ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1932.

Appendix to the Journals of the House of Representatives, 1933 Session I, H-08

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1933. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1932.

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

Government Insurance Office, Wellington, 30th June, 1933. I have the honour to submit my report regarding the position of the Department as at the 31st December, 1932, together with the Balance-sheet and Eevenue 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 Department's Act. As the 31st December, 1932, marks the close of a further triennial period, a convenient opportunity is presented for making a more extensive examination of the Department's operations, and accordingly in the following statements an analysis is also made of the Department's progress during the last three years and the last three triennial periods. It will be observed that the new business figures for 1931 and L 932 ceflecl the depression through which the Dominion has been passing. The reduced income from interest for 1932 is due to the National Expenditure Adjustment Act, which came into operation on the Ist April, 1932. The main features of the Department's operations during the past three years are as follow :— 1930. 1931. 1932. (1) Life Assurance Business: — £ £ £ (a) New sums assured 1,946,322 1,506,449 1, 088,445 Annual premiums thereon .. .. 62,137 40,529 30,520 (b) Total sums assured (including bonus additions) .. .. •• 23,845,034 24,053,348 23,619,759 Annual premiums thereon .. .. 665,417 660,399 638,426 (2) Annual Income: — £ £ £ Interest and rents 463,757 484,527 420,207 Less taxes and property expenses .. .. 24,785 21,243 35,855 Net interest and rents 438,972 463,284 384,352 Premium income, including consideration for annuities .. .. .. .. 675,350 680,446 656,069 £1,114,322 £1,143,730 £1,040,421

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1930. 1931. 1932. (3) Claims:— £ £ £ Claims by death during year .. .. 224,345 200,577 204,711 Claims by maturity during year .. 307,664 283,436 283,813 Total claims during year .. .. £532,009 £484,013 £488,524 Total claims paid since inception of Department .. .. .. £13,242,464 £ £ £ (4) Management Expense* (including commission) .. 93,764 87,602 77,570 £ £ £ (5) Profits divided .. .. .. .. 224,145 228,646 197,587 (6) Funds:— £ £ £ Life-assurance funds .. .. £,248,847 8,568,627 8,744,549 Investment Fluctuation Reserve and Accident and Fidelity Reserve .. .. .. 243,263 275,547 334,226 £8,492,110 £8,844,174 £9,078,775 The above .statement gives clear indication that the Department has made consistent progress notwithstanding the difficult period through which the Dominion has been passing. A similar statement of the operations during the past three triennial periods is as follows :— (1) Life Assurance Business: — 1924-26. 1927-29. 1930-32. (a) Total new sums assured effected during £ £ £ period .. .. 5,512,560 5,625,910 4,541,216 Annual premiums thereon .. .. 175,757 183,558 133,186 (li) Total sums assured at end of period (including bonus additions) .. .. 20,218,404 22,965,608 23,619,759 Annual premiums thereon .. .. 575,420 642,140 638,426 (2) Income during Period: — £ £ £ Interest and rents .. .. .. 1,084,747 1,260,006 1,368,491 Less taxes and property expenses .. .. 31,339 47,425 81,883 Net interest and rents .. .. 1,053,408 1,212,581 1,286,608 Premium income, including consideration for annuities .. .. .. .. 1,663,229 1,882,070 2,011,865 £2,716,637 £3,094,651 £3,298,473 (3) Claims during Period: — £ £ £ Claims by death .. .. .. .. 547,896 591,843 629,633 Claims by maturity .. .. .. 718,407 887,221 874,913 Total claims during period .. £1,266,303 £1 ,-179,061 £1,504,546 Total claims paid to date since inception of Department ..£10,258,854 £11,737,918 £13,212,464 £ £ £ (4) Management Expenses (including commission) .. 297,611 287,203 258,936 £ £ £ (5) Profits divided (excluding interim bonuses) .. 130,363 604,976 650,378 (6) Funds m End of Period: — £ £ £ Life-assurance funds .. .. .. 7,029,584 7,926,525 8,744,549 Investment Fluctuation Reserve and Accident and Fidelity Reserve .. .. .. 208,609 226,807 334,226 £7,238,193 £8,153,332 £9,078,775

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The foregoing statements give a comprehensive view of the Department's activities. The outstanding feature, however, is the considerable increase which has taken place in the amount of profits divided, which have increased from £317,563 for the triennial period 1921-23 to £650,378 for the period 1930 32, an increase of more than 100 per cent. The larger profits have arisen mainly from an exceptionally favourable mortality experience, increase in interest earned, and economy in management—the three most important sources from which the profits of a life-insurance institution are derived. Expense and Interest Ratios. —lt is interesting to compare the average management expenses and interest rates over the above periods with the corresponding rates in respect of the year 1932 : — Katio of expenses of management (including com- 1924-26 1927-29 1930-82 1932 mission):— Per Cent. Per Cent. Per Cent, Per Cent. To premium income .. .. .. 17-9 15-3 13-0 11-8 To total income .. .. .. .. 11-0 9-3 7-9 7-5 (Iross average rate of interest before deduction of £ s. d. f s. d. £ s. U. £ s. d, land and income tax .. .. . . 5 12 (i 5 15 10 5 11 11 4 19 3 Net average rate of interest after deduction of land and income tax .. ..593 5 10 6 553 4 10 Ml The decreases in the expense ratios for 1932 have naturally been influenced by the statutory reductions in salaries of all State employees and by the lesser new business written. The reduced interest ratios for the triennium 1930-32, and particularly for the year 1932, are, as before mentioned, due to the operation of the National Expenditure Adjustment Act, 1932. The net result, however, still shows a satisfactory margin over the rate assumed (3 per cent.) in the actuarial valuation. Assets. —The distribution of the Department's assets is shown in the following table, which also gives the distribution at the end of the previous year for the purposes of comparison. Percentage of Total Assets. Class of Investment. 31st December, 31st December, 1931. 1932. Mortgages of freehold property .. .. .. .. 42 • 4 40-9 Government securities .. .. .. .. .. 26 • 0 27-0 Local-body debentures .. .. .. .. ..18*2 13-1 Loans on policies .. .. .. .. .. 13-5 13-9 Landed and house property .. .. .. .. 1-4 1-4 .Miscellaneous assets .. .. .. .. ..3-5 3-7 100-0 100-0 Properties acquired by foreclosure total £21,179 10s. Id. The greatesl care is taken by the Board of investment in selecting securities, and, considering the prevailing conditions, the amount cannot be regarded as large. It is confidently expected that these properties will be satisfactorily disposed of when conditions show any improvement. There are naturally other securities under suspicion and causing some anxiety, but not to an extent that has not been amply provided for in the reserves. Investment Fluctuation Reserve.- —It was deemed advisable to transfer a further £65,000 to this Reserve Fund, which now stands at £329,273 14s. 9d. Annual Bonus Distribution. —The Actuary's report i- appended hereto, and discloses a net divisible cash surplus for the year of £209,683 (excluding interim bonus paid during the year). Of this sum, £197.587 has been allotted in the form of compound reversionary bonuses upon the sums assured and existing bonuses, the total reversionary bonuses thus allotted amounting to £324,026. The rates of bonuses show a slight reduction on the high rates of the immediately previous years, but do not compare unfavourably with those of other life offices, particularly as the Department's premiums are on the average considerably lower than those of its competitors. A life-insurance office has to take the long view, and, as it is impossible to say at the present juncture what the course of interest rates is likely to be, it has been deemed prudent to add to the valuation reserves in order to stabilize future bonuses as far as possible. Provided there are no further adverse influences on the net interest-earning power of the funds, there is every prospect of the rates declared on this occasion being maintained in the immediate future. General. —ln my report of last year I made reference to the legislation for the relief of mortgagors and to the statutory reduction of interest rates. This legislation has naturally had a substantial influence on the net results of the year's business, and has necessitated the adoption of a cautious and conservative attitude in respect of the near future. In these abnormal times a certain number of the Department's mortgagors have found themselves unable to pay even the reduced rates of interest. It has therefore been deemed advisable to take credit for only such interest as it is considered will be ultimately collected. It is inevitable that this procedure and the effect of the

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legislation just referred to should be reflected in a lower ratio of net interest earnings as compared with previous years. There can be no doubt, however, that the best interests of the policyholders have been conserved by tin- Department making provision for the contingency that some interest may not be paid. Reductions in salaries and wages and lower incomes generally have diminished the sources from which insurance premiums are paid, and the normal market for new business has been correspondingly restricted. As might be expected in such circumstances. Ihe new business during the past year has suffered, and surrenders and lapses were more numerous than usual. Notwithstanding these adverse features, the total Assurance Fund and Investment Fluctuation Reserve and Accident Fidelity Reserve increased by nearly a quarter of a million pounds. As regards the future, while the surplus earnings of all life-assurance offices have been affected by the unusual economic conditions, and while meanwhile it is essential to follow a conservative course, it is safe to say that the Department has more than held its own in these times of adversity and that, when normal conditions do return, policyholders need have no misgivings as to the value and soundness of their insurance contracts. A new form of policy was issued during the year, making provision for the immediate liquidation of any balances of mortgage in favour of building societies in the event of the death of the borrower. This Department's form of contract lias been adopted by practically all the leading building societies, and the amount of business already transacted gives every indication that the plan will become increasingly popular. In conclusion, I should like once again to pay a tribute to the good work done by all members of the staff (both office and field) in these difficult times. It is due to their efficiency, energy, and loyalty that the Department holds such a high position in the extremely competitive field of life insurance. A. E. Allison, Commissioner.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1932.

