ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1938.

Appendix to the Journals of the House of Representatives, 1939 Session I, H-08

IT. —8.

1939. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1938.

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

Government Insurance Office, Wellington, 20th April, 1939. J. have the honour to submit the following report upon the transactions of the Department for the year ended 31st December, 1938, and its position at that, date. The Eevenue Account, Balance-sheet, and Statement of Business are appended. New Business and Amount of Business in Force.—New business for the year amounted to 9,275 policies, assuring the sum of £3,436,406, the premiums thereon being £70,506 per annum. Fifty-six annuities were also granted, the purchase-money being £22,999. The total business in force at the end of the year (including immediate, deferred, and contingent annuities for £96,011 per annum) comprises 86,155 policies, bearing an annual premium income of £746,268. The total sum assured is £28,184,780, to which reversionary bonuses amounting to £3,463,359 have been added. Income. —The total income amounted to £1,287,391, made up as follows: Premium income, £802,230; interest income (net), £462,162; annuity-purchase money, £22,999. The total for the year exceeded that for the previous year by £68,086. Outgoings.—During the year 2,019 policies became claims by the death of the policyholders and by maturity, the payment involved being £759,187. The total amount paid in claims since the inception of the Department amounts to £16,607,832. Accumulated Funds.—Assurance, Annuity, and Endowment Funds, apart from special reserves of £404,045, now stand at £10,575,749, an increase of £226,501 over the previous year. Investments. —On the 31st December, 1938, the total assets of the Department amounted to £11,055,165, and were invested as follows:— „ T Percentage of Class of Investment. , . x otcii Assets. Mortgages of freehold property . . . . . . .. 42 7 Government securities, including rural advances bonds .. 22 9 Local-body debentures . . . . . . . . . . 15 9 Loans on policies .. . . .. • . . . . . 112 Landed and house property . . . . .. . . ..41 Miscellaneous assets . . .. . . . . . . 3 2 Annual Bonus Distribution. —The usual bonus investigation was carried out by the Actuary, and his report, appended hereto, discloses a net surplus of £235,433 (excluding interim bonuses paid during the year) in respect of this year. Of this sum, £220,192 was allotted in. the form of compound reversionary bonuses upon the sum assured and existing bonuses, the total reversionary bonuses thus allotted amounting to £366,219.

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It was found necessary to make a slight reduction in the rate of bonus as compared with the rate declared for several years past. This was brought about by the lower rate of interest which the Department has been able to realize on its investments. The position is one which all life offices have had to face in recent years, and it is to the Department's credit that it has been able to maintain its bonus rates at such a high level notwithstanding the low interest rates. Expense Ratios.—The ratio of expenses to (a) total income and (6) premium income for 1936, 1937, and 1938 is as follows: — Ratio of expenses to 1936. 1937. 1938. (а) Total income .. .. .. 917 10-35 9-73 (б) Premium income .. .. 1401 15 58 15-18 The expense ratios must be regarded as very satisfactory in view of the fact that the new business (and consequently the commission payable) was the highest in the history of the Department. General.—Summarizing the results for the year:— (1) The new business was again the highest ever transacted by the Department in any one year. (2) The total income increased by £68,086. (3) Claims increased by £205,879 (chiefly due to War loan policies maturing). (4) Total funds increased by £226,501. (5) Profits divided amounted to £220,192. During the year the Department moved into its new Head Office building, and the facilities enjoyed in the new premises will greatly assist the prosecution of the Department's work. The building is not yet quite completed, but it is hoped that it will be by the end of the current year. Arrangements for letting practically the whole of the building have been completed. A fine new building for the Department's Nelson branch is also nearing completion. In conclusion, I should like to pay a tribute to the good work done by all members of the staff (both office and field). It is due to their efficiency, zeal, and loyalty that the Department holds such a high position in the keenly competitive field of life insurance. W. E. Arnold, Commissioner.

