ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1935.

Appendix to the Journals of the House of Representatives, 1936 Session I, H-08

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1936. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1935.

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

Government Insurance Office, Wellington, 9th April, 1936. I have the honour to submit the following report upon the transactions of the Department for the year ended 31st December, 1935, and its position at that date. The Revenue Account, Balance-sheet, and Statement of Business are appended. New Business and Amount of Business in Force. —New business for the year amounted to 5,612 policies, assuring the sum of £2,005,995, the premiums thereon being £47,944 per annum. Fifty-eight annuities were also granted, the purchase-money being £52,266. The total business in force at the end of the year (including immediate, deferred, and contingent annuities for £69,072 per annum) comprises 69,982 policies, bearing an annual premium income of £638,371. The total sum assured is £22,050,276, to which reversionary bonuses amounting to £3,001,016 have been added. Income.. —The total income amounted to £1,120,550, made up as follows: Premium income, £668,946; interest income (net), £399,338; annuity-purchase money, £52,266. The total for the year exceeded that for the previous year by £14,042. Outgoings.—During the year, 1,531 policies became claims by the death of the policyholders and by maturity, the payment involved being £491,474. The total amount paid in claims since the inception of the Department amounts to £14,760,779. Accumulated Funds. —Assurance, Annuity, and Endowment Funds, apart from special reserves of £466,712, now stand at £9,578,673, an increase of £336,909 over the previous year. Investments. —On the 31st December, 1935, the total assets of the Department amounted to £10,107,731, and were invested as follows: — r „ r t i j. Percentage of of Investment. Total Mortgages of freehold property .. . . . . . . 37-8 Government securities, including rural advances bonds .. . . 24-9 Local-body debentures .. .. .. .. .. 12-4 Loans on policies .. . . . . . . . . .. 12-4 Miscellaneous assets .. . . . . .. .. .. 10-8 Landed and house property .. . . . . .. T7 Investment Fluctuation Reserve.—lt was deemed advisable to transfer a further £10,000 to this Reserve Fund, which now stands at £461,712. Annual Bonus Distribution.—The usual bonus investigation was carried out by the Actuary, and his report, appended hereto, discloses a net surplus of £239,985 (excluding interim bonuses paid during the year) in respect of this year. Of this sum, £217,790 was allotted in the form of compound reversionary bonuses upon the sum assured and existing bonuses, the total reversionary bonuses thus allotted amounting to £350,381.

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The bonus allotted under the present issue of ordinary endowment assurances has been increased to £1 15s. per cent, per annum of the sum assured and existing bonuses, and, in the case of the corresponding issue of long-term endowment and whole-life assurances, the rate has been increased to £2 per cent, per annum of the sum assured and existing bonuses. These bonuses are very satisfactory, especially in view of the low premiums charged, and have been declared in conjunction with the maintenance of the strong valuation basis adopted by the Department. Expense Ratios and Rate of Interest. —The ratio of expenses to (a) total income and (5) premium income, and the effective rate of interest (after the deduction of taxes) earned on the funds for 1925, 1930, and 1935 are as follows:— Ratio of expenses to — 1925. 1930. 1935. (a) Total income .. .. .. 11-08 841 8-62 (b) Premium income . . . . . . 18-00 13-88 13-39 £ s. d. £ a. d. £ s. d/ Net effective rate of interest .. .. ..591 5 11 7 469 The expense ratios must be regarded as very satisfactory in view of the facts that the new business (and consequently the commission payable) was the highest in the history of the Department and that an addressograph-machine was installed at a cost of £3,788. General.—Summarizing the results for the year:— (1) The new business was the highest ever transacted by the Department in any one year. (2) The total income increased by £14,042. (3) Claims decreased by £33,377. (4) Total funds increased by £336,909. (5) Profits divided amounted to £217,790. (6) Total assets now exceed £10,000,000. During the year practically the only investments offering were those for long terms at low rates of interest. The Department, confident that such a position must be transient, followed the policy adopted by some of the leading British life offices, and allowed the funds to accumulate. The policy has been justified; advances are now being made more freely than they have been since the depression began, and it is confidently expected that by the end of 1936 the whole of the Department's funds will be invested at a rate which will show a reasonable return to its policyholders. During recent years the Department has made marked advances, 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 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 New Zealand, they assist in a substantial way in its development. The welfare of the Department is therefore of vital interest not only to policyholders, but to the people of New Zealand generally. W. E. Arnold, Commissioner.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1935. £ s. d. £ s. d. Amount of funds at Ist January, 1935.. 9,241,763 15 9 Death claims under assurance policies, Renewal premiums—Assurance, annu- including bonus additions .. 185,372 5 O ity, and endowment, less reinsurance Endowment assurances matured, includpremiums .. .. .. 585,263 19 9 ing bonus additions .. .. 294,714 14 0 New premiums (including instalments Endowments matured .. .. 11,287 19 0 of first year's premiums falling due Premiums returned on endowments .. 98 16 9 in the year) less reinsurance premiums 43,865 14 1 Bonuses surrendered for cash .. 10,737 14 2 Single premiums—Assurance and en- Annuities .. .. .. 28,515 17 1 dowment .. .. .. 39,815 16 4 Surrenders .. .. .. 49,644 15 1 Consideration for annuities .. .. 52,265 19 8 Loans released by surrender.. .. 95,304 6 9 Interest, rent, and other £ s. d. £ s. d. income .. 423,679 I 9 Commission, new* .. 35,034 9 9 Less land and in- „ renewal 4,508 7 5 come tax, £22,969 39,542 17 2 19s. 3d.; property Contribution to Public Service Superexpenses, £1,371 annuation Fund .. .. 731 311 5s sd. .. .. 24,341 4 8 Addressograph installation .. .. 3,787 15 4 399,337 17 1 £ s. d. Expenses of management — Salaries .. .. 36,339 5 5 Extra clerical assistance .. .. 406 22 Medical fees and expenses .. .. 1,561 3 6 Travelling-expenses 1,315 7 9 Advertising .. 404 13 10 Printing and stationery .. .. 1,498 19 2 Rent .. .. 4,645 14 11 Postage and telegrams .. .. 1,577 14 11 Exchange.. .. 34 4 8 Audit fees - .. 325 0 0 General expenses .. 4,412 7 5 52,520 13 9 Property depreciation .. .. 1,381 13 1 Transfer to Investment Fluctuation Reserve Account .. .. 10,000 0 0 Amount of funds, 31st December, 1935 9,578,672 11 7 £10,362,313 2 8 £10,362,313 2 8

* Including agents' allowances.

Balance-sheet of the Government Life Insurance Department on 31st December, 1935. Liabilities. £ s. d. Assets. £ s. d. Total assurance, annuity, and en- Loans on policies .. .. .. 1,257,691 13 4 dowment funds (as per Revenue New Zealand Government securities .. 2,517,260 0 0 Account) .. .. .. 9,578,672 11 7 Loans to local bodies .. .. 1,249,778 5 7 Claims admitted, proofs not yet Landed and house property .. 174,899 4 7 completed .. .. 33,214 2 9 Landed and house property (leasehold) 1,544 17 7 Annuities .. .. .. 340 14 10 Mortgages on property .. .. 3,818,060 6 11 Medical fees .. .. .. 201 12 0 Properties acquired by foreclosure .. 43,194 6 5 Premium and other deposits .. 14,770 10 10 Overdue premiums on £ s. d. Sundry creditors .. .. .. 4,002 7 5 policies in force .. 6,187 3 9 Accident and Fidelity Fund .. 5,000 0 0 Outstanding premiums Investment Fluctuation Reserve .. 461,712 0 1 due but not overdue 55,122 11 6 Sinking funds on local £ s. d. 61,309 15 3 body loans .. 9,679 7 9 .Overdue interest .. 39,741 15 10 Interest accrued there- Outstanding interest on .. .. 137 10 9 due but not overdue 10,048 4 8 9,816 18 6 Interest accrued but not due .. .. 95,971 12 10 145,761 13 4 Sundry debtors .. .. .. 1,305 710 Income-tax paid in advance.. .. 20,000 0 0 Cash in hand and on current account .. 816,925 7 2 £10,107,730 18 0 £10.107.730 18 0 W. E. Arnold, Commissioner. J. W. Macdonald, 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. C. Campbell, Controller and Auditor-General.