£ s. d. £ 8. d. Amount of funds at Ist January, 1932 8,568,627 5 0 Death claims under assurance policies. Renewal premiums — Assurance, an- including bonus additions.. .. 203,820 0 0 unity, and endowment, less reingur- Endowment assurances matured, inoludance premiums .. .. .. 609,271 53 : ing bonus additions .. .. 273,872 0 0 New premiums (including instalments j Endowments matured .. .. 9,941 I 0 of first year's premiums Calling due : Premiums returned on endowments .. 162 4 4 in the year) less reinsurance premiums 30,339 16 0 J Bonuses surrendered for cash .. 17,856 14 11 Single premiums—Assurance and en- Premiums returned on deferred andowmeni .. .. .. 6,081 5 8 nuities .. .. .. .. 728 lit 0 Consideration for annuities . . .. 10,376 15 3 Annuities.. .. .. .. 23.478 17 2 Interest, rent, anil other £ s. d. Surrenders .. .. .. 82,883 10 I income .. 420,207 9 6 Loans released by surrender .. 107,936 14 10 Less land and in- £ s, d. come tax, £24,268 Commission, new* .. 22,048 14 2 2s. 10d.; property „ renewal.. 4,381 14 1 expenses, £1,724 26,430 8 3 Os. 3d, ; stamp Contribution to Public Service Superduty mi interest. annuation Fund. . .. .. 813 5 6 £9,863 Is. 3d. .. 36,866 4 4 £ s. d. 384,352 5 2 Expenses of management — Salaries .. .. 31,270 1 3 Extra clerical assistance .. .. 455 5 10 Payment to Treasury under Finance Act, 1931 (No. 2) .. 3,665 4 0 Medical fees and expenses .. 1,417 8 6 Travelling-expenses 803 17 2 Advertising .. 296 7 10 Printing and stationery .. . . 1,701 6 11 Rent .. .. 4,399 4 4 Postage and telegrams .. .. 2,089 10 8 Audit fees .. 325 0 0 General expenses .. 3,902 14 11 50,326 II B Property depreciation .. .. 1,260 0 0 Transfer to Investment Fluctuation Reserve Account .. .. 65,000 0 0 Amount of funds, 31st December, 1932 8,744,548 13 10 £9,609,048 12 4 19.009,048 12 4 — * Including agents' allowances, =— -■- — i i 1

Balance-sheet of the Government Life Insurance Department on 31st December, 1932.

Liabilities. Assets. £ s. d. £ a. d. Total assurance, annuity, and en- Loans on policies .. .. .. 1,269,706 3 2 dowmont funds (as per Revenue New Zealand Government securities. . 2,386,360 0 0 Account) .. .. .. 8,744,548 13 10 Rural advances bonds .. .. 86,762 0 0 Claims admitted, proofs not yet Municipal Corporation debentures .. 292,219 16 2 completed .. .. .. 36,414 12 .'! County securities .. .. .. 121,853 6 It) Annuities.. .. .. •• 126 !t 3 Harbour Board debentures.. .. 25,700 0 0 Commission .. .. .. 223 7 8 i Town Board debentures .. .. 26,971 6 4 Medical fees .. ■• •■ 92 8 0 Road Board debentures .. .. 21,800 0 0 Premium and other deposits .. 10,117 8 0 Drainage Board debentures .. 1,693 6 8 .Sundry creditors .. .. .. 3,916 13 4 Power Board debentures .. .. 711,217 I I Accident and Fidelity Fund. . .. 4,951 18 6 Landed and house property 124,749 10 0 Investment Fluctuation Reserve .. 329,273 14 9 Landed and house property (leasehold) 1,797 15 8 Sinking funds on local £ s. d. Mortgages on property .. .. 3,744,403 19 3 body loans .. 22,308 19 5 Properties acquired by foreclosure .. 21,179 10 1 Interest accrued there- Overdue premiums on £ S. d. on .. .. 297 6 5 policies in force .. 9,973 18 1 22,600 5 10 Outstanding premiums due but not overdue 55,808 15 2 65,782 13 3 Overdue interest .. 60,691 2 3 Outstanding interest due but not overdue 11,385 19 10 Interest accrued but not due .. .. 101,669 8 0 173,636 10 1 Sundry debtors .. .. .. 752 15 5 Deposited with bank .. .. 45,000 0 0 Cash in hand and on current account 32,694 15 1 £9,152,270 11 4 £9,152,270 11 4 ; ; - A. E. Allison, Commissioner. Government Life Insurance Department. W. E. Arnold, Secretary. The Audit Office, having examined the Revenue Account and Balance-sheet, and compared them with the relative liooks, 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

Nutk.—The " ordinary " premium is the premium charged

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TOTAL YEAR 1932 Whole-life and Term Assurances. Annual Annuities. 1. Sum .. Annual No Sum sinrfnrv Premiums. I. Immediate or assured. liever- Premiums, assured. 1. Ordinary. entered upon. - 0 ' Deferred 1. Ordinary Bonuses. g Extra s Deferred Annuity. lionuseh «. Extra POLICIES ISSUED AND DISCON- £ £ £ s. d. £ a. d. £ £ £ s. d. Policies in foroe at 31st 71,075'21,472,7612,580,587 J 658,687 7 523,502 6 8) 8,893 3,267,082 581,929(83 961 19 9 1 December, 1931 \ 1,711 13 4 4,133 0 10 / { '574 1 3} New business .. .. 2,979 1,088,445 .. I 30,374 15 7 966 10 2) 128 71,514 .. 1 2 233 7 5 | 1 145 3 8 14,377 4 0 / 2779 4s.p.a. | 9 5 0 Bonus allotted .. .. .. 377,533 .. .. .. .. 33,640 .. Tot* 1 -- •• 74,054'22,561,2062,958,120 ] 689,062 3 024,468 16 10 1 9,0213,338,596 615,569 ( 86 195 7 2 1 I 1,856 1 7 0 18,510 4 1 0 / 27794s.p.a. \ 583 6 3 / Polioies discontinued 5,404 1,650,395 249,172 j 52,334 5 6 1,415 18 61 554 217,569 45 564 f 5 568 4 2) during 1932 ( 158 11 11 2,925 0 8 / ( ' 50 12 11 f ! j j Total policies in foroe at 68,650 20,910,811 2,708,948 1 636,727 17 6 23,052 18 4i 8,467 3,121,027 570,005 ( 80 627 3 0 1 31st December, 1932 , 1,698 5 1 15,585 4 2 / 2779 4s.p.a. j 532 13 4 f PARTICULARS OP POLICIES DISCON How discontinued. By Death .. .. 542 154,125 49,687 ( 5,305 8 9 1,415 18 61 252 76,769 34,891 f 1 918 3 3 1 I 46 16 10 78 0 0 33 8 10 Maturity .. .. 1,031 218,040 63,799 j 8,402 11 101 .... ' ( 15 17 If Surrender.. .. 2,449 780,314 101,463 i 24,992 4 101 .. 183 87,443 8,500 f 2,307 5 5| I 53 17 8) I 10 17 6 I Change to other 53 25,450 952 659 0 10 .. 9 4,250 .. 107 1 10 1 Tables ' " - Cancellation .. 96 32,650 33 ( 681 4 1 .. | 6 4,750 ! 791a 4 , 1 .. 144 0 Of ' " t Lapse .. .. 1,233 439,816 33,238 1 12,293 15 2 .. I 104 44 357 2 173 1 155'l5 4) ; i 42 0 4 2,703 0 8f ' '{'667} Total discontinued during 5,404 1,650,395 249,172 ' 52,334 5 6 1,415 18 6| 554 217,569 45 564 1 5 568 4 2 1 year 1932 I 158 11 11 2,925 0 8) 1 ' 50 12 11 , PROGRESS OF BUSINESS OF THE GOVERNMENT LIFE INSURANCE Total issued .. .. 215,000 59,408,257 6,780,391 ( } 137,563 18 6 50,83616,609,168 2,370,554 J Total void .. .. Jl46,350j 38,497,446 4,071,443 J \ } 98,925 16 0 42,800^488,'1411,800,549 8 j Total in force .. 68,650 20,910,811 2,708,948 636,727 17 6 38,638 2 6 8,467 3,121,027 570,005 80,627 3 0 ! ! ! -2779 to. PA. Extra Premiums .. .. .. 1,698 5 1 .. .. .. .. | 582 13 T £638,428 2 7 £81,159 16 4

