ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1929.

Appendix to the Journals of the House of Representatives, 1930 Session I, H-08

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1930. NEW ZEALAND

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1929.

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

Government Insurance Office, Wellington, 19th June, 1930. I have the honour to submit my report regarding the position of the Department as at the 31st December, 1929, together with the Balance-sheet and Revenue Account at that date, and Statement of Business showing the operations of the Department during the year. The Actuary's Annual Report regarding the division of surplus is appended, with the statements required to be presented triennially in terms of sections 36, 37, and 38 of the Act. In my report of last year the Department's operations over a period of three years were compared, and a similar comparison is again made on this occasion. On account, however, of the completion of a further triennial peiiod, a convenient opportunity is presented for making a more extensive examination, and accordingly in the following statements an analysis is also made of the Department's progress during the latest three triennial periods. The main features of the Department's operations during the past three years are as follows : — 1927. 1928. 1929. (1) Life Assurance Business:— • £ £ £ (a) New sums assured .. .. .. 1,791,845 1,915,465 1,918,600 Annual premiums thereon .. .. 58,006 63,138 62,414 (b) Total sums assured (including bonus additions) .. .. .. .. 21,277,350 22,084,471 22,965,608 Annual premiums thereon .. .. 595,780 617,642 642,140 (2) Annual Income :— Interest and rents .. .. .. 401,697 419,592 438,717 Less land and income tax (after allowing for refund made in 1929) .. .. .. 11,075 15,792 20,558 Net interest and rents .. .. .. 390,622 403,800 418,159 Premium income, including consideration for annuities .. .. .. .. 600,864 626,359 654,847 £991,486 £1,030,159 £1,073,006

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1927. 1928. 1929 (3) Claims: — « £ £ Claims by death during year .. .. 198,130 197,620 196,093 Claims by maturity during year .. .. 275,069 315,077 297,075 Total claims during year .. £473,199 £512,697 £493,168 Total claims paid since inception of Department... .. .. .. •• £11,737,918 (4) Management Expenses (including commission) .. 97,152 95,745 94,306 (5) Profits divided .. .. .. .. 190,500 200,287 214,188 (6) Funds : — Life-assurance funds .. .. .. 7,303,925 7,582,679 7,926,525 Investment-fluctuation Reserve and Accident and Fidelity Reserve .. .. .. 212,687 213,349 226,807 £7,516,612 £7,796,028 £8,153,332 The above statement gives clear indication that the Department has made consistent progress and in particular that, notwithstanding the additional business placed on the books and the additional cost of annual bonus distributions introduced in 1927, the actual expenses of management have steadily decreased during the three years. A similar statement of the operations during the past three triennial periods is as follows : — (1) Life Assurance Business:— 1921-23. 1924-26. 1927-29. (a) Total new sums assured effected during £ £ £ period .. .. .. .. 4,499,581 5,512,560 5,625,910 Annual premiums thereon .. .. 139,620 175,757 183,558 (b) Total sums assured at end of period (including bonus additions) .. .. 17,906,612 20,218,404 22,965,608 Annual premiums thereon .. .. 501,321 575,420 642,140 (2) Income during Period :— Interest and rents .. .. .. 917,826 1,084,747 1,260,006 Less land and income tax .. .. 23,407 31,339 47,425 Net interest and rents .. .. .. 894,419 1,053,408 1,212,581 Premium income, including consideration for annuities .. .. .. .. 1,454,387 1,663,229 1,882,070 £2,348,806 £2,716,637 £3,094,651 (3) Claims during Period : — Claims by death .. .. .. .. 530,990 547,896 591,843 Claims by maturity .. .. .. 653,295 718,407 887,221 Total claims during period .. £1,184,285 £1,266,303 £1,479,064 Total claims paid to date since inception of Department .. £8,992,551 £10,258,854 £11,737,918 (4) Management Expenses (including commission) .. 280,580 297,611 287,203 (5) Profits divided (excluding interim bonuses) .. 317,563 430,363 604,975 (6) Funds at end of Period :— Life-assurance funds .. .. .. 6,222,485 7,029,584 7,926,525 Investment-fluctuation Reserve and Accident and Fidelity Reserve . . . . . . 208,224 208,609 226,807 £6,430,709 £7,238,19'3 £8,153,332

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The foregoing statements give a fairly comprehensive view of the Department's activities. The triennial period 1927-29 as compared with the corresponding 1921 23 period shows the following increases, viz. : New sums assured, £1,126,329 : total income, £745,845 ; and funds, £1,722,623 : The most outstanding feature, however, is the remarkable increase which has taken place in the amount of profits divided, which have increased from £317,563 to £604,975 —an increase of over 90 per cent. The larger profits have arisen mainly from exceptionally favourable mortality, increase in interest earned, and economy in management —the three most important sources from which the profits of a life-insurance institution are derived. In this connection it is interesting to compare the average management expense and interest rates over the above periods with the corresponding rates in respect of the year 1929 : — 1921-23. 1924-26. 1927-29. 1929. Per Cent. Per Cent. Per Cent. Per Cent. Ratio of expenses of management (including commission) — To premium income . . .. . . 19-3 17-9 15-3 14-4 To total income .. . . . . .. 11-9 11*0 9-3 8-8 Gross average rate of interest before deduction of land £ s . d. £ s. d. £ s. d. £ s. d. and income tax .. .. .. ..5 7 5 5 12 6 5 15 10 5 16 3 Net average rate of interest after deduction of land and income tax .. .. .. ..5 4 8 5 9 3 5 10 6 5 10 10 These figures show that since the 1921-23 period the average net rate of interest has increased from £5 4s. Bd. per cent, to £5 10s. lOd. per cent., while the economy which has been effected in management expenses is equivalent to 4-9 per cent, of the premium income or 3-1 per cent, of the total income. This aspect of the Department's administration is specially important from the policyholders' point of view because the combined effect of these improvements is equivalent to an additional cash profit of not. less than Is. in every £1 of premium paid. Taxation. —In my report of last year I pointed out that the Department appeared to be bearing a relatively and probably a greater burden of taxation than any other life-insurance institution operating in the Dominion. There was considerable difficulty in regard to the interpretation of certain sections of the taxing Acts, and consequently an unintentional and inequitable burden of taxation was being borne by the Department. It was imperative in the policyholders' interests that the position should be clarified, and the Commissioner of Taxes agreed to join with the Department in a friendly action in order to get a definite ruling in the matter. As the result of this action, and in conformity with the decision of the Appeal Court, the remission sought was granted and the basis of taxation determined. I consider it advisable, however, to point out that notwithstanding this decision, the Department, as compared with other life-insurance institutions, continues to bear at least its full share of taxation. In the past year it paid land and income tax amounting to £20,558 2s. 2d. —a sum possibly greater than that paid by any of its competitors in respect of their New Zealand business. Assets. —The Department's assets, which are held in trust solely for the benefit of the policyholders, are being invested in sound securities. It will be noticed by reference to the Balance-sheet that the item " Foreclosed properties " on the books at 31st December last amounted only to £1,394 9s. 4d. The property represented by this item has since been disposed of at a satisfactory figure. The distribution of the assets is as follows : — ... . T Percentage of Class oi Investment. Total Assets Mortgages of freehold property .. .. .. .. 41-0 Government securities .. .. .. .. .. 28-7 Local-body debentures . . .. .. . . .. 13-6 Loans on policies .. .. ... .. .. .. 12-3 Landed and house property .. .. .. .. 2-6 Miscellaneous assets .. . . .. .. .. .. I*B 100-0 Annual Bonus Distribution. —The usual bonus investigation has been carried out by the Actuary, and his report, which is appended hereto, discloses a net surplus of £222,540 (excluding interim bonuses paid during the year) in respect of this year. Of this sum, £214,188 has been allotted in the form of compound reversionary bonuses upon the sum assured and existing bonuses, the total reversionary bonuses thus allotted amounting to £352,346. The bonus allotted under the present issue of ordinary endowment assurances is at the rate of £1 18s. per cent, per annum of the sum assured and existing bonuses, which is at the same rate as that of the preceding two years. In the case of the corresponding issue of long-term endowment and whole-life assurances, the rate has been increased from £2 to £2 2s. per cent, per annum of the sum assured and existing bonuses. These bonuses are very satisfactory, especially in view of the low premiums charged by the Department, a.nd have been declared in conjunction with the maintenance of the strong valuation basis disclosed in the appended schedules.