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Statement of Business

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TOTAL. : Whole-life and Term Assurance s. YEAR 1935. 1 , ; ——— , . [ Annual Annuities. j g um Annual -KT Sum cSSTSv Premiums. I. Immediate or N assured. sfonarv Premiums. N0 - [assured. SS 1. Ordinary. entered upon. °" 2. Deferred 1. Ordinary. j | 2. Extra. 2. Deferred. Annuity. j onuses - 2. Extra. POLICIES ISSUED AND DISCON- £ £ £ s. d. £ s. d. £ £ £ a. d. Policies in force at 31st 68,094121,191,1682,893,453 1 623,508 19 1127,046 8 2 } 9,531 3,805,380 543,184(97,880 16 4 ) December, 1934 ( 1,576 3 8 32,639 5 2 j 25,113 12s. p.a. { 584 1 7 j New business .. .. 5,670 2,005,995 .. ( 47,885 12 2 4,704 19 2 ) 1,159 567,823 .. Jl0,765 2 7 ) I 58 16 1 7,224 0 0 J 6,084 | 30 15 0 f Bonus allotted .. .. .. 320,427 .. .. .. .. 33,637 Total.. .. 73,76423,197,1633,213,880 ] 671,394 12 131,751 7 4110,690 4,373,203 576,821 / 108,645 18 111 | 1,634 19 939,863 5 2j 31,19712s. p.a. ( 614 16 7) Polioies discontinued 3,782 1,146,887 212,864 j 34,583 5 11 1,606 13 1) 519 236,579 46,277/ 5,446 11 9 ) during 1935 I 74 16 5 936 0 0 f 864 ( 47 12 11 | Total policies in force at 69,982 22,050,276 3,001,016 636,811 6 2 30,144 14 3} 10,171 4,136,624 530,544(103.199 7 2) 31st December, 1935 j ( 1,560 3 4 38,927 5 2 j 30,333 12s. p.a- 1 567 3 8 j PARTICULARS OP POLICIES DISCON How discontinued. By Death .. .. 480 137,366 48,505 f 4,105 1 9 1,606 13 1) 235 78,805 35,515/ 1,976 4 9] I 33 16 5 J | 29 7 11 f Maturity .. .. 1,079 236,107 68,698!/ 9,494 5 1) 1 5 18 4( Surrender.. .. 1,195 378,219 58,573) f 11,228 5 0 1 94 45,700 5,631 / 1,159 2 6 1 1 11 15 0 288 0 0 J 288 p.a. \ 10 0 I Change to other 49 18,058 2,079 / 462 13 4| .. 9 3,908 .. / 39 19 4 ) Tables 1 J \ .. f Cancellation .. 68 26,205 124 f 497 2 0; .. 9 4,704 9( 98 19 8'i I ) 1 I Lapse .. .. 911 350,932 34,885 / 8,795 18 9 .. | 172 103,462 5,122 / 2,172 5 11 t j 23 6 8 648 0 0) 576 p.a. { 17 15 0 J Total discontinued during 3,782 1,146,887 212,864 ( 34,583 5 11 1,606 13 11 519 236,579 46,277 / 5,446 11 9) year 1935 1 74 16 5 936 0 Oj 864 p.a. 1 47 12 11 j J ; PROGRESS OF BUSINESS OF THE GOVERNMENT LIFE INSURANCE Total issued .. .. 228,924 64,371,256 7,744,273 1 $ 1 175,878 7 254,163 18,291,151 2,471,629 I 4 , 7 ®'® 9 ® \l *1 I 40,757 11 b] 32,277 12s. p.a. ( 18,733 lo 4f Total void .. .. 158,942 42,320,980 4,743,257 \ j 106,806 7 9 43,992 14,154,5271,941,085 g| Total in force .. 69,982 22,050,276 3,001,016 636,811 6 2 69,071 19 5 10,171 4,136,624 530,544 103,199 7 2 30,333 12s. p.a. Extra Premiums .. .. .. 1,560 3 4 .. .. .. j .. 567 3 8 £638,371 9 6 £103,766 10 10 Note.—The " ordinary " premium is the premium charged

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at End of Year 1935.

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ASSURANCES. SIMPLE 7 ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. 1 Sum ' -p Annual 1- Sum Annuities. Annuities. I Sum Annual assured. Sonllv Premiums. .fTver 1- Immediate or Animal No Annual 1. Immediate or No a as {^ e £ Premiums. 2. Deterred! R 1. Ordinary. iinnJvv entered wpon. Premiums. " Premiums. entered upon. oilnJr! 1. Ordinary. Annuity, j «on™ 63 ' g. Extra. Bonuses. \ 2 ' Deferred. 2. Deferred. [ 8 ' Extra " TINUED DURING THE YEAR 1935. £ £ & a. d. £ £ s. d. £ s. d. £ s. d. £ s. d. £ £ s, d. ,614 15,916,995 2,326,011 /506,872 16 111 22] 5,097 264 0 1)184 9 2 442 14 0 0(26,782 8 113,485(1,463,696 18,556 17 61 6,282 p.a. \ 980 4 1] | 1,588 1,093 13 2 f | 150 0 0 f \ 22,670 11 18 0J „508 929,441 .. ( 32,072 0 6| .. .. .. .. 58 2115 6] 4,704 19 2 1 945 ] 508,731 5,026 13 71 1,080 p.a. 1 25 8 7 J | 60 0 0 } \ .. 2 12 6) 284,277 .. .. 107 .. .. .. .. .. .. 2,406 ,122 16,846,436 2,610,288(538,944 17 51 22] 5,097 264 0 11184 9 2 500 35 15 6 ( 31,487 7 3 1 4,430 (1,972,427 23,583 11 ll 7,862 p.a. \ 1,005 12 8( \ 1,695 1,093 13 2 J \ 210 0 0 ) \ 25,076 14 10 6 J ,005 828,088 164,048) 27,834 12 81 If 100 15 0 9 I .. 28 .. ] 1,591 12 4 1 229 j 82,120 1,302 1 6| 72 p.a. | 26 11 0J \ 18 J 1 .. J t 2 . 521 12 6\ ,11716,018,3482,446,240(511,110 4 91 21 j 4,997 248 19 4 1 184 9 2 472 35 15 6/ 29,895 14 1114,201(1,890,307 22,281 9 7) 7,290 p.a. | 979 1 8) \ 1,677 1,093 13 2 J { 210 0 0 ] \ 22,555 13 18 0} TINUED DURING THE YEAR 1935. 212 57,261 12,972 ] 2,112 11 10 1 I 1 ] 100 15 0 9 1 .. 28 .. j 1,591 12 4 1 4 1,200 16 5 2 t 4 8 6} 1 18 I 1 \ .,011 227,007 66,559 ] 9,070 16 91 .. .. .. .. .. .. .. 68 ] 9,100 423 8 41 ( 5 18 4 f j \ 2,139 .. f .,035 300,599 52,942 ] 9,666 19 7)1 .. .. .. .. .. .. .. 66 31,920 402 2 11 ( 10 12 6 J 12 6 38 13,750 2,079 j 411 6 4J .. .. .. .. .. .. 2 400 11 7 8 50 16,751 115 I 354 5 II .. .. .. .. .. .. .. 9 4,750 43 17 8 1 •• J 659 212,720 29,381 I 6,218 13 ll .. .. .. .. .. .. .. 80] 34,750 404 19 9) 72p.a. ( 5 11 8 } ( 382 .. f ),005 828,088 164,048 ] 27,834 12 8| 1 j 100 15 0 9 I .. 28 .. ] 1,591 12 4 1229 ] 82,120 1,302 1 6) 72p.a. \ 26 11 0 f jt 18 .. f \ .. J \ 2,521 12 6) DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1935. 606 4 8,38 9 0 2 Ma. 3 5 > 209 ' 525 { M 2°1 7 ,987 17 s} { 17 9|042 } 60 . 173 0 109,360 10 91,385 888 2 2 75,046 18 4 10639 j 5M gg *o M89™; 6 p ( 8 3J 1110 J 174,103 | 58|83Q 8 49;176 , ? gl3 852 8 44>941 „ g { 1,2^8,665 33,194 0 6j 5,11716,018,348 2,446,240 511,110 4 9 21 j :|,997 1 1,342 12 6 184 9 2 472 35 15 6 30,105 14 11 4,201 22,281 9 7 } 7,290 p.a. I ' J 979 I 8 •• • ■ • • ■• • • • • • • • • ■• 13 18 0 £512,089 6 5 £184 9 2 £35 15 6 £22,295 7 7 at the true age; the " extra " the additional premium charged for any reason whatsoever. W. E. Aknold, Commissioner. S. Beckingsale, F.I.A., Actuary.