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1938. £ s. d. £ b. d. Amount of funds at Ist January, 1938 10,349,248 6 5 Death claims under assurance policies, Renewal premiums—Assurance, annu- including bonus additions .. 221,198 1 0 ity, and endowment, less reinsurance Endowment assurances matured, inpremiums .. .. .. 665,590 3 1 eluding bonus additions .. .. 524,236 1 0 New premiums (including instalments Endowments matured .. .. 13,049 5 0 of first year's premiums falling due Premiums returned on endowments .. 703 0 0 in the year) less reinsurance premiums 70,180 10 11 Bonuses surrendered for cash .. 7,728 0 5 Single premiums—Assurance and en- Annuities .. .. .. 35,392 6 6 dowment .. .. .. 66,459 14 4 Surrenders .. .. .. 39,875 12 11 Consideration for annuities .. .. 22,999 3 3 Loans released by surrender .. 45,495 16 2 Interest, rent, and other £ s. d. £ s. d. income .. .. 465,394 6 2 Commission, new .. 53,089 15 4 Leas property expenses 3,231 18 9 Commission, renewal .. 5,781 19 0 462,162 7 5 58,871 14 4 Contribution to Public Service Superannuation Fund .. .. 681 18 2 Land and income tax .. .. 36,280 11 7 £ s. d. Expenses of management— Salaries .. .. 41,419 410 Extra clerical assistance .. .. 432 9 8 Medical fees and expenses .. .. 2,719 0 6 Travelling-expenses 751 12 3 Advertising .. 552 5 3 Printing and stationery .. .. 1,621 8 4 Rent .. .. 5,817 3 4 Postage and telegrams .. .. 1,872 4 5 Exchange .. 43 0 9 Audit fees .. 325 0 0 General expenses .. 6,908 19 1 Services rendered by Government Actuary .. .. 3,244 10 2 65,706 18 7 Property depreciation .. .. 1,671 13 1 Transfer to Investment Fluctuation Reserve Account .. . . 10,000 0 0 Amount of funds, 31st December, 1938 10,575,749 6 8 £11,636,640 5 5 £11,636,640 5 5 Balance-sheet of the Government Life Insurance Department on 31st December, 1938. Liabilities. £ s. d. Assets. £ s. d. Total assurance, annuity, and en- Loans on policies .. .. .. 1,240,173 17 3 dowment funds (as per Revenue New Zealand Government securities .. 2,532,861 0 0 Account) .. .. .. 10,575,749 6 8 Loans to local bodies .. .. 1,759,580 6 6 Claims admitted, proofs not yet Landed and house property .. 453,057 15 1 completed .. .. .. 51,058 13 9 Landed and house property (leasehold) 1,029 18 4 Annuities .. .. .. 266 14 8 Mortgages on property .. .. 4,721,757 12 6 Medical fees .. .. .. 403 4 0 Properties acquired by foreclosure .. 38,298 10 7 Premium and other deposits .. 16,806 8 1 Overdue premiums on £ s. d. Sundry creditors .. .. .. 5,147 11 9 policies in force .. 4,743 16 6 Accident and Fidelity Fund .. 5,000 0 0 Outstanding premiums Investment Fluctuation Reserve .. 399,044 18 7 due but not overdue 53,659 2 8 Sinking funds on local £ s. d. 58,402 19 2 body loans .. 1,667 8 8 Overdue interest .. 16,848 11 10 Interest accrued thereon 20 4 3 Outstanding interest 1,687 12 11 due but not overdue 12,800 0 9 Interest accrued but not due .. 99,696 8 9 129,345 1 4 Sundry debtors .. .. 2,219 12 3 Income-tax paid in advance .. 33,000 0 0 Office furniture and fittings .. 3,296 18 10 Cash in hand and on current account 82,140 18 7 £11,055,164 10 5 £11,055,164 10 5 W. E. Arnold, Commissioner. J. W. Macdonald, Secretary. Government Life Insurance Department, 28th February, 1939. 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. J. H. Fowler, Controller and Auditor-General.

