ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1926.

Appendix to the Journals of the House of Representatives, 1927 Session I, H-08

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1927. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1926.

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

Government Insurance Office, Wellington, 31st May, 1927. I have the honour to submit the following report upon the transactions of the Department for the year ended 31st December, 1926, and its position at that date. The Revenue Account, Balancesheet, and Statement of Business are appended. New Business and Amount of Business in Force. —The year has been one of steady and satisfactory progress, 5,710 policies being issued for assurances totalling £1,883,705, with annual premiums amounting to £60,608 13s. lOd. Twenty-one annuities were granted, the purchase-money totalling £13,683. The total business now in force (including immediate and deferred annuities for £24,996 per annum) is 65,396 policies, bearing an annual premium income of £575,420. The sum assured is £18,743,397, to which reversionary bonuses totalling £1,475,007 have been added. The total business on the books therefore exceeds twenty millions. Income. —The total income of the Department for the year was £951,897 —viz., premium income £566,440, interest and rents (after payment of land and income tax) £371,774, and annuity purchase-money £13,683. Outgo for Claims. —During the year 971 policies matured for a total of £237,267, and 537 policies became claims by death of the assured, the amounts payable aggregating £179,988. Accumulated Funds. — The total Assurance Fund amounts to £7,029,584, an increase of £298,466 for the year. The Department also has a special Investment Fluctuation Reserve Fund amounting to £206,099. Interest. —The effective rate of interest realized after deduction of land and income tax from interest was £5 lis. Id. per cent., an increase of 2s. per cent, over the rate of 1925, and 3s. 6d. per cent, over the rate of 1924. Expense Ratios. —The expense ratios for the past three years are as follows : — 1924. 1925. 1926. (a) Total expenses to total income .. .. .. 11-292 11 '081 10'533 (b) Total expenses to total premium income .. .. 18'460 17'998 17'282 Triennial Investigation.—The valuation of the Department's assurance and annuity liabilities on the 31st December last has been completed by the Government Actuary, and the results are set out in his report. The net surplus disclosed by his investigation (the basis of which is

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probably stronger than that of any Australasian life office) amounted to (not including interim bonuses paid during the triennium) £446,792. Of this sum £430,363 has been allotted in the shape of compound reversionary bonuses upon the sum assured and existing bonuses, providing reversionary bonuses of £664,400. The resultant bonuses on whole - life and endowment assurances range from £1 13s. 4d. per cent, per annum of the sum assured in the case of new policies to £3 per cent, per annum in the case of policies with longer duration. The volume of divisible profit shows a steady upward growth, as will be seen by a comparison of the amounts allotted as bonus at the two previous triennial divisions, namely : 1920, £217,706 ; 1923, £317,563 ; 1926, £430,363. General. —The progress of the Department during the year has been of a satisfactory character. New business has been well maintained ; there has been an increase in the effective rate of interest earned, and decreases in the expense ratios. The funds are being kept closely invested, and a perusal of the balance-sheet will show that the Department is a not unimportant factor in the progress of New Zealand. The whole of the funds, now over seven millions, are invested in the Dominion and in securities of a nature which assist in the development of the country to a very considerable extent. A. E. Allison, Commissioner.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1926. £ s. d. £ s . d. Amount of Funds at Ist January, 1926 6,731,117 18 10 Death claims under assurance policies, Renewal premiums — Assurance, An- including bonus additions .. 179,659 11 0 nuity, and Endowment .. .. 501,205 10 9 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 230,322 11 6 of iirst year's premiums falling due ISndowmouts matured .. .. 6,944 14 0 in the year) .. .. .. 59,813 3 4 Premiums returned on endowments .. 328 12 4 Single premiums—Assurance and En- Bonuses surrendered for cash .. 3,813 12 5 dowment .. .. .. 5,420 16 6 Annuities .. .. .. 22,566 14 10 Consideration for Annuities .. 13,683 9 0 Surrenders .. .. .. 37,550 11 0 £ s. d. j Loans released by surrender .. 61,985 18 2 Interest and Rent .. 387,804 19 7 £ s. d. Less land and in- Commission, new* .. 38,204 410 " cometax, „ renewal 3,817 3 10 £11,964 Bs. Id.; 42,021 8 8 property expenses, Contribution to Public Service Super£4,o66 9s. Id. .. 16,030 17 2 annuation Fund .. .. 713 19 8 — 371,774 2 5 Expenses of management— Salaries— £ s. d. Head Office .. 22,908 6 6 Branch offices and agents .. 11,126 19 9 Extra clerical assistance .. .. 2,317 8 11 Medical fees and expenses .. .. 5,143 5 6 Travelling-expenses 1,224 0 3 Advertising .. 127 10 9 Printing and stationery .. .. 2,273 12 4 Rent .. .. 5,545 4 0 • Postage and telegrams 1,565 9 0 Exchange .. 46 8 2 General expenses .. 3,338 15 1 Services rendered by Government Actuary .. .. 1,906 10 10 57,523 11 1 Transfer to Investment Fluctuation Reserve Account .. .. 10,000 0 0 Amount of funds, 31st December, 1926 7,029,583 16 2 £7,683,015 0 10 £7,683,015 0 10 j . —" 1 — I * Including agents' allowances Balance-sheet of the Government Life Insurance Department on 31st December, 1926. Liabilities. Assets. £ s. d. £ s., d. Total Assurance, Annuity, and En- Loans on policies .. .. .. 944,433 17 0 dowment Funds (as per Revenue New Zealand Government securities .. 2,231,680 0 0 Vecount) .. .. .. 7,029,583 16 2 Municipal Corporation debentures .. 209,530 12 3 Claims admitted, proofs not yet com- County securities .. .. .. 104,379 13 4 pleted .. .. .. 36,678 8 7 Harbour Board debentures.. .. 30,700 0 0 Annuities .. .. .. 743 17 0 Town Board debentures .. .. 32,294 17 2 Commission .. .. .. 1,484 7 2 Road Board debentures .. .. 21,800 0 0 Medical fees .. .. .. 492 9 0 Drainage Board debentures .. 1,873 11 4 Premium and other deposits .. 11,133 1 0 Power Board debentures .. .. 784,652 4 0 Sundry creditors .. .. .. 4,900 1 9 Landed and house property .. 130,750 12 2 Accident and Fidelity Fund .. 2,510 0 0 Landed and house property (leasehold) 1,505 15 3 Investment Fluctuation Reserve .. 206,098 13 7 Mortgages on property .. .. 2,576,714 II 8 Sinking Funds oil Local Body Loans 1,398 3 2 Properties acquired by foreclosure .. 13,266 7 1 Overdue premiums on £ s. d. policies in force .. 8,563 810 Outstanding premiums due but not overdue 48,198 19 9 56,762 8 7 Overdue interest .. 5,357 10 11 Outstanding interest due but not overdue 8,404 0 7 Interest accrued but not due .. .. 96,089 11 5 109,851 2 11 Agents' balances .. .. .. 5,462 16 6 ! Sundry debtors .. .. .. 2,601 4 1 : Cash in hand and on current account 36,763 4 1 £7,295,022 17 5 j £7,295,022 17 5 A. E. Allison, Commissioner. H. Rose, Secretary. Government Life Insurance Department, 6th May, 1927. 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

