ) 130 37,600 .. / 1,078 5 6| .. .. .. .. .. .. .. 11 / 1,700 34 8 7 [ t 0 8 8 / 1 .... ) 2,208 906 292,350 6,472 / 8,057 13 2| .. 150 .. .. .. .. .. 26 / 10,300 161 1 3) 1 20 8 5 } j .... } / 112 12 2 ) .. .. .. .. .. .. .... 1 .. 1 j 6 49 92 J 127 13 10 .. .. .. .. .. .. .. .... / 13 8 4 i 1 2 9 7 f t .. | 2,886 761,517 60,317 / 24,199 11 0 1 1 / 350 ) 11 1 0 / 26 .. 1,536 19 0 ) 1711 38,500 1,098 8 4) ( 48 10 11) \ 69 85 11 4J {.. .. .. / I 749 J DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1923. 111423 27,880,723 1,895,178 1 9 16 2} 11106 { 57170 *3 e} 8,619 15 8 1,008 439 13 4 48,088 19 8 5,997 | 87 4'||| 27 '°|o 10 0 } 64,77715,138,5301,155,062 j 51 *'™ 8 19 q) ( "s'jas 155118 16 1} 8 > 046 19 0 593 348 0 10 27 - 383 0 1 3 ' 931 ( 10 0 | 46,64612,242,193 740,116 394,848 15 10 | 46 | 572 16 8 415 9* 12 6 2 0,705 19 7 2,066 | 379,852 10,391 6 4) 990 12 2 .. I .. ., .. £395,839 8 0 £572 16 8 £91 12 6 £10,391 6 4 at the true age; the Extra, the additional premium charged for any reason whatsoever.

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GOVERNMENT INSURANCE DEPARTMENT. STATEMENTS IN CONNECTION WITH THE VALUATION OF LIABILITIES (FOURTH AND FIFTH SCHEDULES) FOB TM TEIENNIUM ENDING 31st DEGEMBEB, 1923

Presented to both Houses of the General Assembly pursuant to Section 38 of the Government Life Insurance Act, 1908.

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REPORT BY THE ACTUARY RESPECTING THE VALUATION OF THE LIABILITIES UNDEB LIFE POLICIES AND ANNUITIES OF THE NEW ZEALAND (taenrawrt _\mmwna geprtmmt, In terms of Section 36 of the Government Life Insurance Act, 1908. FOURTH SCHEDULE. I. The date up to which the valuation was made was the 31st December, 1923. 11. The principles upon which the valuation and distribution of profits were made were as follows :— (1.) Principles of Valuation. — The valuation has been made upon a strictly "net premium" basis; in other words, no credit whatever has been taken for any loadings or extra premiums, the pure premiums alone having been valued for inclusion among the assets. The liability has been ascertained by taking the difference between the present value of the sums assured (including reversionary bonuses) and the present value of the pure premiums (derived from the British Offices 0 M Table with 3 per cent, interest). Where the original premiums have been reduced by the application of amounts received in consideration of tho surrender of bonuses or former policies the pure premiums have been reduced by an equal amount. In all cases where an extra premium was payable the policy has been valued at the true age, and a full proportion has been reserved for the unexpired risk for which the extra premium had been paid. Adequate extra reserves have been made for limited-premium policies and the immediate payment of claims in the case of whole-life assurances, and allowance has been made for the actual incidence of the premium income. Endowments have been valued as sums certain payable at the end of their respective terms, and mortality has only been taken into consideration where the premiums are payable during

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10

FOURTH SCHEDULE.

the joint lives of the child and purchaser, 3 per cent, interest being used. Annuities have been valued by the British Offices' Life Annuity Tables (1893), using 3 per cent, interest. In the case of annuity-assurances the value at the ago of entering upon the annuity has been computed by the above-mentioned Annuity Tables and treated as an endowment payable at tho specified age, which has then been valued, in combination with the insurance portion of the contract, by the 0 M Table, with 3 per cent, interest. The valuation has boon made in duplicate, and the policies valued in groups where practicable. (2.) Principles of Distribution of Surplus. — The divisible surplus is distributed among the policyholders entitled to participate as a compound reversionary bonus per cent, on sums assured and existing bonuses, for each premium paid since the last division, the rate of such bonus for each class of assurance being determined as far as practicable by the profit earned. An interim bonus is also paid, at the same rate, in respect of those policies which may bo surrendered or become claims before the next distribution of surplus. The profit from favourable mortality in the General Section and the Temperance Section respectively has boon estimated and specially divided among the members of the respective sections. The result is that Temperance policies will, on this occasion, receive compound reversionary bonuses at a rate four shillings per cent, per annum higher than General policies which are like them in all other respects. The divisible surplus has been converted into reversionary bonuses by means of the 0 M Table of Mortality with 3 per cent, interest, the reversion for a continuous assurance having been used for whole-life policies. 11l The Tables of Mortality used in the Valuation were, — (1.) For Assurances, the 0 M (British Offices) Table , (2.) For Annuities, British Offices' Life Annuity Tables (1893). rv. The rate of interest assumed in the valuation was 3 per cent. V. The whole of the loading, or the difference between the premiums payable to the office and the valuation "pure" premiums, amounting to £69,100 per annum and valued at £8-19,595, has been reserved for future expenses and profits; and in the case of limited-premium and paid-up policies, where the loading as well as the risk-premium is payable for a limited period only, a further reserve of £4,707 has been made to provide for expenses and profits when the premiums shall have ceased. VI. The Consolidated Revenue Account for the three years that have elapsed since the last valuation is given on page 11. VII. 1. The liabilities of the Department under life policies a.nd annuities at the date of the valuation, showing the number of policies, tho sums assured, and the amount of premiums payable annually under each class of policies, both with and without participation in profits, will be found in detail in the Valuation Summary given on pages 12 and 13. 2. The net liabilities and assets of the Department, with the amount of surplus, are shown in the Valuation Balance-sheet given on page 11.

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11

FOURTH SCHEDULE.

CONSOLIDATED REVENUE ACCOUNT OF THE GOVERNMENT INSURANCE DEPARTMENT Foe the Period commencing Ist January, 1921, and ending 31st Decembee, 1923. £ s. d. £ s. d. £ s. d. £ $■ d. Amount of Funds on ist Death Claims under Policies, January, 1921 .. .. .. .. 5,542,551 19 7 Assurances, including Bonus Renewal Premiums .. .. .. 1,291,436 9 7 Additions .. .. .. 53°> 22 5 5 0 New Premiums .. .. .. .. 128,049 o 2 Endowment Assurances maSingle Premiums .. .. .. 3,128 14 4 tured, including Bonus AdConsideration for Annuities ditions .. .. .. .. 634,908 6 o granted .. .. .. .. 31,772 6 10 Endowments matured .. .. 18,386 16 o Interest .. .. 930,284 3 8 Premiums returned on EndowLess Land and Income ments .. .. .. .. 764 910 Tax, £23,406 13s. 2d.; Bonuses surrendered for Cash .. !9,545 ! 7 4 Property Expenses, &c., Annuities .. .. .. .. 62,838 9 4 £12,458 10s. 9d. .. 35,865 3 11 Surrenders.. .. .. .. 87,455 17 3 894,418 19 9 Loans released by Surrender.. .. 107,579 18 7 Defalcation Recovery Account .. .. 267 6 6 Commission, New* .. .. 90,748 19 5 Transfer from Investment Fluctuation Reserve 75,788 00 „ Renewal .. 9,102 16 7 99,851 16 o Expenses of Management— Salaries, Head Office .. 73,459 2 3 „ Branch Offices and Agents.. .. 38,068 2 3 Extra Clerical Assistance .. 2,139 o 4 Medical Fees and Expenses 18,031 17 2 Travelling-expenses .. 2,737 4 6 Advertising .. .. 1,426 17 8 Printing and Stationery .. 6,621 18 1 Rent .. .. .. 13,573 12 9 Postage and Telegrams .. 7,199 15 6 Exchange .. .. 135 16 3 General Expenses .. 12,299 T 5 6 Triennial Expenses .. 5,035 6 o 180,728 8 3 Marryatt Defalcation Account .. 2,643 o 2 Amount of Funds on 31st December, 1923 .. .. .. .. 6,222,484 13 o £7.967,4'2 16 9 £7,967,412 16 9 * Including Agents' allowances. VALUATION BALANCE-SHEET OF THE GOVERNMENT INSURANCE DEPARTMENT, /Is at 31st December, 1923, Dr. £ Cr. • £ To Net value of Liabilities (as per Valuation Sum- By Accumulated Funds (as per Consolidated mary) .. .. .. .. .. 5,886,135 Revenue Account) .. .. .. .. 6,222,485 To Surplus .. .. .. .. .. 336,350 £6,222,485 £6,222,485

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1923.