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Statement of Business

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TOTAL. : Whole-life and Term Assurances. YEAR 1938. r — Annual Annuities. j g UIT i Annual Sum ? eve L\ Premiums. i. Immediate or , assured. Premiums. No - I assured. 1. Ordinary. entered upon. JNo ' 2. Deferred i;'° u „ea 1. Ordinary. ! tonuses. g, Extra. | «. Deferred. , Annuity. I " onu ses. g. Extra. POLICIES ISSUED AND DISCON- £ £ £ s. d. £ 8. d. £ if £ s. d. Policies in foroe at 31st 80,95926,099,4493,309,687 1 715,229 2 534,636 4 6) 12,743 5,481,088) 532,017 f 127,062 16 9 1 Deoember, 1937 I 1,577 12 1155,765 0 4 j 43,416 p.a. ( 620 18 3 j New business .. .. 9,331 3,436,406 .. I 70,310 13 5 1,539 14 8 ) 2,524 1,281,568 .. 116,737 18 2 } | 195 0 5 7,344 9 0 J 5,572 16 0 p.a.] 1 91 3 1 j Bonus allotted .. .. 398,855 .. .. .. .. J 55,016 Total.. .. 90,29029,535,8553,708,542 ] 785,539 15 1936,175 19 2115,267 6,762,656 587,033 /143,800 14 11) | 1,772 1 3 4 63,109 9 4j 48,988 16 0 p.a. 1 712 1 4j Polioios discontinued 4,135 1,351,075 245,183 1 40,957 6 8 1,655 11 8 1 636 311,207 42,527 / 5,267 3 2) during 1938 1 86 15 1 1,618 18 Of 1,123 4 0 p.a. \ 38 11 4)' Total policies in foroe at 86,155 28,184,780 3,463,359 ( 744,532 9 2 34,520 7 6 114,631 6,451,449 544,506 /138,533 11 9) 31st December, 1938 1 1,685 18 3 61,490 11 4| 47,865 12 0 p.a. \ 073 10 0j PARTICULARS OF POLICIES DISCON How discontinued. Bv Death .. .. 620 175,990 56,543 f 5,336 18 6 1,899 5 8) 275 88,060 34,769/ 2,457 16 3) I 40 19 10 J 1 29 14 8| Maturity .. .. 1,399 408,838 126,225 / 18,851 8 11 | 29 9 lOf Surrender.. .. 1,019 322,053 47,218 / 8,934 8 11 1 116 56,533 5,522 / 895 18 7| | 9 5 7 720 0 0 1 648 p.a. i { 2 12 6 | Change to other 53 25,025 795 ( 186 6 10 .. 34 19,259 62 47 11 4 Tables 1 Cancellation .. 197 58,324 303 / 1,521 17 4; .. ) 18 6,850 44! f 157 17 5 1 | 1 14. 0] 367 4 OJ 259 4s. p.a. { .. j Lapse .. .. 847 360,845 14,099 ( 6,126 7 0 -243 14 0| 193 140,505 2,130) 1,707 19 7) 1 5 5 10 531 14 01 216 p.a. j 6 4 2 / Total discontinued during 4,135 1,351,075 245,183 f 40,957 6 8 1,655 11 8 | 636 311,207 42,527 / 5,267 3 2) year 1938 I 1 86 15 1 1,618 18 0) 1,123 4a. p.a. { 38 11 4) PROGRESS OP BUSINESS OP THE GOVERNMENT LIFE INSURANCE Total issued .. .. 74,103,403 8,862,592 " [ 212,064 3 260,376 2,611,962 l g} Total void .. .. 170,299 45,918,623 5,399,233 J | } 116,053 4 4 45,745 14,999,099 2,067,456 Total in force .. 86,155 28,184,780 3,463,359 744,582 9 2 96,010 18 10 14,631 6,451,449 544,506 138,533 11 9 47,865 12s. p.a. Extra Premiums .. .. .. 1,685 18 3 .. .. .. .. 673 10 0 £746,268 7 5 £139,207 1 9 Note.—The " ordinary " premium is the premium charged

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at End of Year 1938.