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TOTAL. Whole-life and Term Assurances. YEAR 1920. i ; Annual Annuities. Annual _ Sum Premiums. Z. Immediate or Sum Premiums. 1NO ' assured. 1 1. Ordinary. entered upon. iNO ' | assured. : 1. Ordinary. . Bonuses. g- Extra. 2. Deferred. ' Bonuses ' n. Extra. POLICIES ISSUED AND DISCON- £ £ £ s. d. £ s. d. £ £ £ s. d. Policies in loroe at 31st j 63,77518,008,4021,584,927 / 547,850 18 822,407 11 0 ) 11,259 4,008,328 616,887 / 97,761 13 2 ) December, 1925 ( 2,105 6 4 2,247 14 8 } { 984 5 9 J New business .. .. 5,710 1,883,705 .. / 60,477 4 5 1,599 15 4) 462 256,205 .. I 7,755 12 8| 1 131 9 5 J j 41 19 9 j Total.. .. 69,48519,892,1071,584,927 ] 608,328 3 124,007 6 4 111,7214,264,533 616,887(105,517 5 10 ) | 2,236 15 9 2,247 14 8 J \ 1,026 5 6J Polioies discontinued 4,089 1,148,710 109,920 1 35,008 14 6 1,149 13 0) 667 257,292 40,452 / 6,439 12 1 1 during 1926 | 136 13 6 108 12 0 J { 74 3 5 [ Total policies in fores at 65,396 18,743,397 1,475,007 / 573,319 8 7 22,857 13 4)11,054 4,007,241 576,435 / 99,077 13 9) 31st December, 1926 | j | 2,100 2 3 2,139 2 8/ { 952 2 1 J PARTICULARS OF POLICIES DISCON How discontinued. By Death .. .. 537 138,886 36,872 / 4,203 16 6 1,258 5 0) 2881 87,854 30,755 f 2,230 8 3 ] 1 52 13 1 j ! 1 44 9 7 f Maturity .. .. 971 188,916 40,976 / 7,227 6 6) 1 16 9 11/ Surrender.. .. 1,624 493,125 31,431 / 14,395 9 41 .. 252 103,055 9,622 / 2,493 8 9 1 1 45 18 11f ( 18 5 0 f Cancellation .. 180 51,700 .. / 1,476 15 101 .. 10 4,900 .. / 114 2 3 ( 12 3 71 | j Lapse .. .. j 777 276,083 641 / 7,705 6 41 (-)108 12 01 117 61,483 75 / 1,601 12 10 j / 9 8 0) ( + )108 12 0J | 11 8 10 } Total discontinued during! 4,089 1,148,710 109,920! ( 35,008 14 6 1,149 13 0) 667 257,292 40,452 / 6,439 12 11 year 1926 i j { 136 13 6 108 12 0) 1 74 3 5 ) 1 1 I I PROGRESS OP BUSINESS OF THE GOVERNMENT LIFE INSURANCE Total issued .. .. 185,064 49,241,131 4,384,742 j '' 5 gg'gjQ g f 110,913 19 6 49,674115,958,714 2,088,868 j 4 ]J'Jgg 11} Total void .. .. 119,668 30,497,734 2,909,735 | gj 85,917 3 6 38,62o|ll,951, 4731,512,433 io io} Total in force .. 65,396 18,743,397 1,475,007 573,319 8 7 24,996 16 011,054 4,007,241 576,435 99,077 13 9 I Extra Premiums .. .. .. 2,100 2 3 .. .. .. .. 952 2 1 £575,419 10 10 £100,029 15 10 ~~ : — — Note.—The " ordinary " premium is the premium charged

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at End of Year 1926.

ASSURANCES. SIMPLE ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. I m Annual 1. Sum Annuities. | Annuities. „ 1 'nS D Annual „ ! Sum Rever- I Premiums. ! 1. Immediate or Annual N Annual 1. Immediate or No 2 jj evel .'_ Premiums. No - assured, Bo°niS& i. Ordinary. No ' "'jo ®arv" entered upon - Premium6 - Premiums. entered upon. ' sio nary h % r *?™ ry - Bonuses. g Extra. j I* De f erred - ! | * Deferred. Bonuses. E «>ti TINUED DURING THE YEAR 1926. £ £ £ s. d. £ | £ 9. d. £ s. d. £ s. d. £ s. d. £ £ s. d. 50,007 13,598,087 950,308(438,687 4 9) 43 / 7,185 ' 464 0 8)374 5 5 417 518 5 10(21,943 10 4 ) 2,049! / 394,802 10,509 9 61 { 1,121 0 7 J t 1,360 '1,647 14 8f I 600 0 Of M 16,372 .. ) 5,061 1,589,150 .. J 51,779 12 3 1 .. .. j .. .. 21 .. / 1,599 15 4 1 166 f 38,350 941 19 6 J. I 88 10 2 ) | I I \\ •• 0 19 55 06815,187,237 950,308(490,466 17 0 I 43 f 7,185 ' 464 0 8)374 5 5 438 518 5 10 ( 23,543 5 8 ) 2,215 ( 433,152 11,451 9 0) . { 1,209 10 9f I 1,360 I 1,647 14 8.} \ 600 0 0 f \ 16,372 1 0 19 6f 3 207 851,768 67,816(27,471 17 2 ) .. ( 350 (-)10S 12 0 I 34 17 ' 31 .. / 1,258 5 0 1 184 ( 39,300:1,062 7 7) 1 62 10 1/ 1 177 ( + )108 12 Of \ j \ 1,475' .. J 51 861 14 335 469 882,492 (462,994 19 10) 43/ 6,835 572 12 81)339 7 9 407 518 5 10 ( 22,285 0 8 1 2,031(393,852 10,389 1 5) { 1,147 0 8) \ 1,183 1,539 2 8|) ( 600 0 0 j 1 14,897 0 19 6J I I I ! ! TINUED DURING THE YEAR 1926. ! I I j 1 212 50,282 6,117/ 1,950 17 9) .. •• I •• •• 31 .. ( 1,258 5 0 ) 6 ( 750 22 10 6 J. 8 3 6) I • • J ' ; 922 183,166 39,749 / 6,987 4 9) ../.. I •• •• •• •• | •• 49 ] 5,750 240 1 9 I | 16 9 11 j I I 177 j I I 1>°50 1,284 369,520 21,809 ] 11,327 18 3)1 •• ! •• •• •• j •• i -• 88 J 20,550 574 2 4 j • 27 13 11 J q " . 167 46,400 .. / 1,351 5 11 .. •• •• •• .. .. •• 3 400 11 7 8 12 3 7 ) ( • • • • 622 202,400 141 / 5,854 10 6 I .. / 350 (-)108 12 0 ) 34 17 8 .. .. .. 38 1 11,850 214 5 4 {( —)2 0 10) | .. ( + )108 12 Of 1 425 ) | I I | 3 207' 851,768 67,816(27,471 17 2 I 1 .. / 350 (->108 12 0 | 34 17 8 31 .. ( 1,258 5 0) 184 1 39,300 1,062 7 7 I { 62 10 If 1 177 ( + )108 12 Of \ j \ 1,475 .. ) DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1926. 126716 32,119,828 2,264,718 j 8 lo} 1,106 { 671 | 57,497 16 6 ! 8 ' 619 15 8 1,071 866 6 8 53 - 416 3 0 6 ' 497 | '^'"11 9 HI 74,85517,784,3591,382,226 { 5 fq' 836 8 2| 1,063 J 15 (M88 } 55,386 1 2| 8 ,280 7 11 664 348 0 10 30,531 2 4 M66 -j 608 |ggg U ' 8 20 10. 0} 51,86114,335,469 : 882,492 462,994 19 10 43- 6,8 gg 1 2,111 15 4 339 7 9 407 518 5 10 22,885 0 8 2,031 | 10,389 1 5 j .. | .. .. 1,147 0 8 .. | .. | •• .. •• •• •• •• 0 19 6 £464,142 0 6 £339 7 9 £518 5 10 £10,390 0 11 at the true age; the "extra," the additional premium charged for any reason whatsoever. A. E. Allis«n, Commissioner.

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GOVERNMENT INSURANCE DEPARTMENT.

STATEMENTS IN CONNECTION WITH THE VALUATION OF LIABILITIES (FOURTH AND FIFTH SCHEDULES) FOB THE TRIENNIUM ENDING 31st DECEMBER, 1020

Presented to both Houses of the General Assembly 'pursuant to Section 38 of the Government Life Insurance Act, 190 S.

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REPORT BY THE GOVERNMENT ACTUARY RESPECTING THE VALUATION OF THE LIABILITIES UNDER LIFE POLICIES AND ANNUITIES OF THE NEW ZEALAND (boriTunmit Jmnirance Department, 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, 1926. 11. The principles upon which the valuation and distribution of profits were made were as follows :— (1) Principles of Valuation. —In making the valuation no credit whatever has been taken for any loadings or extra premiums, and in no case has there been valued for inclusion among the assets a valuation premium greater than the pure premium derived from the British Offices Om: Table with 3 per cent, interest. 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 valuation premiums. Where the original premiums have been reduced by the application of amounts received in consideration of the surrender of bonuses or former policies the valuation 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 the joint lives of the child and purchaser, 3 per cent, interest being used.