I 619 ' 168 'e ! 6f8'f£l'f 569 '696 't 89f'5SS'6 809'598 j I0£'85f OOi'iSS'SI ?,Zf'Z9 " " " sigMJ q?iAi saanumssy pqox LOL'f PPY LOL'P ?orip8Q; "• •• •• •• •• •• •• •• •• SuipBCi jo aAjasa'g 5i6's6S'e 9s9'6si't IZ-i ■ ■ '' IZl '" • ■ " ■ • • '" '" • • • • samiuiaid ra(|xa ioj OAiasay ( i9o3?<K>dnp,!Hig;\ .. ' , , I TQO'SFF 'psjjtaiarr „ PZP'Ll 1918 696 8 £81 IS P\<J 8i£ j —X,mmre pn« r 9 P " " " " " saouumfssy £)inuuy 1 LZO'Zl I ■ ■ ■ ■ fz '' ' • 9S X ' ' '' ' ' "' ' ' saatramssy d;i[SJ0AtAing OM o [P 00S oee ZS SP 518 I •• '■ " •• fcaauBinssy " 1 -01 06S 119 099 18 96 roO'T I " "" sramtn<u£ pxre ajSuig " " " £50 '5 58i'8 918 'I" 108 'S SOS f88 iOf'6 ZZ " • • : saan«jnssy W°f 91 SI I en 1ST 8 8 OOf I •• •• •• smnnnaj,j patron : sjgoj<j uijxjj — jo uj.n;oi !j )ia\. 'saaueinssy jnara \iopng; paxiajaQ £19 '5 869 '6 £f£'0I 898'5I 8ff Z8t 0£f'85 18 " " ' srararasjj m.iojra/1 : «j}xg; —smmuijjj jo u.i ipiAi 'saanuinssy juaniAiopnjj pauajaQ; 85 SIS 8t9 ess | 61 PZ 008 'S \p ■■ ■■ ■■ iiuuipjo —snmiuiajj jo uj 1140.1 ipiM 'saouBJnssy pauaja(j 585'8 •' " 585 '8 " " Z88'f 18 "" " • • snmiraajj puB 'ai§uig " " 68S'i90'l WIOI'I £f0'595'l 886'891'S 988*16 f89'80I 8Il'If6'8 I88'8I " " snmiraajj raiojiufi—saoire-mssy (uauiAiopug ajqnoa 129'!! [ I £'55 9i5'£5 59 1 'f 8 llOi'l Z06'T 05? '8f LL\ " " " sigojj; Bi!)xa iftiAV 808 'It 899 '95 998'58 U8'89 899'S 605'8 OIt'951 ?I8 sumiuiai,! pa?)uuiTnoo pm 'aiSmg 'pa;;uin 6IS'09L'S 8£f'6IZ'S 66t'008'8 LLL'6LP'B iSl'tSS I09'08S I90'689'8 651*58 " " " snmiraajj raJojinQ—saamanssy £60'?9I 691 905 ?95'?9I 19 PL 691'515 568 samnnajj pue 'aiSnig 'pafittJiq; 065' 158' I 8ft'0iS [10'868 869'I6S'I 815' 18 6£t'i8 588'I8I'5 988'£ " " " sxnniraay; tujojiuh—saoweanssy _ j „ T „ j -siyojj ui uor>BdppjB d •SHONVHnSSV i I i ! : : ; •i£»n!q«I1 •sumiuiQjj | "siunirasjd; •sasnuojr pu-e -sraniraajj I , sumiui9i < i -sssnuog -saioiioj * 19N" ' AiJ'eai paJnss'B srans | I-e0 A 90 ®O p9Jnss« srang jo jaqtun^ % g ) XOIXJIUOSaa '8681 «S90©0 : saniTA 'K0IITHT7A saionoj ao snvmoLLHTd % g '9iq«i ko ; s90n«jnssy) 1! .

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13

FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1923— continued.

■ Particulars of Policies fob Valuation. — i Assurances: On Table, 3 % Interest. Values - Annuities: British Offices' Annuitv Tables, 1893 I 3 % Interest. DESCRIPTION OP TRANSACTIONS. Number of Policies. Sums assured and Bonuses. Office Yearly Net Premiums. Premiums. Sums assured [ Office Y*early Net and Bonuses. Premiums. Premiums. Net Liability. II.—Without Participation in Profits. Whole-life Assurances —Uniform Premiums „ Limited, Single, and Commuted Premiums Endowment Assurances —Uniform Premiums „ Limited, Single, and Commuted Premiums Deferred Whole-life Assurances, with return of Premiums — Uniform Premiums Limited Premiums Deferred Endowment Assurances, with return of Premiums — Uniform Premiums Limited Premiums Joint Life —Whole-life Assurances Industrial Assurances Temporary Assurances 5,066 51 612 1 £ 2,096,047 30,263 172,500 300 £ £ 54,323 52,033 1,056 1,035 5,452 5,129 £ 1,039,791 15,131 103,484 250 £ 873,404 9,970 71,857 £ 844,434 9,753 67,560 £ 195,357 5,378 35,924 250 59 3 24,500 5,000 178 170 35 35 5,769 1,029 4,578 841 4,382 841 1,387 188 453 2 i ! 2 2 105,900 200 : 500 40 1,100 1,727 1,691 22 19 15 9 42,903 108 336 24 5 32,660 *232 „ __. 31,974 204 10,929 108 132 24 5 Total Assurances without Profits 6,252 2,436,350 62,809 60,121 ■ 1,208,830 , 993,542 959,148 249,682 Total Assurances 58,675 17,694,050 491,310 422,729 10,761,298 5,963,234 5,113,997 5,647,301 ENDOWMENTS. Simple Endowments, with return of Premiums Endowments —Premiums cease on death of Purchaser 994 I 461 | 153,162 I 59,400 j 5,503 2,428 I 107,077 41,711 52,628 21,660 49,011 20,212 58,066 21,499 5,147 2,265 Total Endowments 1,455 212,562 7,931 7,412 148,788 | 74,288 69,223 79,565 ANNUITIES. (Per annum.) 413 i 20,406 I 2 j 300 i 92 I 159,008 261 159,008 261 Immediate Deferred Total Annuities 415 20,706 i 92 I 159,269 159,269 Total of the Results 60,545 17,906,612 I 499,333 i 430,141 11,069,355 6,037,522 5,183,22(1 and £23,024 per j and £1,987 j annum. jertra premium I I (notvamed). I I 1 ' 5,886,135

fi.-8

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FOURTH SCHEDULE.

VIII. All participating policies which were in force at the date of the valuation, however recently effected, share in the profits. The reversionary bonuses allotted to policies recently issued follow the sum assured—i.e., they vest immediately, and are payable with the sum assured as a claim, however short the duration; but, except in the case of short-term doubleendowment policies, they do not acquire a cash value for surrender purposes until the policies to which they belong have been two years in existence. IX. The results of the valuation are as follows :— (I.) The total amount of profit made by the Department during the three years ending the 31st December, 192), including a balance of £20,998 carried forward three years ago, on the basis of a 3 per cent, valuation, was £335,560, of which amount has been paid as interim bonuses during the triennium. (2.) The amount of profit divided among the policyholders as at the 31st December, '1923, was £317,563, which has been converted into reversionary bonuses amounting to £476,958. The number of policies which participated was 53,878, assuring the sum of £14,113,101, or, including reversionary additions, £15,470,262. (3.) The following are specimens of the bonuses which have been allotted, for the three years ending the 31st December, 1923, to policies for £100 upon which all previously allotted bonuses had been allowed to remain

Whole Life (Temperance Section).

The cash values of the reversionary bonuses are computed by the H M Table of Mortality, with interest at per cent. Cecil Gostelow, F.LA., Actuary.

AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 20. 30. 40. 50. Number Years In ~ I Years in Force. Reversionary Cash Reversionary Cash Reversionary Cash "Reversionary Cash Force. Bonus. Value. Bonus. ' | Value. Bonus. Value. Bonus. Value. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 25 54° 209 540 2120 54° 355 54° 3 18 5 25 30 59° 282 590 3 1 10 59° 3 '5 5 590 4 7 8 3° 35 5 '9 » 2 ig 6 5 18 o 3 14 3 5 16 o 4 7 6 5 16 o 4 18 2 35 Endowment Assurance. —Term 20 Years (Temperance Section). 5 4120 296 4120I210314120 2 11 4 4120 2 14 6 5 10 4 17 0 3 3 10 4 17 0 3 4 4 j 4 r 7 0 3 5 io 4 J 7 ° 3 7 3 i° 15 520 420 520 4251520 42 11 520 439 I 5 20 570 570 57° 57° 57° 57° 57° 57° 20

15

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M B _P O H T BY THE I In terms of Section 37 of the Government Life Insurance Act, 1908. FIFTH SCHEDULE.

STATEMENT OF THE LIFE ASSURANCE AND ANNUITY BUSINESS OF THE GOVERNMENT INSURANCE DEPARTMENT ON THE 81ST DECEMBER, 1923.

Question I.—The published table or tables of premiums which are in use at the date above mentioned. Answer. —The tables of premiums in use are contained in Appendix No. 1. Question 2.—The total amount assured on lives for the whole term of life which are in existence at the date above mentioned, distinguishing the portions assured with and without profits, stating separately the total reversionary bonuses, and specifying the sums assured for each year of life, from the youngest to the oldest ages. Question 3.—The amount of premiums receivable annually for each year of life, after deducting the abatements made by the application of bonuses in respect of the respective assurances mentioned under heading No. 2, distinguishing ordinary from extra premiums. Answer to Questions 2 and 3.—This information is contained in Appendices Nos. 2, 3, 4, 5, and 6. Question 4.—The total amount assured under classes of assurance business other than for the whole term of life, distinguishing the sums assured under each class, and stating separately the amount assured, with and without profits, and the total amount of reversionary bonuses.

H.—B

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FIFTH SCHEDULE.

Question 5.—The amount, of premiums receivable annually in respect of each such special chiss of assurances mentioned under heading No. 1, distinguishing ordinary from extra premiums. Question 6. —The total amount of premiums which has been received from the commencement upon all policies under each special class mentioned under heading No. 4, which are in force at the date above mentioned. Answers to Questions 4, 5, and 6 are contained in the following table :—

IAnnual 'REMIUMS. Class of Assurance. J 3 wi Reversionary Bonuses. Total Ordinary Premiums received. Sums assured. Ordinary. Extra. With Profits. 27,027 £ £ s. £ »• *. £ «• <*• £ i. d. Endowment Assurances 6,335,228 483,326 8 231,992 17 3 554 10 8 |2,i56,577 3 5 Long-term Endowment Assurances 5,416 1,865,835 129,788 4 51,817 11 4 399 1 6 487,997 2 6 Double-endowment Assurances 13,412 3,822,280 123,819 10 103,633 13 7 20 611 916,633 9 o Endowment Assurances with extra profits 177 45,250 3,170 6 1,907 7 11 13,044 '5 5 Deferred Endowment Assurances 4 2,800 23 13 10 23 13 I0 Deferred Endowment Assurances with extra profits 88 28,850 494 19 3 2,592 3 7 Joint-life Assurances 23 9,800 607 o 479 16 11 3,449 l8 » Survivorship Assurances 1 40 15 18 37 2 2 Joint Endowment Assurances .. 1 800 12 o 45 2 8 203 2 o Annuity Assurances 46 10,535* 1,491 14 572 16 8t 11,754 18 2 Endowments : With return 994 153,162 5,502 19 10 48,899 IO IO Endowments : Premiums ceasing on death of purchaser 461 59,400 2,428 9 6 21,137 1 3 2 Without Profits. 172,800 5,452 3 1 38,713 19 1 Endowment Assurances 613 16 13 1 Joint-life Assurances 1 500 21 13 4 238 6 8 Deferred Endowment Assurances 455 106,100 1,727 8 4 9,866 9 1 Industrial Assurances 2 40 o 17 4 35 4 IO Temporary Assurances 2 1,100 15 4 8 15 4 8 Totals 48,723 £12,614,520 £742,231 0 £406,116 15 6 £990 12 2 £3,711,219 17 4 * And annuities deferred, £2,051 6s. iod f These amounts are also shown under ' . ; and entered 1 ' Deferred Annu: [pon, £266 12s. 1 ities " in answer )d. :o Question 8.

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FIFTH SCHEDULE.

Question 7. —The total amount of immediate annuities on lives, distinguishing the amounts for each year of life.

ANSWER TO QUESTION 7. Total Amount of Immediate Annuities on Lives, distinguishing the Sex, and the Amounts for each Year of Life.

3—H. 8.

Amount of Annuities. Age attained. . Female. Male. ! I £ s. d. ; £ s. d. 38 .. .. 52 o o 39 • • • • 44 5 o 46 .. .. .. 63 11 8 47 .. .. 119 10 8 49 • • . • 25 16 8 50 .. .. 110 o o 5 1 •• •• .. 27 16 o 52 .. .. 110 17 0 63 68 53 •• •• 32 5 ° 217 o 0 55 ■ ■ ■■ 74 10 o 107 2 4 56 •• •• 73 9 4 172 13 4 57 •• •• 133 3 4 237 4 8 58 .. .. 30 18 4 98 8 4 59 .. .. 32 7 8 428 1 10 60 .. .. 215 9 o 152 17 8 61 .. .. 115 6 8 255 6 4 62 .. .. .. 344 0 o 63 .. .. 239 9 4 350 9 o 64 .. .. 1840 365 116 65 ... .. IOI 16 2 765 4 0 66 .. .. 499 3 4 100 3 4 67 .. .. 135 15 o 387 10 10 68 .. .. 101 5 8 484 11 8 69 .. .. 780 12 o 414 11 6 70 .. .. 121 10 o 313 1 8 71 .. .. 136 16 4 1,601 10 o 7 2 •• 4 I 7'3 6 444 J 7 4 73 •• •• 153 J 4 4 251 5 8 74 .. .. 168 7 0 423 19 4 75 443 i? o 151 3 8 76 .. .. 598 13 8 604 6 o 77 .. .. 68 11 8 53 1 6 78 .. .. 393 II 4 299 9 o 79 .. .. 291 17 4 239 II 4 80 .. .. 375 5 10 327 0 4 81 .. .. 99 3 6 198 5 6 82 .. .. 171 7 o 256 9 10 83 .. .. 181 6 8 256 10 o 84 .. .. 65 1 8 483 10 10 85 .. .. 215 12 o 62 12 o 86 .. .. 101 40 96 2 8 87 .. .. .. 476 13 10 88 .. .. 51 8 10 11 1 3 89 .. .. .. 129 14 4 91 .. .. .. 29 12 8 92 .. .. .. 66 13 10 94 .. .. .• 37 14 6 97 .. .. 300 00 Totals .. .. £7,4015.10 £11,849 17 9 - Joint and Survivorship. Age attained. Amount of Annuity. Female. Male. £ s - d. 63-60 .. .. 1 I 10 o 0 64-62 .. .. I I 109 o o 65-61 .. .. I I 25 9 o 75—71 . . . . I I 200 O O 77-76 .. •• 2 2 152 19 4 79-73 .. 1 1 75 ° 0 82-71 .. .. 1 1 5° 19 4 82-75 •• 3 3 278 4 4 84-70 .. .. 1 1 17 13 4 90-86 .. .. 1 1 193 1 o 96-81 .. .. 2 2 42 9 8 Totals .. .. | 15 I 15 I £1,154 16 0

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FIFTH SCHEDULE.

Question 8.—The amount of all annuities other than those specified under heading No. 7, distinguishing the amount of annuities payable under each class, the amount of premiums annually receivable, and the amount of consideration-money received in respect of each such class, and the total amount of premiums received from the commencement upon all deferred annuities.

ANSWER TO QUESTION 8. The Amounts of all Annuities other than those specified under Heading No. 7.