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GOVERNMENT INSURANCE DEPARTMENT.

STATEMENTS IN CONNECTION WITH THE VALUATION OF LIABILITIES (FOURTH AND FIFTH SCHEDULES) JfOR THE TRIENNIUM ENDING 31st DECEMBER, 1935.

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 OP THE LIABILITIES UNDER LIFE POLICIES AND ANNUITIES OF THE NEW ZEALAND (Sowrnnuutt Insurante 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, 1935. 11. The principles upon which the valuation and distribution of profits were made were as follows :— (1) Principles of Valuation. —In making the valuation no credit whatever has been taken for any loadings or extra premiums, and in no case has there been valued for inclusion among the assets a valuation premium greater than the pure premium derived from the British Offices Om Table with 3 per cent, interest. The liability has been ascertained by taking the difference between the present value of the sums assured (including reversionary bonuses) and the present value of the valuation premiums. Where the original premiums have been reduced by the application of amounts received in consideration of the surrender of 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, 3 per cent, interest being used. Temporary assurances have been valued by reserving the

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FOURTH SCHEDULE. proportion of the premiums corresponding to the unexpired risk. 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. Policies have been valued in groups where practicable. (2) Principles of Distribution of Surplus. —The divisible surplus is distributed among the policyholders entitled to participate as a compound reversionary bonus per cent, on sums assured and existing bonuses, 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. 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 (rn) 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 25-3 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, 1933, to 31st December, 1935, 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 Period commencing Ist January, 1933, and ending 31st December, 1935. £ s - d - £ s - Amount of funds on ist January, 1933 8,744,548 13 10 Death claims under policies—assurance, Renewal premiums .. .. 1,762,775 8 3 including bonus additions . . .. 593,328 13 o New premiums .. .. .. 105,231 5 8 Endowment assurances matured, inSingle premiums .. .. .. 117,509 2 4 eluding bonus additions .. .. 894,219 7 o Consideration for annuities granted .. 125,874 1 7 Endowments matured .. .. 3°>3 8 3 0 0 / s. d. Premiums returned on endowments . . 383 o 4 Interest and rent .. 1,258,370 6 11 Bonuses surrendered for cash .. 39,475 13 3 Less land and in- Annuities .. .. .. .. 77,736 6 7 come tax, £68,658 Surrenders .. .. .. 164,11181 us. gd. : pro- Loans released by surrender . . .. 295,541 12 4 perty expenses, £ s. d. £4,152 os. od. ; Commission, new* .. 84,313 1 6 stamp duty on Commission, renewal .. 12,871 14 4 interest, £7,186 97,184 15 10 16s. 1 id. " .. 79,997 8 8 Contribution to Public Service Super- — 1,178,372 18 3 annuation Fund .. .. .. 2,213189 Addressograph installation .. .. 3>7 8 7 1 5 4 £ s. d. Expenses of management— Salaries .. .. 100,966 18 4 Extra clerical assistance .. .. 1,148 15 8 Payment to Treasury under Finance Act, 1931 (No. 2) .. 4,581 10 o Medical fees and expenses .. .. 4,604 12 4 Travelling-expenses 3,295 3 o Advertising . . 1,307 5 8 Printing and stationery 4,182 18 1 Rent . . .. 13,716 11 5 Postage and telegrams 4,851 18 7 Exchange . . .. 68 9 9 Audit fees . . 975 o o General expenses .. 13,692 11 11 153,391 14 9 Property depreciation .. .. 3,881 13 1 Transfer to Investment Fluctuation Reserve Account .. .. 100,000 o o Amount of funds, 31st December, 1935 9,578,672 11 7 £12,034,311 9 11 £12,034,311 9 11

* Including Agents' allowances.

VALUATION BALANCE-SHEET OF THE GOVERNMENT INSURANCE DEPARTMENT /4s at 31st December, 1935. Dr. £ ! Cr. £ To Net value of liabilities (as per valuation By Accumulated funds (as per Consolidated summary) .. .. .. .. 9,338,688 , Revenue Account) .. .. .. 9,57 5 . 673 Surplus .. .. ■■ •• 239,985 : £9,57 8 , 6 73

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1935.

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Valuation. Particulars of Policies for Valuation. The bases used are those stated in Section IT (1) DESCRIPTION OF TRANSACTIONS. \ of tIie Fourth Schedule. 'Number of Sums assured Office Yearly Net Sums assured Office Yearly Not Net Policies. ! and Bonuses. Premiums. Premiums, and Bonuses. Premiums. Premiums. Liability. . I'v S: • ■ ASSURANCES. I.—With Participation in Profits. £ £ £ £ £ £ £ Whole-life assurances— Uniform premiums .. .. .. 4,125 1,904,715 39,882 29,120 ; 1,284,796 491,130 | 356,719 928,077 Limited, single, and commuted premiums | 214 125,638 936 738; 97,151 6,641 5,102 92,049 „ Limited, single, and commuted premiums 205 118,606 3,380 2,674 69,812 53,748 42,288 27,524 with extra profits Endowment assurances— Uniform premiums .. .. .. 46,967 15,824,577 450,046 330,444 9,606,681 5,559,608 4,020,584 5,586,097 ,, Limited, single, and commuted premiums 540 251,674 4,939 3,600 139,585 50,736 36,407 103,178 With extra profits .. .. .. 285 97,703 2,986 2,359 j 73,898 31,935 25,218 48,680 Double-endowment assurances .. .. .. .. 6,784 2,151,531 48,864 38,033 1,572,468 367,195 282,720 1,289,748 Deferred assurances .. .. .. .. .. 2,785 1,579,690 12,849 8,476! 314,794 347,073 228,951 85,843 Joint-life —Whole-life assurances: Uniform premiums .. .. 13 11,231 462 340 : 7,955 4,396 3,225 4,730 Simple endowments .. .. .. .. .. 1,175 212,910 7,678 6,285 160,959 : 59,290 48,381 112,578 Annuity assurances .. .. .. .. .. 21 6,673 184 156 4,284 ! 775 ! 657 3,627 Total assurances with profits .. .. .. 63,114 22,284,948 572,206 422,225 .13,332,383 6,972,527 5,050,252 8,282,131

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1935— continued.

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j Valuation. Particulars op Policies foh Valuation. j The bases used are those stated in Section II (1) DESCRIPTION OF TRANSACTIONS. j of the Fourth Schedule. 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. £ £ £ j £ £ £ £ Whole-life assurances —Uniform premiums .. .. .. 4,486 1,948,757 : 55,554 47,666 : 1,145,594 702,416 601,754 543,840 „ Limited, single, and commuted premiums 127 68,300 1 1,320 1,160 37,780 13,485 11,905 25,875 Endowment assurances —Uniform premiums.. .. .. 541 139,104 3.854 3,255 ! 104,554 26,383 22,336 82,218 Deferred assurances .. .. .. .. .. 234 64,783; 862 | 31,266 16,086 13,827 17,439 Joint-life —Whole-life assurances .. .. .. .. 1 217 j .. •. i 171 • • • • 171 Temporary assurances .. .. .. .. .. 1,000 489,704 1 18 ; 29,382 .. .. 29,382 Sinking-fund assurances .. .. .. .. .. 7 55,479 j 752 653 I 18,539 14,044 12,272 6,267 Total assurances without profits .. .. 6,396 j 2,766,344 62,501 53,596 j 1,367,286 j 772,414 662,094 705,192 ! I ; i Reserve for prepaid loading, under average lives, &c. .. .. .. .. .. .. 61,560 1 .. j .. 61,560 j : I I Total assurances .. .. .. .. 69,510 25,051,292 634,707 475,820 114,761,229 j 7,744,941 5,712,346 9,048,883 ANNUITIES. Immediate .. .. .. .. .. .. 469 29,964 .. I; 273,233 .. .. 273,233 Deferred.. .. .. .. .. .. .. 2 1,304 36 31 !i 11,515 389 346 11,169 * Contingent .. .. .. .. .. .. .. 37,624 2,068 .. !| 4,137 ! .. .. 4,137 Annuity certain .. .. .. .. .. .. 1 180 .. .. 1,266 .. .. 1,266 Total annuities .. .. .. .. 472 69,072 2,104 31 290,151 i 389 346 289,805 25,051,292 | Total of results .. .. .. .. 69,982 and i 636,811 475,852 1115,051,380 | 7,745,330 5,712,692 19,338,688 £69,072 p.a. ; * These annuities are part of family income assurance contracts —the basic assurances in each case have been included under their respective classes above.