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at End of Year 1932.

Nt the true ago; the "oxtra " the additional premium charged for any reason whatsoever. A. E. Allison, Commissioner. S. Beckingsale, Actuary.

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ASSURANCES. SIMPLE ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. 1 gum , Annual Su ™ Annuities. I Annuities. 2u523 Annual assured. Rever ' Premiums. 1- Immediate or Annual „ n „ Annual immediate or No 2 a Rever PremmmS ' No - . 2. Deferred , & . 1 ° r 'f ry 1. Ordinary. No ' sionarv entered upon. Premiums. 1 °" Premiums. entered upon. * ' " s i 0 nary L Ordinary. Annuity. Bonu6eh ». Extra. Bonuses. I*- De f erred - Bonuses. ? Extra " TINUED DURING THE YEAR 1932. £ £ £ b. d. £ £ s. d. £ a. d. £ s. d. £ s. d. £ £ s. d. 59,12617,362,0631,974,373'(560,082 11 4) 50 ( 24,247 288 4 9)921 14 7 393 91 12 6(23,214 1 11 1 2,613 ( 819,36913,629 9 3) | 1,129 12 1/ t M49 3. 8 3 3 0 10 ) | 300 0 Of \ 22,836 8 0 0) 2,380 770,928 .. f 25,825 18 10) .. .. .. .. 24 .. ( 966 10 2) 447 ( 246,003 2,315 9 4^ 11520 p.a. ( 134 1 8/ I 78 0 0( \ .. 117 6) 340,750 .. .. 134 .. .. .. .. .. .. 3,009 61,50618,132,9912,315,123(585,908 10 2) 50(24,247 288 4 9 1921 14 7 417 91 12 6 ( 24,180 12 1 ) 3,060 (1,065,372 15,944 18 7} 11520 p a. | 1,263 13 3f !( 1,583 3,833 0 10 / \ 378 0 0 / \\ 25,845 9 17 6' 4,514 1,325,112 200,728 ] 44,413 0 31 26(18,850 .. 1729 16 1 23 J 1,415 18 6 1 287 1 88,864 1,623 5 ol 144 p.a. I 107 19 0j \ 92 2,703 0 8( \ 78 0 0 j \ 2,788 .. > 56,99216,807,8792,114,395(541,495 9 H) 24 ( 5,397 288 4 9 ) 191 18 6 394 91 12 6 ( 22,764 13 7 1 2,773 f 976,50814,321 13 71 11376 p.a. I 1,155 14 3) ( 1,491 1,130 0 2 / ( 300 0 0 J 1 23,057 9 17 6J TINUED DURING THE YEAR 1932. 263 76,206 14,796 ( 3,356 12 11) .. .. .. .. 23 .. ( 1,415 18 6 1 4 1,150 30 12 7 ( 13 8 0 j ( 78 0 0 ) 973 209,990 61,837: ( 8,032 6 10 ) .. ( .. 1 .. .. .. .. .. 58 ] 8,050 370 5 0) it 15 17 1 J 1 ( 1,871 .. f 2,169 672,407 92,962 (22,075 10 9 1 .. j .. I .. .. .. .. .. 97 20,464 609 8 8 1 43 0 2 / \ If 40 16,700 952; ( 512 9 01 .. .. .. .. .. .. .. 4 4,500 39 10 0 | j 67 18,000 33i I 50l' 0 10 | .. .. .. .. .. .. .. 23 9,900 100 4 11 144 p.a. , t •• f 1,002 331,809 30,148 j 9,934 19 11) 26 18,850 ( .. 1729 16 1 .. .. .. 101 I 44,800 473 3 10) \ 35 13 9) 12,703 0 8 [ | 917 .. f 4,514 1,325,112 200,728 ( 44,413 0 3 I 26(18,850 .. ) 729 16 1 23 ( 1,415 18 6 I 287 J 88,864 1,623 5 0) 144 p.a. i 107 19 0 | ) 92 2,703 0 8 ) \ 78 0 0 ) \ 2,788 .. J DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1932. 153,360J*™.™4,354,3711 » ° 2 ) 1,131 { }60,173 0 1 0 : 9 ,360 10 9 1,229 866 6 8 63,091 13 8 8,444 j \ jj| 90,368 2^ 9 4 °J' 8 a " 2,209,976 j 1,107 ( ,} 58,754 15119,168 12 3 835 774 14 2 40,027 0 I 5,671 | lo 1} 56,99216,807,979 2,114,395 541,495 9 11 24 I [ 1,418 4 11 191 18 6 394 91 12 6 23,064 13 7 2,773 ] 14,321 13 7 j 11376 p.a.j 1 ' i' ' " .. | .. .. 1,155 14 8 "I " " " 9 17 6 £542,651 4 2 £19118 6 £9112 6 £14,33111 1

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GOVERNMENT INSURANCE DEPARTMENT.

STATEMENTS IN CONNECTION WITH THE VALUATION OF LIABILITIES (FOURTH AND FIFTH SCHEDULES) FOB THE TRIBNNIUM ENDING 31st DECEMBER, 1933.

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 OE THE LIABILITIES UNDEK LIFE POLICIES AND ANNUITIES OF THE NEW ZEALAND doMrnmmt Jttsmwi 4 Jfoprtinent, 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, 1932. 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« 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 Om Table, with 3 per cent, interest. Policies have been valued in groups where practicable. (2) Priticiples 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 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 (in) 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 23-0 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, 1930, to 31st December, 1932, 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 polidies, 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 OF THE GOVERNMENT INSURANCE DEPARTMENT For the Period commencing 1st January, 1930, and ending 31st December, 1932.

VALUATION BALANCE-SHEET OF THE GOVERNMENT INSURANCE DEPARTMENT As at 31st December, 1932.

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£ s. d. £ s. d. Amount of funds on ist January, 1930 7,926,524 12 11 Death claims under policies—assurance, Renewal premiums .. .. 1,813,481 9 2 including bonus additions . . .. 628,471 9 o New premiums .. .. .. 134,609 16 9 Endowment assurances matured, inSingle premiums .. .. .. 16,732 6 5 eluding bonus additions .. .. 848,212 1 o Consideration for annuities granted .. 47,04017 o Endowments matured .. .. 26,701 9 o / s. d. Premiums returned on endowments .. 432 9 2 Interest and rent .. 1,508,491 4 1 Bonuses surrendered for cash .. 42,00611 7 Less land and in- Annuities .. .. .. .. 7°> 6 95 12 ° come tax, £63,642 Premiums returned on deferred annuities 728 19 o os. 1 id.; pro- Surrenders .. .. .. 193,215 '3 5 perty expenses, Loans released by surrender .. .. 262,998 2 4 £8,377 is- 6d. ; £ s. d. stamp duty on Commission, new* . . 84,801 o 2 interest, £9,8 Commission, renewal .. 13,390 1 8 is. 3d. . . 81,882 3 8 98,191 1 10 1,286,609 ° 5 Expenses of management— Salaries .. .. 97,617 10 8 Extra clerical assistance .. .. 6,715 7 o Payment to Treasury under Finance Act, 1931 (No. 2) . . 0,41420 Medical fees and expenses . . . . 5,912 5 9 Travelling-expenses 1,893 IO :I Advertising .. 1,2861311 Printing and stationery 4,758 9 6 Rent .. .. 14,260 15 1 Postage and telegrams 6,435 4 8 Audit fees . . 325 o o General expenses .. 12,121 12 6 157,740 12 o Contribution to Public Service Superannuation Fund .. .. .. 3.°°4 2 ! Contribution to Hawke's Bay Earthquake Relief Fund . . .. 500 o o Cash lost in earthquake . . .. 51 6 5 Written off on account of demolition of Head Office building .. .. 15,000 o o Property depreciation . . . . 2,500 o o Transfer to Investment Fluctuation Reserve Account .. .. 130,000 o o Amount of funds, 31st December, 1932 8,744,548 13 10 £11,224,998 2 8 224,998 2 8 * Including Agents' allowances.