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General. —Summarizing the results for the year — (1) The new business was again the highest ever transacted by the Department in any one year. (2) The total income increased by nearly £43,000. (3) Claims decreased by £19,529. (4) Total funds increased by £357,304. (5) Profits divided amounted to £214,188. (6) Expense ratios (both to total income and premium income) showed decreases. (7) The net rate of interest earned showed an increase. The combined effect of a careful selection of risks, economy of management, and profitable investment of the funds has been reflected in the increased profits recently distributed. During the past ten years the Department has made marked advances in all directions, and, given average trade conditions, there is every reason to expect further progress. The Department is constituted entirely on the lines of a mutual life-insurance office, its policyholders being a group of individuals joined together for mutual aid and protection. In the attainment of this end policyholders not only benefit themselves but, as their funds are invested entirely in the Dominion, they assist to no small extent in its development. The welfare of the Department is therefore of vital interest not only to the policyholders but to the people of New Zealand generally. A. E. Allison, Commissioner.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1929. £ s. d. £ a. d. Amount of Funds at Ist January, 1929 7,582,679 311 Death claims under assurance policies, Renewal premiums — Assurance, An- including bonus additions .. 195,581 11 0 nuity, and Endowment .. .. 567,277 16 2 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 285,731 6 0 of first year's premiums falling due Endowments matured .. .. 11,343 10 0 in the year) .. .. .. 60,778 19 9 Premiums returned on endowments .. 511 18 11 Single premiums—Assurance and En- Bonuses surrendered for cash .. 8,427 14 4 dowment .. .. .. 5,16885 Annuities .. .. .. 23,038 11 9 Consideration for Annuities .. 21,621 14 1 Surrenders .. .. .. 36,498 15 11 Refund of Income-tax for years 1927 Loans released by surrender .. 59,983 5 S and 1928 .. .. .. 10,562 14 8 £ s. d. £ s. d. Commission, new* .. 35,341 10 0 Interest and Rent .. 441,988 12 0 ~ renewal 4,385 11 10 Less land and in- 39,727 1 10 come tax after Contribution to Public Service Superdeducting refund annuation Fund .. .. 717 16 0 (£6,511 ss. 9d.) Expenses of management — for 1929, £20,558 Salaries— £ s. d. 2s. 2d.; property Head Office .. 22,514 9 9 expenses, £3,272 Branch offices and os. 9d. .. 23,830 211 agents .. 12,285 2 1 418,158 9 1 Extra clerical assistance .. .. 2,285 9 3 Medical fees and expenses .. 3,149 3 2 Travelling-expenses 742 10 3 Advertising . . 632 5 10 Printing and stationery .. .. 1,374 18 5 Rent .. .. 5,302 0 7 Postage and telegrams 1,759 17 0 Exchange .. 70 1 7 General expenses .. 3,745 310 53,861 1 9 Property depreciation .. .. 4,300 0 0 Transfer to Investment Fluctuation Reserve Account . . .. 20,000 0 0 Amount of funds, 31st December, 1929 7,926,524 12 11 £8,666,247 6 1 ' £8,666,247 6 1 " " ~ - * Including agents' allowances. —• ~~ Balance-sheet of the Government Life Insurance Department on 31st December, 1929. Liabilities. j Assets. £ s. d. £ s. d. Total Assurance, Annuity, and En- Loans on policies .. .. .. 1,014,921 1 7 dowment Funds (as per Revenue New Zealand Government securities.. 2,273,160 0 0 Account) . . . . 7,926,524 12 11 Rural Advances Bonds .. .. 85,230 0 0 Claims admitted, proofs not yet com- Municipal Corporation debentures .. 231,739 14 9 pleted .. .. .. .. 33,463 17 0 County securities .. .. .. 103,448 011 Annuities .. .. .. 1,128 14 7 Harbour Board debentures .. 28,700 0 0 Commission .. .. . . 933 15 1 Town Board debentures .. .. 31,919 5 8 Medical fees .. .. .. 263 11 0 Road Board debentures .. .. 21,800 0 0 Premium and other deposits .. 6,213 2 0 Drainage Board debentures .. 1,790 2 3 Sundry creditors .. .. .. 8,428 011 Power Board debentures .. .. 700,853 8 0 Accident and Fidelity Fund .. 3,911 18 5 Landed and house property .. 142,251 10 0 Investment Fluctuation Reserve .. 222,895 11. 5 Landed and house property (leasehold) 1,775 9 3 Sinking Funds on Local Body Loans 11,161 7 5 Mortgages on property .. .. 3,365,032 15 10 Properties acquired by foreclosure .. 1,394 9 4 Overdue premiums on £ s. d. policies in force .. 8,290 17 9 Outstanding premiums due but not overdue 56,184 8 0 64,475 5 9 Overdue interest .. 7,193 15 3 Outstanding interest due but not overdue 9,755 0 10 Interest accrued but not due .. .. 107,581 15 11 124,530 12 0 Sundry debtors (including refund of income-tax for 1927, 1928, and 1929) 18,318 16 1 Cash in hand and on current account 3,583 19 4 £8,214,924 10 9 £8,214,924 10 9 A. E. Allison, Commissioner. H. Rose, Secretary. Government Life Insurance Department. 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. 0. Campbell, Controller and Auditor-General.

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Statement of Business

TOTAL . Whole-life and Term Assurances. YEAR 1929. Annual Annuities. i Annual q Rever- Premiums. / immediate or x. Sum "ever- Premiums. No - assured. Bonuses L 0rdinar y- entered upon. assured, L 0rdinar VBonuses. 2 Extra. 2. Deferred. tonuses. 2 Kxtra POLICIES ISSUED AND DISCON- £ £ £ s. d. £ s. d. £ £ £ s. d. Policies in force at 31st 68,56219,974,5812,109.890 ] 615,669 14 423,25.1 2 0110,308 3,784,573 621,185 ( 95,033 7 5) December, 1928 1 1,972 15 1 1,868 14 10 j \\ 802 14 3J New business .. .. 5,735 1,918,600 .. ( 62,309 17 11 2,155 12 41 188 101,950 .. j 3,387 12 81 1 103 14 9 J 1 15 16 4 | Bonus allotted .. .. .. 324,871 .. .. .. .. 36,690 Total.. .. 74,29721,893,1812,434,761 ( 677,979 12 325,406 14 4 110,496 3,886,523 657,875 ( 98,421 0 11 | 2,076 9 10 1,868 14 10j ( 818 10 7 f Policies discontinued 4,108 1,193,112 169,222 ] 37,752 8 3 1,967 5 01 633 263,168 44,126 ] 6,552 1 7 1 during 1929 1 163 12 4 357 1 8| { 103 1 4 | Total policies in force at 70,189 20,700,069 2,265,539 1 640,227 4 0 23,439 9 41 9,863 3,623,355 613,749 ] 91,868 18 6) 31st December. 1929 i 1,912 17 6 1,511 13 2) ( 715 9 3 J I I I I , PARTICULARS OP POLICIES DISCON How discontinued. Bv Death .. 580 1 150,740 45,714 ( 4,714 10 3 2,267 5 01 294 85,548 35,431] 2,035 16 0 1 'I 39 5 9 J ' 11 29 11 4 f Maturity .. .. 1,138, 234,835 60,813 ( 9,227 10 8J .. .. .. .. j Surrender.. .. 1,466 474,648 51,501 ( 14,165 15 101 .. 235 114,447 8,518, ( 3,019 2 5 1 I 53 8 10 J ( 35 6 2 [ Changes to other 84 34,850 1,110 ] 921 2 10 I 34 17,550 .. j 455 12 3 1 Tables I 57 1 8/ .. f Cancellation .. 137 39,800 50; 1,162 16 5| .. 2 2,300 .. j 37 13 4| Lapse .. .. 703 258,239 10,034 ] 7,560 12 3 ( —)300 0 01 68 43,323 177 ] 1,003 17 7 I \ 50 15 5 (+)300 0 0) 1 38 3 10 f Total discontinued during 4,108 1,193,112 169,222 ] 37,752 8 3 1,967 5 0) 633, 263,168 44,126 ] 6,552 1 7 1 year 1929 I 163 12 4 357 1 8) | 1 103 1 4 f PROGRESS OP BUSINESS OF THE GOVERNMENT LIFE INSURANCE Total issued .. .. 202,179 54,867,041 5,679,414 | jg \ } H6,164 10 8 50,45616,398,129 2,264,0271 [ Total void .. .. 131,990 34,166,972 3,413,875 1 1 '°^ 7 8 | 4 } 91,213 8 2 40,59312,774,7741,650,278; i5 2) | Total in force .. 70,189 20,700,069 2,265,539 640,227 4 0 24,951 2 6 9,863 3,623,355 613,7491 91,868 18 6 Extra Premiums .. .. .. 1,912 17 6 .. .. .. I 715 9 3 £642,140 1 6 £92,584 7 9 |_ _! Note.—The " ordinary " premium is the premium charged

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at End of Year 1929.