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FOURTH SCHEDULE. 2. The net liabilities and assets of the Department, with the amount of surplus, are shown in the Valuation Balance-sheet given on page 13. VIII. All participating policies in force at the date of the valuation share in the profits. The surplus is 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 surplus arising during the year ended the 31st December, 1935, including a balance of £22,437 carried forward from 1934, was £242,950, of which amount £2,965 has been paid as interim bonuses during the year. (2) The surplus divided among the policyholders as at the 31st December, 1935, was £217,790, which has been converted into reversionary bonuses amounting to £350,381. The number of policies which participated was 60,329, assuring the sum of £17,704,242, or, including reversionary additions, £20,705,258. (3) The following are specimens of the bonuses which have been allotted for the year ended the 31st December, 1935, 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| per cent. S. Beokingsale, F.1.A., Actuary.

14

AGE AT ENTRY, j AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 20. 5 30. 30. 50. Number 01 01 Years in Years in Force. Reversionary Cash ? Reversionary] Cash Reversionary] Cash Reversionary Cash Force. Bonus. Value. | Bonus. j Value. Bonus. : Value. Bonus. Value. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 5 2 3 ° 0105 230 o 13 3 230 0170 230 123 5 10 280 0130 280 01610 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 14 o o 18 11 2 14 o 146 2 14 o 1 11 6 2 14 o 1 19 10 20 25 2 16 o 122 2 16 o 1 8 11 2 16 o 1 16 10 2 16 o 2 6 11 25 30 2 19 o 169 2 19 o 1 14 5 2 19 o 237 2 19 o 2 19 o 30 I Endowment Assurances.—Term 20 Yeabs. 5 i 17 o j o 19 11 1 17 o 102 1 17 o 108 1 17 o 1 . 1 11 j 5 10 2101170 210 172 210 17 10 210 185 10 15 240 1 15 5 240 1 15 7 240 1 15 9 240 1 16 1 I 15 20 260 260 260 260 260 260 260 260 20 I ; _ . I I

H.—B.

EE P O II T BY THE Sou criiu|tut Conuiibsioni^, In terms of Section 37 of the Government Life Insurance Act, 1908. FIFTH SCHEDULE.

STATEMENT OE THE LIFE ASSURANCE AND ANNUITY BUSINESS OF THE GOVERNMENT INSURANCE DEPARTMENT ON THE 81ST DECEMBER. 1935.

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. Qiiestion 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 t 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. Ansiver to Questions 2 and 3.—This information is contained in Appendices Nos. 2, 3, 4, 5, and 6. Question 4.—The total amount assured under classes of assurance business other than for the whole term of life, distinguishing the sums assured under each class, and stating separately the amount assured, with and without profits, and the total amount of reversionary bonuses.

15

H.- 8.

FIFTH SCHEDULE. I 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 : —

The contingent annuities issued as part of " Family Income" assurances have been shown in the answer to Question 8. The basic assurances have been included in their respective classes above.

* The annuity portion of these contracts has been shown in the answers to Questions 7 and 8.

16

[ Annual Premiums. i Number of Reversionary Class of Assurance. Policies. assured. Bonuses. I Ordinary. Extra. I With Profits. £ £ s - £ s - d. £ s. d. Endowment assurances 47,.W 13,882,219 2,194,03x15 454,985 13 9 96912x0 Double-endowment assurances .. •• 6,784 1,920,872 230,658 I9 48,863 811 605 Endowment assurances with extra profits .. 285 7&.I53 21,549 15 2,985 19 9 50 TN r J 2 I,S7Q»6qo •• 12,849 8 4 11 17 3 Deferred assurances .. . • • • • • /°j o/y> v Joint-life assurances *3 9,400 1,83019 462 4 6 2 10 o Annuity assurances*. . . • •• 21 4,997 1 > b 77 8 lS 4 9 Endowments with return of premiums if death 1,175 | !9o,355 22,554 12 7, 6 77 10 11 occur during term Without Profits. Endowment assurances .. j 54 1 *39, I0 4 3> s 53 15 6 3 3 5 Joint-life assurances ■■ ■■ 1 2I 7 Deferred assurances .. .. •• 234 64,783 j .. 1,002 17 6 Temporary assurances .. •• •• 1,000 489,704 Sinking-fund assurances . . • • • • 7 55-479 j — 751 12 10 „ Total .. .. .. £18,412,973 ,£2,472,303 8 £533,635 111 £995 9 8

H.—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.

3—H. 8,

17

Males. Females. Age attained. - t - — ; ; Number of Policies.! Amount of Annuities. Number of Policies.J Amount of Annuities. j ,, ~ - • •• v • - " - , ; I ■ : • •. . ' . . ■ 1 ' £ s. d. £ s. d. 33 .. . . .. i 23 ii 8 37 .. . . . . . . .. 1 104 o o 44 . . . . . . .. 1 68 8 o 45 . . . . . . . . .. I 29 3 4 48 . • . • . . .. 1 52 o o 50 • • • • 1 133 00 2 82 5 o 51 .. .. .. .. .. 2 148 5 o 52 ■ • • . i 169 40 I 102 13 4 53 . . . . 1 66 10 o 1 78 o o 54 .. . . I 75 o o 2 187 8 4 55 . . . . . . 3 290 8 4 1 45 1 8 56 ■ ■ ■ • 2 204 6 8 5 385 17 10 57 . . . . . . 7 781 16 o 5 265 1 8 58 .. . . 3 302 10 o 2 97 8 8 59 .. . . • . 5 176 14 o 4 154 12 4 60 ■ • • • i 232 40 2 72 3 4 61 . . . . 5 359 12 8 2 127 18 8 62 ■ ■ • • 3 220 48 3 260 13 4 63 • . . . 8 479 10 o 6 321 19 8 64 . ■ •• 24 i,534 4 0 8 418 18 o 65 . . • • 4 724 130 2 71 18 8 66 •• 11 548 30 6 280 16 8 67 .. . . . . 10 789 4 4 12 855 6 4 68 .. .. 5 384 08 7 284 11 2 69 . . . . . . 9 739 6 2 3 54 18 4 70 . . . . 18 654 48 8 508 2 o 71 . . . . 12 818 179 2 203 o 8 72 . . . . . . 8 423 2 6 5 132 7 8 73 . . .. . . 3 289 17 4 4 185 13 10 74 .. .. .. 38 2,475 6 8 5 266 16 4 75 . . . . 7 263 24 6 138 18 8 76 . . . • •. 13 548 3 4 3 52 8 4 77 . . . . 16 601 176 7 270 15 10 78 .. . • • • 7 4 8 9 7 4 6 425 6 4 79 .. .. 5 309 11 8 12 598 6 o 80 . . .. .. 7 528 14 5 171 11 8 81 .• ■• 4 256 16 o 82 . . .. i 108 30 5 149 11 8 83 .. • • • • 3 539 3 4 2 135 11 4 84 . . .. . . 7 1,361 19 10 5 299 4 4 85 . . ■ ■ 4 232 00 86 .. .• •• 7 253 18 o 87 .. . . • • 3 369 o o 7 755 19 o 88 . • • • i 105 18 o 4 252 2 o 90 .. .. 2 170 o o 1 34 11 8 92 .. . . . . .. • ■ i 30 8 o 93 . . . . . . .. 12 202 1 o 94 .. . . . . . . .. 2 60 8 4 Totals .. .. 271 £19,032 13 9 182 £9,422 14 0 Joint and Survivorship. Age attained. I Amount or Annuity. Male. Female. j i l Haft ■ .. £..s.A. 63-65 . . .. 2 2 181 5 O 65-59 . . • . 2 2 216 8 6 65-63 .. .. I I 199 15 o 66-82 .. . . 1 i 70 4 o 67-70 .. .. 3 3 165 3 4 70-72 . . . . i x 24 5 o 71-67 •• •• • • 2 100 0 0 73-65 .. .. i i 714 ° 75—77 . . . . 1 i 109 o o • • • • I 1 4 0 ® o o 76-72 . . . . I I 10 o o 77-73 .. .. I I 25 9 o Totals .. .. 15 17 £1,509 3 10

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: — £ s. d. 1933 .. .. .. ..486 1934 .. .. .. .. 4 8 10 1935 .. .. .. ..469 Question 10. —A table of minimum values, if any, allowed for the surrender of policies for the whole term of life, and for endowments and endowment assurances; or a statement of the method pursued in calculating such surrender values, with instances of its application to policies of different standing, and taken out at various interval ages, from the youngest to the eldest. Answer.—The minimum surrender values at present ruling for whole-life and endowment assurance policies issued at the present rates of premium are given in Appendix No. 7. In the case of simple endowments, with return of all premiums at death of nominee, the premiums are returned without interest, as surrender value. Other endowments and children's deferred assurances are treated specially.