Question 9. —-The average rate of interest at which the funds of the Department were invested at the close of each year during the period since the last investigation. Answer. —The net effective rate of interest credited to the funds of the Department for each year of the triennium, after deducting land and income tax, was as follows: —■ £ s. d. 1921 ... ... ... 5 3 5 1922 ... ... ... 5 3 11 1923 ... ... ... 5 6 8 Question 10. —A table of minimum values, if any, allowed for the surrender of policies for the whole term of life, and for endowments and endowment assurances __ or a statement of the method pursued in calculating such surrender values, with instances of its application to policies of different standing, and taken out at various interval ages, from the youngest to the eldest. Answer. —The minimum surrender values at present ruling for whole-life and endowment assurance policies issued at the present rates of premium are given in Appendix No. 7. - In the case of simple endowments, with return of all premiums at death of nominee, the premiums are returned without interest, as surrender value. Other endowments and children's deferred assurances are treated specially.

Class of Annuity. Amount of Annuities. Annual Premiums, Single Premiums. Total Premiums roceivod to 31st December, 1923. £ •• d. 300 0 0 £ s - d - 91 12 6 £ •■ d. £ -■ d. 239 5 o Deferred (Premiums not returnable) Deferred (Annuity Assurances)* 989 9 1 247 1 7 32 5 o 5,463 9 4* Deferred (Annuity Assurances)! 1,328 10 7 325 15 1 6,291 8 10J Totals £2,61719 8 j (£664 9 2 £32 5 0 (£11,994 3 2 * Including £175 6s. 4d., annuity " entered upon " and Ltid whole-life assurances tor ,-{"5,547. I These amim temporary assurances mts are also given in ai : for £4,988. - t Incl nswer to Questions luding £91 6s. 6d., an 5 and i>. nuity "entered upon ,!

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FIFTH SCHEDULE.

Question 11. —A statement to be furnished of the manner in which policies on unhealthy lives are dealt with. Answer.—When proposals are made on lives which, although not of such inferior quality as to merit total rejection, are considered not to reach the requisite standard for insurance at the ordinary rates of premium, such proposals are accepted at increased rates. Great refinement is not attempted in the assessment of lives, proposals being as a rule either accepted at par, with an extra premium of 10s. per cent, of the sum assured, an extra of 20s. per cent., or declined. The alternative of a fixed contingent debt in lieu of extra premium, if not remissible, is always offered. The true age is taken as the basis of surrender calculations, except in the cases of paid-up policies, the surrender values of which are calculated at the rated-up ages. The Appendices alluded to above have been compiled under the immediate supervision of Mr. C. Gostelow, F.1.A., the Actuary to the Department. A. T. Traversi, F.1.A., Government Insurance Commissioner. 20th June, 1924. I

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FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1923.

.'lass of Assurance, with Participation in Profits. Age Age 10. 15. Age sj. Age Nearest Birthday. Age Age Age Age Age 30. 35. 40. 45- 50. Age Age 55- 60. Age 20. H f £ s. d. £ s. d. I hj • A Annual premiums dur- 1 7 9 1 11 3 jj rt 0 ing the whole term £ cUmh 13 s Single payments .. 27 11 030 7 o 1 fi n" j£ . 5 Annual premiums.— ' o B 10 Limited to 10 years 3 15 c 4 1 8 Ss,„ B 15 • „ 15 „ 2 14 8 2 19 9 § u B 20 „ 20 „ I 2 4 10 2 9 1 ■s £ o B 25 „ 25 „ 1 19 1 2 2 11 B 30 ,, 30 „ 1 15 5 1 19 o a «i°° B 35 „ 35 „ 1 13 o 1 16 4 A B s B 10 B 15 B 20 B 25 B 30 B 35 / s. d. 1 15 7 33 12 o 4 9 10 3 5 11 2 14 2 276 2 3 3 205 £ ■■ d. 1 19 11 3610 o 4 17 o 3 11 3 2 18 9 211 7 2 7 1 242 £ s. d.£ s. d. £ s. d. £ s. i. £ s. c 25521243 1 33 13 249 I I 39 19 043 16 048 2 053 1 o 58 IO 5 5 4 5 ! 5 o 6 6 1 6 19 4 7 15 3 17 74 5 04 13 95 4 65 17 1 3 4 23 10 73 18 54 8 451 2 16 73 2 7 3 10 o 3 19 10 4 13 2 11 10 2 17 9 3 5 3 3 15 .4 281121410327 £ s - d - 3 J 3 48 2 o 6 6 1 / ■■ d. 3 13 2 53 1 o 6 19 4 5 4 6 4 8 4 3 19 10 3 15 4 £ K - d. 4 9 2 58 10 01 7 15 2 5 17 10 5 1 2 4 [ 3 o d. £ s. d / s. d, 2 5 11 5 7 3 7 o 64 9 o 70 16 o 2 8 14 6 9 19 4 10 6 15 3 7 18 11 2 5 18 8 o 4 13 9 3 18 5 3 10 o 3 5 3 327 <u . ~ r <u Annual premiums.— Term 10 years „ 15 20 . 25 ,. 30 a 35 ,, 40 „ ,, 45 » « 50 „ . 55 .. 60 . 65 „ -0 IH B o 1 'u a a o^s o . 1- u « h o o ., 0} o *l 9 <*H S ° O T3 a m 2 Annual premiums.— u -g <" Term 10 years .. 980991 a £ % n IS . .. 5 19 3 6 o 6 » 20 „ ..459471 „ 25 „ ..363378 u 2 t „ » 30 , .. 2 13 10 2 15 5 c C ,,35 „ ..255272 o~ -5 „ 40 „ .. 1 19 7 2 1 5 "> in o » 45 .. 1 15 5 1 17 5 0 ° - ,, 50 „ . . 1 12 6 1 14 9 3 55 .. 1 10 5 1 12 11 i. rt r> 6O I 9 1 I II 10 „ 65 , ..183 .. in ■J3 O u rH 9 II 6 628 4 9 1 3 9 9 2 17 7 2 9 5 2 3 11 203 1 17 IOj 1 16 4 1 9 12 o 6 3 5 4 10 1 3 IO II 2 [9 O 2 II 2 2 6 I 2 2 10 2 O IO 9 '3 3 9 14 8 9 16 5 9 19 8'io 4 6 4106 6 66 811613 1 6 19 4 11 9 4 13 ii 4 17 05 2 2| 5 10 -, TO T, -. T P r, ., A . A ~ . T r T 9 13 3 6 4 10 4 11 9 3 12 11 3 1 4 2 14 o 296 2 6 IO 9 14 8 6 6 6 4 '3 11 3 15 7 3 4 7 2 18 1 2 14 3 9 16 5 6 8 11 4 17 o 3 19 6 3 9 7 3 4 0 9 19 8 1 6 13 1 522! 460 3 17 4 10 4 5: 6 19 4 5 10 3 4 15 10 510 12 311 5 2 4797861 3630 <« c tH O 3 12 11 3 15 7 3 19 64 6 o 4 15 i 10 3143473973 17 4 -;. ~„.o ._ . _ 21402181340 2962 14 3 2610 c/i in o a 21 M w -3 I 2 C Annual premiums.— Term 25 years ,, 3° 3 18 10 4044254384 5 848 3 5 4 3 7 03 9 3 3 10 8 3 13 2 3 16 4 5 84 8 5 4 12 6 4 19 25 9 3 13 2 3 16 6 4 I 9 4 9 10 4 8 5 3 16 6 i 5 i 6 412 6 4 1 9 4 19 2 4 9 10 5 9 4 .. 4 Note.—In additic on the sum assured v 311 to participating in ordinary profits, a special re /ill be allotted in this table. its, a special reversionary bonus of 20s. pe: :ial reve: ever ■sionary 1 onus of 20s. per ;r cent, per annum u o 3 O 0> 0J IH in m O 'rt u la u 3 0) t/i .-=. -as.- 1 o Annual Premiums. Difference between Age of Elder and Younger Life. Double Endowi nent Assurance. For the assuiance of death during the 1 ment of in I assured surviving tl £100 in the event of term, and an endow:he event of the life le term. Age of Younger Life (nearest Birthday). o Years. 2 Years. 4 Years. 6 Years. 8 Years. 10 Years. Annual Premium. I I Term. E 20 25 30 35 40 45 50 £ ■■ d. 2 14 11 3 o 11 3 8 n 3 18 10 4 11 7 5 9 0 6 12 5 £ •■ d. 2 16 1 325 3 10 9 4 1 3 4 14 9 5 13 5 6 18 3 £ s. d. 2 17 4 342 3 12 n 440 4 18 6 5 18 5 7 5 2 £ s. d. 2 18 IO 360 3 15 4 4 7 1 5 2 11 642 7 13 3 £ -■ d. 307 382 3 18 1 4 10 10 5 7 10 6 10 11 828 £ s. d. 326 3 10 7 412 4 15 2 5 13 6 6 18 9 8 13 7 10 years 15 1, 20 „ £ s. d. 17 12 o II o o 25 « 30 „ 35 „ 7 14 o 5 16 o 4120 3 15 o

H—B.