A. E. Allison, Commissioner. Geo. W. Melville, Actuary.

ASSURANCES. SIMPLE ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. Annual !• Sum Annuities. Annuities. Sum j Annual No Sum Premiums. »'wurod. } lmmediale or Annual Annual 7. Immed iate or „ j 2 aS Reve r '. I Pren l h,ms ' assured. 1. Ordinary. "°- 1 entered upon. Premiums. °' Premiums. entered upon. \ 1 U Ordinary. \ IBxtra. || | Bonuses. I)l! f' erred - I '■ Deferred | BonuseB. 1 * Extra ' TINUED DURING THE YEAR 1929. £ £ £ 8. d. £ £ s. d. £ a. d. £ s. d. £ s. d. £ £ s. d. 55,881 15,817,283 1,466,724 (509,746 2 2) 41] 5,935 789 8 10)237 2 7 392 518 5 10 122,461 13 2 ) 1,940 f 366,790 10,134 16 4) { 1,169 1 4} j 1,191 1,268 14 10 J 1 600 0 0 ) ( 20,790 0 19 6) 5,373 1,789,100 .. ] 58,018 8 2) .. .. .. .. 32 .. I 2,155 12 4) 142] 27,550 903 17 II 1 87 8 5) | j" ( 0 10 0) 281,957' •• •• 133 •• •• •• •• •• •• 3, 091 61,25417,606,383;l,751,68li (567,764 10 41 41 f 5,935 789 8 10 | 237 2 7 424 518 5 10(124,617 5 6)2,082 / 394,340 11,038 13 51 t 1,256 9 9 j ( 1,324 1,268 14 10 / j 600 0 0 J ( 23,881 1 9 6' 3,270 895,804: 122,3591 J 29,861 3 71 14 ] 150 525 6 1 I 7 6 1 16 426 13 4] 1,441 18 11 ) 175 J • 33,990 905 3 81 1 60 11 0J t 26 57 1 8 / ) 300 0 Of \ -2,711 .. J 57,98416,710,579ll,629,322 ]537, 903 6 9l 27] 5,785 264 2 9)229 16 6 408 91 12 6] 23,175 6 71 l,907i J 360,350 10,133 9 91 1 1,195 18 9)1 1 1,298 1,211 13 2 J V 300 0 0/ |( 21,170 1 9 6) | I | 1 I || TINUED DURING THE YEAR 1929. 247 63,892 10,283 ( 2,640 8 2 | .. .. 29 .. ] 2,267 5 0) 10] 1,300 38 6 1) 1 9 14 5 f 1 • • f t • • I I 1,073 225,585 58,735 ] 8,919 7 II .. .. .. .. .. .. .. 65 j 9,250 308 3 71 1 20 2 4 ) 1 2,078 .. / 1,170 347,501 42,982 ] 10,794 7 8) ..!]..) .. .. .. .. .. 61 ( 12,700 352 5 91 I 18 2 8 / ! 1 1 / | / 47 16,500 1,085 ( 450 18 2 1 1 ] 150 .. 17 6 1.. .. .. 2 I 650 7 6 41 t •• I 1 25 57 1 8 / I I J 133 37,000 50 ( 1,109 4 5 t .. .. .. .. .. .. .. 2 | 500, 15 18 8[ } ■■ ) \ .... j 600 205,326 9,224 I 5,946 18 1 [[ 13 .. ] 525 6 1 I .. f-)13 ( + )426 13 4 ] (-)825 6 1) 35 ] 9,590 183 3 3l t 12 11 7 j j I \ f 1(+)300 0 0 ] | 633 .. / 3,270 895,804 122,359 ( 29,861 3 7l| 14[ ] 150 525 6 II 7 6 1 16 426 13 4 ] 1,441 18 11 1 175 J 33,990 905 3 8) \ 60 11 of! 1 26 57 1 8 j \ 300 0 0 | | 2,711 .. / DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1929. 142,56lj37,199,523 3,369,588 { \l 1,1°6 j } 57,497 16 68,619 15 8 1,146 866 6 8 58,666 14 2 6,910 j 19 5} 84,577|20,488,9441,740,266 -j Jg gj 1,079 | j 56,022 0 7|8,389 19 2 738 774 14 2 35,191 7 7 5,003 j 7^j ' 25, °|q q| 57,984|l6, 710,5791,629,322 537,903 6 9 27 j j'ggg 1 1,475 15 11 229 16 6 408 91 12 6 23,475 6 71,907 j 10,133 9 9 i j ~ -v I *• 1 ' 19518 9 - " i '■ " •• •• \ - 1 9 6 I I I I I ; I £539,099 5 6 £229 16 6 £9112 6 £10,134 19 3 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 OP LIABILITIES (FOURTH AND FIFTH SCHEDULES) FOE THE TBIENNIUM ENDING 31st DECEMBER, 1939.

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 UNDER LIFE POLICIES AND ANNUITIES OF THE NEW ZEALAND (6 or eminent Jttsimnut 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, 192 ( J. 11. The principles upon which the valuation and distribution of profits were made were as follows :— (1) Principles of Valuation.—ln 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 0 M 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 Sitrplus.-—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 bv the profit earned. An interim bonus is also paid, at the same rate; in respect of those policies which may 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 0 M 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 0 M (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 proportion of the annual premium income reserved as a provision for future expenses and profits is represented by the difference between the premiums actually payable and the valuation premiums, and amounts to 19-6 per cent, of the annual premium income. In addition special provision has been made for future expenses and profits under assurances by limited premiums. VI. The Consolidated Revenue Account for the period Ist January, 1927, to 31st December, 1929, is given on page 13. 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 14 and 15.

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FOURTH SCHEDULE.

CONSOLIDATED REVENUE ACCOUNT OP THE GOVERNMENT INSURANCE DEPARTMENT Fob the Peuiod commencing Ist Januaby, 1927, and ending 31st Decembeb, 1929. £ s. d. | £ s. d. Amount of funds on ist January, 1927 7,029,583 16 2 Death claims under policies—assurance, Renewal premiums .. .. 1,637,509 on including bonus additions .. .. 590,859 19 10 New premiums .. .. .. 175,343 10 3 Endowment assurances matured, inSingle premiums .. .. .. 16,113 3 2 j eluding bonus additions .. .. 856,462 19 o Consideration for annuities granted .. 53,104 11 3 Endowments matured .. .. 3°.757 16 o £ s. d. Premiums returned on endowments . . 983 9 6 Interest and rent .. 1,270,254 n 4 Bonuses surrendered for cash .. 28,828 15 o Less land and in- Annuities .. .. .. .. 69,225 7 5 come tax (after Surrenders .. .. .. 116,898 3 5 deducting refund Loans released by surrender . . .. 172,190 16 3 of £17,074 os. sdl ' £ s. d. £47,424 6s. 6d. ; Commission, new* .. 105,181 11 5 property expenses Commission, renewal 12,710 14 2 £10,249 3s. nd. 57,673 10 5 117,892 5 7 1,212,581 on Expenses of Management: — Salaries— Head Office .. 66,134 9 1 Branch Offices and agents .. 36,463 15 10 Extra clerical assistance . . . . 7,625 18 4 Medical fees and expenses .. 11,421 14 1 Travelling-expenses -,451 19 9 Advertising .. 1,567 2 11 Printing and stationery 4,950 8 10 Rent .. .. 16,833 8 7 Postage and telegrams 5,235 2 5 Exchange . . 167 6 4 General expenses .. 9,841 10 7 Services rendered by Government Actuary's Department 4,412 14 1 Contribution to Public Service Superannuation Fund 2,205 6 11 169,310 17 9 Property depreciation .. . . 4,300 o o Transfer to Investment Fluctuation Reserve Account . . . . 40, 000 o o Amount of funds, 31st December, 1929 7,926,524 12 11 £10,124,235 2 8 £10,124,235 2 8 * Including Agents' allowances. VALUATION BALANCE-SHEET OF THE GOVERNMENT INSURANCE DEPARTMENT /Is at 31st December, 1929, ' Dr. £ Cr. / To Net value of Liabilities (as per Valuation By Accumulated funds (as per Consolidated Summary) .. .. .. .. 7,703,985 Revenue Account) .. .. .. 7,926,525 Surplus . . .. . . . . 222,540 £7,926,525 £7,926,525

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1929.