18

I Number Total Premiums Class of Annuity. of Amount of Annual Single received to Policies Annuities. Premiums. Premiums. 31st December, 1935. S £ S. d. £ s. d. Deferred (premiums returnable) ■ . j i 60 p o 21 15 6 Deferred (premiums not returnable) | • 1 I50 00'I400 Deferred (annuity assurances) * .. j .. 1,093 Ī3 2 .. Not calculated Not calculated. Contingentf .. .. . . .. 37,623 12 o 2,068 o 9 Annuity certain . . . . I 1 180 2 8 Totals .. .. j 3 £39,107 7 10 £2,103 16 3 * The number of policies and the premiums for these classes are included in the answers to Questions 4, 5, and 6. f The number of policies and the details of the basic assurances are included in the schedules where the basic assurances are listed.

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. The Appendices alluded to above have been compiled under the immediate supervision of Mr. S. Beckingsale. W. E. Arnold, Government Insurance Commissioner. 9th April, 1936.

19

H.—B.

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1935.

20

Age Nearest Birthday. Class of Assurance, with Participation : .• J in Profits. Age Age Age : Age j Age Age Age Age Age Age Age I0 - : *5- 20. : 25. 30. 35. 40. 45. 50. 55. 60. I I II I I ' I ' Whole-life Assurance, with Premiums £ s ' £ s ' £ s ' ■ £ s - £ s - £ s - d j £ s - d. £ s. d. £ s. d. : £ s. d. ceasing at the Policy Anniversary IT 4 7 11 ® 7 2 3 2 ° 4 2I 4 63 2 0|3ii 64 4 05 o 56 2 1117 14 9 nearest to age 80. Annual Premiums ! L ! I to secure 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 0 « A Annual premiums dur- 1 7 91 1 11 3 1 15 7 1 19 11 2 5 5 2 12 43 1 3 313 249 2! 5 11 s 7 =( 7 1 j) 2 o i n g the whole term 5 ® Bs Single payments .. 27 11 030 7 033 12 036 10 039 19 043 16 048 2 053 1 058 10 004 9 07016 o h a) . $ - 4? o Annual premiums,— 2 O oU B 10 Limited to 10 years 3 15 04 1 84 9 10 4 17 05 5 45 15 06 6 16 19 4715 28 14 69 19 4 gN*g "is B x 5 » 15 » 2 14 8 2 19 9 3 5 11 3 11 3 3 17 7 4 5 0 4 13 9 5 4 6 5 17 10 6 15 3 7 18 11 6 oj "S B 20 » 2 o„ 2 4 10 2 9 12 14 22 18 93 4 23 10 73 18 54 8 45 1 25 18 8 S S " U 1 B 2 5 " 2 5 » 1 19 1 2 2 11 2 7 62 11 72 16 73273 10 o 3 19 10 4 13 o a 8.2 SO B 30 " 30 " 1 15 3 1 19 0 2 3 3 2 7 1 2 11 10 2 17 9 3 5 3 3 15 4 a « « cm b 35 „ 35 „ 1 13 o 1 16 4 2 o 5 2 4 2 2 8 11 2 14 10 3 2 7 * \ a) - •3 Annual premiums.— 3 Term 10 years .. 9 8 09 9 1 9 n 6 9 12 o 9 13 3 9 14 8 9 16 5 9 19 810 4 510 12 311 5 2 1 » 15 » --5 '9 360662863564 10 66668 11 6 13 16 19 4797861 8 " £ I » 20 » •• 4 5 9 4 7 1 4 9 I 4 10 1 4 11 9 4 J 3 11 4 17 o 5 2 2 5 10 3 6 3 o » 2 5 . •• 3 6 3 3 7 8 3 9 9 3 10 I] 3 12 11 3 15 7 3 19 6 4 6 o 4 15 10 u S £ „ » 30 » •• 2 13 10 2 15 5 2 17 7 2 19 o 3 I 4 3 4 7 3 9 7 3 17 4 c C „ 35 „ ••255272295211221402181340 g « "§ " 4° .. i 19 7 2 1 5 2 3 11 2 6 1 2 9 6 2 14 3 .. .. || "> O »45» .1 15 51 17 520322 10 26 10.. 0 ° j- j »5° » .. i 12 6 1 14 9 1 17 10 2 o 10 .. .. .. .. .. II -P i 55 • i 10 5 1 12 11 1 16 4 .. .. .. .. .. .. .. 1 la » 60 „ .. I 9 1 1 11 10 8| • 65 . .. I I 8 3 II || u "" . 7 — ——— c g » m m Annual premiums.— £ Term 25 years .. 3 18 10 4 044 2 5 4 3 84 5 84 8 54 12 64 19 25 9 4 oS C3 »3° » --3 5 4 3 703933 10 83 13 23 16 641949 10 s- a 2 c a mh x ■ — - —.— !— S 0 W "g Note.—In addition to participatmg in ordinary profits, a special reversionary bonus of 20s. per cent, per annum Cm" on the sum assured will be allotted in this table. M £ i Annual Difference between Age of Elder and D ° Uble Endowment Assurance-G. s> g Premiums. Younger Life. For the assurance of /100 in the event of — death during the term, and an endow- ° (2 —' — ment of £ 200 in the event of the - life U %HWB# > v ~«- «T— MY.™ 8 " _ : 1 Term. Annual h c E 1 Premium. S 1 £ s ' d. £ S. d. £ s. d. £ s. d. £ s. d. £ s. d. $3 20 2 14 11 2 16 1 2 17 4 2 18 10 3 o 7 3 2 6 £ s. d. < 2 5 3 o 11 3 2 53 4 2 3 6 03 8 2 3 10 7 10years 18 0 o u gj 3° 3 8 11 3 10 9 3 12 11 3 15 4 3 18 1 4 1 2I 15 „ 11 7 o 3 u 35 3 l8 IO 4 I 3 4 4 0 4 7 I 4 10 10 4 15 2 I 20 „ 800 gj 40 4 11 7 4 14 9 4 18 6 5 2 11 5 7 10 5 13 6 25 , 600 Srn 45 5 9 ° 5 13 5 5 18 5 6 4 2 6 10 11 6 18 9 30 „ 4 15 o 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, 1935.