Dr. £ Cr. i To Net value of liabilities (as per valuation By Accumulated funds (as per Consolidated summary) .. .. .. .. 8,538,701 Revenue Account) .. .. .. 8,744,549 Surplus .. .. .. .. 205,848 £8,744,549 £8,744,549

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1932.

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(Assurances : Om Table, 3 % Interest. Annuities: a (/) and a im) Tables deduced from Mortality of British Annuitants, 1900-1920, 8 % 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 ... .. .. 3,275 1,405,002 19,556 14,664 1,099,896 138,585 102,050 997.846 „ Limited, single, and commuted premiums 233 133,7:27 10 7 107,956 35 j 25 107,931 Limited, single, and commuted premiums 228 125,416 3,910 3,201 72,962 65,048 52,946 20,016 with extra profits Endowment assurances— Uniform premiums .. .. 47,200 (15,820,532 1 466,290 353.458 9,344,089 6,030,041 4,512,822 4,831,267 ; plus annuity of f 1 £11,376 p.a. ' Limited, single, and commuted premiums 496 235,368 5,293 3,983 123,638 56.319 41,765 81,883 With extra profits .. .. .. 300 98,962 3,229 2,634 72.450 38,577 31,461 40,989 Douhle endowment assurances .. .. .. .. 8,432 2,623,945 62,499 50,532 1,827,120 529,051 422.77!) 1,404,341 Deferred assurances .. .. .. .. .. 1,220 694,672 5,707 4,268 135.1(14 155,758 116,494 18,520 Joint-life —Whole-life assurances: Uniform premiums .. .. 12 9,416 460 352 6,334 4,8ii-n 3,672 2,662 „ Limited premiums .. 1 1,178 96 77 874 .. .. 874 Survivorship assurances .. .. .. .. 1 68 .. .. 30 .. .. 30 Simple endowments, with return of premiums .. .. 823 151,047 5,041 4,339 112,91)5 40,712 34,906 77,999 Endowments —Premiums ceasing on death of purchaser 383 56,996 2,088 1,782 42,951 15,619 13,368 29,583 Annuity assurances .. .. .. .. 24 ( 6,887 , I'll' 168 16,511s 1,221 1,069 15,499 and annuitv — "I Deferred, £1,130 iEnt'dupon£288 I ' . Total assurances with profits .. .. .. 62,628 21,363,816 574.371 439.465 12,902.787 7.075.774 5,333,347 7,629,440

H.—8

FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1932.— Continued.

15

[ Assurances : OM Table, 3 % Interest. PARTICULARS O, POLICES FOK VAnUATTON. VALUES A 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. II.—Without Participation in Profits. £ £ £ £ £ £ £ Whole-life assurances— Uniform premiums .. .. .. 4,593 1,964,574 55,702 45,424 1,138,328 729,947 595,788 542,540 plus annuity of £2,779 per annum. „ Limited, single, and commuted premiums 97 36,521 861 714 ! 21,190 4,477 3,701 17,489 Endowment assurances —Uniform premiums .. .. .. 564 143,468 4,184 3,358 103,837 34,325 27,545 76,292 Deferred assurances .. .. .. .. .. 347 96,850 1,485 1,218 43,734 25,620 21,015 22,719 Joint-life —Whole-life assurances .. .. .. .. 1 217 .. .. 165 .. .. 165 Temporary assurances .. .. .. .. .. 26 14,314 33 17 628 .. .. 628 Total assurances without profits .. .. 5,628 2,255,944 62,265 50,731 1,307,882 794,369 648,049 659,833 Reserve for prepaid loading, under average lives, &c. .. .. .. .. .. .. 54,698 ! .. .. 54,698 Total assurances .. .. .. .. 68,256 23,619,760 636,636 490,196 14,325,367 7,870,143 5,981,396 8,343,971 | ; . ; ANNUITIES. Immediate .. .. .. .. .. .. 392 22,765 .. .. 192,556 .. .. 192,556 Deferred.. .. .. .. .. .. .. 2 300 92 78 2,363 222 189 2,174 Total annuities .. .. .. .. 394 23,065 92 78 194,919 222 189 194,730 23,619,760 636,728 490,274 14,520,286 7,870,365 5,981,585 8,538,701 Total of results .. .. .. 68,650 and £38,638 per annum. ; I i l 1 1 l • I

H.—B.

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, 1932, including a balance of £7,672 carried forward from 1931, on the basis of a 3-per-cent. valuation, was £209,683, of which amount £3,835 has been paid as interim bonuses during the year. (2) The amount of profit divided among the policyholders as at the 31st December, 1932, was £197,587, which has been converted j£into reversionary bonuses amounting to £324,026. The number of policies which participated was 61,408, assuring the sum of £17,960,195, or, including reversionary additions, £20,669,144. (3) The following are specimens of the bonuses which have been allotted for the year ending the 31st December, 1932, to policies for £100 issued under the present premium tables and upon which all previously allotted bonuses had been allowed to remain :• —

Endowment Assurances Maturing at Age 80.

The cash values of the reversionary bonuses are computed by the Hm Table of Mortality, with interest at 4 i per cent. S. Beckingsale, A.1.A., Actuary.

16

AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, \<\K AT ENTRY, Number 20. 30. 40. 50. Number Years in Force. Reversionary Cash Reversionary! Cash Reversionary Casta Reversionary Casta l'orce. Honus. Value. Bonus. Value. Bonus. Value. Bonus. Value. £ s. d. £ 5. d. £ s. d. £ s. d. £ s. d. j £ s. d. £ s. d. £ s. d. 5 200 098 200 0124 200 01510 200 108 -, TO 23O OIl8 230 OI5I 230 O 19 I) 23O I5I 15 260 0142 2 6 o i o 18 3 260 139 260 1 10 3 15 20 280 01G10 2 8 o I 1 I 10 280 180 280 1 15 5 20 25 2110 102 2 II o I I 6 4 2110 i'37 2 11 o 229 23 30 2 1-1 o 1 | 6 2 14 o 1 11 6 2 14 o 1 tg 10 2 14 o 2 14 <> 30 Endowment Assubanobb. Tebm 20 Yeaus. 5 i 16 o ' o 19 4 1 iG o o 19 8 I 1 16 o 1 o 1 1 16 o 114 5 10 1 19 o 158 1 19 o 1 5 10 ] 1 10 o 166 1 19 o 170 10 15 210 1 13 o 210 1 13 2 j 2 1 o 1 13 4 210 1 13 8 15 20 230 230 230 230 [230230 230 230 20

H.—B.

17

3—H. 8.

R E P O ~R T BY THE 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. 1932.

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 tho youngest to the oldest ages. Question 3. -The amount of premiums receivable annually for each year of life, after deducting the abatements made by the application of bonuses in respect of the respective assurances mentioned under heading No. 2, distinguishing ordinary from extra premiums. Answer to Questions 2 and 3.—This information is contained in Appendices Nos. 2, 3, 4, 5, and 6. Question 4.—The total amount assured under classes of assurance business other than for the whole term of life, distinguishing the sums assured under each class, and stating separately the amount assured, with and without profits, and the total amount of reversionary bonuses.

H.—B.

FIFTH SCHEDULE.