14

: ' : = ( : I / Assurances : OM Table, 3 % Interest. Par ttottti a r s of for V at.tt atton Vat tit's Annuities, ci (f) and o. (w.) Tables deduced from PARTICULARS of POLICIES for valuation. values Mortality of British Annuitants, 1900-1920, DESCRIPTION OF TRANSACTIONS. \ 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 .. .. .. 4,073 1,689,219 25,248 19,709 1,293,638 191,771 148,497 1,145,141 ,, Limited, single, and commuted premiums 282 155,567 10 8 124,119 59 43 124,076 ,, Limited, single, and commuted premiums 250 132,878 4,171 3,518 73.675 75,359 63,309 10,366 with extra profits Endowment assurances —Uniform premiums .. .. .. 46,386 14,752,358 446,818 350,122 8,605,400 5,944,737 4,596,917 4,008,483 „ Limited, single, and commuted premiums 521 220,352 5,133 3,999 116,557 54,681 42,497 74,060 With extra profits .. .. .. 305 100,867 3,553 71,931 45,552 38,325 33,606 Double endowment assurances —Uniform premiums .. .. 10,048 3,096,402 77,630 64,950 2,022,292 751,557 621,431 1,400,861 ,, Limited, single, and commuted 127 13,316 j .. .. 9,000 .. .. 9,000 premiums Deferred endowment assurances, with return of premiums — Ordinary profits .. .. .. .. .. 9 6,200 50 38 ! 1,269 1,340 1,018 251 Extra profits: Uniform premiums .. .. .. 106 35,300 564 493 ' 15,188 12,307 10,759 4,429 Extra, profits: Limited premiums .. .. .. 1 400 8 8 j 159 82 78 81 Joint life —Whole-life assurances: Uniform premiums . . .. 15 10,046 468 366 6,457 5,409 4,216 2,241 ,, ,, Limited, single, and commuted 1 1,107 96 80 789 272 225 564 premiums Survivorship assurances .. .. .. .. . . 1 63 .. .. 27 .. .. 27 Simple endowments, with return of premiums .. .. 974 169,265 5,652 5,021 121,178 51,608 45,664 75,514 Endowments —Premiums ceasing on death of purchaser .. 435 60,805 2,281 2,010 45,094 17,990 15,902 29,192 Annuity assurances .. .. .. .. .. 27 / 7,083 ) 230 207 16,065 1,582 1,430 14,635 J and annuity — 1 I j Deferred, £1,212 j I Ent'd upon£264 Total assurances with profits .. .. .. 63,561 20,451,228; 571,912 453,524 12,522,838 7,154,306 5,590,311 6,932,527

H.—B

FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1929-continued.

15

j Assurances : OM Table, 3 % Interest. T'A'R.TTPnT ars Off PnijrTpq por Vatttatton Vatttwsh Annuities: a (f) and a (m) Tables deduced from particulars op policies pob valuation. values Mortality of British Annuitants, 1900-1920, DESCRIPTION OF TRANSACTIONS. 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. II.—Without Participation in Profits. £ £ £ £ £ £ £ Whole-life assurances —Uniform premiums .. .. .. 5,153 2,208,994 60,839 54,755 1,208,860 866,955 780,306 428,554 „ Limited, single, and commuted premiums 83 37,273 1,015 913 20,300 6,817 6,135 14,165 Endowment assurances —Uniform premiums .. .. .. 589 155,320 4,770 4,293 105,427 48,122 43,310 62,117 ,, Limited, single, and commuted premiums 8 1,286 .. .. 967 .. .. 967 Deferred whole-life assurances, with return of premiums — Uniform premiums .. .. .. .. 59 28,400 209 188 6,770 5,329 4,796 1,974 Limited premiums .. .. .. .. 3 5,000 35 32 1,242 760 684 558 Deferred endowment assurances, with return of premiums — Uniform premiums .. .. .. .. 318 75,950 1,334 1,201 36,048 21,637 19,473 16,575 Limited premiums .. . . .. .. 2 200 .. .. 131 .. .. 131 .Joint life —Whole-life assurances . . . . .. .. 1 217 .. .. 159 .. .. 159 Industrial assurances .. . . .. .. .. 2 40 1 1 22 .. .. 22 Temporary assurances .. .. .. .. .. 2 1,700 20 18 13 .. 13 Total assurances without profits .. .. 6,220 2,514,380 68,223 61,401 1,379,939 949,620 854,704 525,235 . . Reserve for prepaid loading, under-average lives, &c. .. .. .. .. .. .. 51,913 .. .. 51,913 Total assurances .. .. .. .. 69,781 22,965,608 640,135 514,925 13,954,690 8,103,926 6,445,015 7,509,675 ANNUITIES. Immediate .. .. .. .. .. .. 406 23,175 .. .. 192,601 192,601 Deferred .. .. .. .. .. .. 2 300 92 83 2,124 461 415 1,709 Total annuities .. .. .. .. 408 23,475 92 83 194,725 461 415 194,310 Total of the results .. .. 70,189 22,965,608 640,227 515,008 14,149,415 8,104,387 6,445,430 7,703,985 and £24,951 per annum.

H.—B

16

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 13. VIII. All participating policies in force at the date of the valuation share in the profits. The profits are allotted in the form of compound reversionary bonuses which vest immediately and are payable with the sum assured in the event of a claim ; 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 year ending the 31st December, 1929, including a balance of £12,232 carried forward from 1928, on the basis of a 3-per-cent. valuation, was £225,806, of which amount £3,266 has been paid as interim bonuses during the year. (2) The amount of profit divided among the policyholders as at the 31st December, 1929, was £214,188, which has been converted into reversionary bonuses amounting to £352,346. The number of policies which participated was 63,445, assuring the sum of £18,143,789, or, including reversionary additions, £20,409,328. (3) The following are specimens of the bonuses which have been allotted for the year ending the 31st December, 1929, to policies for £100 issued under the present premium tables and upon which all previously allotted bonuses had been allowed to remain : — , | _ : 1

Endowment Assurances Maturing at Age 80.

AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 20. 30. 40. 50. Number Years in , j ~ Years in Force. Reversionary Cash Reversionary Cash Reversionary Cash Reversionary Cash Force. Bonus. Value. Bonus. Value. Bonus. j Value. Bonus. Value. j £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 5j250 OIOII 250 01310 250 01710 250 133 5 10 [280 0130 280 o 16 10 280 11 10 280 180 10 15 2 11 o o 15 8 2 11 o 102 2 11 o 164 2 11 o 1 13 7 15 20 ! 2 13 o o 18 7 2 13 o 141 2 13 o 1 10 11 2 13 o 1 19 1 20 25 | 2 16 o 122 2 16 o i 8 11 2 1(5 o 1 16 10 2 16 o 2 6 11 25 30 | 2 ig o 169 2 19 o 1 14 5 2 19 o 237 2 19 0 2 19 o 30 Endowment Assurances. —Term 20 Years. 5 210 121 2 I o 125 210 12 II 2IO I 4 3 j 5 10 230 184 230 186 230 192 230 1 9 10 ; io 15 260 1170 260 1 17 2 260 1 17 5 260 1 17 9 15 20 2 80 280 280 280 280 280 280 280 20 I I I The cash values of the reversionary bonuses are computed by the Hm Table of Mortality, with interest at per cent. G. W. Melville, F.F.A., Actuary.