21

Class of Assurance without Participation in Profits. m Immediate Annuities. Endowment Assurance. * Showing the Sum to be paid Whole-life Assurance. Annual Premium tr, Temporary Assurance. ?* n Imme< 3iate Annuity Annual Premium to r ' of £10, payable by HalfPremium required to secure /100, payable at af Fn/TTmm^n 6 Premium to be Paid for assuring yearly Instalments, with a Death only. £=££ £ *«£»; Single Life. !XMT" " j if prior. Age Premium Limited to Annual Annual Annual Age Nearest Single Annual j Term Term Premium Premium j Premium Last M , _ , Birth- Premium. Premium. 25 Years. 30 Years. for for for Birth- Male ' female, day. 10 Years. 20 Years. 1 Year. 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 23 2 O I 2 I 2 15 9 I 14 1 2 17 3 255) 40 168 5 o 177 19 o 15 24 II o 140 2 19 4 I 16 4 2 17 8 2 5 11 I 1 o o 106 1 1 o 41 166 5 o 176 5 o 20 26 8 o t 6 6 3 3 10 1 19 2 2 18 3 2 6 9 j 42 164 2 o 174 10 o 25 28 14 o t 9 10 396 229 2 19 2 2 7 10 108 1 o 11 114 43 161 18 o 172 13 o 30 31 16 o 1 14 5 3 r 7 2 2 7 9 3 0 7 299 130 135 131° 44 >59 13 o 170 14 o 35 35 7 o 203 461 2 13 8 329 2 12 7 153 160 167 45 157 6 o 168 14 o 40 39 8 o 279 4 16 6 3 o 10 3 6 5 •• 186 1 8 11 197 46 154 16 o 166 13 o 45 44 1 0 2 17 6 5 8 10 3 9 10 .. .. 1 12 6 1 14 1 i 15 7 47 152 5 o 164 10 o jo 49 30 3 10 2 631 410 .. .. 206 221 240 48 149 11 o 162 6 0 55 54 16 0 4 7 o 7 o 1 4 15 9 .. .. .. .. .. 49 146 16 o 160 o o 60 60 19 o 5 9 8 8 o 10 5 15 9 .. .. .. .. .. 50 143 18 o 157 12 o ! 5 1 I 4 I 00 155 3 o — 52 138 o o 152 13 O Deferred Assurances for Children. 53 T 35 0 0 150 1 0 54 '3 1 I 9 ° 147 7 o Yearly Premiums for a Deferred Endowment Assurance of /1,000, with Profits after Age 21. 55 I2 8 18 o 144 11 o 56 125 16 o 141 13 o __ 57 I22 I4 G I3 g 14 Q The Sum assured is payable if the Child die after Age 21, or on his Survivance of the Policy Anniversary I: ? r i 0 x 35 *4 0 nearest to Age 80. All Premiums will be returned with 4 per cent, compound interest if Death occur before 5® 11 8 o 132 12 o Age 21. Valuable alternative Options exercisable by the Nominee at Age 21 are guaranteed on the Policy. g° 4 ° 129 9 o 62 106 17 o 122 18 o TABLE AVI P .—-Age of Parent or Guardian at Nearest Birthday. Premium 63 I0 3 12 o 119 10 0 TABLE AVI. payable during Term of Policy, but if Parent or Guardian dies before the 64 loo 80 116 I O Premium payable Child attains Age 21 the Premium will cease until Age 21. 65 97 4 o 112 II o Age of Child, r — Age of Child, (35 93190 loqio Nearest ferm o£ Policy. Nearest y3 y y 1 0 Birthday. Under 30. 30-39- 4°-44- 45~49. Birthday. °7 9° *4 ° I°5 1° 0 i 68 87 10 o 101 18 o Yearly. Yearly. Yearly. Yearly. Yearly. gl o o 94 II o I » —•"-* 71 77 16 o 90 17 o £ S - d - £ s ' d ' S ' o" £ s - ā - £ s d - Tt l\ " ° 8J il o 0 6 15 10 7 3 4 768 7 10 10 7 15 10 o 73 » o «3 ji o 1 718 792 712,6 7 16 8 818 1 74 68 4 o 79 18 o 2 776 7150 7 18 4 826 876 2 75 65 20 76 50 3 7 14 2 818 850 884 8 13 4 3 76 63 30 72 13 o 4 818 884 8 11 8 8150 8 19 2 4 77 59 60 69 20 5 892 8 15 10 8 18 4 918 9 5 10 5 7 56 12 o 65 13 0 6 8 17 6 9 3 4 9 5 10 9 8 4 9" 6 6 79 54 o o 62 5 o 7 9 5 10 9 11 8 9 13 4 9 15 10 9 19 2 7 »0 51 n o 58 18 o 8 9 14 2 10 o o 10 1 8 10 3 4 10 6 8 8 ; 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 11 2 6 10 11 11 2 6 11 7 6 11 8 4 11 9 2 11 11 8 11 12 11 13 4 11 17 6 11 18 4 11 19 2 12 1 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, 1935.

22

Office Annual Premiums. Age Number of Airount Bonus ; Age attained, j Policies. assured. Additions. attained. Ordinary. Extra. _ I ] • I ... .. ;■ : I £ £ s. £ s. d. £ s. d. T10 3 .1,200 .. 16 11 4 .. 10 11 1 500 . . 700 . . 11 13 2 1,000 . . 14 13 4 . . 13 14 2 1,000 1 .. 15 o 10 .. 14 16 1 5°° . . .. 834 . . 16 17 1 300 2 16 4180 . . 17 18 4 1,400 7 18 23 13 5 . . 18 19 6 2,500 17 12 43 2 3 .. 19 20 6 2,083 67 37 9 3 • • 20 21 12 2,864 20 17 51 13 2 .. 21 22 15 6,400 20 13 118 11 11 .. 22 23 17 6,500 13 18 123 176 . . 23 24 14 5,600 12 19 109 09 .. ,24 25 25 7,500 38 9 149 16 8 .. 25 26 25 10,019 45 8 203-19 1 , .. 26. 27 20 10,219 41 7 -213' 20 .. ; 1. 27 28 45 27,350 357 18 578 13 o .. 28 29 32 I 4,050 234 14 301 1 10 .. 29 30 44 i9,75o 259 15 439 18 o 2 10 o 30 31 34 14,713 228 4 331 19 8 .. 31 32 32 . 13,500 147 13 319 5 5 .. 32 33 44 24,550 430 15 588 12 o 2 o o 33 34 42 21,050 342 10 o 11 .. 34 35 36 21,000 453 4 528 63 10 o o 35 36 46 21,950 413 15 558 3 10 1.50 36 37 35 16,736 371 11 443 13 7 37 38 46 21,394 476 18 592 81 .. 38 39 ' 35 20,078 463 18 563 90 1 10 o 39 40 38 !5,S57 J 94 4 464 32 "2 00 40 41 29 : 13,450 238 15 409 17 10 ... 41 42 35 22,550 521 9 701 13 6 ... 42 43 * 55 ; 34,300 , 987 10 1,089 10 3 5 00 43 44 ,48 22,150 484 16 737 47 .1 o. o 44 45 54 * 23,043 480 17 796 8 8 .. 45 46 61 24,750 . 719 5 868 18 1 5 5° 46 47 63 24,800 849 19 894 15 2 100 j 47 48 39 17,089 668 13 617 18 o .. 48 49 58 27,300 I >347 o 1,015 T 9 7 IO 10 4*9 50 51 25,365 856 14 1,029 4 11 13 !5 0 50 51 53 24,915 806 17 1,050 8 8 7 10 o 51 52 39 13,300 641 10 563 17 9 1 10 o 52 53 45 31',240' " " f "2,360 19 1,336 3 ° 64 15 2 53 54 40 22,981 2,071 16 973 10 2 176 54 55 42 12,431 2,008 11 506 12 4 ■■ 55 56 47 '14,225 '-2,513 18 582 11 9 380 56 57 45 16,250 3,998 9 532 19 ii 57 58 60 - 18,460 5,410 12 ' 668 19 10 1 10 o 58 59 61 - 23,775 7,056 16 907 81 4 10 o 59 60 . 73 29,375 , . 9,681 11 1,145 18 2 1 10 o 60 61 68 18,825 -8,830 11 480 15 9 . 3 9° 61 62 95 21,495 ",561 3 478 5 2 2 15 o 62 63 94 23,731 12,757 2 568 14 5 6 17 8 63 64 95 29,841 I 4,383 15 864 09 . 7 10 o 64 65 133 33,969 20,469 12 671 72 4 10 o 65 66 99 30,041 15,179 17 853 9 10 1 15 o 66 67 140 38,475 22,755 9 823 57 6 13 o 67 68 - 105 30,020 18,694 3 602 "74 4 5° 68 69 138 42,950 26,291 4 868 16 4 7 7 6 69 70 138 41,589 26,791 7 862 12 2 13 3 3 70 71 122 3i,33 8 19,502 15 673 o 5 11 3 10 71 72 99 ' 27,894 !7,544 2 590,18 o ; 310 o 72 73 120 33,842 20,394 17 748 3 10 ,610 73 -74, 113 32,292 20,641 19 731 6 10 . 2.16 o 74 75 103 31,986: 18,741 12 875 17 3 v; 7 10 2 75 76 84 25,870 . j 17,068 11 570. 8 3 3,. 8 6 76 77 115 32,075 . . ■ 20,266 19 732 11 o 21 12 6 77 78 102 25,786 . ! 15,189 o 609 15 8 8 18 o 78 79 94 24,574. j 14,968- . o .583 12 6 6 15 o 79 80 75 21,149. j 1.2,472- 16 493 8„ 7 4 12 8 80 81 63 15,389 :. . I 9,876 2. 363 18 11 2,18 o 81 82 58 15,700 . j 9,4 i 5 1 397 J 4 5 -6,.v9 8 82 83 51 15,250 j 8,444-12; 369 15 10 12.13 o 83 84 51 15,850 11,336. 12 379 12 o 1 12 4 84 85 24 : 5,252 . 3,321.4: T34 19. 8 i 14 8 85 86 33 8,875 j 5,962 1 239 13 11 12 1 10 86 87 13 3,356 j 1,949 2 92 18 10 6 0 87 88 10 2,490 j 1,862 3 62 14 8 15 o 88 89 9 4,500 3,447 *3 125 12 2 16 8 89 90 11 2,603 2,131 18 64 2 10 .. 90 91 2 300 57 15 9 5 8 . . 91 92 1 200 156 19 5 14 2 .. 92 93 2 400 163 3 12 16 8 . . 93 94 4 1 ,45° 1,108 6 37 15 3 10 4 94 Totals 4,125 £1,442,669 £462,046 5 £39,881 19 8 £306 7 1 I I

H.—B,

FIFTH SCHEDULE.