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ASSURANCES. ANNUITIES. E N jfow^NTS^, Endowment Assurances. j Annuity Assurances. INVESTMENTS, ' assured i Bever " Premiums. | asrared. Annual N I Annual j. immediate or N a? Sever- io^duTri/ N0 ' = l! Si: Fremiums ' 1 «• ' =. TINUED DURING THE YEAR 1938. £ £ £ a. d. ! £ £ 8. d. £ s. d. £ s. d. £ a. d. £ £ s, d. 01,59417,614,130 2,753,786 (555,533 4 71 19 ( 4,847 320 5 2)184 0 0 537 35 15 6(34,315 19 4 I 6 > 066 j 2 ' 999 ' 378 32,4 | 3 ® 7 1 10,890 p.a. 1 938 8 2f \ 1,647 919 0 4 f 1 540 0 0 f 1 22,237 18 6 6) 5,613 1,529,916 .. (47,542 19 .. .. .. 56 .. j 1,539 14 8 | 1,138 f 624,922 6,02915111 936 P.a. 1 97 4 4} I 835 13 0 I ( .. faldO) 340,812 .. .. 114 .. .. .. - 2 ' 91d 107,207 19,144,052 3,094,598(603,070 3 11)1 19 f 4,847 320 5 0 0 593 35 15 6 ( 35,855 14 0 ) 7,204 (3,624,300 38,443 1 <>} 1 11,826 p.a. 1 l! 035 12 6f | 1,761 919 0 4 } \ 1,375 13 Of \ 25,150 24 19 61 3,136 904,938 199,666 1 33,186 7 51 | .. J -243 14 0 ji 76 5 4 48 .. j 1,899 5 8 1 315 1 2,427 10 91 252 p.a. 1 48 0 6f \ 451 243 14 Of \ f I 2,539 0 3 3f (54,071 18,239,114 2,894,932 ( 569,889 16 6) 19 j 4,847 563 19 2 1107 14 8 545 35 15 6 ( 33,956 8 4 | 6,889 (3,489,370 36,015 10 9) 11,674 p.a. { 987 12 Of \ 3,310 675 6 4 f \ 1,375 13 Of ( 22,611 24 lb dj TINUED DURING THE YEAR 1938. 278 76,230 21,774 j 2,651 7 111 .. .. •• •• 48 •• 1 ' 899 5 8 19 H.700 224 14 4 1,335 398,034 123,561 I 18,039 0 10[ .. If .. .. •• •• •• •• 64 1 762 7 3 1 29 9 101 l 450 v 815 224,044 41,695 J 7,310 111 .. } .. •• •• •• •• 88 41 ' 476 728 9 3 { 72 p - a - | 6 9 10 f \ 1 2 550 7 12 4 17 5,216 733 j 131 3 2| .. .. .. •• •• 1 55U ' 165 44,274 259 ( 1,293' 6 0) .. .. •• •• •• •• •• 14 7,200 70 13 11 526 157,^140 11,644 j 3,708 " 51 .. .. -243 14 0 1 76 5 4 128. 63,200 633 13 8, 72 p.a. \ - 0 18 4f 243 14 0 f _t ;• 1 3,136 904,938 199,666(33,186 7 51 ..I .. —243 14 0 1 76 5 4 48 .. j 1,899 5 8 1 315(134,930 2,427 10 9] 252 p.a. 1 48 0 6 f 1 451 243 14 Of 1 J I 2 ' S39 0 3 31 I I DEPARTMENT SINCE DATE OP ESTABLISHMENT TO 31st DECEMBER, 1938. |m,l 9 l »l° 1 9 t 1,131 { 179 } 60,175 1 109,387 16 91,576 888 2 2 86,282 13 4 14174 ( W 88 7413 3 115,126'^£^3,284, 050 | 98 *g 1,112 | 174 ; 3 ®* } 58,935 16 49,280 2 11,031 852 6 8 50,950 12 0 7,285 { ;38 ' 5^JJ 64,071 18,239,114 2,894,932 569,889 16 6 19 j i'|to } 1 ' 239 5 6 107 14 8 545 33 15 6 35 . 332 1 4 6,889 | 8 " 22)611} 36 - 015 10 9 11,574 p.a. ' ! T~ .. 987 12 0 .. .. .. •• •• •• •• • •' 24 16 3 £570,877 8 6 £1-07 14 8 £35 15 6 £36,040 7 0 at the true age; the " extra " the additional premium charged for any reason whatsoever. w ARNOLD Commissioner. S. Beckingsale, P.I.A., Actuary.

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GOVERNMENT INSURANCE DEPARTMENT.

STATE MENTS IN CONNECTION WITH THE VALUATION OF LIABILITIES (FOURTH AND FIFTH SCHEDULES) FOR THE TRIENNIUM ENDING 31st DECEMBER, 1938.

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

H. 8.

REPORT BY THE ACTUARY HESPECTING THE VALUATION OF THE LIABILITIES UNDER LIFE POLICIES AND ANNUITIES OF THE NEW ZEALAND (ikuernment Jnmirance 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, 1938. 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 0 M Table with 3 per cent, interest. The liability has been ascertained by taking the difference between the present value of the sums assured (including reversionary bonuses) and the present value of the valuation premiums. Where the original premiums have been reduced by the application of amounts received in consideration of the surrender of 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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9

H.—B.