17

H.—B

EE POET BY THE /| wouwimpf ihusiminrc \fiinni|isoio»er, 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. 1929.

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 A.—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.

3—H. 8.

H.—B

18

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 : —

Annual Premiums. Number of n ■, Reversionary Total Ordinary Class of Assurance. Policies. Sums assured. Bonuses. Premiums Ordinary. Extra. received. With Profits. £ s. d. Endowment assurances .. 46.907 13,588,289 1,384,420 14 451,9502 8 1,181 17 1 Double-endowment assurances .. 10,175 2,878,534 231,184 o 77,630 3 10 883 Endowment assurances with extra 305 87,150 13,716 19 3.55 2 16 3 0 5 o profits Deferred endowment assurances . . 116 4 I .9°° .. 622 17 9 Joint-life assurances .. .. 16 10,200 952 2 564 81 496 Survivorship assurances . . 1 40 23 9 .. .. <u Annuity assurances .. .. 27 5>7®5* 1,298 4 229 16 6 2 o Endowments with return of pre- 974 154,150 15,115 9 5.652 8 6 .. rt miums if death occur during term £ o Endowments; Premiums ceasing 435 54.75° 6 >°55 1 2,280 19 1 196 on death of purchaser Without Profits. Endowment assurances .. 597 156,606 .. 4.77° 4 0 585 Joint-life assurances .. .. 1 217 Deferred assurances .. .. 382 109,550 .. *.577 4 5 Industrial assurances .. .. 2 40 .. 0174 Temporary assurances .. .. 2 1,700 . . 20 5 11 Total.. .. 59,940 £17,088,911 £1,652,765 18 £548,852 4 4 £1,20117 9 * And annuities deferred, 13s. 2d. (shown in answer to Question 8) ; and annuities entered upon, 2s. 9d. (included in answer to Question 7).

H.— 8.

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.

19

Males. Females. Age attained. — Number of Policies. Amount of Annuities. Number of Policies. Amount of Annuities. I s. d. £ s. d. 27 . . .. .. I 23 II 8 32 . . . . I 1020 44 . . . . .. .. I 52 o o 45 .. .. .. .. .. I 44 5 o 49 . . . . I 139 6 8 50 . . . . 1 50 o o 2 25 12 8 51 .. .. .. .. .. 1 50 o o 53 .. .. . . . . . . 3 119 10 8 56 . . . . 3 220 48 1 25 16 8 57 . . .. 1 30 o o 3 180 16 8 58 . . . . 3 167 60 2 85 o 4 59 •• •• •• 2 493 19 4 1 25 16 8 60 . . .. .. 5 367 10 o I 57 12 4 61 .. . . 5 418 14 8 4 421 19 2 62 . . . . . . . . 2 62 10 o 63 .. .. 6 625 10 10 1 20 19 4 64 . . .. . . 12 391 15 5 4 192 18 8 65 .. .. 11 754 18 1 2 203 o 8 66 . . .. .. 7 231 5 2 7 345 18 4 67 .. .. .. 3 276 15 4 3 190 11 4 68 . . .. 20 986 34 2 44 10 o 69 .. .. . . 7 304 24 9 299 15 8 70 . . . . 8 205 04 .5 196 6 4 71 . . . . . . 23 1,341 17 8 4 117 1 10 72 . . . . 10 706 14 6 386 11 8 73 .. .. . . 3 156 11 8 12 527 5 8 74 .. .. 11 920 13 2 8 279 o 8 75 . . . . 7 614 16 10 1 7 5 8 76 . . • • 3 | 169 96 2 84 10 o 77 12 1,367 28 2 135 II 4 78 . . .. . . 9 1,335 9 10 4 255 11 o 79 .. . . 4 i 194 00 10 257 16 10 80 . . .. .. 13 I 41° 3 0 .. 1 81 .. . . 1 93 9 o 8 1 482 14 4 82 . . .. • • 2 I 138 3 o 5 | 259 4 4 83 . . . . . . 17 j 565 3 10 1 i°5 10 ° 84 .. . • 3 295 00 2 148 11 8 85 . . . ■ 1 171 3 4 4 124 8 8 86 .. . . • • 4 I 254 1 8 2 53 11 6 87 .. . . ■ • 3 | 144 o o 15 410 17 10 88 .. .. .. 3 ! 141 19 10 3 70 8 4 89 .. • • 1 31 1 4 4 220 18 o » go . . . . 1 20 o o 1 65 1 8 91 . . . . . . 1 68 5 o 92 . . • • 3 62 12 o 2 141 6 o 94 . . . . .. 3 190 10 6 95 . . . . . . . . .. 4 23 6 10 Totals . . 235 1 £15,088 1 0 155 j £6,80114 4 Joint and Survivorship. Age attained. Amount of Annuity. Male. Female. £ s - <3. 60-76 . . . . I I 70 4 O 70-66 . . . . I I 10 O O 70—67 • • •• 1 1 4 00 0 0 71-67 . . . . I I 25 9 0 71-69 . . . . 1 1 109 o o 81-78 . . .. 1 1 200 o o 83-82 . . . . 2 2 152 19 4 88-ai • • • • 4 4 47° 19 4 88-78 . . . . 1 1 5° 19 4 90-7 •• 1 1 r 7 !3 4 103-88 .. 2 2 42 9 8 Totals ... 16 16 £1,549 14 0 Immediate annuities amounting to £264 2s. 9d. per annum are included above. The correspondingnumber of policies, sums assured, &c., are included in the answers to Questions 4, 5, and 6 (Annuity Assurances).

H.—B,

20

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. 1927 .. .. .. 5 10 10 1928 .. .. .. ..599 1929 .. .. .. .. 510 10 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.

Numbe Total Premiums flaw of Armnitv nf * Amount of Annual Single received to ot Annuity. PoScies Annuities. Premiums. Premiums. 31st December, 1929, £ s. d. £ s. d. Deferred (premiums not returnable) 2 300 00 91126 Nil Not calculated. Deferred (annuity assurances) * .. .. 1,211132 Totals .. .. 2 £1,51113 2 £9112 6 * The number of policies and the premiums for this class are included in the answers to Questions 4, 5, and 6.

21

H.—B

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 either at an increased premium or subject to a contingent debt. 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. G. W. Melville, F.F.A. A. E. Allison, Government Insurance Commissioner. 18th J line, 1930.

__*-8

22

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1929.