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FOURTH SCHEDULE. Annuities have been valued by the a (f) and a (m) Annuity Tables deduced from the mortality of British Annuitants, 1900-1920, using 3 per cent, interest. In the case of annuity assurances the value at the age of entering upon the annuity has been computed by the above-mentioned Annuity Tables and treated as an endowment payable at the 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. Policies have been 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 be 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 been 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 the same rate as General policies which are like them in all other respects. The divisible surplus has been converted into reversionary bonuses by means of the Om Table of Mortality with 3 per cent, interest, the reversion for a continuous assurance having been used for whole-life policies. 111. The Tables of Mortality used in the Valuation were, — (1) For Assurances, the Om (British Offices) Table; (2) For Annuities, the a (f) and a (m) Annuity Tables deduced from the mortality of British Annuitants, 1900-1920. IV. 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 premiums, amounting to £90,016 per annum and valued at £1,184,906, 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 £11,411 has been made to provide for expenses and profits when the premiums shall have ceased. A reserve of £50,365 has also been set aside for future expenses under certain tables. The sum total of the provision for future expenses and profits is equivalent to approximately 17-5 per cent, of the value of the Office premiums. 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 and annuities at the date of the valuation, showing the number of policies, the 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.

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FOURTH SCHEDULE.

CONSOLIDATED REVENUE ACCOUNT OF THE GOVERNMENT INSURANCE DEPARTMENT For the Period commencing 1st January, 1924, and ending 31st December 1926.

VALUATION BALANCE-SHEET OF THE GOVERNMENT INSURANCE DEPARTMENT As at 31st December, 1926.

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£ s. d. £ s. d. Amount of Funds on ist January, 1924. . 6,222,484 13 o Death Claims under Policies, Assurances, Renewal Premiums .. .. .. 1,438,732 14 10 including Bonus Additions .. .. 547,213 4 o New Premiums .. .. .. 164,167 7 2 Endowment Assurances matured, includSingle Premiums .. .. .. 12,493 2 3 ing Bonus Additions .. .. 698,436 18 o Consideration for Annuities granted .. 47,835 9 8 Endowments matured .. .. 19,970 3 o £ s. d. Premiums returned on Endowments . . 682 18 1 Interest .. .. 1,095,724 10 4 Bonuses surrendered for Cash .. .. 18,292 17 3 Less Land and Annuities .. .. .. .. 64,904 7 6 Income Tax, Surrenders .. .. .. .. 103,974 o 3 £31,339 4 S -I P r °- Loans released by Surrender .. .. 148,451 10 6 perty Expenses, £ s. d. &c., £10,977 5s. 2d. 4 2 ,3 J 6 9 2 Commission, New* .. 108,224 5 9 1,053,408 12 „ Renewal .. 10,705 1 10 —-— 118,929 7 7 Expenses of Management— Salaries, Head Office . . 67,500 13 9 Salaries, Branch Offices and Agents .. 34,556 o 9 Extra Clerical Assistance .. .. 5,435 8 1 Medical Fees and Expenses .. .. 17,482 10 7 Travelling-expenses .. 3,466 19 6 Advertising .. 788 15 11 Printing and Stationery 6,579 6 4 Rent . . . . 16,804 16 7 Postage and Telegrams 4,695 7 11 Exchange . . . . 126 7 3 General Expenses .. n, 889 o 2 Triennial Expenses . . 4,378 19 1 Payment to Government Actuary's Department .. 1,906 10 10 Contribution to Superannuation Fund .. 3,071 9 o | — 178,682 5 9 1 Transfer to Investment Fluctuation Reserve .. .. .. .. 10,000 o o I Amount of Funds on 31st December, 1926 .. .. .. .. 7,029,583 16 2 £8,939,121 8 ij £8,939,121 8 1 * Including Agents' allowances.

Dr. £ Cr. £ To Net value of Liabilities (as per Valuation By Accumulated Funds (as per Consolidated Summary) .. .. .. ..6,582,792 Revenue Account) .. .. .. 7,029,584 Surplus .. .. .. 446,792 02 9.584

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Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1926.

FOURTH SCHEDULE.

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: : / Assurances : OM Table, 3 % Interest. Particulars of Policies for Valuation. Values \ Anni jities : a (f)anda (m) Tables dednced from Mortality of British Annuitants, 1900-1920, DESCRIPTION OF TRANSACTIONS. I 3 % Interest. Number of Sums assured Office Yearly Net Sums assured Office Yearly Net Net Policies. and Bonuses. Premiums. Premiums, and Bonuses. Premiums. Premiums. Liability. ASSURANCES. , „ I.—With Participation in Profits. * * Whole-life Assurances —Uniform Premiums .. .. .. 4,916 1,896,174 30,968 25,614 1,416,538 254,344 208,452 1,208,086 „ Limited, Single, and Commuted Premiums 325 174,118 28 24 136,662 122 100 136,562 „ Limited, Single, and Commuted Premiums with extra Profits .. .. .. 63 30,550 1,013 895 16,744 18,226 15,996 748 Endowment Assurances —Uniform Premiums .. .. .. 38,759 11,293,724 359,215 297,669 6,781,099 4,556,588 3,726,868 3,054,231 „ Limited, Single, and Commuted Premiums 363 154,699 3,845 3,182 84,352 40,205 32,947 51,405 With extra Profits .. .. .. 239 70,531 2,683 2,383 49,507 35,482 31,445 18,062 Double Endowment Assurances —Uniform Premiums .. .. 11,811 3,527,956 92,189 81,286 2,138,550 1,021,301 890,253 1,248.297 „ „ Limited, Single, and Commuted Premiums.. .. .. 76 8,462 .. .. 5,734 .. .. 5,734 Deferred Endowment Assurances, with return of Premiums — Ordinary Profits .. .. .. .. .. 5 3,800 32 25 769 857 674 95 Extra Profits: Uniform Premiums * .. 89 29,800 482 443 12,897 10,548 9,687 3,210 Extra Profits: Limited Premiums .. .. .. 1 400 8 8 146 98 98 48 Joint Life —Whole-life Assurances: Uniform Premiums.. .. 18 7,714 333 268 4,871 4,054 3,265 1,606 „ „ „ Limited, Single, and Commuted Premiums .. .. 1 1,013 96 84 698 488 425 j 273 „ Endowment Assurances .. .. .. .. 1 844 45 37 612 426 349 263 Survivorship Assurances .. .. .. .. .. 1 58 .. .. 26 .. .. 26 Simple Endowments, with return of Premiums .. .. 984 167,023 5,486 5,137 118,900 51,836 48,315 70,585 Endowments —Premiums ceasing on Death of Purchaser .. 454 62,235 2,376 2,210 45,856 19,362 18,007 27,849 Annuity Assurances .. .. .. .. .. 43 / 8,018 | 339 322 21,987 2,324 2,209 19,778 ! and annuity — ' I Deferred, £1,539 I (Ent'dupon£573 ' Total Assurances with Profits .. .. .. 58,149 17,437,119 499,138 419,587 10,835,948 6,016, 2Q1 4,989,090 5,846,858

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1926-continued.

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| /Assurances: OM.Table, 3 % Interest. Paptttot.ars of PonnpqMB Vatttatton Vathbs J ADnuities : a (f> and " ( m > Tables deduced from 1ABTIOOLAES OF POLICIES fob valuaiioj,. VALUES, Mortality of British Annuitants, 1900-1920, DESCRIPTION OF TRANSACTIONS. 1 3 % Interest. Number of Sums assured Office Yearly Net Sums assured i Office Yearly Net j Net Policies. and Bonuses. Premiums. Premiums, and Bonuses. ! Premiums. Premiums. | Liability. - | j | - j II.—Without Participation in Profits. £ £ £ ! £ \ £ £ £ Whole-life Assurances —Uniform Premiums .. •• 5,652 2,430,547 65,317 55,595 1,257,063 998,410 ! 849,560 407,503 „ Limited, Single, and Commuted Premiums 73 37,153 1,221 1,196 19,170 9,930 9,710 9,460 Endowment Assurances —Uniform Premiums .. .. .. 607 160,650 5,018 4,375 j 102,407 58,936 j 51,130 51,277 „ Limited, Single, and Commuted Premiums 5 1,094 .. .. 785 ... .. 785 Deferred Whole-life Assurances, with return of Premiums — Uniform Premiums .. .. .. .. 72 37,300 266 255 8,426 6,969 6,663 1,763 Limited Premiums .. .. .. .. 3 5,000 35 35 1,138 798 \ 798 340 Deferred Endowment Assurances, with return of Premiums — Uniform Premiums .. .. .. .. 419 102,950 1,703 1,675 43,733 30,739 30,238 13,495 Limited Premiums .. .. .. • ■ 2 200 .. .. 120 .. .. 120 Joint Life —Whole-life Assurances .. .. .. .. 2 900 43 39 610 464 412 198 Industrial Assurances .. .. .. .. .. 2 40 1 . . 25 .. .. 25 Temporary Assurances .. .. .. . .. .. 3 5,450 59 28 19 .. . . 19 Total Assurances without Profits .. .. 6,840 2,781,284 73,663 63,198 1,433,496 1,106,246 948,511 484,985 Reserve for Extra Premiums .. .. .. .. .. j ■ • .. .. 760 .. .. ' 760 Reserve for Future Expenses on Limited Premium and other Miscellaneous Assurances .. .. .. .. . • .. .. De'duct 61,776 61,776 Total Assurances .. .. .. . . 64,989 [ 20,218,403 572,801 482,785 jl2 : 270,204 7,122,507 1 5,875,825 6,394,379 j ■ ' ! I ANNUITIES. (Per annum.) Immediate .. . - -. .. • • • • 403 22,285 .. .. 184,248 .. . . 184,248 Deferred .. .. .. .. .. .. .. 4 600 518 518 4,165 .. .. 4,165 Total Annuities .. .. .. .. 407 22,885 518 518 ! 188,413 .. .. 188,413 I ) Total of the Results .. .. .. .. 65,396 20,218,403 573,319,483,303 12,458,617 7,122,507 5,875,825 6,582,792 and £24,997 per annum.