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 (m) Annuity Tables deduced from the mortality of British Annuitants, 1900-1920. IV. The rate of interest assumed in the valuation was 3 per cent. V. The proportion of the annual premium income reserved as a provision for future expenses and profits is represented by the difference between the premiums actually payable and the valuation premiums, and amounts to 24-4 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, 1936, to 31st December, 1938, is given on page 11. VII. 1. The liabilities of the Department under life policies and annuities at the date of the valuation, showing the number of policies, the sums assured, and the amount of premiums payable annually under each class of policies, both with and without participation in profits, will be found in detail in the Valuation Summary given on pages 12 and 13.

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FOURTH SCHEDULE.

CONSOLIDATED REVENUE ACCOUNT OF THE GOVERNMENT INSURANCE DEPARTMENT Fob the Period commencing Ist January 1936, and ending 31st December, 1938 £ s. d. . £ s - d - Amount of funds on Ist January 1936 9,578,672 11 7 Death claims under policies assuiance, Renewal premiums .. .. 1,895,79811 1 including bonus additions . . .. 633,117 o o New premiums .. .. 203,144 8 7 Endowment assurances matured, inSingle premiums " " !! 187,630 6 5 eluding bonus additions .. .. 1,175,81917 5 Consideration for annuities granted .. 124.273 310 Endowments matured .. .. 36,745 1 o / s , d. Premiums returned on endowments .. i,37 r 0 2 Interest and rent .. 1,345,24712 o Bonuses surrendered for cash .. 23,857 5 2 r P qq nrooertv ex- Annuities .. .. .. •• i°°,444 J 9 7 " penses .. 5,954 " 8 Surrenders .. .. •• 17 I i i 339,293 o 4 Loans released by surrender .. .. 194,000 9 o £ s. d. Commission, new* .. 155,219 17 o Commission, renewal .. 15>9°9 11 10 171,129 8 10 Contribution to Public Service Superannuation Fund .. .. .. 2,141 11 8 Land and income tax .. .. 95,022 16 1 £ s ■ d - Expenses of management —• Salaries .. .. 124,418 510 Extra clerical assistance . . . . 1,52782 Services rendered by Government Actuary .. 3,244 10 2 Medical fees and expenses .. .. 7,375 7 6 Travelling-expenses 2,257 10 0 Advertising .. 3,105 14 4 Printing and stationery 5,210 10 9 Rent . . . • 15,137 18 o Postage and telegrams 5,532 5 9 Exchange .. .. 135 J 3 7 Audit fees . . 975 0 0 General expenses .. 17,905 5 1 — — 186,825 9 2 Property depreciation . . .. 3,834 19 3 Transfer to Investment Fluctuation Reserve Account .. . . 10,000 o o Amount of funds, 31st December, 1938 10,575,749 6 8 £13,328,812 1 10 i 1 3>328,812 1 10

* Including Agents' allowances.

VALUATION BALANCE-SHEET OP THE GOVERNMENT INSURANCE DEPARTMENT As at 31st December, 1938. Dr. • £ Cr - £ To Net value of liabilities (as per valuation By Accumulated funds (as per Consolidated summary) .. .. •• ..10,340,316 Revenue Account) .. .. ..10,575,749 Surplus .. . • • • ■ ■ 235 , 433 _______ £1°>575.749

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Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1938.

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: , Valuation. Particular s of Policies for Valuation. The bases used are those stated in Section II (1) DESCRIPTION OF TRANSACTIONS. of the Fourth Schedule. Number of Sums assured Office Yearly Net Sums assured Office Yearly Net Net j Policies. and Bonuses. Premiums. Premiums, j and Bonuses. Premiums. Premiums. Liability. _ ; - _ - _ _ 0 ASSURANCES. I.—With Participation in Profits. £ £ £ £ £ £ +' Whole -life assurances —Uniform premiums .. .. .. 6,472 3,046,234 72,753 54,197 1,749,437 1,088,061 803,266 946,171 „ Limited, single, and commuted premiums 314 200,326 2,847 2,160 123,638 35,215 26,066 97,572 Co „ Limited, single, and commuted premiums 199 117,828 3,116 2,526 70,939 47,209 38,049 32,890 with extra profits Endowment assurances —Uniform premiums .. .. .. 57,055 18,772,381 517,759 388,558 11,213,793 6,628,019 4,915,288 6,298,505 t*) „ Limited, single, and commuted premiums 626 i 291,935 5,141 3,846 ! 167,551 51,771 j 38,287 129,264 „ With extra profits .. .. .. 265 97,968 2,792 2,265 75,719 27,173 22,051 53,668 CI Double-endowment assurances .. .. .. 5,598 1,832,383 39,740 31,647 1,408,693 255,771 201,363 1,207,330 Deferred assurances .. .. .. .. .. 5,389 3,145,890 25,140 14,189 640,044 682,496 469,806 170,238 . Joint-life —Whole-life assurances: Uniform premiums .. .. 10 10,195 368 277 7,471 3,244 2,429 ! 5,042 Simple endowments .. .. .. .. .. 1,351 255,111 9,545 8,047 184,504 82,592 69,554 j 114,950 Annuity assurances .. .. .. .. .. 19 6,157 108 94 3,991 351 304 3,687 Total assurances with profits .. .. .. 77,298 27,776,408 679,309 507,806 15,645,780 8,901,902 6,586,463 9,059,317