' Age Nearest Birthday. Class of Assurance, with Participation j j ; j 1 ; ; ; j in Profits. Age Age Age Age Age Age Age Age Age Age Age IO. 15. 20. J - 25. , 30. j 35. 40. 45. ; 50. 55- 60. - I Whole-life Assurance, with Premiums £ s ' d ' £ *■ d ' £ s ' \ d I £ s ' £ s ' d ' £ s ' d , £ s ' d ' £ s ' d ' £ s ' d '\£ s " d ' ceasing at the Policy Anniversary IX 4 7j 1 *8 7 2 3 62 8 42 14 63 2 0311 64 4 05 o 56 2 117 14 9 nearest to age 80. Annual Premiums ! ! ! 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. H ° J3 A Annual premiums dur- 1 7 gin 31 15 71 ig 11 2 5 52 12 43 1 33 13 24 9 2511 5737 I <u u o ing the whole term 8 > " ej s»,'3 00 Bs Single payments .. 27 11 030 7 033 12 036 10 o 39 19 043 16 048 2 053 1 058 10 064 9 070 16 o g a<«; <0 . j» - Jjf o Annual premiums.— < o B 10 Limited to 10 years 3 15 04 1 84 9 10 4 17 05 5 45 15 06 6 16 ig 47 15 28 14 6 g 19 4 B 15 . 15 „ 2 14 8 2 19 g 3 5 11 3 11 3 3 17 7 4 s o 4 13 g 5 4 6 5 17 10 6 15 3 7 18 11 SjUSh b 20 « 20 „ 24 10 2gi2 14 22 18 g3423 10 73 18 54845125 18 8 'S B 25 „ 25 „ 1 ig 1 2 2 11 2 7 6 2 11 7 2 16 7 3 2 7 3 10 o 3 ig 10 4 13 0 •§ u J! B 3° » 3° . 1 15 5 1 19 o| 2 3 3 2 7 1 2 11 10 2 17 g 3 5 3 3 15 4 a B 35 „ 35 „ 1 13 01 16 420524228 11 2 14 10 327 M 1 <D 5 u Annual premiums.— _„■§ m Term 10 years .. 9 8 og g 19 11 69 12 0 g 13 39 14 89 16 59 19 810 4 510 12 311 5 2 14 c „ 15 . .. 5 ig 360662863564 10 6 6 66 8 11 6 13 16 19 47 g 7861 £ » 20 „ . .4594714914 10 14 n 9 4 13 11 4 17 05225 10 3630 ".g „ 25 „ .. 3 6 3 3 7 8 3 g g 3 10 11 3 12 11 3 15 7 3 ig 6 4 6 o 4 15 10 gs £• „ 30 . 2 13 10 2 15 52 17 72 ig 03 1 43 4 73 g 73 17 4 Sq g C „ 35 „ ..2552722g52ii22i4 02 i8i340 3 ~ '-3 „ 40 „ ..Iig72i523 ii26i2g62i4 3 » 45 „ ,.i 15 51 17 52032210 2610.. 0 ° „ 50 „ 1 12 6 1 14 g 1 17 io| 2 o 10 H-g £ , 55 .. 1 10 5 1 12 11 1 16 4 1 -g „ 60 „ .. 1 g 1 1 11 10 .. .. $£ . 65 „ ..183 .. .. 1 rt .£ 1 s c « w u tc Annual premiums.— S Term 25 years .. 3 18 10 40 4; 4254384584854 12 64 ig25g4 -gjSrt -3° - •• 3 5 43 7 03 9 33 io 83 13 23 16 64 194 g 10 S 2 c C *+* x £ ° y ,0*3 Note. —In addition to participating in ordinary profits, a special reversionary bonus of 20s. per cent, per annum a cd " on the sum assured will be allotted in this table. W 2"o Double Endowment Assurance—G. 0 Annual Difference between Age of Elder and _ . , , 1 | Premiums. Younger Life. F ° r assurance of £100 in the event of S, death during the term, and an endowed '3 ment of £200 in the event of the life fr? , , T •< i assured surviving the term. 1.3 (nearesTBktifday) ° Years - 2 Years ' 4 Years. ! 6 Years. 8 Years. 10 Years. §; E — Term. 2 ° £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. ~~ g-g 20 2 14 11 2 16 1 2 17 4 2 18 10 3 o 7 3 2 6 £ s. d. 25 30 11 3253423603823 10 7 10 years 18 o o „ 3° 3 8 11 3 10 g 3 12 11 3 15 4 3 18 1 4 1 2 15 „ 11 7 o u 35 31810413440471410104152 20 „ 800 Sfj§ 4° 4 11 7 4 14 9 4 18 65 2 11 5 7 10 5 13 6 25 „ 600 - S.-K 45 5 g o 5 13 5 5 18 5 6 4 2 6 10 11 6 18 g 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 ►— 1 *

H.—B.

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1929.

23

Class of Assurance without Participation in Profits. Immediate Annuities. Endowment Assurance. Showing the Sum to be paid Whole-life Assurance. Annual p remium to Temporary Assurance. *° r p^blfby'"HalfPremium required to secure £100, payable at to be Paid for assuring pfymTnl 1 to death 0nl y- dicated, or at Death £ 100 on a Sln S le Llfe " the Date of Death 7 if prior. Age Premium Limited to Annual ; Annual Annual Age Nearest Single Annual Term Term Premium Premium Premium Last M , Fom oi a Birth- Premium. Premium. 25 Years. 30 Years. for for for Birthday. 10 Years. 20 Years. 1 Year, j 3 Years. 5 Years. day. £ 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 o 1 1 6 2 13 6 [ 12 7 2 19 1 1 7 3 | 80 51 10 10 55 10 o 15 24170 148 300 1 16 9 3°5 289 I i o o 106 110 79 53 19 2 58 50 20271801873802110 325 2109) 78 56 92 61 18 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 13° 1 3 5 I 3 10 7 6 61 12 6 67 0 10 35 37 12 o 236 4 12 10 2 18 1 3 7 11 2 17 6 153 160 167 75 64 7 6 70 2 6 40 41 16 o 2 [i 4 5 3 10 3 5 9 3 11 9 323 186 1 8 11 197 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 ii 4 .. .. .. .. .. .. 71 76 8 4 83 5 10 60 63 11 o 6 0 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 gj 96 o o 106 7 6 , T) at 64 99 9 2 no 6 8 Without Profits. I02 18 4 "4 4 2 Endowment Assurance. With Extra Profits. 62 106 76 118 o o Whole-life „ , „ . 61 109 16 8 121 15 10 Assurance. Endowment Assurance. 6o „ 3 ? 6 I25 I2 <5 59 117 o o 129 7 6 Premium to secure £100, payable 120 12 6 133 3 4 T? 0a u^ St Premium to secure payable at Death after 57 2 *3 l 7 Birthday. At Death after Age 21, Age 21, or on the Policy Anniversary nearest 5 1*0 16 8 ltd d 2 after or on the Policy Anniversar y to A S e 5°- 54 0 I0 I4 2 nearest to 4 2 151 4 2 ~~ ~ T 52 140 5 o 154 12 6 Age 21. Age 30. Age 50. Birthday. Annual Premium. |frthday! Annual Premium. 5I i 43 5 o 157 19 2 _ ' : J : 50 146 4 2 161 4 2 I 49 *49 0 TO 10 0 £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. jg g 0 0 0122 208 0194 o 164 8 1 17 5 IO I0 jy 0 18 4 1 0128 22 11 102 1176 9 1 19 2 j 5 7 5 o 174 o 10 2 0132 253 1 1 o 2 188 10 211 159 17 6 177 o ic 3 o 13 8 2 7 10 1 1 11 3 | 1 9 11 11 231 44 162 8 4 179 19 2 4 014 3 2 10 7 1 2 11 4 1 11 3 12 253 43 i64 ig 2 T g 2 g 5 o 14 10 2 13 7 i 3 11 5 1 12 8 13 277 4 2 167 9 2 185 11 8 6 015 5 2 16 11 1 5 0 6 1 14 2 | 14 2 10 1 4I i69 i8 4 x gg 5 IO 7 o 16 r 306 162 7 1 15 9 .. .. 4 o !72 6 8 190 18 4 8 0169 345 1 7 5 I I 9 0175 38 10 189 10 ° 2 ? Jx TT T TT 7 After a S e 21 the policy in addition to participating 11 °9 3 j: in the ordinary profits will receive an extra re12 0 19 10 4 4 II 3 versionary bonus of 20s. per cent, per annum on n 100 4 11 o 1 14 10 j 17 I4 117 4 19 3 1 16 8 the sum assured. Premiums payable throughout whole term of policy. Premiums 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, 1929.