Appendix No. 3. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED PAYMENTS, WITH EXTRA PROFITS, In force at 31st December, 1935.

23

A „ Year of „j a t Office Annual Premiums. . A F e . Rxnirv nf Number of Amount Bonus attained. Premium. Policies. assured. Additions. Ordinary. | Extra. £ s - £ s. d. £ ; s. d. 10 2005 i 5 oo .. 8 12 11 .. <20 1995 2 750 127 17 14 10 o 21 r 994 I 300 8 11 6 10 6 23 1992 I 100 14 10 250 I 1991 5 2,7°o 427 13 58 2 10 2 14 2 1990 2 1,300 267 3 27 17 8 26 !9 8 9 6 1,400 206 12 31 56 27 1988 7 2,550 426 3 58 19 i " 28 1987 4 1,800 366 5 41 16 3 29 1986 5 2,800 424 16 69 8 9 i 13 o 30 1985 6 2,150 372 3 52 7 8 i 61 I 9«4 12 6,000 1,267 4 J 45 6 6 32 1983 8 3,450 759 9 86 o 9 ! !! ff I9 ° 2 7 3,050 578 15 79 13 ! df! I98I II 6,IOO 1,237 2 156 3 IO 35 1980 7 2,750 482 12 75 12 4 36 *979 12 4,484 822 9 121 16 o .. 37 1978 1 300 311 990 !.' 3° *977 14 6,400 1,190 8 182 19 10 1 11 6 3» 1976 7 3,ioo 648 15 86 19 1 40 1975 3 1,500 255 17 45 16 8 41 I 974 3 900 216 7 26 19 6 42 1973 9 3,500 564 8 113 18 4 43 1972 3 1,200 220 9 40 11 7 44 1971 5 1,600 224 16 55 15 i ;; 45 197° 6 1,950 234 7 70 18 4 4 ® 1969 7 3,4°° 5 I 7 12 122 12 10 10 o 47 1968 8 5,400 1,085 12 194 71 48 j 967 4 2,300 40610 88 2 2 " 4 9 1966 3 1,500 230 12 55 15 10 50 3 1,500 294 9 60 3 4 51 i 9ô4 8 8,000 1,488 19 338 15 2 j 52 1963 4 2,200 400 7 98 19 10 r. ' 4 53 1962 3 850 165 4 38 1 6 . 54 1961 4 2,200 321 5 102 16 8 j 55 i960 1 500 127 16 22 10 o 56 *959 2 1,300 238 10 66 19 o ]. 57 1958 2 1,200 241 12 63 1 4 1 58 1957 i 2,000 306 11 115 16 8 ■ j 59 j 956 2 j 1,500 281 3 84 15 o 60 1955 i j 500 158 19 25 2 1 63 1952 2 2,000 506 17 123 8 9 I 66 1949 i 200 23 19 1794 70 1945 i 1,15° 100 4 91 4 8 .1 Totals j 205 £100,334 I £18,271 13 £3,379 17 4 j £11 12

H.—B.

FIFTH SCHEDULE.

Appendix No. 4. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITH PROFITS, In force at 31st December, 1935.

24

A « e , ! Number Sum ., Reversionary E lpj r r y °of Average Age | Ordinary | Extra Premium . attained. j " umoer - assured. Bonuses. Premium. attained, j Premium. £ £ S- ! £ s - d - 23 i 500 24 1 300 70 .. 26 i 200 . . . . 27 1 500 .. .. •• , i ... 28 1 500 18 13 .. .. .. 29 1 67 62 2 30 2 700 117 32 1 500 33 1 5°° 34. 1 300 2 16 37 3 1,250 16 4 .. •• 44 1 200 1 17 .. 46 i 400 .. .. 47 4 1,700 87 1937 58 3 16 5 50 i 500 9 5 1939 56 i 3 14 8 52 2 600 18 13 1942 ; 69 576 13 4 53 2 901 • • 1943 J 55 i 79 14 2 54 1 20 50 1944 44 13 12 o 55 1 1 1,000 37 7 1949 47 I 28 5 o 56 2 950 536 13 1953 52 24 17 6 57 i 25 211 1954 45 34 13 11 58 2 1,300 140 8 1955 40 34 7 10 59 2 200 124 8 1958 37 3 4 o 60 4 !,425 768 9 1959 4 1 53 9 7 61 3 2,153 1,128 13 i960 31 42 11 3 62 8 " 3,187 2,080 1 1964 34 8 8 6 ... 63 5 1,614 937 6 1968 28 11 10 o. 64 4 807 781 19 1970 30 10 13 o 65 5 1,615 1,346 14 1971 24 660 66 10 1,661 1,352 7 •• j •• I 67 14 4,118 3,168 15 68 7 1,680 i,176 9 . . .. . . j 69 9 8,662 2,723 10 .. ! .. 70 6 927 925 10 71 11 4,744 3,676 4 72 7 1,791 1,649 11 73 9 3,874 3,043 o 74 4 1,37° 1,025 17 75 10 3,o43 2,674 11 76 6 1,203 i,i43 3 77 4 1,033 674 15 .. i 78 5 703 474 7 ■ • 79 5 588 524 16 ■ • 80 9 2,477 1,725 11 .. 81 7 i,863 1,629 7 82 4 1,527 1,223 17 .. 83 1 250 223 15 84 3 1,387 1,383 14 85 4 4,4i6 4,914 6 •• 86 9 3,4° i 3,o 2 7 19 88 2 700 610 16 ... . 89 1 100 24 6 91 1 300 88 3 92 1 1,000 1,049 10 94 2 511 206 2 Totals 214 £77,243 £48,394 14 £935 17 2

H.—B.

FIFTH SCHEDULE.

Appendix No. 5. ASSURANCES FOR THE WHOLE TERM OF LIFE, WITHOUT PROFITS, In force at 31st December, 1935.

4—H. 8.