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FOURTH SCHEDULE.

Summary and Valuation of the Policies of the Government Life Insurance Department as at 31st December, 1938-continued.

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Valuation. Particulars op Policies for Valuation. The bases used are those stated in Section II (1) of the Fourth Schedule. DESCRIPTION OF TRANSACTIONS. Number of Sums assured Office Yearly! Net Sums assured Office Yearly Set T ,-5&L Policies. and Bonuses. .Premiums. jPremiums. and Bonuses. Premiums. Prem ums. Liability. II.—Without Participation in Profits. £ £ £ £ £ _£ £ Whole-life assurances —Uniform premiums .. .. .. 4,455 1,914,275 54,387 °i<)'o38 ''.ST'794 „ Limited, single, and commuted premiums 146 129,130 2,607 2,36;) oc'oaq oq'i7Q 8l'sq5 Endowment assurances —Uniform premiums.. .. .. 527 139,378 Iqa n'l iVn "q'qqo "s'fiQl 11413 Deferred assurances 139 41,144 605 530; 20,104 9,930 8,b91 ll,41d Joint-life —Whole-life assurances !! .. 3 1,217 29 26 697 468 426 271 Temporary assurances 3,032 1,576,751 12 80,319 .. 80,319 Sinkhig-fund assurances 10 69,836 726 653 24,69o 14,624 13,127 ll,o68 Total assurances without profits .. .. 8,312 3,871,731 62,159 54,857 1,456,740 j 737,184 650,431 806,309 I Reserve for prepaid loading, under average lives, &c. .. .. .. - • • • ■ • 113,668 ■ — 8 Total assurances 85,610 31,648,139 741,468 562,663 17,216,188 j 9,639,086 | 7,236,894 , 9,979,294 _ ANNUITIES. 333,333 gSSr :: :: :: :: :: :: » *>i 33 "■"» 34 « 31 " !S'g? •c.S.i ».«. ».« •• "»■ •• - »« Annuity certam .. .. .. .. .. .. 1 180 .. "I Total annuities mT 96,011 M14 sT 346 316 361,022 — . I 31 648 139 Total of results 86 155 'and' 744,582 562,696 17,577,526:9,639,432 7,237,210 10,340,316 lotai oi results .. .. .. .. o, £96,011 p.a. : 1 • 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 11. 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, 1938, including a balance of £8,796 carried forward from 1937, was £239,799, of which amount £4,366 has been paid as interim bonuses during the year. (2) The surplus divided among the policyholders as at the 31st December, 1938, was £220,192, which has been converted into reversionary bonuses amounting to £366,219. The number of policies which participated was 71,909, assuring the sum of £21,167,159, or, including reversionary additions, £24,630,518. (3) The following are specimens of the bonuses which have been allotted for the year ended the 31st December, 1938, 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. Beckingsale, F.1.A., Actuary.

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AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 20. 30. 40. 50. Number Years in f ' — Years in Force. Reversionary Cash Reversionary Cash Reversionary Cash Reversionary Cash Force. Bonus. Value. Bonus. Value. Bonus. Value. Bonus. Value. £ s. A. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 5 i 18 o o § 2 i 18 o o ti 8 i 18 o o 15 i 1 18 o o 19 8 5 10 220 0115 220 0148 220 0191 220 146 10 15 260 0142 260 0183 260 139 260 1 10 3 15 20 280 o 16 10 280 11 10 280 180 280 1 15 5 20 25 2 11 o 102 2 11 o 164 2 11 o 1 13 7 2 11 0 229 25 30 2 13 o 141 2 13 o 1 10 11 2 13 o 1 19 1 2 13 o 2 13 o 30 Endowment Assurances. —Term 20 Years. 5 I 12 O O 17 3 I 12 O ! o 17 6 I 12 o o 17 10 I 12, o o 18 II j 5 10 1150 130 1150 132 1150 139 1150 143 10 15 i 18 o i 10 7 1 18 o 1 10 8 1 18 o 1 10 11 1 18 o 1 11 2 15 20 210 210 2x0210 210 210 210 210; 20 . • l : | !