24

| Office Annual Premiums. Age Number of Amount Bonus : Age attained. Policies. assured. Additions. attained. Ordinary. Extra. £ £ s - £ s - d - £ s. d. 45 i 300 120 17 4146 .. 45 46 1 100 40 19 1 11 1 . . 46 47 6 1,400 577 12 22 11 o .. 47 48 9 2,200 885 1 35 13 1 .. 48 49 14 3,65° 1,510 17 60 1 4 .. 49 50 20 3,675 1,560 o 61 18 o I .. 50 51 25 6,275 2,734 3 106 1 3 .. 51 52 43 10,160 4,383 11 T 75 2 7 o 10 o 52 53 53 13,300 5,836 6 230 14 11 j 1 10 o 53 54 66 18,675 8,623 3 323 25 9 10 o 54 55 68 17,825 7,598 18 316 16 8 390 55 56 89 20,945 9,384 14 373 14 9 250 56 57 105 25,265 11,600 8 463 31 828 57 58 108 28,639 13,641 16 529 17 9 950 58 59 163 41,019 20,224 1 77 1 17 10 2 12 5 59 60 118 3!,895 14,226 16 622 15 o 800 60 61 160 44,025 21,093 12 855 13 1 980 61 62 137 42,070 20,165 IO 854 19 7 450 62 63 176 57,45o 26,831 3 1,161 16 9 8 10 o 63 64 174 5o,975 25,735 19 1,054 11 6 13 3 3 64 65 168 43,688 20,345 16 931 11 1 12 1 4 65 66 139 39,194 18,131 12 827 no 850 66 67 181 52,900 25,045 10 1,171 18 8 11 1 o 67 68 156 45,95o 22,747 9 1,030 17 2 4 13 8 68 69 157 44,230 21,579 19 984 o 10 18 8 3 69 70 138 42,420 21,020 8 948 53 8 18 6 70 71 191 56,879 25,858 19 1,296 10 4 41 14 2 71 72 163 40,255 18,077 2 954 o 11 11 18 o 72 73 154 43,924 20,718 4 1,034 14 9 16 15 3 73 74 131 36,835 18,183 6 874 3 1 14 13 4 74 75 130 31,643 15,986 15 758 18 6 18 10 75 76 120 33,700 16,538 12 835 13 22 2 o 76 77 117 3!,777 14,026 14 786 63 15 15 o 77 78 105 32,300 16,650 17 806 no 17 o 3 78 79 95 26,721 12,518 9 680 1 11 714 79 80 73 22,125 11,604 *7 583 3 9 28 13 3 80 81 62 18,637 9,677 5 499 19 3 6 13 9 81 82 46 13,850 7,601 6 360 14 8 13 10 11 82 83 42 15,036 8,802 6 406 18 11 7 16 2 83 84 36 11,691 7,600 12 289 19 6 817 84 85 29 10,300 5,033 12 345 12 10 5 12 2 85 86 21 6,000 3,584 6 194 54 4 15 8 86 87 24 6,542 2,591 3 173 10 1 900 88 16 4,200 2,569 4 119 9 9 2 17 4 89 8 2,300 r ,47i 6 61 19 8 420 89 90 9 2,400 1,210 1 72 o 8 170 90 91 9 1,850 1,068 4 71 8 6 .. 91 92 8 1,400 708 10 56 2 6 314 92 93 2 • 250 120 1 760 . . 93 94 2 200 137 6 6 13 11 .. 94 95 4 820 511 5 33 13 6 .. 95 96 1 500 362 14 1834 . . 96 Totals 4,073 £1,140,360 £548,858 16 £25,247 13 6 £393 7 5

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, 1929.

4—H. 8.

25

V Pnr n f Office Annual Premiums. A & e F*r,irv nf Number of Amount Bonus . attained. Premium Policies. assured. Additions. Ordinary. Extra. £ £ s. £ s. d. £ s. d. 13 1.996 1 500 7 10 942 14 i,995 3 95o 14 17 18 2 o 15 i,994 1 5°o .. 9 17 6 16 1,993 1 300 . . 690 18 1,991 4 2,000 .. 42 13 4 19 1,99° 3 2,100 36 1 44 17 4 20 1,989 3 700 14 17 15 6 8 21 1,988 7 2,35° 15 ° 53 2 3 22 1,987 10 4,700 30 2 108 73 23 1,986 3 1,300 .. 30189 1130 24 1,985 5 2,750 20 5 66 o 4 25 1,984 18 8,300 209 17 201 93 26 1,983 15 8,450 192 o 212 04 27 1,982 xo 4,250 82 3 no 17 28 1,981 16 9,600 343 6 243 8 10 29 1,980 xo 4,750 55 16 128 5 11 30 i,979 14 6,600 104 14 180 3 10 31 1,978 2 500 30 14 3 2 32 !,977 12 5,800 128 6 165 19 4 33 1,976 8 3,900 75 8 no 18 5 34 I,975 10 5,100 137 3 155 11 7 35 i>974 6 2,700 144 10 80 4 o 36 i,973 12 5,000 64 19 162 10 10 37 1,972 4 2,000 19 7 65 3 5 38 1,971 8 2,300 47 6 76 18 11 39 1,970 7 3,55o 34 18 125 8 8 40 1,969 6 2,900 40 14 104 46 o 10 o 41 1,968 8 6,600 251 7 235 12 1 42 1,967 3 2,000 1162 72126 43 1,966 4 1,700 94 13 63 9 8 44 1,965 4 2,100 57 15 84 3 3 45 1,964 8 8,500 24 11 358 12 8 .. 46 1,963 4 3,000 126 3 127 26 12 13 4 47 1,962 2 650 11 4 28 14 10 48 1,961 4 2,200 30 o 102 80 49 1,960 1 500 30 6 22 10 o 50 1,959 4 2,250 395 13 65 13 2 51 1,958 5 2,050 61 13 88 16 4 52 i,937 1 200 89 14 3 16 5 | 53 1,956 5 1 ,759 1 95 J 4 84 15 o 54 I 1,955 4 1,800 611 5 25 2 1 55 .. 2 700 436 13 56 . . 9 4,187 2,146 7 57 1,952 8 4,014 1,155 15 115 16 11 400 58 . . 7 1,849 1,247 13 59 .. 4 I ..5i5 1 -°3o 8 60 .. 10 I >793 1,048 16 61 1,948 16 4,901 2,950 17 39 13 4 62 . . 6 1,032 641 10 63 1,946 10 3,989 2,132 18 23 4 3 64 1,945 9 2,677 1,181 3 91 4 8 65 i,934 6 2,608 I >843 9 2 12 8 66 10 I 3,096 2,030 2 1 .. | 67 . . 9 4,257 2 ,194 17 68 . . 7 1,890 1,2142 69 .. 15 5,133 3,398 o 70 .. 7 1 ,503 1,044 2 71 . . 8 3,259 1,591 15 72 .. 6 1,203 735 4 73 .. 8 1,593 1,452 6 74 .. 16 4,702 2,788 18 75 . . 11 2,569 1,691 o 76 .. 9 3,"o 2,136 19 77 .. 5 1,500 770 9 78 .. 5 1 >545 1 ,293 4 79 .. 7 4,871 4,300 9 80 . . 10 3,174 2,265 J 3 81 .. 9 3,130 2,497 o 82 11 6,420 3,803 3 83 . • 7 1,211 892 8 84 . . 4 !,326 1,235 13 85 . . 3 800 684 6 86 .. 4 1,859 1,681 5 87 . . 3 601 270 13 88 .. 7 3,6n 1,083 4 89 . . 1 1 ,000 883 11 90 .. 1 1,000 911 16 91 .. 5 1,685 1 ,373 2 97 .. 1 59 57 16 50 i,939 • • • • • • 3 J 4 8 Totals 532 £224,53i_ £63,914 5 £4,181 6 2 £18 16 4

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26

FIFTH SCHEDULE.

Appendix No. 4. ASSURANCES FOR THE WHOLE TERM OF LIFE, WITHOUT PROFITS, In force at 31st December, 1929.