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Office Annual Premiums. attained. Mides"' Amount assured. — attafned. Ordinary. Extra. £ £ s. d. £ s. d. 19 I 1,000 11 15 o . . 19 21 3i,650 13 10 6 .. 21 22 7 4.450 47 5 0 . . 22 23 7 3,ioo 35 5 7 23 24 3 1,400 17 16 10 .. 24 25 1 5 1,950 25 7 11 .. 25 26 16 11,300 155 15 9 .. i 26 27 13 6,975 91 16 4 .. I 27 28 10 5,800 81 13 o .. i 28 ! 29 23 15,250 229 7 5 2 10 o i 29 30 22 11,800 188 10 1 .. I 30 31 21 10,700 178 18 4 .. '31 32 28 15,250 244 5 9 .. 32 33 24 11,300 190 14 9 .. 1 33 34 40 18,100 310 12 o .. 34 35 37 20,850 370 8 3 .. 35 36 50 29,200 528 15 1 500 36 37 63 26,200 469 18 9 .. 37 38 68 34,45° 642 10 3 .. 38 39 69 43,450 849 13 5 150 39 40 63 25,000 469 12 3 15 o 40 41 7° 29,850 581 15 7 200 41 42 84 3 8 ,435 796 61 6 14 2 42 43 85 45,95o 916 1 10 5 10 o 43 44 114 46,000 955 19 2 7 10 o 44 45 130 60,060 I >275 9 11 5 10 o 45 46 152 62,216 *,385 40 5 15 o 46 47 144 62,800 *,404 5 10 9 9 3 47 48 120 53,55o 1,191 7 11 . . 48 49 171 68,500 1,618 7 9 600 49 50 160 67,155 i >645 50 22 10 o 50 51 200 95,334 2,435 2 II 19 8 6 51 52 206 80,199 2,079 73 250 52 53 182 81,341 2,130 16 11 15 10 o 53 54 160 61,250 it, 650 41 152 54 55 210 85,200 2,572 16 3 6 10 o 55 56 174 70,750 2,175 *7 IO J 6 5 o 56 57 196 74,782 2,292 16 1 9 15 o 57 58 161 62,900 1,990 17 10 14 10 o 58 59 144 63,500 2,145 1 5 900 59 60 139 50,400 1 ,741 77 950 60 61 13° 55, J 90 i,993 10 7 14 o o 61 62 112 45-475 I >763 11 9 600 62 63 89 32,750 1,264 15 8 300 63 64 90 42,950 1,838 72 12 17 6 64 65 83 26,750 1,096 31 12 10 o 65 66 69 37,650 i,734 3 9 600 66 67 64 24,393 1,173 24 200 67 68 53 23,000 1,117 15 8 .. 68 69 56 22,000 1,047 23 300 69 70 43 18,600 948 15 8 .. 70 71 21 8,800 420 12 o .. 71 72 20 10,800 684 16 4 10 o 72 73 20 17,250 942 11 3 .. 73 74 12 4,050 222 58 200 74 75 13 5,352 319 13 7 .. 75 76 15 4,650 261 18 .. 76 77 3 950 52 16 1 .. 77 78 8 5,850 352 87 15 o 78 79 2 500 29 18 2 .. 79 80 2 I 650 36 16 o .. 80 81 6 1 1,800 115 13 11 .. 81 * 1 Special group policy. Totals.. 4,487 £1,948,757 £55,554 4 8 £246 14 7 * The sums assured and premiums under this policyjhavejDeen included under the respective ages above and in Appendix No. 6.

H.—B.

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FIFTH SCHEDULE.

Appendix No. 6. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITHOUT PROFITS, In force at 31st December, 1935.

A Number Amount Average Office Anndal Premiums. attained. Pol^ies . assured. ~ Premiums. Ordinary. Extra. I £ .s. (1. I 9 • • 5° 1936 54 5 17 i i • • • ■ 1937 53 24 1 4 ! ■ ■ •• 1938 61 10 19 9 22 ! .. 100 1939 5 6 154 2 o 23 ! 50 194 1 47 22 13 o 24 I 5° 1942 54 138 16 7 I 25 • • 100 *943 52 28 7 o 26 . . 100 1944 48 117 2 7 27 ; . . 350 1946 54 104 99 ! 28 3°° 1947 51 13 17 1 29 •• 1,05° r 949 40 12 12 8 30 . . 500 1950 50 14 9 2 31 .. 500 1951 45 62 9 7 32 .. 1,250 1952 55 66 16 8 33 3 1,068 1953 47 25 2 3 34 .. 1,850 1954 46 27 10 1 35 .. 1,200 1955 45 39 6 7 36 2 1.356 1956 44 33 9 8 37 1 1,650 1957 43 I 25 8 9 38 1 1,800 1958 42 1 57 18 10 39 1 i,257 1959 41 1 15 4 5 40 2 1,650 i960 40 30 o 1 41 1 1,050 1961 39 30 13 1 42 1 4>°5° 1962 38 35 17 6 43 2 1,45° 1963 37 27 10 1 44 2 1,888 1964 36 ; 24 7 o 45 2 2,090 1965 35 26 1 10 46 2 1,107 1966 34 40 4 5 47 6 2,464 1967 33 18 9 7 48 11 5,386 1968 32 28 14 2 49 11 3,4° 2 1969 31 9 15 8 50 5 2,711 1970 30 9 15 8 51 3' 717 1971 29 20 o 1 52 10 3,320 1972 28 5 4 4 53 4 952 1973 27 619 54 5 876 1974 26 1 14 9 55 4 4,639 1975 25 I 10 5 56 3 959 1976 24 15 3 57 6 1,302 1977 23 15 3 • • 58 6 2,390 1978 22 I 10 5 59 3 900 1981 19 13 o 60 3 973 61 4 3,536 62 3 905 63 2 600 64 3 279 .. ., .. '' i 66 2 1,200 67 5 i ,041 68 2 1,200 70 1 42 74 1 304 76 2 219 73 1 II 7 • • I • • Totals . . 126 £68,300 . . . . £1,320 9 2

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

H.—B.

FIFTH SCHEDULE.

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Whole-life Participating Assurance by Equal Endowment Endowment Assurances it, h » s Annual p„ m i„mc w th» Assurances payable Assurances Endowment Assurances Whole Tprm nf T *f in Fifteen Years, or at payable in Twenty-five Years, or at payable in Thirty-five Years, or at Whole lerm of L,fe. previous Death. previous Death. previous Death. T rue ~~ Age at Entry. MINIMUM SURRENDER VALUES AT THE END OF 5 Years. 10 Years, 15 Years. 25 Years. 35 Years. 5 Years. 14 Years. 5 Years. 10 Years. 20 Years. 24 Years. 5 Years. 10 Years. 20 Years. 30 Years 34 Years — — - : — ——— !•; ... : ! __ I I ! £ s. d. £ s. d. £ s. d. £ s. d. £ a. 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 j 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 0 130 4 0 45 19 0 25 0 0 j 89 5 0 11 8 0. 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 70 0 0 89 3 0 35 4 19 0 12 0 0 19 3 0 35 5 0 51 17 0 25 0 0 i 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 j 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 n 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 NOTE. In addition to the above Values the full H«. 4| per cent. Cash Value of all existing ordinary Bonuses is granted.

H.—B.

ACTUARY'S REPORT ON THE VALUATION OF THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DECEMBER, 1935.

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

Wellington, 14th March, 1936. In accordance with, your instructions, a valuation of the Department's liabilities under its policies has been made for the year ended 31st December, 1935, with the object of ascertaining the net surplus available for distribution amongst the policyholders, and in accordance with section 40 of the Government Life Insurance Act of 1908, and amendments, I have the honour to report as follows : — The liabilities arise in respect of 69,982 policies, assuring, inclusive of bonus additions, the sum of £25,051,292, and £69,072 immediate and deferred annuities per annum, the Office premiums thereon amounting to £638,371 per annum. The bases adopted for the valuation were as follows : — (a) Endowments : 3 per cent, interest without mortality. (b) Temporary Assurances : The proportion of the premiums corresponding to the unexpired risk. (c) All other Classes of Assurance : The Om mortality tables with 3 per cent, interest. (d) Annuities : The a (m) and a (/) mortality tables with 3 per cent, interest. The net premium method of valuation was employed in respect of groups (a), (c), and (d) above, and, in addition to the liability brought out on that basis, reserves for future bonuses, immediate payment of claims, and other contingencies were included. The valuation has disclosed a total surplus of £242,950, as follows : — £ Total funds at 31st December, 1935 .. .. .. .. 9,578,673 Less value of liabilities .. .. .. .. 9,338,688 Net surplus .. .. .. .. .. .. 239,985 Interim bonus paid during year .. .. .. .. 2,965 Total surplus .. .. .. .. .. .. £242,950 As required by the Act, surplus arising from favourable mortality has been investigated separately for the General and Temperance Sections, the result 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 maturing at £ s. d. ages 80 and over .. .. .. .. .. ..200 Other endowment assurances .. .. .. .. ..1150 Double-endowment assurances and pure endowments .. .. ..150 Policies issued under premium tables which have been closed. Whole-life and endowment assurances .. .. .. 1 15 0 Double endowments .. .. .. .. .. .. 1 10 0 The above bonuses will absorb the sum of £217,790, and I recommend that the balance of the net surplus (£22,195) be carried forward. S. Beckingsale, F.1.A., Actuary. The Government Insurance Commissioner, Wellington.

Approximate Cost of Paper.—Preparation, not given; printing (1,620 copies), £45.

By Authority: G. H. Loney, Government Printer, Wellington. —1936.

Ft ice, Is.

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