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1923.

21

Class of Assurance without Participation in Profits. Immediate Annuities. Endowment Assurance. T,-, , V r . „, . Showing the Sum to be paid Whole-lite Assurance. , , T , . Temporary Assurance. , " T ,. , . r ., Annual Premium to t J for an Immediate Annuity Premium required to secure /too, payable at secure /too payable Premium to be Paid for assllring of /10 payable by Half1 j it, 1 at End of term 111- , _.._., ° yearly Instalments. death ""'y- dicated, or at Death I0 ° 0B a Sm S le Llfe - if prior. Age Nearest Birthday. Age Premium Limited to Annual Annual Annual Age earest Single Annual Term Term Premium I Premium Premium Last Mol „ T^milo tirth- Premium. Premium. 25 Years. 30 Years. for for for Birth- rcmate. lay. 10 Years. 20 Years. 1 Year, j 3 Years. 5 Years. day. Single Premium. Annual Premium. Premium Limited to m. 25 ~\ 10 Years. 20 Years. 10 15 20 25 30 35 40 45 50 55 60 £ a. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d, £ s, d. £ s. d. £ s. d. £ s. d, £ s. d. 10 22 4 0 I I I 2 13 6 I 12 7 2 19 I 273]' 80 51 IO 10 55 10 O 15 24 17 o 144 300 1 16 9 305 289 I 1 o o 106 1 1 o 79 53 19 2 58 5 o 20 27 18 o 1 8 5 3 8 o 2 1 10 325 2 10 9 j 78 56 9 2 61 1 8 25 30 13 o 1 12 4 3 14 10 263 337 2 12 2 108 1 o 11 114 77 59 o o 64 o o 30 34 o o 1 17 6 4 3 5 2 11 9 3 5 5 2 14 5 130 135 1 3 10 76 61 12 6 67 o 10 35 37 12 o 239 4 12 10 2 18 1 3 7 11 2 17 6 153 160 1 6 7 75 64 7 6 70 2 6 40 41 16 o 2 II 10 5 3 10 3 5 9 3 11 9 323 186 1811 197 74 67 5 0 73 5 10 45 46 11 o 326 5 17 1 3 15 6 3 17 10 398 1 12 6 1 14 1' 1 15 7 73 70 3 4 76 10 10 50 51 17 o 3 16 7 6 12 7 4 7 11 474 .. 206 221 240 72 73 5 o 79 17 6 55 57 i° o 4 '5 6 7 11 4 .. .. .. .. .. .. 71 76 8 4 83 5 10 60 63 it o 6 1 6 8 14 10 .. .. .. .. .. .. 70 79 12 6 86 16 8 69 82 17 6 90 11 8 68 86 2 6 94 9 2 Deferred Assurances for Children. 67 89 7 6 98 8 4 66 92 12 6 102 8 4 ' 65 96 o o 106 7 6 Without Profits. <?4 99 9 2 no 6 8 63 102 18 4 114 4 2 Endowment Assurance. With Extra Profits. 62 106 76 118 o o Whole-life „ A , . 61 109 16 8 121 15 10 . Endowment Assurance. a„ tt „ „ e. T , c to fi Assurance. 00 113 7 o 125 12 o 59 117 o o 129 7 6 58 120 12 6 133 3 4 Age. Premium to secure payable 57 124 2 6 136 17 6 Premium to secure payable at Death after 56 127 10 10 140 n 8 "" At Death! ~"~ At Death after Age at, «■ °< at *>■ 55 130 -6 S 144 - aiter °_ 53 137 4 2 151 4 2 I 52 140 5 0 154 12 6 Age 21. Age 30. Age 50. Age. Annual Premium. Age. Annual Premium. 51 143 r 0 157 ig 2 ! - 50 146 4 2 161 4 2 49 149 o 10 164 10 o £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 48 t5I l6 8 l67 I5 0 0 o 12 2 208 o 19 4 o 164 8 1 17 5 47 154 10 10 170 18 4 1 o 12 8 2 2 n 102 1 176 9 1 19 2 46 157 5 o 174 o 10 2 o 13 2 253 1 1 o 2 188 10 211 45 I5g I? 5 I?7 0 I0 3 o 13 8 2 7 10 1 1 11 3 1 9 11 11 231 44 162 8 4 179 19 2 4 o 14 3 2 10 7 1 2 11 4 1 11 3 12 253 43 164 19 2 182 16 8 5 o 14 10 2 13 7 1 3 11 5 1 12 8 13 277 42 j67 g 2 l8s „ 8 6 o 15 5 2 16 11 150 6 1 [4 2 14 2 10 1 4I l6g l8 4 l88 j I0 7 o 16 1 306 162 7 1 15 9 ■■ ■• 40 172 6 8 190 18 4 8 0160 t. a \ 175 £ ■■ d. 22 4 o 24 17 o 27 18 0 30 13 o 34 o o 37 12 o 41 16 o 46 II o 5i 17 o 57 i° o 63 it o £ s - d - 111 1 4 4 1 8 5 1 12 4 1 17 6 2 3 9 2 II 10 3 2 6 3 16 7 4 15 6 6 1 6 d, £ s. d. £ s. d. £ : 1 2 13 6 1 12 7 21 4 300 1 16 9 3 5 380 2 1 10 3 4 3 14 10 263 3 6 435 2 11 9 3 9 4 12 10 2 18 1 3 10 5 3 10 3 5 9 31 6 5 17 1 3 15 6 31 7 6 12 7 4 7 11 4 6 7 ir 4 6 8 14 10 80 79 78 77 76 75 74 73 72 7i 70 69 68 67 66 65 64 63 62 61 60 Deferred Assurance: Without Profits. Whole-life Assurance. Endowment Assurance. Age. Premium to secure payable At Death At Death after Age 21, after or at Age 21. Ago 30. Age 50. £ s - d - 0 19 4 102 1 I o I I II 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 4° o I 2 3 4 5 6 7 8 £ ■■ d. O 12 2 O 12 8 O 13 2 0 13 8 o 14 3 o 14 10 o 15 5 o 16 1 o 16 9 o 17 5 o 18 2 o 19 o 0 19 10 1 0 8 1 1 7 £ ■■ d. O 12 2 O 12 8 O 13 2 o 13 8 o 14 3 o 14 IO o 15 5 o 16 1 o 16 9 o 17 5 o 18 2 o 19 o 0 19 10 1 0 8 1 1 7 £ ■• d. 208 2 2 11 253 2 7 10 2 10 7 2 13 7 2 16 II 306 3 4 5 3 8 10 3 T 3 7 3 18 11 4 4 II 4 11 8 4 19 3 I 2 11 I 3 11 1 5 o 162 1 7 5 1 8 9 1 10 1 0 o iu y 3 4 5 1 7 S „ „,„_ .. O T ~ T Q~ '— i 9 0175 38 10 189 j° o 10 o \ 18 II I II 7 After age 2I the policy in addition t0 participating 12 o 19 10 4 4 11 1 13 2 in the ordinary profits will receive an extra re108 I 11 8 1 14 10 versionary bonus of 20s. per cent, per annum on 14 117 4 19 3 1 16 8 the sum assured. 9 10 11 12 1 n 7 1 13 2 1 14 10 1 16 8 13 14 - 11, 1 1 .-IT, F 1< T~1 -_t_____ — — „ .-./]... I hhC * 1 yl f,UnnM fl 1 .-i V\ £1 + r\ ** d nn"A O T Premiums payable thro; tghout whole tei •m of policy. 'remiums refunded if child should die before age 21.

H.—B.