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

18

Annual Premiums.. Cass of Assurance. ™ s ° f Sums assured. "eT Ordinary. Extra. I With Profits. £ £ s. £ s. d. £ 8. d. Endowment assurances .. .. .. 47,696 14,202,702* 1,853,198 4 471,582 17 3 1,144 '7 7 Double-endowment assurances .. .. 8,432 2,380,788 243,157 3 62,498 19 8 783 Endowment assurances with extra profits .. 300 80,921 18,041 4 3,228 16 3 050 Deferred assurances .. .. .. .. 1,220 694,672 .. 5,7°7 9 2 800 Joint-life assurances .. .. .. 13 9,35° !, 2 43 7 555 9 6 2 10 o Survivorship assurance .. .. •• * 4° 27 11 Annuity assurances .. .. .. .. 24 ' 5,397t 1.49° 4 ! 191 18 6 Endowments with return of premiums if death 823 134,436 16,610 16 I 5,041 87 occur during term Endowments; Premiums ceasing on death of 383 50,550 6,445 10 2,087 J 3 5 1 17 6 purchaser Without Profits. Endowment assurances .. .. .. 564 143,468 .. 4, 18 5 3 3 J Joint-life assurances .. •• •■ 1 217 Deferred assurances . . .. .. .. 347 96,850 .. 1,485 25 Temporary assurances .. .. .. 26 <4>3 I 4 ■• 3 2 16 5 Total 59,830 £17,813,705 If2,140,213 19 £556,596 9 7 £1,168 1 9 * And annuities deferred, os. od.\ (shown in answer to Question 8) ; and annuities entered upon, ,£288 4s. 9d. f And annuities deferred, os. 2d.J (included in answer to Question 7).

B.—B.

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.

Immediate annuities, amounting to 4s. gd. per annum are included above. The corresponding number of policies, sums assured, &c, are included in the answers to Questions 4, 5, and 6 (Annuitv Assurances).

19

MALhS. FEMALKS. Number of Policies. 1 Amount of Annuities. Number of Policies.' Amount of Annuities. / s. (I. | ~J s. d. 30 .. .. .. I 23 II 8 34 . . .. .. .. .. 1 104 o o 35 . . . . . . I 10 2 o 47 .. .. .. .. .. 1 52 o o 48 .. . . . . .. 2 148 5 o 50 . . . . .. 1 66 10 o 1 78 o o 51 .. .. .. 1 75 o o 1 104 o o 52 . . .. . . 1 139 6 8 53 .. . . .. - 1 50 o o 2 25 12 8 54 .. .. .. .. .. 4 257 o o 55 .. .. 1 110 10 o 56 .. .. .. .. 3 119 10 8 58 . . . . .. 1 52 13 o 1 78 o o 59 .. . . .. 3 220 4 8 1 25 16 8 60 . . . . . . 3 90 o o 3 180 16 8 61 .. .. .. <> 343 2 o 5 230 9 4 62 . . .. .. 2 518 1 4 3 112 5 4 63 . . .. .. 8 408 18 3 122124 64 . . .. .. 6 522 19 4 554 18 2 65 .. .. 1 49 15 10 3 87 12 6 66 .. . . 7 683 o 10 1 20 19 4 67 .. . . . . 14 451 15 5 4 192 18 8 68 .. .. .. [2 793 5 9 2 203 o 8 69 • • •■ • • 3 no 13 <> 7 345 18 4 70 .. .. 3 276 15 4 4 185 13 10 71 . . .. 30 1,151 10 o 2 44 10 o 72 . . . . .. 7 346 19 o 7 198 16 o 73 . . . . .. 11 467 9 8 6 213 10 4 74 .. .. 16 764 17 6 5 160 15 10 75 •• •• 9 677 12 o 7 443 11 8 76 . . . . .. 4 256 11 8 12 527 5 8 77 .. .. .. 11 874 10 4 6 221 11 8 78 . . .. 5 390 9 o I 7 5 8 79 • • •• I ! 108 3 o 4 131 18 4 80 . . .. .. 8 1,045 64 2 135 11 4 81 .. .. .. 9 1,421 22 4 248 5 o 82 . . . . . . ! 5 274 00 6 141 9 8 83 .. .. . . 9 501 15 8 84 . . . . 2 169 00 9 516 9 8 85 • • • • • • 2 138 3 ° 5 259 4 4 86 .. . . 1 80 6 8 1 105 10 o 87 . . .. 4 304 14 o 2 68 11 8 88 . . . . .. . . 1 17 19 4 89 . . . . .. . . 1 30 8 o 90 . . . . . . 1 87 o o 13 252 1 o 91 . . .. .. 3 70 8 4 92 . . .. 1 31 1 4 3 66 17 o Totals .. 212 £14.086 0 4 160 £709110 8 Joint and Survivorship. Age attained. : Amount of Annuity. Male. Female. -j~ £ s. d. 61-60 .. . . 1 1 199 15 o 63-79 .. .. 1 1 70 4 o 64-67 .. .. 1 1 75 13 4 67-69 .. .. 1 1 24 5 o 69-65 .. .. I 1 26 o o 72-74 .. 1 1 109 o o 73-69 .. .. I I 10 o o 73-70 .. .. 1 1 400 o o 74-70 . . . . 1 1 25 9 o 84-81 .. 1 1 200 o o 86-85 . . . . 2 2 152 19 4 9I-8l .. .. I I 50 19 4 91-84 •• •■ 4 4 47° 19 4 93-79 •• 1 I 17 13 4 106-91 .. .. 2 2 42 9 8 Totals 20 20 £1,875 7 4 ~~: 'r— ... .. 7~zr~ , . , . , , ~~ zr~ ~r~

H.—B.

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:—■ £ b. d. 1930 .. .. .. .. 5 11 7 1931 .. .. .. .. 513 4 1932 .. .. .. .. 4 10 10 Question 10. —A table of minimum values, if any, allowed tor 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.

20

Number Total Premiums Class of Annuity. of Amount of Annual Single received to Poliric Annuities. Premiums. 1 miliums. 31st December, 1932. £ s. (1. £ s. d. Deferred (premiums not returnable) i 300 00 iji 12 0 Deterred (annuity assurances)* .. .. 1,130 02 .. Nil Not calculated. Deferred (family income assur- .. 14,155 40 ances)* . Totals .. .. 2 £15,585 4 2 £91 12 6 * The number of policies and the premiums for these classes are included in the answers to (Questions 4, 5, and 6 and in Appendix No. 4.

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. S. Beckingsale. A. E. Allison, Government Insurance Commissioner. 30th June, 1933.

21

H.—B

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1932.