H.—B.

REPOET BY THE $Wutt;Mt(tttf ilitsmnuuc (fomniisoionfr. In terms of Section 37 of the Government Life Insurance Act, 1908. FIFTH SCHEDULE. STATEMENT OF THE LIFE ASSURANCE AND ANNUITY BUSINESS OF THE GOVERNMENT INSURANCE DEPARTMENT ON THE 31ST DECEMBER. 1938. Question I.—The published table or tables of premiums which are in use at the date above mentioned. Answer. The tables of premiums in use are contained in Appendix No. 1. Question 2.—The total amount assured on lives for the whole term of life which are in existence at the date above mentioned, distinguishing the portions assured with and without profits, stating separately the total reversionary bonuses, and specifying the sums assured for each year of life, from the youngest to the oldest ages. Question 3.—The amount of premiums receivable annually for each year of life, after deducting the abatements made by the application of bonuses in respect of the respective assurances mentioned under heading No. 2, distinguishing ordinary from extra premiums. Answer to Questions 2 and 3. —This information is contained in Appendices Nos. 2, 3, 4, 5, and 6. Question 4.—The total amount assured under classes of assurance business other than for the whole term of life, distinguishing the sums assured under each class, and stating separately the amount assured, with and without profits, and the total amount of reversionary bonuses.

15

H.—B.

FIFTH SCHEDULE.

Question 5. —The amount of premiums receivable annually in respect of each such special class of assurances mentioned under heading No. 4, distinguishing ordinary fromlextra premiums. Question 6 —The total amount of premiums which has been received from the commencement upon all policies under each special class mentioned under heading No. 4, which are in force at the date above mentioned.

Answers to Questions 4, 5, and 6 are contained in the following table : —

16

Annual Premiums. Class of Assurance. N po5ctes° f Sums ass,lre<1 - 7 Ordinary. Extra. I i With Profits. £ £ s ■ £ s - d - £ s - d - Endowment assurances .. .. •• 57>68i 16,423,285 2,641,032 7 522,901 18 9 976 19 10 Double-endowment assurances .. .. 5.59® 1,603,248 229,134 16 39,739 80 605 Endowment assurances with extra profits .. 265 73> 2 °3 24,764 19 2,792 12 050 Deferred assurances .. .. .. •• 5 3> I 25,139 10 o 22 18 9 Joint-life assurances .. • • •• 10 7>95° 2,245 7 367 16 9 2 10 o Annuity assurances*. . .. . • •• 19 4.84-7 i,3 10 3 io 7 14 8 Endowments with return of premiums if death 1,3s 1 232,500 22,610 18 9,544 *9 7 1 17 6 occur during term Without Profits. Endowment assurances .. .. .. 5 2 7 !39.37® •• 3-792 13 6 469 Joint-life assurances .. •• •• 3 1,217 •• 29 5 o Deferred assurances .. .. .. J 39 4 I > I 44 •• 604 12 8 Temporary assurances .. . • •• 3.°3 2 1 ,576,75 1 •• 11 19 5 Sinking-fund assurances . . . . ■ • 10 69,836 .. 726 8 6 Total .. 74,024 £23,319,249 £2,921,098 10 £605,758 8 0 £1,014 18 3 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.