FIFTH SCHEDULE.

Appendix No. 2. ASSURANCES FOR THE WHOLE TERM OF LIFE WITH WHOLE-LIFE PREMIUMS, WITH PROFITS, In force at 31st December, 1923.

22

I I • I • Office Annual Premiums. Age Number of Amount Bonus _ Net Age attained. Policies. assured. Additions. Premiums. attained. Ordinary. Extra. I : £ £ s. £ s. d. £ s. d. £ 38 i 650 160 4 10 4 10 .. 7-23 38 39 1 300 74 1 4 J 4 6 .. 3'44 39 40 1 100 24 10 1 ix 1 .. 1'15 40 41 7 1,600 427 11 25 14 10 .. 18-84 41 42 10 2,400 588 17 39 4 7 •• 28-63 42 43 16 4,050 1,032 17 66 11 6 .. 4 8 '5 6 43 44 21 3>7oo 1,023 7 62 6 o .. 45'6o 44 45 28 6,685 i) 8 79 16 113 15 .. 83-40 45 46 54 12,760 3,483 18 222 26 o 10 o 165-27 46 47 60 15,200 4)375 4 262 19 11 1 10 o 195*5! 47 48 76 21,000 6,207 0 365 12 9 10 o 27i'4i 48 49 76 20,750 5,907 o 369 12 o .7 19 o 278-39 49 50 109 26,895 8,293 T 9 4 8 3 6 10 3 15 0 3 6 3'79 50 51 120 29,465 9,on 13 542 70 828 4 I0 '94 51 52 125 32,265 10,442 o 596 18 10 11 5 o 454' 12 52 53 ' 177 45>n9 I 5> 2 56 16 847 19 9 522 649-35 53 54 142 38,295 10,619 10 745 59 971 579' 6 3 54 55 184 5i>945 17,026 9 i|Oi7 o 10 12 12 10 79i*4 8 55 56 163 48,070 15,396 5 970 14 11 4 7 6 762-82 56 57 210 67,250 20,936 16 1,357 91 8 10 o 1,067-06 57 58 210 61,275 20,649 19 1,271 19 8 I 3 2 11 I>°I°"45 58 59 196 50,700 i5>737 J 8 1,080 10 9 14 1 4 863-89 59 60 175 51,294 16,114 8 1)083 11 9 5 0 866-73 60 61 215 61,600 19)555 ; 5 : >363 0 10 16 1 o 1,107-04 61 62 196 56,800 18,752 8 1,266 36 9 '7 9 1,031*5° 62 63 210 58,380 19,602 14 !)295 1 10 25 17 11 1,063-61 63 64 181 54)77° i 8)095 18 i>223 48 11 13 6 1,005-21 64 65 251 70,693 21,620 3 1,620 51 47 17 2 i)35°' 2 5 65 66 221 54)775 i7)iii 12 1,281 07 19 7 o 1,069-39 66 67 208 59,000 18,604 3 1>402 16 4 19 19 11 i)i9 I * 2 3 67 68 193 55>943 i9) x8 5 18 i>32i 56 25 19 2 1,119-84 68 69 213 58,983 19,951 15 I )43 I 12 11 19 19 6 1,219-51 69 70 196 56,196 19>293 9 1 > 365 17 8 25 7 3 1,174-88 70 71 186 48,931 16,104 7 1,209 11 1 22 0 4 1,045-37 71 72 192 55)76o 19)399 n !>4°7 19 6 ■ 27 19 3 1,218-48 72 73 184 55)941 19,561 5 i)4i7 24 37 14 2 1,227-77 73 74 128 35)7io 12)433 8 93® 11 10 37 9 n 819-52 74 75 127 36)131 r 3)573 9 97i 10 1 18 19 11 854-83 75 76 104 30,271 11,045 10 837 14 1 38 16 9 74i'77 76 77 95 31 > 35° 12,533 3 835 2 4 17 5 10 It 1 ' 39 11 78 102 29,004 12,034 4 766 13 2 20 11 1 683-20 10 79 82 23,592 9)037 7 7°7 1 1 '9 '4 9 631-28 79 80 74 20,821 8,766 1 634 95 12 4 o 568-20 80 81 63 15)427 5.200 13 434 7 9 11 4 6 391*81 81 82 55 17)605 7>6i6 II 479 6 8 19 i° 3 435*7° 83 53 i7)7° 2 8,059 *3 488 11 9 18 1 6 443'45 63 84 32 7,607 2,939 14 234 o 11 4 10 5 211-74 84 85 34 8,250 2,853 13 276 9 11 2 14 4 251-48 85 j 86 23 6,057 2 )333 12 221 31 9 19 8 200-04 86 87 20 5)9oo 2,380 16 151 4 3 11 5 7 138-67 87 88 12 4)70o 2,078 7 139 16 3 .. 128-01 88 89 9 2,070 710 7 7° 3 9 •• 64-96 90 4 1,850 971 10 67 7 2 .. 62-11 90 91 3 220 130 1 6 16 3 .. 6-32 91 92 4 800 416 6 28 9 4 .. 26-56 93 4 520 131 14 27 11 10 o 18 8 24-83 93 Totals 5,836 £1,635,127 £546,754 15 ( £37,459 11 7 £672 1 7 £31,21764

H.—B.

FIFTH SCHEDULE.

Appendix No. 3. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITH PROFITS, In force at 31st December, 1923.

23

o iT%. a. ■ n g fn o S j ° co i Office Annual Age Amount Bonus * £».2 | «•§ g,§ Premiums. N , attained. gs assured. j Additions. g;a| . |s s;3 Premiums. Ordinary. Extra. i I " I < £ s - £ s - £ s. d. £ s. a. £ 44 2 950 o 245 18 45 3 575 ° 239 4 46 1 200 o 57 io 47 2 200 o 60 3 48 4 1,500 o 432 17 • 49 4 J,900 o 657 1 50 8 3,187 o 1,049 18 51 7 2,153 0 702 17 52 9 2,397 o 1,240 10 53 5 1,615 o 770 19 54 11 2,155 o 934 11 55 15 41833 o 2,133 o 56 6 1,132 o 506 3 1924 4 49'3 31 11 9 .. 26-12 57 8 3,623 0 1,579 1 58 8 2,611 o 1,205 16 1925 1 51*5 11 5 o .. 8-98 59 10 4,3°8 0 2,033 8 60 6 1,428 o 757 14 1926 1 565 2 9 10 .. 2-08 61 i° 5i°5 I o 2,281 1 62 9 2,607 0 1,122 19 1929 1 68-5 18 1 8 .. 15-79 63 12 3,785 o 1,889 10 64 7 1.669 o 811 9 1934 1 59'5 2 12 8 .. 2 . 2 , 65 10 3,573 o 1,258 1 66 9 2,741 o 1,767 12 1937 1 46'5 3 18 4 .. ,. 0 o 67 9 1,252 o 787 16 68 18 7,648 o 3,348 3 1939 1 44'5 3 14 8 .. 2 . 8 , 69 17 5,027 0 2,172 2 70 13 3,695 o 1,487 12 71 7 2,500 o 623 12 72 9 4,363 o 2,369 19 73 9 5,145 o 3,494 2 74 15 4,822 o 2,593 14 75 16 7,374 0 4,180 7 76 14 8,222 o 4,249 11 77 12 3,187 o 1,639 2 78 13 4,960 o 2,939 14 79 11 4,196 o 2,392 12 80 10 3,552 o 1,981 15 81 10 2,276 17 1,182 18 82 14 7,885 o 2,449 4 83 7 2,003 o 1,155 3 84 5 3,078 o 1,759 14 85 9 4,821 o 2,245 o 86 1 500 o 340 9 87 3 735 o 289 4 88 3 2,500 o 711 ig 9 1 1 59 o 44 16 Totals 392 143,993 17 £68,175 10 ..10 524 l £73 13 11 ~~iei'oT" ; I I

H.—B.

24

FIFTH SCHEDULE.

Appendix No. 4. ASSURANCES FOR THE WHOLE TERM OF LIFE, WITHOUT PROFITS, In force at 31st December, 1923.