22

Age Nearest Birthday. Class of Assurance, with Participation in Profits. Age Age Age Age Age Age Age Age Age Age Age io. 15- 20. 25. 30. 35. 40. 45. 50. 55- 60. —. Whole-life Assurance, with Premiums £ ■• d -U •; d ' £ s ' d £ ■■ d s ' £ s ' d - / •■ d -l * s ' d „ / s ' d "| { s ' s ' d ' ceasing at the Policy Anniversary ' '4 ' ' l8 ?| 2 3 62 8 4 2 .4 63 2 031. 64 4 05 ° 5| 6 2 n 7 14 9 nearest to age 80. Annual Premiums ! ! to secure /ioo, 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 > »'S HOjj A Annual premiums dur- 1 7 9 1 11 3 1 15 7 1 19 n 2 5 5 2 12 43 1 3| 3 13 24 9 2 5 if 5 7 3 7 1 » E o ing the whole term o rt .!£ o c >, p 00 1 Bs Single payments .. 17 11 030 7 033 12 036 10 o ;9 19 o 43 16 048 2 053 1 o 58 10 064 9 07016 o 3 &> ■ $ . .jf o Annual premiums.— ° o" E. B 10 Limited to 10 years 3 15 C4 1 84 9 10 4 17 05 5 45 15 06 6 16 19 4715 28 14 69 19 4 CS)= 2 - B 15 » 15 „ 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 I0| 6 15 3 7 18 11 c 1) a,s- B2 ° • 20 " 24 10 2912 14 22 18 93423 10 73 18 54845125 18 8 S 3 "Hi B 25 „ 25 , 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 c |iJ,jS" B30 „ 30 . 1 15 5 1 19 o 2 3 3 2 7 1 2 11 10 2 17 9 3 5 3 3 15 4 a »« CM jj j 5 35 „ 1 13 o 1 16 4 2 o 5 2 4 2 2 8 11 2 14 10 3 2 7 I _ __ 1 • 4) .5 tl Annual premiums.— „•§ • I Term 10 years .. 9 8 09 9 1 9 11 6 9 12 o 9 13 3 9 14 8 9 16 5 9 19 810 4 5 10 12 311 52 " Q- <£ | „ 15 . .. 5 19 36066 2 863564 10 66668 11 6 131! 6 19 4797861 §- u 1 „ 20 „ .. 4 5 9 4 7 ii 4 9 1 4 10 1 4 11 9 4 13 11 4 17 o 5 2 2 5 ro 3,6 3 o ~g * „ 25 » .. 3 6 3 3 7 8 3 9 g 3 10 11 3 12 11 3 15 7 3 19 6 4 6 o 4 15 io g i? ■ 3° ••■; 13 10 2 15 5 2 17 7 2 19 o 3 1 4 3 4 7 3 9 7 3 17 4 uQ c c • 35 .. .. 2 5 5 2 7 2 2 9 5 2 11 2 2 14 o 2 18 1 3 4 o 3 ,,40. ..11972152311,2612962143 " u o 45 .. I 15 5 1 17 5 2 o 3 2 2 10 2 6 10 .. 0 ° 50 .. 1 12 6 1 14 9 1 17 10 2 o 10 H-O — 55 .. I 10 5 t 12 II I 16 4 1 « . 60 ., .. I 1 9 1 1 11 10 .. .. .. .. .. .. .. ..... 8| . 65 ... t 8 3 3 P » V, u <c Annual premiums. - (h > : Term 25 years .. 3 18 10 4044254 3 845848 5 41 2 64 19 25 9 4 £« rt -3° • .. 35 43703933 10 83 13 23 16 641949 10 g- a 2C \ I s ° w o-a J- Notk. —In addition to participating in ordinary profits, a special reversionary bonus of 20s. per cent, per annum p [ri •- on the sum assured will be allotted in this table. W w £ ""o , . _._ , __, Double Endowment Assurance—G. 3 Annual Difference between Age of Elder and ,. , , . , , » £ Premiums. Younger Life. hor the assuiance of £100 in the event of 3. death during the term, and an endowo '3 ment of /200 in the event of the life »„. „t v„,.„„„ in- assured surviving the term. I.S XresTB^hday, 1 .' 6 ° Years. 2 Years. 4 Years. 6 Years. 8 Years. .0 Year,. »~ __ Term. Annua! o c E i Premium. S ° £ s. d. £ s. d. £ s. d.\£ s. d. £ s.i.£ s. d. $— 20 2 14 11 2 16 1 2 17 4 2 18 io 3 o 7 3 2 6 £ s. d. <t!cis,aj 25 30113253423603823107 10 years 18 o o „ gj 30 j 3 8 11 3 10 9 3 12 nj 3 15 4 3 18 1 4 1 2| 15 . 11 7 o S? v. 35 3 18 10 4 1 3 4 4 o| 4 7 ij 4 10 10 4 15 2! 20 800 J o'S 4° 4 11 7 4 14 9 4 18 6 5 2 n ; 5 7 10 5 13 6 25 . 600 -22 45 5 9 o 5 13 5 5 18 5 6 4 2 6 10 11 6 18 g 30 „ 4 15 o 5° 6 12 5 6 18 3 7 5 2 7 13 3 8 2 8 8 13 7 35 „ 3 17 o

H.—B

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1932.

23

Class of Assurance without Participation in Profits. Immediate Annuities. Endowment Assurance. Showing the Sum to be paid ,, , ~ . for an Immediate Annuity Whole-life Assurance. . , n Temporary Assurance. , , , ,, "' .7 .Yiiu.c Annual Premium to v j 0 f £ 10 payable by HalfPremium required to secure fxoo, payab le a, TStfTtSSt P ™ "SZZSS** ,0 Death only. i- . j . t% ..i_ /ioo on a single Lite. .. V\ , f J u.iiy. dicated, or at Death *• h the Date of Death. if prior. i 1 ' i ~]j i r Age Premium Limited to Annual Annual Annual Age Nearest Single Annual Term Term Premium Premium Premium ; Last „ . _ _ . Birth- Premium. Premium. 25 Years. 30 Years. for for for Birth- MaJe - female, day. 10 Years. 20 Years. 1 Year. 3 Yean. 5 Years. day. £ s. d. £ s. d. £ s. d. I / s. d. £ s. d. : £ s. d. £ a. d. / s. d. £ s. d. / s. d. / s. d. 10 23 2 o 1 2 1 2 15 9 1 14 1 2 17 3 2 5 5 J 40 168 5 o 177 19 o 15 24 no 140 2 19 4 j 1 16 4 2 17 8 25 n 100 106 110 41 166 5 o 176 5 o 20 26 8 o 1 6 6 3 3 10 ' 1 19 2 2 18 3 2 6 9 42 164 2 o 174 10 o 25 28 T4 o t 9 10 3 9 6 J 2 2 9 2 19 2 2 7 10 108 ion 114 43 161 18 o 172 13 o 30 31 16 o 1 14 5 3 l 7 2 279 3 ° 7 ! 2 9 9 1 3 ° 1 3 5 1 3 10 44 159 13 o 170 14 o 35 35 7 o 203 4 6 1 i 2 13 8 3 2 9 2 12 7 153 160 167 45 157 6 o 168 14 o 40 39 8 o 279 4 16 6 3 o 10 365 •• 186 1 8 it 1 9 7 j 46 154 16 o 166 13 o 45 44 t o 2 17 6 5 8 10 3 9 10 .. .. 1 12 6 1 14 1 j 1 15 7 47 152 5 c 164 10 o 50 49 30 3 10 2 631410 .. .. 206 2 2 I I 2 4 O I 48 149 11 o 162 6 o 55 54 16 o 4 7 o 7 o 1 4 15 9 .. .. .. .. • 49 M 6 16 o 160 o o 60 60 19 o 5 9 8 8 o 10 j 5 15 9 .. .. .. .. .. 50 143 18 o 157 12 o 1 5 1 r 4 r 00 155 3 o 52 138 o o 152 13 o Deferred Assurances for Children. 53 '35 00 150 1 o 54 131 19 o 147 7 o Yearly Premiums for a Deferred Endowment Assurance of /i.ooo, with Profits after Age 21. 55 128 18 o 144 11 o 56 125 16 o 141 13 o 57 122 14 o 138 14 o The Sum assured is payable if the Child die after Age 21, or on his Survivance of the Policy Anniversary 5 »9 11 o 135 14 o nearest to Age 80. All Premiums will be returned with 4 per cent, compound interest if Death occur before 59 132 12 o Age 21. Valuable alternative Options exercisable by the Nominee at Age 21 are guaranteed on the Policy. ( ° I2 9 9 ° » * .» 01 no 1 o 120 4 o • 62 106 17 o 122 18 o TABLE AVIP.—Age of Parent or Guardian at Nearest Birthday. Premium I 6 3 10 3 12 o 119 10 o TABLE AVI. payable during Term of Policy, but if Parent or Guardian dies before the 64 100 80 116 I o Premium payable Child attains Age 21 the Premium will cease until Age 21. 6j y7 4 o 112 n o Ag Ne°arSt ild ' TermolTolicy. f « '9 o 109 ! o Birthday Under 30. 30-39- 40-44- 45-49. Birthday. &7 90 14 ° 105 10 o 68 87 10 o 101 18 o Yearly. Yearly. Yearly. Yearly. Yearly. fh o o 94 11 o n j — 71 77 16 o go 17 o £ * d " £ S - d - £ '■ d fi £ S d ' £ S d £ 7? 1 o Z ,1 o o 6 15 10 7 3 4 768 7 10 10 7 15 10 o 7. *■ I* ° ° «3 " o , 718 7 9 2 7 12 C 7 16 8 818 1 74 68 4 o 79 18 o 2 776 7 15 o 7 18 4 826 8 7 6 2 75 65 2 o 76 5 o 3 7 14 2 818 850 884 8 13 4 3 In t I ° T 13 ° 4 8 1 8 884 8 11 8 8 15 o y 8 19 2 4 22 S ,? ° f 9 2 ° 5 892 8.5.0 8 .8 4 , 9 1 8 9 5 10 5 \\ 56 12 o 65 13 o 6 8 17 6 9 3 4 9 5 10 9 8 4 9 12 6 6 79 54 o o 62 5 ° 7 9 5 10 9 11 8 9 .3 4 9 15 10 9 19 2 7 Ho 51 11 o 58 18 o 8 9 14 2 1000 10 1 8 10 3 4 10 6 8 8 j 9 10 3 4 10 8 4 10 10 o 10 11 8 10 14 2 9 10 10 12 6 10 17 6 10 19 2 11 o o II 2 6 10 I j 1126 1176 1184 1192 11118 11 12 11 13 4 II 17 6 II 18 4 11 19 2 12 I 8 12 13 12 5 o 12 8 4 12 9 2 12 10 o 12 12 6 13 14 12 17 6 13 o o 13 o 10 13 1 8 13 4 2 14 15 13 10 o 13 12 6 13 13 4 13 14 2 13 15 10 15

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, 1932.