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FOURTH SCHEDULE. 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. 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 double-endowment 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 (1) The total amount of profit made by the Department during the three years ending the 31st December, 1926, including a balance of £18,787 carried forward three years ago, on the basis of a 3-per-cent. valuation, was £476,249, of which amount £29,457 has been paid as interim bonuses during the triennium. (2) The amount of profit divided among the policyholders as at the 31st December, 1926, was £430,363, which has been converted into reversionary bonuses amounting to £664,297. The number of policies which participated was 58,149, assuring the sum of £15,962,113, or, including reversionary additions, £17,437,119. (3) The following are specimens of the bonuses which have been allotted for the three years ending the 31st December, 1926, to policies for £100 upon which all previously allotted bonuses had been allowed to remain :—

Whole Life.

The cast values of the reversionary bonuses are computed by the Hm Table of Mortality, with interest at 4|- per cent. C. Gostelow, F.1.A., Government Actuary.

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AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 2Q 3Q 4Q 5Q Number I Years in — 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. 30 [650 2 15 3 650 3 10 11 650 466 650 506 30 35 6 15 o 376 6 11 o 425 6 11 o 4 18 9 6 11 o 5 10 10 35 40 760 429 730 4 18 11 700 5 12 7 700 637 40 Endowment Assubance.—Teem 20 Yeaks. 5 530 2 15 5 53° 2163I530 2 17 6 53° 310 5 10 580 3 11 1 580 3 11 7I580 3 13 4 580 3 14 10 10 15 514 o 4 11 8 514 o 4 12 1 5 14 o 4 12 8 5 14 0 4 I 3 7 I '5 20 600 600 600 6oo|6oo 600 600 20

H.—B,

EEP O R T BY THE {'loiitrunjnii '!nsiinui(t (Cnsmiiboioncr, 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 31ST DECEMBER, 1920.

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.

15

H.—B.

FIFTH SCHEDULE. Question 5. —The amount of premiums receivable annually in respect of each such special class of assurances mentioned under heading No. 4, 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 : —

16

Annual Premiums. ? to t?AVAvninnnrv - Total Ordinary Class of Assurance. Sums assured. Bonuses. Premiums 5 o ' received. 6 Ordinary. Extra. I With Profits. £ £ s. £ s. d. £ s. d. Endowment Assurances .. 32,008 7.957.263 537,862 18 284,852 6 10 j 556 17 o j Long-term Endowment Assur- 7,114 2,765,992 187,305 12 78,207 2 o j 564 9 2 ances Double-endowment Assurances 11,887 3,384,570 151,848 6 92,188 19 3 18 6 1 Endowment Assurances with 239 65,100 5,431 8 2,683 8 8 extra profits ■a Deferred Endowment Assurances 5 3,800 .. 31 15 6 .. S Deferred Endowment Assurances 90 30,200 .. 490 71 .. o with extra profits g Joint-life Assurances.. .. 19 8,200 j 526 19 428 13 11 496 £ Survivorship Assurances .. 1 40 182 Joint Endowment Assurances .. 1 800 j 43 13 45 2 8 Annuity Assurances .. .. 43 6,835* j 1,183 1 339 7 9t Endowments: With return of 984 156,612 10,411 1 5,486 8 8 premiums if death occur during term - Endowments: Premiums ceas- 454 57.75° 4.485 7 2,375 12 11 o 19 6 ing on death of purchaser I Without Profits. Endowment Assurances .. 612 161,744 .. 5,018 05 785 Joint-life Assurances .. 2 900 .. 43 8 o Deferred Endowment Assurances 424 108,150 .. r >737 n 3 Industrial Assurances .. 2 40 .. 0174 Temporary Assurances .. 3 5,45o .. 58 16 11 27 4 4 I | —j 1 Totals .. 53,888 £14,713,446 j £899,116 7 £473,987 19 2 £1,179 14 oj * And annuities deferred, 2s. 8d.; and entered upon, £572 12s. 8d. f These amounts are also shown under " Deferred Annuities " in answer to Question 8.

17

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3—H. 8

FIFTH SCHEDULE.

Question 7.—The total amount of immediate annuities 011 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.

Amount of Annuities. Age attained. ; Female. Male. £ s. d. £ s. d. 24 .. .. .. 23 11 8 29 .. .. .. 10 2 o 41 .. .. 52 o o 42 .. .. 44 5 o 49 •• .. .. 63 11 8 5° .. .. 119 10 8 53 • • • • 25 16 8 13 18 o 54 •• •• no o o 55 • • .. 85 o 4 91 2 8 56 .. .. 25 16 8 493 19 4 57 •• •• 32 5 o 117 o o 58 .. .. 164 10 o 107 2 4 59 .. .. 62 10 o 6° .. .. 20 19 4 172 13 4 61 .. .. 273 6 8 263 4 8 62 .. .. 100 o o 498 7 8 63 .. 345 18 4 60 8 2 64 .. .. 190 11 4 145 3 8 65 .. .. 44 10 0 717 3 o 66 .. .. 273 1 o 290 7 4 67 .. .. 63 6 4 339 13 10 68 .. .. 57 1 10 813 2 8 69 .. .. 166 18 4 771 6 4 7° .. .. 509 16 4 178 3 4 71 .. .. 201 11 8 785 4 2 72 .. .. 707 5 8 509 10 4 73 .. .. 84 10 o 249 9 6 74 •• •• 135 11 4 1.547 7 8 75 .. .. 264 5 2 i,168 o o 76 .. .. 388 2 2 197 16 o 77 .. .. .. 424 7 o 78 .. .. 644 13 8 217 6 10 79 .. .. 286 19 8 431 14 8 80 .. .. 343 18 4 565 3 10 81 .. .. 218 11 8 295 o o 82 .. .. 376 5 o 245 5 o 83 .. .. 53 11 6 254 1 8 84 .. .. 410 17 10 241 6 8 85 .. .. 70 8 4 171 9 8 86 .. .. 220 18 o 31 1 4 87 .. .. 65 1 8 196 19 4 88 .. .. .. 120 11 6 89 .. .. 141 60 62 12 o 91 .. .. 28 2 0 306 12 2 92 .. .. 23 6 10 93 .. .. 88 18 4 101 .. .. 300 00 Totals .. £7,732 10 4 £13,279 19 4 Joint and Survivorship. Age attained. , Amount of Annuity. Female. j Male. £ s - d - 67-63 . . ... I I 10 o o 68-64 • ■ ■ ■ 1 1 25 9 o 68-66 .. .. 1 1 109 o o 78-75 .. .. 1 1 200 o o 80-79 .. .. 2 2 152 19 4 85-75 •• 1 1 5° 19 4 85-78 .. .. 4 4 470 19 4 87-73 •• •• 1 1 17 ! 3 4 93-89 .. .. 1 1 193 1 o 100-85 •• •• 2 2 42 9 8 Totals .. .. 15 15 £1,272 11 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--1924 ... ... ... 5 7 7 1925 ... ... ... 5 9 1 1926 ... ... ... 5 11 1 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.