Office Annual Premiums. Age Number of Amount assured . Age attained. Policies. attained. Ordinary. Extra. £ £ s. d. £ s. d. 16 3 2,ioo 24 9 II .. 16 17 1 200 2 14 o . . 17 19 2 1,100 14 19 8 .. 19 20 2 1,500 17 3 4 .. 20 21 4 3.5°° 38 16 8 .. 21 22 5 2,500 28 8 o .. 22 23 15 5,600 72 5 3 .. 23 24 7 2,600 35 13 2 .. 24 25 14 3,900 58 1 6 .. 25 26 23 11,050 166 9 10 .. 26 27 25 10,750 167 0 6 .. 27 28 38 21,250 346 13 11 .. 28 29 36 18,450 306 10 4 .. 29 30 55 32,050 540 15 3 •• 30 31 68 26,050 439 11 10 200 31 32 62 26,400 453 22 171 32 33 66 33,850 609 14 o 450 33 34 76 29,950 536 13 4 863 34 35 86 35,75o 671 7 11 200 35 36 101 44,500 843 17 6 11 1 8 36 37 95 55,650 1,063 4 6 18 15 o 37 38 121 47,250 923 14 2 800 38 39 151 78,550 1,629 12 1 700 39 40 173 69,300 r >437 90 1 15 o 40 41 161 69,700 I >449 03 11 19 3 41 42 155 72,55o 1,539 14 7 099 42 43 207 100,550 2,350 14 11 5 10 o 43 44 186 85,350 2,013 6 10 20 19 6 44 45 216 95,250 2,255 12 5 18 o o 45 46 240 94,629 2,343 °7 I 4 I 5 o 46 47 215 103,050 2,614 4 4 7 I 5 0 47 48 205 87,050 2,261 5 11 152 48 49 223 90,400 2,495 32 500 49 50 205 77,900 2,180 62 13 10 o 50 51 230 95,082 2,778 18 3 12 5 o 51 52 194 80,500 2,398 18 11 24 9 o 52 53 166 69,550 2,211 2 11 11 10 4 53 54 164 60,650 J ,944 10 10 5 o 54 55 155 64,694 2,188 12 2 900 55 56 121 48,972 1,807 7 11 600 56 57 115 39,500 r >439 48 11 5 o 57 58 106 44,215 1,641 16 9 14 10 o 58 59 106 30,500 1,167 11 11 12 10 o 59 60 88 39,55o 1,671 2 3 7 10 o 60 61 84 35,75o i,533 16 3 200 61 62 58 25,900 1,112 3 o .. 62 63 81 1,521 18 2 5 10 o 63 64 56 21,800 1,077 r 5 11 •• 64 65 26 10,300 485 18 10 .. 65 66 29 12,500 626 10 4 o 10 o 66 67 29 19,850 1,063 5 3 400 67 68 20 6,400 352 39 200 68 69 21 7,852 446 18 5 .. 69 70 21 5,550 31615 3 .. 70 71 3 950 52 16 1 .. 71 72 9 6,150 369 12 7 o 15 o 72 73 7 1,400 76 15 2 .. 73 74 6 1,150 69 4 4 .. 74 75 12 3,900 260 17 .. 75 76 1 2,000 219 16 8 .. 76 79 2 850 66 16 7 . . 79 80 i j 100 j 6 17 10 80 Totals 5,153 £2,208,994 £60,838 19 9 £297 13 0

H.— 8.

FIFTH SCHED UL E.

Appendix No. 5. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITHOUT PROFITS, In force at 31st December, 1929.

5 —H. 8.

27

Age Number Amount Jo? Average P™, attained. p assured. x P f ry aU tf n «l. Premiums. Ordinary. Extra. £ £ S. d. £ S. d. 27 x 40 28 1 500 30 1 24 31 1 1,000 32 1 300 34 2 230 1930 62 69 15 10 35 1 500 1931 59 14 14 o 36 2 2,200 1932 39 4. 7 1 37 1 1,500 1933 47 162 4 o 38 2 544 1935 50 147 24 39 3 1,500 1936 48 n n ? 41 5 1.581 1937 44 39 5 10 42 4 2,520 1939 49 97 14 9 43 6 1,612 1940 50 9 19 8 1 3 o 44 1 1,000 1941 50 161 20 45 1 500 1942 43 87 o 6 46 4 1,700 1943 46 57 17 o 47 4 I 1,100 ! 1944 42 | 67 11 11 48 5 1,338 1945 40 52 18 4 49 4 5-343 I94 8 30 19 11 1 50 1 600 1951 35 12 10 o 51 5 1,165 52 21,400 53 3 900 54 2 273 55 42,500 56 2 602 57 2 600 58 2 500 59 2 600 60 2 1,200 61 2 221 62 2 1,200 64 1 363 72 1 117 Totals 83 £37,273 .. .. £1,015 7 9 £1 3 0

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

FIFTH SCHEDULE.

28

Whole-life Participating Assurance by Equal . . , Endowment Assurances Endowment Assurances , ~ „ , Assurances payable , , . m ,, _ Annual Premiums for the payable in Twenty-five Years, or at payable in Thirty-five Years, or at ,.t, , ™ _ in Fifteen Years, or at t J y _ 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. 110 Years. I 20 Years. 30 Years. 34 Years. | ! I I : I I I I L I , | £ s. <3. £ 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 1 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 4 0 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 | 45 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 12 3 0 27 5 0 39 16 0 58 10 0 77 17 0 21 12 0 84 15 0 NOTE. —In addition to the above Values the full H M - 4i per cent. Cash Value of all existing ordinary Bonuses is granted.

29

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ACTUARY'S REPORT OF THE VALUATION OF THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31ST DECEMBER, 19-29.

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

Wellington, 16t.1i April, 1930. In accordance with your instructions, and in compliance with section 40 of the Government Life Insurance Act, 1908, and amendments, an investigation and a valuation in respect of the assurance and annuity contracts of the Department has been made in respect of the year ending 31st December, 1929, with the object of ascertaining the net surplus which may be distributed amongst the policyholders, and I have the honour to report as foliowc : — The total contracts consisted of 70,189 policies, assuring £22,965,608 inclusive of bonus additions, and £24,951 immediate and deferred annuities per annum, the office premiums thereon amounting to £642,140 per annum. The average net rate of interest earned by the funds of the Department during the year was £5 10s. lOd. per cent, after deduction of taxes, and the expenses of management were 14-40 per cent, of the premiums, or 8-79 per cent, of the total income. The corresponding rates of the previous year were £5 9s. 9d. per cent, and 15-29 per cent, or 9-35 per cent, respectively. The experiences of the Temperance and General Sections during the past year have been separately investigated in accordance with the Act and this investigation has disclosed that the bonus rates recommended below should be declared in both sections. The bases adopted for the valuation were as follows : — (a) The British Offices Om. Table 1893, and the British Offices Annuity Tables 1920, were employed in the case of assurance and annuities respectively, at 3 per cent, interest; and (b) The net premium method of valuation has been followed in arriving at the value according to the above tables of the liabilities in respect of the Department's contracts, and additional reserves have been included for future bonuses, expenses, and other contingencies. The valuation has disclosed a total surplus of £225,806, as follows : — £ Total funds at 31st December, 1929 .. .. .. .. 7,926,525 Less value of liabilities .. .. .. .. .. .. 7,703,985 Net surplus .. .. .. .. .. 222,540 Add interim bonuses paid during the year .. .. .. .. 3,266 Total surplus . . . . . . .. .. £225,806 I recommend that the following rates of compound bonus should be declared on the sum assured and existing bonuses in respect of each full year's premium paid during the year : — Policies Issued under Present Premium Tables. Per Cent. £ s. d. Whole-life assurances, and long-term endowment assurances (Tables A and B) . . .. .. . . .. . . ..220 Endowment assurances (excluding Tables A and B) . . .. 1 18 0 Double endowment assurances and pure endowments ... ..176 Policies Issued under Premium Tables which have been closed. £ s. d. Whole-life and endowment assurances . . . . . . 1 16 0 Double endowment assurances .. . . . . . . 1 10 • 0 The above bonuses will absorb £214,188, and I recommend that the balance of the net surplus — viz., £8,352 —should be carried forward.

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30

During the past year the profit derived from mortality has been very favourable, the average net rate of interest has increased slightly, and a reduction has been effected in the expenses of management. These results are highly satisfactory, and fully justify the increased bonus rate which is recommended above in respect of whole-life and long-term endowment assurance policies issued under the present premium tables. With reference to the above-mentioned favourable mortality, I would point out that light mortality, while a satisfactory and necessary feature of every well-managed life-insurance institution, naturally means the postponement of claims, and consequently usually requires somewhat higher reserves than those indicated by the standard table employed in the valuation of the assurance contracts. In arriving, therefore, at the net liabilities under the assurance contracts, adequate provision has been made for this factor. I may mention in conclusion that the Department is in a very strong financial position, and the policyholders can look forward to the future with confidence. I have, &c., Geo. W. Melville, F.F.A. Actuary. The Government Insurance Commissioner, Wellington.

Approximate Cost of Paper,— Preparation, not given; printing (1,200 copies), £52.

Authority : W. A. G. Skinner, Government Printer, Wellington.—l9Bo.

Price 9d.\