Office Annual Premiums. attained. 'pSuS,? | Amount assured ' Net attafned. Ordinary. Extra. £ £ S. d. £ s, d. {. 10 2 I,IOO 12 3 3 .. 1128 10 14 1 1,000 10 15 10 .. 10-25 14 15 2 i)5o° 17 17 6 .. i6'86 15 16 4 2,200 27 2 8 .. 25-19 16 17 4 1,300 16 3 11 .. 14-86 17 18 3 1,900 23 17 8 .. 21-89 18 19 4 1,200 16 9 3 .. 15-35 19 20 9 3,650 50 13 9 .. 46-00 20 21 14 5,!oo 69 10 10 .. 63-49 21 22 19 6,600 92 16 1 .. 84-23 22 23 24 10,400 155 18 4 .. 143-65 23 24 41 15,700 239 95. .. 219-47 24 25 72 27,700 433 7 3 •• 39 8 '7 8 25 26 65 24,450 399 16 11 .. 366-31 26 27 60 27,250 454 63 500 423-31 27 28 71 32,800 558 2 11 650 521-66 28 29 69 25,900 445 10 9 200 412-70 29 30 100 46,950 836 81 9 19 2 789-48 30 31 99 51,700 941 18 1 10 o 0 890-95 31 32 126 47,350 877 00 800 82444 32 33 140 63,300 1,196 15 8 700 1,132-64 33 34 180 73,600 I >43° 92 2 10 o 1,342-87 34 35 179 78,900 1,580 18 11 11 5 o 1,502-11 35 36 186 88,550 i,795 16 10 5 9 9 1,698.97 36 37 205 78,500 1,651 29 5 15 o 1,568.01 37 38 191 84,850 1,866 17 8 9 ig 6 1,784-32 38 39 225 94,750 2,094 20 11 10 o 2,004-68 39 40 231 99,450 2,296 15 10 900 2,204-71 40 41 200 87,700 2,021 81 5 15 o 1,946-34 41 42 214 91,000 2,211 34 7 15 o 2,129-25 42 43 212 85,900 2,194 15 3 900 2,118-94 43 44 208 86,350 2,291 85 18 o o 2,213-00 44 45 220 83,582 2,240 17 7 23 o o 2,162-74 45 46 197 87,250 2,437 23 22 10 o 2,351-85 46 47 148 61,050 1,786 19 6 904 1,71983 47 48 159 60,850 1,822 91 10 5 o i,754'97 48 49 147 57.450 1,743 9 11 35 5 o 1,674-55 49 50 102 37>75o 1,192 76 o 19 6 1,149-31 50 51 115 38,450 1,263 13 o 10 o o 1,220-63 51 52 104 38,365 1,274 17 7 13 10 o 1,227-10 52 53 103 35,450 1,268 19 2 14 10 o 1,223-73 53 54 91 36,550 1,377 1 IO 300 I,333'64 54 55 87 32,200 1,247 1 11 200 1,188-84 55 56 62 27,000 1,075 52 .. 1,035-97 56 57 85 36,750 1,505 i' 11 300 1,46583 57 58 62 22,600 1,004 14 10 .. 965'83 58 59 31 13,250 5g2 73 400 558-26 59 60 32 15,200 665 53 0100 648-98 60 61 41 23,250 1,215 12 5 400 1,172-07 61 62 20 7,000 349 81 200 33620 62 63 18 5,700 286 30 .. 27800 63 64 25 6,550 367 10 2 .. 353 4° 64 65 8 2,800 146 18 1 500 140-95 65 66 15 9,200 564 1 10 1 15 o 55!76 66 67 9 2,100 113 18 10 .. 109-43 67 68 6 1,150 68 17 2 .. 66-32 68 69 12 3,900 260 17 .. 252-77 69 70 1 200 20 14 4 .. 20 08 70 71 1 200 16 19 o .. 16.17 71 73 2 850 66 16 7 .. 63-27 73 74 2 600 41 7 o 2 10 o 39'4 8 74 78 1 200 584 .. 4-94 78 Totals 5,066 £2,096,047 £54,323 2 10 £310 18 3 £52,03289

4—H. 8.

H.— 8.

FIFTH SCHEDULE.

Appendix No. 5. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITHOUT PROFITS, In force at 31st December, 1923.

Appendix No. 6. TEMPERANCE NON-PROFIT SECTION (Constituted according to Section 39, Government Life Insurance Act, 1908) In force at 31st December, 1923.

25

xt v xt a Office Annual Premiums. Age Nu ™ ber Amount Ye J* Nu » ber | Av . e " ge Net attained. Pol ° f ies . assured. Ejtpjry . Policjes j aUa f ned . | Premiums. . . ' | | | I j £ £ s. d. £ s. d. £ 21 I 200 28 i 200 30 I 2, ooo 31 i 500 32 1 500 1926 1 47'5 10 3 2 .. 10-15 33 3 2.300 J 927 1 535 13 4 ° x 16 o 12-28 35 4 1.281 1928 1 445 29 15 6 .. 29-77 36 2 2,250 193° 1 56'5 6 9 15 10 •• 69-79 37 1 200 193 1 1 53'5 14 14 o .. 13-66 38 1 1,000 1932 1 33-5 4 7 1 •• 4'35 39 1 500 1933 4 4°'5 3°3 13 4 •• 300-40 40 2 1,400 1935 9 44-8 147 2 4 .. 145*84 41 4 1,100 1936 1 41-5 5 16 4 .. 5-68 42 3 1,000 1937 4 38-3 39 5 10 .. 3909 43 2 5,000 1939 4 46-0 80 18 4 .. 78'35 44 1 600 1940 2 44-5 9 19 8 130 9-86 45 3 869 1941 3 442 161 2 o .. i53'°4 46 1 1,000 1942 4 37-8 87 o 6 .. 86-73 47 2 600 1943 3 38-8 57 J 7 o ' 5579 49 3 2,200 1944 1 31-5 10 19 2 .. 1071 51 2 1,100 1946 1 35-5 670 .. 6-o6 52 2 500 1947 1 21-5 3 13 10 .. 3-69 53 2 600 54 2 1,200 55 1 100 56 2 1,200 58 2 863 Totals 51 £30,263 43 .. £1,055 14 11 £2 19 0 £1,035*24

Number Atnnilnt ° FFI0K Age attained. of assured (allotted Premiums Age attained. Policies. ~ d - P™ r) t0 Extra ' Premlum8 ' Assurances for the Whole Term of Life, with Whole-life Premiums. £ £ s. d. £ s. d. £ 78 I 200 .. 584 .. 4-94 78 Totals .. 1 £200 £5 8 4 •• £4'94

H.—B.

26

FIFTH SCHEDULE.

Appendix No. 7. Table showing the Minimum Surrender Value ruling at the Valuation Date in respect of Policies for £100.