18

Amount Total Premiums Class of Annuitv Amount Annual Single I received to or Annuity. Annuities Premiums. Premiums. 31st December, £ s - d. £ s. d. £ s. d. Deferred (Premiums not returnable) .. 600 00 518 5 10 796 13 4 , 3 o . Deferred (Annuity Assurances)* .. .. 943 10 9 124 14 9 32 5 o "Sjts Deferred (Annuity Assurances) f .. .. 1,168 4 7 214 13 o .. z Totals £2,71115 4 £857 13 7 £828 18 4 * Including £411 14s. 9d„ annuity "entered upon " and temporary assurances for £2,$38. t Including £160 17s. nd., annuity "entered upon" and whole-life assurances for £4,297.

H.—B.

19

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.LA., the Government Actuary. A. E. Allison, Government Insurance Commissioner. 20th June, 1927.

H.—B.

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1926.

20

Age Nearest Birthday. Class of Assurance, with Participation in Profits. Age Age j Age Age Age Age Age | Age Age Age ! Age I0 - 15- ! 20. 25. 30. 35. 40. 45. 50. 55. | 60. ■ j : Whole-life Assurance, with Premiums £ s " £ s * d- £ s - d. £ s. d £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. ceasing at the Policy Anniversary 1 7j IlS 7 2 3 6j 2 8 42 14 63 2 03 11 6! 4 4 05 o 56 2 1x7 14 9 nearest to age 80. Annual Premiums i ' ! _J i j to secure £100, payable at death only —Table 2L. Note—In addition to participating in ordinary profits, a special reversionary bonus of 20s. per cent, per annum on the sum assured will be allotted in this table. 0 c I H 0 iS A | Annual premiums dur- 1 7 g 1 ix 3 1 15 7, 1 19 11 2 5 5 2 12 4 3 1 3) 3 13 2 4 9 2! 5 11 5737 1 £ o j ing the whole term O pj . q § rt'o 00 s Single payments .. 27 11 030 7 o 33 12 036 10 039 19 043 16 048 2 053 1 o 58 10 064 9 070 16 o g - <; o Annual premiums.— S.&o " 10 Limited to 10 years 3 15 04 1 84 9 10 4 17 05 5 45 15 06 6 16 19 47 15 28 14 69 [9 4 g "S3 ® » 2 14 8 2 19 9 3 5 11 3 11 3 3 17 7 4 5 o 4 13 9 5 4 6 5 17 10 6 15 3 7 r8 11 g a> CL ' "S - 1 - 4 20 » 20 „ 2 4 10 2 9 12 14 22 18 93 4 23 10 73 18 54 8 45 125 18 8 S 3 £ rt ® 2 5 " 2 5 » 1 19 1 2 2 11 2 7 6 2 11 7 2 16 7 3 2 7 3 10 o 3 19 10 4 13 o .. j .®3° - 3° » 1 15 5 1 19 o 2 3 3 2 7 1 2 11 10 2 17 9 3 5 3 3 15 4! .. .. ! y " 35 „ 35 1 13 01 16 420524228 11 2 14 10 327 .. | <D S g Annual premiums.— 'S ™ erm 10 y ears •• 9 8 09 9 I g II 6912 09 13 39 14 89 16 59 19 810 4 5 10 12 31152 •§ " r 5 » 5 19 360662863564 10 6 6 66 8 11 6 13 16 19 4797861 o'". £ « 20 „ .. 4 5 9 4 7 ij 4 9 1 4 10 1 4 11 9 4 13 11 4 17 o 5 2 2 5 10 3 6 3 o - 25 „ .. 3 6 3 3 7 b 3 9 9 3 10 11 3 12 11 3 15 7 3 19 6 4 6 o 4 15 10 • J i3 r " 30 •• 2 13 10, 2 15 5 2 17 7 2 19 o 3 1 4 3 4 7 3 9 7 3 17 4 .. 3 M o » 35 » .-25527229521122 14 02 18 1340 4) rt "g 4° 1 19 7 2 I 5 2 3 II 2 6 1 2 9 6 2 14 3 ™ g O »45 » I 15 5| 1 17 5 2 o 3 2 2 10 2 6 10 P - 5° 1 12 6 1 14 9 1 17 10 2 o 10 | 1 £ » 55 » 1 10 5 [ 12 11 1 16 4 J; g „6o„ I g I I II 10 g £ ; » 65 . . . I 8 3 . . . . j . «5 £ u . - 3g « 3 & •§ Annual premiums.— £ lerm 25 years .. 3 18 10 40 44254384584854 12 64 19 2594 ii- rt " 3° n .. 3 5 4 3 7 o' 3 9 3 3 10 8 3 13 2 3 16 6 4 1 9 4 9 10 S 2C — . ! o W ■o "c -S Note. In addition to participating in ordinary profits, a special reversionary bonus of 20s. per cent, per annum W jg on the sum assured will be allotted in this table. 3 i 4 „„, , . „ , Double Endowment Assurance—G. o <11 ! Annual Difference between Age of Elder and _ , 3? S3 j Premiums. Younger Life. For the assutance of £100 in the event of death during the term, and an endowed, j ! — ment of £200 in the event of the life Id Age of Younger Life „ assured surviving the term. . (nearest Birthday). 0 Ycars - 2 Years. 4 Years. 6 Years. 8 Years. 10 Years. . m 1 I T Annual eg E j Premium. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. j»3 . 20 2 14 11 2 16 1 2 17 4 2 18 10 3 o 7 3 2 6 £ s. d. Ms 25 30113253423603823 10 7 10 years 18 o o p,iJ ■ 3° 3 8 11 3 10 9 3 12 11 3 15 4 3 18 1 4 1 2 , 15 11 7 o 3- 0) 35 3 10 4 1 3 4 4 o 4 7 1 4 10 10 4 15 2 20 „ 800 §£ 4° 4 11 7 4 14 9 4 18 6 5 2 11 5 7 10 5 13 6 25 „ 600 ,SV)W 45 5 9 o 5 13 5 5 18 5 6 4 2 6 10 11 6 18 9 30 4 15 o ,£, 50 6 12 5 6 18 3 7 5 2 7 13 3 8 2 8 8 13 7 35 „ 3 17 o

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FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1926.

21

Class of Assurance without Participation in Profits. Immediate Annuities. Endowment Assurance. Showing the Sum to be paid Whole-life Assurance. Premium to Temporary Assurance. Premium required to secure £ioo, payable at Premium to be Paid for assuring to death onl y- dicated, or at Death £ lo ° on a Sln § le Llfe " the Date of Death if prior. i j i fi I j j r Age Premium Limited to i, Annual Annual ; Annual Age Nearest Single Annual Term Term Premium Premium Premium Last w- . F , Birth- Premium. Premium. 25 Years. 30 Years. for for for Birth- Mate. e day. 10 Years. 20 Years. 1 Year. 3 Years. 5 Years. day. j £ s. 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 1 1 6 2 13 6 1 12 7 2 19 1 2 7 3 ) 80 51 10 10 55 10 0 15 24170 148 300 1 16 9 305 289 I 100 106 110 79 53 19 2 58 50 20 27 18 o 1 8 7 3 8 o 2 1 10 325 2 10 9 ) 78 56 9 2 61 1 8 25 30 13 o 1 12 5 3 14 10 263 3 3 7 2 12 2 108 1 o 11 114 77 59 o o 64 o o 30 34 o o 1 17 5 4 3 5 2 11 9 3 5 5 2 14 5 130 135 1 3 10 76 61 12 6 67 0 10 35 37120 236 412 10 2 18 [ 3711 2 17 6 153 160 167 75 64 76 70 26 40 41 16 o 2 11 4 5 3 10 3 5 9 3 11 9 3 2 3 186 1 8 11 1 9 7 74 67 5 o 73 5 10 45 46 11 o 318 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 15 4 6 12 7 4 7 11 474 .. 206 221 240 72 73 5 o 79 17 6 55 57 10 o 4 14 4 7 11 4 .. .. .. .. .. .. 71 76 8 4 83 5 10 60 63 11 o 6 o 8 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. 99 9 2 «° 6 8 63 102 18 4 114 4 2 Endowment Assurance. With Extra Profits. 62 106 7 6 118 o o Whole-life „ , , . 61 109 16 8 121 15 10 Assurance. , Endowment Assurance. 6o „ 3 7 6 125 12 6 I 59 117 o o 129 7 6 A S e Premium to secure /100, payable 58 I2 ° 12 6 133 3 4 TV 6 fh^ St Premium to secure /100, payable at Death after 57 * 2 4 2 *3 J7 Birthday. At Deat j, a f ter Age 2Ii Age 21, or on the Policy Anniversary nearest 5 ? i6 g * 2 after or on the Policy Anoiversar y to A 8 e 5°. " 0 IO I4 2 nearest to 53 I3? 4 2 ISI 4 a 52 140 5 o 154 12 6 Age 21. Age 30. Age 50. Birthday Annual Premium. Ifrthday Annual Premium. 5I I43 5 0 157 19 2 1 1 I — 50 146 4 2 l6l 4 2 49 149 o IO 164 10 o £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 4 g I5I l6 8 i67 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 11 102 1 176 9 1 19 2 46 157 50 174 o 10 2 OI3 2 2 53 I I O 2 l88 IO 211 jjg jy g jyy 0 I0 3 O 13 8 2 7 10 I 1 II 3 I 9 II II 231 44 162 8 4 179 19 2 4 014 3 2 10 7 1 2 11 4 1 11 3 12 2 5 3 43 164 19 2 182 16 8 5 o 14 10 2 13 7 1 3 11 5 1 12 8 13 2 7 7 42 167 9 2 185 11 8 6 015 5 2 16 11 150! 6 1 14 2 | 14 2 10 1 41 169 18 4 188 5 10 7 o 16 1 3 0 6 162 7 1 15 9 j) .. 40 172 6 8 190 18 4 8 0169 345 1 7 5 _J || , 9 0175 38 10 189 o IO o 18 II i II 7 After age 21 the policy in addition to participating q idii ii32 ' n t ' le or( linary profits will receive an extra rer o 8 4118 1 14 10 versionary bonus of 20s. per cent, per annum on 14 ii 7 4 19 3 1 16 8 the sum assured. j Premiums payable throughout whole term of policy. Premiums refunded if child should die before age 21.