24

FIFTH SCHEDULE. I " | Appendix No. 2. ASSURANCES FOR THE WHOLE TERM OF LIFE WITH WHOLE-LIFE PREMIUMS, WITH PROFITS, In force at 31ST December, 1932. Office Annual Premiums. Age Number of Amount Bonus Age attained. Policies. assured. Additions. attained. Ordinary. Extra. . L I s - L s - d. I s. d. 48 I 300 144 o 4 14 6 ... 48 49 1 100 48 15 1 11 I .. 49 50 5 1,200 579 18 19 8 o .. 50 51 6 1,600 847 o 25 15 9 .. 51 52 12 2,950 1,461 17 48 1 o .. 52 53 20 3.675 1,782 18 J 61 19 o .. 53 54 23 5,825 3,066 3 98 6 10 .. 54 55 40 9,560 4,769 16 165 48 o 10 o 55 56 50 12,600 6,613 5 218 11 7 1 10 o 56 57 59 16,975 9,3 6 5 9 292 19 6 900 57 58 63 16,525 8,060 2 294 36 390 58 59 85 19,995 10,591 15 357 3 11 250 59 60 98 23,465 12,335 14 43o 5 4 S 2 8 60 61 95 25,941 14,011 13 479 11 2 1 7 10 o 61 62 155 39.619 22,381 o 745 8 3 200 62 63 105 28,195 14,792 17 548 8 6 7 10 o 63 64 147 40,675 22,117 7 790 77 6 13 o 64 65 116 33.37° 18,594 5 668 15 10 4 5° 65 66 157 48,150 25,895 3 .966 3 11 7 7 6 66 67 156 46,092 26,595 16 955 18 o 13 3 3 67 68 146 38,388 21,194 13 818 17 9 11 11 4 68 69 124 34,544 18,946 13 73i 15 i° 850 69 70 149 43.ioo 23,118 8 958 3 11 J 760 70 71 127 36,450 20,684 5 821 71 2 16 o 71 72 128 35,280 19.967 17 786 29 12 10 2 72 73 110 35.270 20,528 5 791 17 4 436 73 74 156 46,625 25,524 4 1,065 10 i° 38 o o 74 75 133 33,646 17.756 16 794 7 11 i 11 18 o 75 76 117 32,924 18,332 13 780 56 10 12 6 76 77 97 26,128 14,604 17 619 55 5 12 8 77 78 89 21,689 12,284 2 527 12 2 524 78 79 84 20,550 11,287 3 516 10 974 79 80 86 25,280 13.125 5 620 o 10 14 13 o 80 81 76 21,950 13.363 19 522 19 10 3 12 8 81 82 58 14,651 7.470 16 384 on 2 11 2 82 83 50 15.575 9.441 18 405 13 5 24 8 3 83 84 37 10,150 5,914 o 280 17 8 239 84 85 25 6,850 4.202 14 178 9 5 7 18 4 85 86 23 9.35° 6,760 10 238 19 8 o 16 8 86 87 23 6,744 4.910 13 168 6 10 187 87 88 12 3.850 2,027 18 114 11 11 078 88 89 5 "1,250 805 4 42 17 4 .. 89 90 4 1,700 782 1 44 1 6 .. 90 91 9 2,900 1,913 3 83 4 5 224 91 92 3 600 533 18 14 16 o .. 92 93 6 1,5qp 661 3 47 13 2 030 93 94 1 150 101 19 4 17 o .. 94 95 1 400 328 19 10 8 o 314 95 96 1 150 122 2 4 14 o .. 96 97 .. • • • • • • • • 97 98 1 200 195 10 4 19 o .. 98 Totals 3,275 £904,656 £500,946 1 £19,555 16 4 £263 17 0

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, 1932.

4—H. 8.

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FIFTH SCHEDULE. Appendix No. 3. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITH PROFITS, In force at 31ST December, 1932. _ V ear 0 f Office Annual Premiums. A & e t?Number of Amount Bonus attained. p P Policies. assured. Additions. premium. Ordinary. Extra. £ £ s. £ s. d. £ s. d. 17 1,995 3 95o 93 19 18 2 o 20 1,992 2 1,100 5 10 24 11 8 21 i,99i 6 2,900 193 2 62 13 10 2 14 2 22 1,990 2 1,300 145 14 27 17 8 23 1,989 6 1,400 108 10 31 5 6 24 1,988 8 3,050 256 11 69 17 5 25 1,987 5 2,100 226 15 48 1 3 26 1,986 6 3,300 210 13 81 6 3 1 13 o 27 1,985 7 2,450 191 11 59 12 o 28 1,984 14 6,600 798 15 159 49 29 1,983 9 3,95° 456 14 99 12 10 30 1,982 8 3,250 375 4 84 1 7 31 1,981 10 5,600 709 6 141 22 32 1,980 7 3,250 323 o 89 11 1 33 1,979 13 4.934 539 17 135 2 10 34 1,978 1 300 4 13 990 35 !.977 1 4 6,400 642 9 182 19 10 1 11 6 36 1,976 8 3,600 380 16 102 09 37 i,975 6 2,800 411 18 84 9 5 38 i,974 6 2,900 365 9 88 10 6 2 12 6 39 1,973 10 4,200 388 3 137 10 4 40 1,972 4 1,500 143 o 50 7 7 41 1,971 5 1,600 97 7 55 15 1 42 1,970 7 2,950 237 7 105 10 o 43 1,969 8 4,400 299 12 159 9 6 o 10 o 44 , 1,968 9 5,700 776 15 205 81 45 i 1,967 3 1,800 268 14 65 12 2 46 1,966 4 1,700 216 13 63 9 8 47 1,965 3 1,500 180 12 60 3 4 48 1,964 8 8,000 749 14 338 15 2 49 1,963 3 2,000 214 1 87 17 6 5 3 4 50 1,962 3 850 86 5 38 1 6 51 1,961 5 2,220 213 16" 102 16 8 52 1,960 1 500 79 15 22 10 o 53 1,959 4 2,250 588 4 70 13 8 54 1,958 3 1,700 146 16 90 1 4 55 1,957 2 2,200 230 18 119 13 1 56 1,956 4 1,700 252 4 84 15 o 57 1,955 4 1,800 782 5 25 2 1 58 .. 2 1,500 1,010 3 59 .. 8 3,187 1,842 11 60 1,952 8 4,114 1,510 12 123 89 61 .. 4 807 710 6 62 .. 6 1,815 1,376 19 63 1,949 12 3,861 i,347 i 8 180 2 8 64 1,948 14 4.4I 8 2,904 14 39 13 4 65 .. 7 3.448 2,021 2 66 .. 8 3.623 2,317 10 67 i,945 9 2,677 1,205 19 91 4 8 68 1,934 12 4.7 r 7 3.492 II 2 12 8 69 .. 6 1,396 1,164 o 70 .. 8 3.467 2,637 18 71 .. 6 . 2,122 1,454 o 72 .. 13 3.633 2,852 9 73 .. 6 1,203 1,037 7 74 .. 4 2,039 1,120 14 75 .. 7 !>7 12 1.394 12 76 .. 7 717 607 12 77 .. 12 3.43o 2,237 15 78 .. 12 2,723 1,95° 1 79 .. 6 2,562 2,013 3 80 .. 3 1.050 614 5 81 .. 5 1.545 i.4 l8 18 82 .. 6 4,641 4.678 15 83 .. 11 3.601 2,798 14 84 .. 6 2,098 1,685 9 85 .. 3 i,7°° 1,046 19 86 .. 4 667 604 16 87 .. 2 365 201 9 88 .. 1 300 7° 13 89 .. 3 1,659 1,666 14 90 .. 1 84 4 12 91 .. 5 2,511 1,190 15 93 .. 1 1,000 1,016 18 94 I 200 123 4 100 .. 1 59 64 5 Totals .. 461 £191,355 £67,788 9 £3,920 6 2 £14 4 6 4—H. 8.