•psiuejB si sssnuog Aaeuipao Bujisixs jjb jo qsiso -}uso jsd mH II™J 8q) S3ri|BA ©Aoqe sqi 01 ui —'3XON 0 SI *8 0 81 18 0 II 11 0 01 8S 0 91 68 0 S 18 0 g 81 09 0 6 58 0 6 89 0 81 K 0 5 51 0 I 98 0 5U? 0 91 69 0 81 5S 0 01 58 0 fl 88 0 01 01 99 0 81 98 0 II 89 0 II 980 01 II 0 0 i8 0 5 88 0 H 59 0 f IS 0 0 IS 0 6 08 0 II 8 09 0 SI 18 0 SU9 0 8 95 0 5 II 0 »I 18 0 91 88 0 f 89 0 61 SH II 98 0 5 II 0 M 9^ 0 8 18 0 81 89 0 SI 88 0 61 91 0 f 1 0 81 88 0 H S9 0 9 98 0 f II 0 1 88 0 9 18 0 6 IS 0 01 Of 0 II 88 0 01 H 0 8 9 Ofr 0 9 88 0 9 69 0 8 18 0 8 SI 0 II 9 0 8 06 0 S 19 0 01 98 0 8 II 0 S 68 0 0 58 0 II IS 0 5 S8 0 8 61 0 0 81 0 6If 9S 0 8 68 0 0 01 0 8 18 0 8 SI 0 II 9 0 8 06 0 S 19 0 01 98 0 8 II 0 S 68 0 0 58 0 61 5? 0 f 08 0 I 91 0 81 6 0 S £ OS 0 81 68 0 fl 01 0 8 18 0 8 SI 0 II 9 0 8 06 0 5 19l 0 01 98 0 8 II 0 5 68 0 0 S8 0 1 Of 0 SI S8 0 8 81 0 1 8 0 01 8 93 0 81 06 0 9 II 0 8 18 0 8 SI 0 II 9 0 8 06 0 S 19 0 01 98 0 8 II 0 S 68 0 0 58 0 II ?8 0 SI 18 0 f II 0 61 9 0 91 8 05 0 8 16 0 I 81 0 8 18 0 8 51 0 II 9 0 8 06 0 S 19 0 01 98 0 8 II 0 5 68 0 0 58 0 1 08 0 81 81 0 8 01 0 8 9 0 1 8 91 'P "s SP "P -b 3F 'P 's J 'P -s -p -a -p -s gf -p -s jp -p -s gp -p -a $ -p -s gp -p -a gp -p -a gp -p -a jp -p -a a? -p -a jp -p -s jp areas. "SJ'Bai 08 | " SJ,e8 i OZ) ! * 01 'SJ*B8A Q 'SJceai OZ ''BJreGi 01 Q 'sjuai Q 'S-reai Qg 's-raai Q3 'sjreai QT s.reai 01 Q do awa 3Hi lLv sanm HaaMannns nnwiNiH .^ Jjua a3v ; snjx , » *inB9<T srioiA3jd •qiBSQ snotA3Jd *qiB3Q snoiAaad • "3JIT jo uijsx sjoilM. }B JO 'SJB3X UI STqBifBd IB JO 'SJBaX 3AU-iiCaU3A\ T UI STqBXed }BJO UI 3 ssouBjnssv , , ssDUBJtissv iuauiAvopug saouBanssy luauiAvopug in juauiAvopug suinituaad iBnuuy IBnbg Aq aouBanssy

27

H.—B

ACTUAKY'S EEPOET ON THE VALUATION OF THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DEOEMBEB, 1923.

Presented to both Houses of the General Assembly pursuant to Section 40 of the Government Life Insurance Act, 1908.

Wellington, 16th April, 1924. In accordance with instructions received I have made a valuation as at the 31st December last of the actuarial liabilities of the Department, with the object of ascertaining the net surplus available for division amongst the policyholders, and in compliance with section 40 of the Government Life Insurance Act, 1908, I have now the honour to report the results of the investigation. Progress of the Department. The progress of the Department during the last three years when compared with the three previous trienniums, in respect of new business and total business in force, is as follows : —

The Consolidated Revenue Account, given below, shows the total income and expenditure for the last three years, and the growth of the funds of the Department during the triennium.

Consolidated Revenue Account.

New Business of Triennium. In Force at End of Triennium. Triennium. I i Number of Sums Annual Number of Sums lieversionary Annual Policies. assured. j Premiums. Policies. assured. | Bonuses. Premiums. £ £ £ £ £ 1912-1914 .. 11,721 3-, 197,694 89,715 52,273 12,550,465 1,246,610 370,882 1915-1917 .. 10,129 2,709,163 90,017 53,058 12,884,531 1,304,243 387,377 1918-1920 .. 14,189 4,529,993 156,568 57,321 14,924,147 1,335,163 449,123 1921-1923 .. 13,537 4,499,581 139,620 60,545 16,549,451 1,357,161 501,321

Triennium ending 31st Dece: i tier, 1923. Previous Triennium. Triennium ending 31st Docei iber, 1923. Previous Triennium. Funds at beginning of triennium Renewal premiums New premiums Consideration for annuities Interest less taxes Defalcations recovered Transfer from Investment Fluctuation Reserve £ 5,542,552 1,291,437 131,178 31,772 894,419 267 75,788 £ • 5,199,320 1,110,162 136,633 56,651 783,201 Death claims Matured claims Annuities paid Surrenders Bonuses surrendered for oash Commission Expenses Marryatt Defalcation Aocount Funas at end of triennium.. £ 530,990 653,295 62,838 195,036 19,546 99,852 180,728 2,643 £ 725,004 543,621 59,521 148,158 14,853 94,829 157,369 6,222,485 5,542,552 Totals Totals £7,967,413 £7,285,967 £7,967,413 £7,285,967

H.—B

28

Income. —On the income side, the chief items of importance are the increase of £175,820 in the total premium income, and the revenue from interest, which exceeds by £111,218 the interest earnings of the previous triennium. The net effective rate of interest credited to the funds each year for the past six years has been as follows: — Rate of Interest (after deduction of Taxes from Interest). £ s. d. £ s. d. 1918 ... ... ... 4 15 11 1921 ... ... ... 5 3 5 1919 ... ... ... 5 5 0 1922 ... ... ... 5 3 11 1920 ... ... ... 5 18 1923 ... ... ... 5 6 8 Outgo. —The death claims of the triennium were £194,074 lighter than in the previous triennium, which, however, included heavy amounts for war and influenza epidemic claims. The incidence of the mortality was favourable and resulted in a material profit. The sum paid to the holders of endowment assurance or endowment policies who survived the selected terms amounted to £653,295, an increase of no less than £109,674 over the previous triennium. The Valuation. The business to be valued consisted of 60,545 policies, assuring £17,906,612, inclusive of bonus additions, and £23,024 immediate and deferred annuities per annum, the ordinary annual premiums thereon amounting to £499,333. The Department also receives £1,987 per annum representing additions to the tabular premiums. These extra premiums are assumed to cover the current year's extra risk, and are not brought into the valuation as an asset. Basis of Valuation. —The net premium method of valuation has been strictly adhered to, whereby the whole margin of loading has been reserved as a provision for future expenses. The 0 M Table of Mortality has been used for assurances, and the British Offices' Life Annuity Tables (1893), for annuities, 3 per cent, interest being used in each case. £ The value of the total liability under the several contracts is ... 11,069,355 Deduct the value of the future net premiums ... ... ... 5,183,220 5,886,135 The Accumulated Funds are ... ... ... ... 6,222,485 Difference, being Net Surplus at 31st December, 1923 ... 336,350 Add Interim Bonuses paid during the triennium ... 19,210 Gross Surplus ... ... ... £355,560 The Surplus. Of this surplus of £355,560 the sum of £19,210 has been applied as shown above. Of the balance of £336,350 I recommend that £18,787 be carried forward, and that £317,563 be divided amongst all the participating policyholders in the form of compound reversionary bonuses per cent, on the sum assured and existing bonuses for each premium paid since the previous valuation. This will provide new reversionary bonuses of approximately £477,000. Due consideration has been given to the difference between the present rates of premium and those charged before 1900 (hereafter referred to as the " Old Issue "), and to the more favourable mortality experienced in the Temperance Section, and a differential rate of bonus has been allotted to secure equity as far as practicable between the various classes of Assurance in both the General and Temperance Sections. The result is that new Assurance and Endowment Assurance policies effected during the triennium receive simple reversionary bonuses of 265. and 30s. per cent, per annum on the sum assured in the General and Temperance Sections respectively, and business effected prior to that date, if existing bonuses have been left intact, bonuses increasing with the duration of the policy to £2 3s. per cent, per annum in the case of the older policies. Double Endowment Assurances will receive simple reversionary bonuses ranging from 21s. to 275. of the sum assured. The Bonus Eund for Pure Endowments is sufficient to ensure that maturities during the next succeeding triennium will in no case receive less than £1 per cent, per annum over the whole duration of the policies. These bonuses, although materially higher than the Department has ever declared in the past, can be allotted without straining its resources in any way. No Australasian life office adopts a stronger valuation basi3 than the Department, quite apart from the amount held in the Investment Fluctuation Reserve, of which little short of the whole will ultimately be available for retransfer. This, coupled with the fact that the Department was able, in a single triennium, to step from a 3-| per cent, to a 3 per cent, net premium valuation of its policy liabilities, an achievement which one of the strongest life offices of the world took twenty years to accomplish, is sufficient to justify the statement that none of the Department's competitors can look forward with more confidence to the maintenance of the bonus rate. A complete valuation statement, prepared in accordance with the Government Life Insurance Act, 1908, is given on page 9. Cecil Gostelow, E.1.A., The Government Insurance Commissioner. Actuary.

Approximate Cost of Paper. —Preparation, not given ; printing (1,975 copies), £52.

Authority : W. A. G. Skinner, Government Printer, Wellington. — l 924.

Price 9d.]