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FIFTH SCHEDULE.

Appendix No. 2. ASSURANCES FOR THE WHOLE TERM OF LIFE WITH WHOLE-LIFE PREMIUMS, WITH PROFITS, In force at 31st December, 1926.

22

| I Office Annual Pbemioms. Age Number ol Amount | Bonus I Age attained. Policies. assured. | Additions. J attained. Ordinary. Extra. I £ \ £ s - £ s. d. £ s. d. 41 i 650 | 160 4 10 4 10 .. 41 42 | 1 300 j 87 10 4 14 6 .. 42 43 1 100 ! 29 15 1 11 1 .. 43 44 6 1,400 428 16 22 11 10 .. 44 45 9 2,200 640 12 35 13 1 .. 45 46 16 4,050 1,218 10 66 i'I 6 .. 46 47 20 3,675 1,188 6 61 18 o .. 47 48 26 6,475 2,091 16 109 11 3 .. 48 49 50 11,960 3,706 12 208 30 o 10 o 49 50 57 14,500 4,788 o 251 6 6 1 10 o 50 51 71 19,800 6,781 7 342 15 11 9 10 o 51 52 73 19,825 6,363 5 352 13 7 390 52 53 101 24,495 8,582 3 438 6 11 3 15 o 53 54 HI 26,965 9,267 4 495 4 10 828 54 55 115 29,590 10,841 7 547 16 10 950 55 56 169 43,5 I 9 16,591 15 818 18 9 2 12 5 56 57 I 127 33,695 11,073 9 657 o o 8 16 3 57 58 172 48,445 17.909 15 943W6 2 10 18 o 58 59 | 151 45,42o 16,729 1 919F3 2 4 17 6 59 60 1 192 63,100 22,607 1 1,272 13 6 8 10 o 60 61 199 57.875 22,151 6 1,203 I 6 11 13 3 3 61 62 184 47,800 17,009 18 1,019 37 14 1 4 62 63 162 47,294 16,940 5 998 06 950 63 64 203 59,150 21,505 12 1,310 11 o 13 11 o 64 65 172 50,450 19,367 11 1,126 95 5 8 8 65 66 182 50,480 18,837 16 1,124 0 6 22 8 3 66 67 ! 163 5°.*7° 19.395 7 1,116 12 7 8 18 6 67 68 224 64,193 22,142 3 1,464 4 11 43 5 2 68 69 189 46,925 16,296 16 1,109 14 2 17 10 4 69 70 189 54,774 19,708 13 1,294 2 11 20 9 11 70 71 ; 162 45,080 17,461 2 1,064 15 0 18 13 4 71 72 : 173 46,888 17,689 17 1.135 3 9 18 13 o 72 73 152 44.225 17,178 15 | 1,069 96 24 4 2 73 ' 159 4°.678 I4.33I 3 i 1,010 12 8 20 15 8 74 75 147 45.050 18,216 o 1,131 11 10 25 4 3 75 7° 14 2 43.321 16,854 3 1,092 18 4 31 2 2 76 77 108 30,210 12,265 7 793 17 8 29 10 11 77 .78 90 25,506 ' 10,594 12 687 10 6 14 5 5 78 I 79 74 20,981 8,676 4 561 15 9 24 6 11 79 80 70 23,786 10,860 13 636 11 4 17 7 8 80 i 59 17.760 8,303 10 466 14 8 10 13 3 81 i 49 16,450 7,028 13 503 17 10 12 1 2 82 i 36 9.400 4,488 1 292 11 4 4 15 8 83 39 9,942 3.407 14 278 17 11 950 84 80 31 8,150 4,221 16 220 19 11 824 85 86 18 5,050 2,378 6 135 17 11 717 4 86 °7 15 3.7°° 1.55i 12 108 5 4 270 87 88 12 2,650 1,197 12 93 16 2 .. 88 89 15 3.200 1,266 3 112 18 2 314 89 90 12 3.45° 1,321 17 82 1 2 11 3 7 go 91 6 2,800 1,292 5 76 7 5 .. 91 92 6 1,270 699 10 47 8 3 . . 92 93 1 500 294 6 1834 .. 93 94 1 100 71 4 2 15 8 .. 94 95 2 400 239 9 14 10 2 .. g5 96 1 20 .. 128 .. 96 Totals 4,916 £1,379,842 £516,331 9 £30,967 16 0 £533 7 5

H.—B.

23

FIFTH SCHEDULE.

Appendix No. 3. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITH PROFITS, In force at 31st December, 1926.

«M I I I ® ° « ! woS ! °® Office Annual Age || Amount Bonus 2 £>f ; J'g £§ Pbbmiums. attained gS j assured. j Additions. ®ag j g~ £'3 ; " |S '"sfi | >1 Ordinary. Extra. £ s. £ s. £ s. d. £ s. 11 2 300 o . . 1920 1 71-5 18 1 8 16 1 300 o . . 1934 1 62-5 2 12 8 17 2 1,200 o .. 1937 1 49'5 3 18 4 19 I 200 o . . 1939 1 47-5 3 14 8 21 2 1,300 o .. 1945 1 6i-o 91 4 8 22 4 1,950 o .. 1946 1 6i-o 23 4 3 | 23 4 1,55° 0 •• 1952 I 55'° 88 6 3 24 1 300 o .. 1954 2 52-0 31 14 o 25 5 3,700 o .. 1955 1 50-0 25 2 1 26 3 850 o .. 1958 1 47-0 9114 27 3 1,700 o .. 1962 1 44'0 6 4 10 28 1 500 o .. 1963 2 43-0 51 11 o 7 10 29 3 1,200 o .. I 1964 1 42-0 840 j 30 2 1,000 o .. 1965 3 4i'0 58 o 9 31 2 800 o .. 1966 2 39-5 25 9 8 32 2 1,100 o . . 1967 1 39-0 33 14 2 33 1 300 o . . 1968 2 37-5 50 8 9 34 2 400 o .. 1969 1 37-0 3 10 o o 10 35 2 1,100 o .. 1971 2 35'0 36 17 o 37 2 1,100 o .. 1972 1 34-0 638 38 1 500 o . . 1973 2 33-5 15 6 8 39 2 1,200 o .. 1974 3 31-7 39 18 o 40 1 500 o . . 1975 2 30-5 28 12 6 41 3 1,600 o .. 1976 2 29-5 27 5 o 42 1 200 o .. I 977 3 28-7 32 17 2 43 2 1,300 o .. 1978 1 27-0 13 o o 44 1 150 o .. 1979 4 26-5 40 12 o 47 3 1,150 o 289 o 1980 1 26-0 12 7 6 j 48 2 350 o 109 18 1981 6 24-8 98 5 9 49 1 200 o 66 15 1982 2 23-0 13 17 9 50 3 700 o 70 6 1983 4 22*5 40 15 o 51 4 1,500 o 504 3 1984 3 21-6 36 6 1 52 5 2,200 o 719 1 1985 1 21-0 22 15 o 53 8 3,187 o 1,202 9 1987 1 19-0 4 11 o 54 6 2,114 0 774 J 3 1988 1 ' 17-0 21 6 8 55 9 3.697 0 J ,337 11 1989 1 I I7'° 4 3 4 56 5 1,615 0 859 16 1990 1 | 16-0 690 57 10 1,661 o 850 4 1995 2 II-O 572 58 16 4,933 o 2,420 2 59 7 1,198 o 607 2 60 8 3,623 o 1,561 17 61 9 2,774 ° 749 11 62 10 | 4,308 o 2,275 I 9 63 6 1,428 o 836 8 64 9 4,7° 1 o 2,377 5 65 8 2,107 0 1,015 11 66 13 4,785 o 2,623 8 67 6 1,469 o 845 o 68 9 3,391 o 1,350 13 69 7 1,712 o 1,013 18 70 9 1,252 o 862 13 71 18 7,737 o 3,758 2 72 15 4,477 o 2,176 10 73 8 2,556 o 1,421 4 74 7 2,500 o 736 o 75 5 1,463 0 995 4 76 7 4,871 o 3,573 15 77 14 4,522 o 2,773 4 78 12 4,199 o 2,618 15 79 12 6,892 o 3,759 1 80 10 2,153 0 1,201 1 81 10 4,376 o 3,049 5 82 2 600 o 468 16 83 6 2,069 o r >476 1 84 7 1,403 17 533 5 85 11 6,711 o 1,906 9 I 86 3 1,538 o 978 o 87 2 1,500 o 862 12 88 6 1,244 18 89 1 fc 500x0 370 14 90 2 at fco 284 6 94 1 59 o 48 11 Totals 388 £145,108 17 £59,558 16 67 | £1,041 9 4 £8 0