H.—B

FIFTH SCHEDULE.

Appendix No. 4. ASSURANCES FOR THE WHOLE TERM OF LIFE, WITHOUT PROFITS, In force at 31st December, 1932.

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Office Annual Premiums. „«&d. N £5&.°' Amount—. L 0rd "" ry - i i s. d. £ s. d. 19 2 2,000 23 8 4 .. 19 21 2 700 4 13 8 .. 21 22 2 700 7 16 o .. 22 23 4 2,600 25 12 10 .. 23 24 4 3,500 38 16 8 .. 24 25 31.7°° 17 13 ° • • 25 26 8 3,800 48 1 10 .. 26 27 4 1,800 22 19 6 .. 27 28 7 2,600 40 4 9 .. 28 29 22 10,100 151 18 6 .. 29 30 15 6,100 94 o 10 .. 80 31 >," 18,250 302 74 .. 31 32 35 18,200 313 7 10 .. .32 33 48 26,550 471 24 500 33 34 56 20,550 : 363 70 .. 34 35 57 23,650 421 84 .. 35 36 59 37,800 710 19 2 150 36 37 65 20,150 481 14 5 2 15 o 37 38 75 31,250 594 no 200 38 39 78 35.40° 7°4 3 5 7 19 2 39 40 82 45.800 878 16 4 15 o o 40 41 in 44.100 880 50 7 10 o 41 42 130 59,250 J 1,211 12 3 700 42 43 147 62,400 1,316 14 o 15 o 43 44 144 62,450 1,388 12 2 12 4 3 44 45 136 61,750 I 1,339 5 11 099 45 46 176 79,500 1,835 * 3 600 46 47 170 77,855 1,850 12 9 23 9 6 47 48 196 91,850 j 2,244 06 21 8 6 48 49 212 83,529 2,080 45 250 49 50 199 94,200 2,414 18 n 10 5 o 50 51 170 70,750 1,854 14 11 152 51 52 210 87,700 2,527 10 3 500 52 53 191 71,400 1 2,058 12 2 15 o o 53 54 205 79,732 2,314 97 12 5 o 54 55 17" 70,050 2,152 2 9 14 10 o 55 56 159 67,550 ' 2,192 32 900! 56 57 156 55,900 1,828 92 10 15 o 57 58 134 54,894 1,867 I 7 ! 6 15 o 58 59 117 48,697 1,871 16 9 6 o o 1 59 60 96 34,800 j 1,290 10 4 1501 60 61 101 4L3I5 1.555 10 7 n 17 6 I 61 62 96 28,650 I 1,122 16 12 10 o 62 63 84 j 46,050 2,132 18 8 6 10 o 63 64 81 30,900 I ,34 I T 7 9 200 64 65 59 23,250 1,059 n 2 .. 65 66 69 I 26,450 1,262 11 2 4 o o j 66 67 51 22,050 1,130 18 n 3 15 o j 67 68 23 9,250 439 56 •• 68 69 25 12,600 773 155 oiooj 69 70 21 17,450 949 4 5 •• 70 71 19 6,200 342 12 9 200! 71 72 14 1 5,452 325 n 7 .. 72 73 18 5,250 296 n 4 .. 73 74 3 950 52 16 1 .. 74 75 9 6,150 369 15 7 o 15 o 75 76 7 1,400 76 15 2 .. 76 77 6 1,150 69 4 4 .. 77 78 7 2,000 128 211 . . 78 82 1 500 37 4 7 .. 82 ' Totals 4,593 £1,964,574 £55,702 13 8 £250 18 10

5—H. 8.

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, 1932.

27

_, . Ye f r »„__ Office Annual Premiums. .„ Number . . of Average A S e of Amount F In i rv Aee attained. p JSL. assured. Lx ? ry att *f nK i P0 " d<8 - Premnuns. <**»*• Elt "' £ £ s. d. £ s. d. 30 2 118 31 i 5°° 33 I 218 35 2 i,300 37 1 57 38 2 230 39 1 500 40 2 2,200 41 2 900 1933 46 161 16 o 43 3 1 »5oo 1935 55 118 1 6 44 1 3°o 1936 5° 11 13 5 45 7 2,052 1937 48 39 5 10 46 to 3.347 IQ 39 52 72 14 9 47 2 755 194° 5° 16 11 8 1 3 o 48 2 1,120 1941 52 161 20 49 7 2,039 1942 57 87 o 6 50 5 1,500 1943 47 57 1 7 o 51 3 452 J944 42 67 11 11 52 3 4.453 1945 45 12 5 10 53 3 1.024 1948 33 19 11 1 54 6 1.327 1950 41 12 10 o 55 2 1,275 1951 41 22 17 9 56 3 900 57 3 673 58 3 2,300 59 3 803 60 2 802 61 3 349 62 2 600 64 2 1,200 65 3 1,221 66 2 302 67 1 . 42 73 1 45 76 1 117 . , Totals 97 £36,521 .. £860 19 3 £1 3 0

H.—B

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

NOTE.— In addition to the above Values the full H M - 4i per cent. Cash Value of all existing ordinary Bonuses is granted.

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Whole-life Participating Assurance by Equal «, Endowment Assurances Endowment Assurances , V. . r. . Assurances payable .. . — „ ._, • «*..- . *• Annual Premiums for the . _._ ,, payable in Twenty-five Years, or at payable in Thirty-five Years, or at .... . _ --,, in Fifteen Years, or at K ' • t* i. . ' .. Whole Term of Life. „ . previous Death. previous Death. previous Death. True Acre at Entrv y 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 £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ a. d. £ s. d. £ s. d. £ s. d. £ s. a. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Jjj 15 3 10 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 jj, 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 O t*l 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 b 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 5*1 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 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 50 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

H.—B.

BEPORT ON THE VALUATION OP THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DECEMBER, 1932.

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

Wellington, 27th March, 1933. In accordance with jrour instructions, a valuation of the annuity and the assurance contracts of the Department has been made for the year ended 31st December, 1932, with the object of ascertaining the net surplus available for distribution amongst the policyholders, and, in compliance with section 40 of the Government Life Insurance Act, 1908, and amendments, 1 have the honour to report as follows : — The business to be valued consisted of 08,650 policies, assuring, inclusive of bonus additions, i:2:5.(i19,759, and £36,638 immediate and deferred annuities per annum; the Office premiums thereon amounting to £638,426 per annum. The bases adopted for the valuation were as follow: — (o) The British Offices Om Table, 1893, and the British Offices Annuity Tables, 1920, were employed in the case of assurances and annuities respectively, with 3 per cent, interest; and lb) The, net premium method of valuation has been followed in arriving at the value, according to the above tables, of the liabilities iu respect of the Department's contracts. Adequate additional reserves have been included for future bonuses, expenses, and other contingencies. As shown below, the valuation has disclosed a total surplus of £209,683, of which the sum of £3,835 has been applied to the payment of interim bonuses during the year, the balance (£205,848) being available for distribution. £ Total funds at 31st December, 1932 .. .. .. .. 8,744,549 Less value of Liabilities .. .. .. .. .. 8,538,701 Net surplus .. .. .. .. 205,848 Add interim bonus paid during year .. .. .. .. 3,835 £209,683 As required by the Act, surplus arising from favourable mortality has been investigated separately for the General and Temperance Sections, the results indicating that the same rates of bonus should be allotted to policies of the same class in both sections. I accordingly recommend that the following rates of compound reversionary bonus 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. Whole-life assurances, and long-term endowment assurances (Tables A, B, £ b. d. and A Special) .. .. .. .. 117 0 Endowment Assurances (excluding Tables A, B, and A Special) .. 113 0 Double-endowment assurances and pure endowments .. .. ..140 Policies issued under premium tables which have been closed. Whole-life and endowment assurances .. .. .. ..1110 Double endowments .. .. .. .. .. ..170 The above bonuses will absorb the sum of £197,587, and I recommend that the balance of the net surplus (£8,261) be carried forward. S. Beckingsale, A.1.A., Actuary. The Government Insurance Commissioner, Wellington. Approximate Cost of Paper. —Preparation, not given; printing (1,790 copies), £56.

By Authority: G. H. Loney, Government Printer, Wellington.—l 933. Price 9d.]

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