fl.—B.

24

FIFTH SCHEDULE.

Appendix No. 4. ASSURANCES FOR THE WHOLE TERM OF LIFE, WITHOUT PROFITS, In force at 31st December, 1926.

Office Annual Premiums. Age | Number of I AmoU nt assured. A ? e attained. Policies. attained. Ordinary. Extra. £ £ s. d. £ s. d. 13 3 2,ioo 24 9 ii .. 13 17 4 2,050 24 9 10 .. 17 18 3 2,500 31 8 4 .. 1g 19 9 5 > 000 67 9 8 .. ig 20 T 3 5.200 73 3 8 .. 20 21 9 4.3°o 59 6 6 .. 21 22 12 4>°5° 60 8 9 .. 22 23 2 3 9,95° 144 17 1 •• 23 24 26 ".35o 17 2 5 5 •• 24 25 40 18,750 289 15 5 .. 25 26 39 19,900 319 9 8 896 9fi 27 58 26,150 422 14 3 500 ° 28 86 34,950 579 1 6 4 10 o " 29 78 30,750 527 2 10 j 3 7i to 30 79 39,95° 696 10 6 | 10 10 o 31 92 40,800 723 12 2 10 1 3 j™ 32 94 38,500 698 15 7 200 °L 33 JI 3 54,ioo 1,006 31 11 16 8 34 hi 64,200 1,221 19 4 21 5 o ™ 35 146 59,6oo 1,163 o 3 900 36 161 74,050 I,477 4 11 9 10 o 37 188 79.350 1,596 21 200 38 x8 5 83,150 1,737 19 9 9 3 oc 39 i8 5 86,450 1,828 21 899 08 40 2 3° 104,850 2,381 11 10 17 5 o 41 209 94,700 2,167 82 20 19 6 Tr 42 246 H3,95 0 2,684 13 2 20 10 o V. 43 2 56 109,100 2,664 i 2 5 7 5o 7^ 44 2 3° 106,950 2,653 7 10 8 15 o /? 45 22 7 98,700 2,523 51 o 10 o 46 2 3 8 95,95o 2,590 40 900 ™ 47 22 5 88,050 2,436 15 4 17 o o 7° 48 2 36 97,°3 2 2 ,75 2 15 1 19 5 o 49 2 n 91,000 2,649 53 24 9 o TQ 50 i77 73,5oo 2,296 15 14 10 4 5 q 51 173 64,200 2,001 11 3 10 5 o 51 52 I60 65,250 2,144 20 14 O O rn 53 117 46,900 1,645 14 9 6 19 6 54 117 38,500 1,343 15 4 11 5 o 55 "5 47,"5 i,7i9 14 11 17 o o 55 56 "I 34,95o 1,314 13 8 12 10 o 56 57 33 4 0 ,950 1,689 17 7 4 10 o g7 58 90 35, 200 1,416 9 5 200 58 59 66 29,100 1,219 13 5 .. cq 60 91 40,650 1,836 O II 5 IO O gg 61 63 24,150 1,176 3 1 .. 61 62 30 13,000 591 7 11 2 10 o 62 63 3 2 16,100 770 91 0100 03 64 36 2 i,55° 1,144 12 11 400 04 65 22 7,900 431 18 9 200 05 66 19 6,700 368 29 .. 00 67 23 5,850 331 4 11 .. 07 68 5 i,55o 79 19 3 500 68 69 14 9,100 559 84 o 15 o 69 70 8 2,000 107 112 .. 70 71 6 1,150 69 4 4 .. 71 72 12 3,900 260 17 .. 72 73 1 2,000 219 16 8 .. 73 74 1 200 16 19 o .. 74 76 2 850 66 16 7 .. 76 77 2 600 4170 2100 77 81 1 200 584 .. 81 Totals 5,652 , £2,430,547 £65,316 19 1 £376 1 10

H.—B.

FIFTH SCHEDULE.

Appendix No. 5. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITHOUT PROFITS, In force at 31st December, 1926.

Appendix No. 6. TEMPERANCE NON-PROFIT SECTION (Constituted according to Section 39, Government Life Insurance Act, 1908)

4—H. 8.

25

II II Age | Number Amount Year Number j Average Office Annual Premiums. attained. Po £ jes assured. PoUcies. attamed. I Ordinary. I Extra. I ~\ ? o/i " I £ s. d. £ s. d. 24 I i 200 27 | 1 24 28 [ 1 1,000 31 ! 2 230 32 j 1 500 33 j 2 2,200 1927 1 56-5 13 4 o 1 16 o 34 I 2 2,000 1928 1 47-5 29 15 6 35 j 3 644 1930 1 59.5 69 15 10 36 I 3 2,300 1931 1 56-5 14 14 o 38 j 6 1,881 1932 1 36-5 471 39 | 2 2,250 1933 5 44-7 320 17 4 40 ! 6 1,612 1935 9 47-8 147 2 4 41 i 1 1,000 1936 2 45-0 11 13 5 42 J 1 500 1937 i 4 41-3 39 5 10 43 | 4 1,700 1939 5 49-9 97 o 4 44 | 4 1,100 1940 2 47-5 9 19 8 130 45 4 1,100 1941 3 47-8 161 2 o 46 2 5,000 1942 4 40-8 87 o 6 - 47 { 1 600 1943 ; 3 41-8 57 17 o 48 3 869 1944 j 6 38-0 81 6 6 49 2 1,400 1945 I 3 37'2 52 18 4 50 j 3 900 1946 ; 1 38-5 670 52 1 4 2,280 1947 1 24-5 3 13 10 53 I 1 300 1951 j 1 32-5 12 10 o 54 2 1,100 55 2 500 56 2 600 57 2 1,200 58 1 100 59 I 2 1,200 61 2 863 Totals : 73 £37,153 .. 54 £1,220 10 6 £2 19 0

In force at 31ST December, 1926. Number arn „„„ t Additions Office Annual Pbemiums. Age attained. of assured (allotted j Age attained. *=)?° ordinary. | Extra. Assurances for the Whole Term of Life, with Whole-life Premiums. £ £ s - £ s - <*• 81 1 200 .. 584 .. 81 Totals , 1 £200 •• £5 8 4 |

H.—B.

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

FIFTH SCHEDULE.

26

Whole-life Participating Assurance by Equal Assurances"^ bl Endowment Assurances Endowment Assurances Annual Premiums for the . . payable in Twenty-five Years, or at payable in Thirty-five Years, or at r r -r in Fifteen Years, or at . Whole Term of Life. previous Death. previous Death. previous Death. * True Age at Entry. MINIMUM SURRENDER VALUES AT THE END OF . __ 5 Years. 10 Years. 15 Years. 25 Years. 35 Years. 5 Years. 14 Years. 5 Years. 10 Years. 20 Years. 24 Years. 5 Years. 10 Years. 20 Years. 30 Years. 34 Years. ! i I I L ! 1 I £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 15 3 1 0 6 8 0 10 2 0 18 18 0 30 7 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 72 1 0 91 3 0 20 2 16 0 6 19 0 11 4 0 21 15 0 34 17 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 71 6 0 90 12 0 25 3 10 0 8 7 0 13 8 0 25 15 0 40 7 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 70 14 0 89 18 0 30 4 2 0 9 18 0 16 1 0 30 4 0 45 19 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 70 0 0 89 3 0 35 4 19 0 12 0 0 19 3 0 35 5 0 51 17 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 ( 90 2 0 6 11 0 15 8 0 37 8 0 69 6 0 88 6 0 40 6 2 0 14 10 0 22 17 0 40 10 0 57 9 0 24 6 0 88 7 0 11 4 0 26 6 0; 65 14 0 88 12 0 7 4 0 16 19 0 38 15 0 68 12 0 87 8 0 j 4 5 7 7 0 17 5 0 26 17 0 45 19 0 62 4 0 23 16 0| 87 14 0 11 5 0 26 8 0 64 15 0 87 15 0 5 0 8 17 0 20 9 0 31 0 0 51 4 0 65 14 0 23 5 0 87 0 0 11 10 0 26 17 0 63 11 0 86 13 0 .. .. .. | 55 10 10 0 23 14 0 35 10 0 55 12 0 69 16 0 22 12 0 86 1 0 12 2 0 27 12 0 62 9 0 85 9 0 60 112 3 0 27 5 0 39 16 0 58 10 0 77 17 0 21 12 0 84 15 0 .. .. .. .. .. .. j I ! I NOTE. —In addition to the above Values the full H M - 4£ per cent. Cash Value of all existing ordinary Bonuses is granted.

H.—B.

ACTUARY'S REPORT ON THE VALUATION OP THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DECEMBER, 1926.

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

Government Actuary's Department, Wellington, 31st March, 1927. I have the honour to report that, in compliance with section 40 of the Government Life Insurance Act, 1908, and its amendments, I have made a valuation as at the 31st December last of the actuarial liabilities of the Government Insurance Department, with the object of ascertaining the net surplus available for division amongst the policyholders. 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 :—

Consolidated Revenue Account.

Income—On the income side the chief items of importance are the increase of £192,778 in the total premium income, and the revenue from interest, which exceeds by £153,989 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. ii. £ s. d. 1921 ... ... ... 5 3 5 1924 ... ... ... 5 7 7 1922 ... ... ... 5 3 11 1925 ... ... ... 5 9 1 1923 ... ... ... 5 6 8 1926 ... ... ... 5 11 1 Outgo. —The death claims of the triennium were £16,906 heavier than in the previous triennium, while the sum paid to the holders of endowment assurance or endowment policies who survived the selected terms amounted to £718,407, an increase of no less than £65,112 over the previous triennium. The Valuation. The business to be valued consisted of 65,396 policies, assuring £20,218,403, inclusive of bonus additions, and £24,997 immediate and deferred annuities per annum, the ordinary annual premiums thereon amounting to £573,319. The Department also receives £2,100 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.

27

New Business of Triennium. In Force at End of Triennium. Triennimn. , | Number of Sums , Annual , Number of Sums Reversionary Annual Policies. assured. | Premiums. | Policies, j assured. Bonuses. Premiums. I I £ =2 £ £ £ 1915-1917 .. 10,129 2,709,163 1 90,017 ! 53,058 12,884,531 1,304,243 387,377 1918-1920 .. 14,189 4,529,993 156,568 j 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 1924-1926 .. 16,689 , 5,512,560 175,757 j 65,396 18,743,397 1,475,007 575,420 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.

Triennium ending 31st December, 1926. ; TrfenniSm Triennium ending 31st December, 1926. GMemSSm [ J [J £ I £ £ £ Funds at beginning of tri- 6,2-22,485 5,542,552 Death claims .. .. 547,896 530,990 ennium j Matured claims .. .. 718,407 653,295 Renewal premiums .. 1,438,733 1,291,437 Annuities paid .. .. 64,904 62,838 , New premiums .. .. 176,660 131,178 Surrenders .. .. 252,426 195,036 Consideration for annuities 47,835 31,772 Bonuses surrendered for cash 18,293 19,546 Interest, less taxes .. 1,053,408 894,419 Commission .. .. 118,929 99,852 Defalcations recovered .. .. 267 Expenses .. .. 178,682 180,728 j Transfer from Investment .. 75,788 Transfer to Investment 10,000 ] Fluctuation Reserve Fluctuation Reserve } Marryatt Defalcation Ac- .. 2,643 count Funds at end of triennium.. 7,029,584 6,222,485 Totals .. .. £8,939,121 £7,967,413 Totals .. .. £8,939,121 £7,967,413 )

H.—B.

Basis of Valuation.—Assurances were valued by the 0 M Table of Mortality, and annuities by the a (f) and a (m) Annuity Tables, based upon the mortality of British annuitants, 1900-20, 3 per cent, interest being used in each case. The valuation premiums were arrived at by deducting from the Office premiums a reasonable margin of loading for future expenses, and in no case was the resultant liability of any policy less than that which would be given by the "net premium" method of valuation. £ The value of the total liability under the several contracts is ... 12,458,617 Deduct the value of the future net premiums ... ... ... 5,875,825 6,582,792 The accumulated funds are ... ... ... ... 7,029,584 Difference, being net surplus at 31st December, 1926 ... 446,792 Add interim bonuses paid during the triennium ... 29,457 Gross surplus ... ... ... £476,249 The Subplus. Of this surplus of £476,249 the sum of £29,457 has been applied as shown above. Of the balance of £446,792 I recommend that £16,429 be carried forward, and that £430,363 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 £664,400. As laid down by the Act, I have made a careful investigation of the General and Temperance Sections separately, and I find that for the triennium under review no differentiation should be made between the rates of bonus to be allotted to similar classes of policy under the two sections. After making allowance for the difference between the present rates of premium and those charged prior to 1900 (hereafter referred to as the " old issue "), and for the experience of the various classes of assurance, the resulting scale of compound reversionary bonuses per cent, on the sum assured and existing bonuses will be as follows for policies paying three full years' premiums during the the triennium, viz.,— £ s. d. Whole-life and endowment assurances (present issue) ... 5 0 0 per cent. Whole-life and endowment assurances (old issue)... ... 4 16 0 per cent. Double endowments (closed series) ... ... ... 4 0 0 per cent. Pure endowments and double endowments (new series) ... 312 0 per cent. In order to illustrate the effect of the compound reversionary bonus system I may add that in respect of those policies paying three years' premiums during the triennium, whole-life and endowment assurance contracts, which constitute the bulk of the business, will receive simple reversionary bonuses ranging from £5 to £9 per cent, of the sum assured according to the duration of the policy. Policies entering during the triennium will receive bonuses in the same proportion to the above rates that the number of years' premiums paid during the triennium bears to the full three years' premium. The rates of bonus now allotted are very much in excess of any declared in the past, and the progress made during the triennium under review is very well illustrated by the following comparison with the three previous trienniums : —

It will be seen that compared with the preceding triennium the increase in the amount of cash surplus divided moved from £12,415 in 1920 to £99,857 in 1923 and to £112,800 in 1926; and, further, that in the short space of six years since 1920 the new bonuses allotted have been practically doubled. These results, read in conjunction with the valuation basis, which is probably stronger than that of any Australasian life office, cannot fail to be very gratifying to policyholders. C. Gostelow, F.1.A., Government Actuary.

Approximate Cost of Paper.—Preparation, not given ; printing (2,000 copies), £62_10i

By Authority : W. A. G. Skinner, Government Printer, Wellington.—l 927.

Price 91.]

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Gash Surplus divided. New Reversionary Bonuses allotted. Triennium. i Amount. Increase over Pre- Amount. I over Preceding Triennium. ceding Triennium. £ £ £ £ 1924-26 ... ... 430,363 112,800 664,400 187,400 1921-23 ... ... 317,563 99,857 477,000 137,612 1918-20 ... ... 217,706 12,415 339,388 17,298 1915-17 ... ... 205,291 ... 322,090