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. , Number of Policies. j Amount of Annuities. Number of Policies. Amount of Annuities. £ s. d. £ s. d. 36 .. .. 1 23 11 8 40 . . . . • • •• ■ • 1 104 o o 44 . . .. .. 1 48 o o 47 .. .. .. •. 1 68 8 o 48 .! .. •• •• •• 2 59 3 4 50 . . ■ • • • 1 26 2 8 1 306 13 4 51 .. .. .. •• 3 201 4 o 52 • • •■ I 150 o o I 41 4 6 to . . . . 2 153 00 4 186 5 o 54 •• 148 5 o 5/5 . . . . . . 1 169 4 o 3 200 15 8 56 •• • • 2 89 13 o 6 268 13 8 57 • ■ .. . . 1 75 0 0 5 410 3 8 58 . . ■• ■• 5 475 12 4 3 139 3 8 59 .. . . 4 3°4 14 8 8 658 8 8 60 .. .. • • 12 1,316 15 4 11 554 i 1 8 61 .• • ■ • • 5 6 54 7 8 10 325 6 8 62 . . • ■ • • 8 342 1 10 7 333 17 o 63 •• • • • • 5 490 7 4 6 142 1 4 64 . . • ■ • • 8 577 4 10 3 168 8 8 65 .. •• • • 6 383 12 4 11 475 10 o 66 .. •• 11 643 5 o 11 663 5 o 67 .. • • • • 24 i,533'16 8 9 521 11 o 68 • • ■ • 7 889 90 5 208 8 8 69 . . •• • • 14 724 3 8 7 332 1 8 70 •• •• 13 i,2ii 10 8 16 1,005 14 2 71 .. . • • • 7 475 17 8 10 399 14 2 72 .. •. 11 801 13 6 4 109 13 4 73 . . •. 18 654 4 8 10 837 1 4 74 11 829 10 4 2 203 o 8 75 .. .. 6 317 19 1° 4 i°° 0 0 76 .. ■• • • 2 169 17 4 4 132 17 2 77 .. .. 15 2,111 12 4 8 643 o 4 78 .. .. ■• 4 143 19 o 5 147 8 8 79 .. . . . . 14 6c4 46 3 52 8 4 80 .. •• i-i 511 17 6 6 298 7 8 81 .. • • • • 8 427 18 o 7 525 6 4 82 .. .. •• 3 105 11 8 7 445 13 4 83 • • • • 7 5°6 13 4 2 109 11 8 84 .. .. •• 4 256 16 o 85 .• • • 1 i°8 3 o 4 85 1 8 86 •• •• 1 H 8 3 4 2 J 35 11 4 87 .. •■ • • 3 309 10 8 2 150 19 o 89 . . .... 1 80 6 8 90 . . •■ •• • • • • 7 755 19 o 91 .. .. •■ • • • • 2 99 2 8 93 .. .. .. •• 1 34 11 8 95 . . . . . • •• • • 1 3° 3 o Totals .. .. 260 £18,845 12 0 227 £12,819 0 8 S Joint and Survivorship. Age attained. ' , 1 Amount op Annuity. ! Male. ! Female. ! I I — i , ! L S. d. 59-57 . . . . 2 2 87 14 8 63-58 .. •- I I I 98 12 6 63-62 . . ■ ■ I j I 14° 0 0 65-61 .. ■■ • • i 4 102 18 8 66-65 .. •• I 1 21 6 o 66-68 .. | 2 2 181 5 o 67-69 .. • • I 1 100 0 0 68-62 .. •• 3 3 251 11 o 68-66 .. • • 1 1 199 15 ° 69-70 .. •• 1 1 199 3 4 70-73 •• •• 3 3 165 3 4 72-67 .. •• 1 1 118 o o 74—70 .. •. • • 2 100 o o 74-75 .. .. i i 281 o o 75-67 .. .. I I 23 16 o 76-68 .. . . I I 7 14 0 77-52 . . . . 2 2 78 12 8 78-80 . . . . 1 1 109 o o 79-75 • • • • ® 79-76 . . . . i i 4°° 0 o Totals . . .. 25 31 £2,675 12 2

H.—B.

FIFTH SCHEDULE.

Quest,ion B.—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 gross rate of interest, and the net effective rate of interest after deducting land and income tax, credited to the funds of the Department for each year of the triennium, were as follows Gross. Net. £ s. A. £ s. d. 1936 .. .. 4 11 0 4 5 7 1937 .. ..4 9 6 4 2 4 1938 .. .. 4 10 10 4 3 1 Question 10. —A table of minimum values, if any, allowed for the surrender of policies for the whole term of life, and for endowments and endowment assurances ; or a statement of the method pursued in calculating such surrender values, with instances of its application to policies of different standing, and taken out at various interval ages, from the youngest to the eldest. Answer. —The minimum surrender values at present ruling for whole-life and endowment assurance policies issued at the present rates of premium are given in Appendix No. 7. In the case of simple endowments, with return of all premiums at death of nominee, the premiums are returned without interest, as surrender value. Other endowments and children's deferred assurances are treated specially.

18

I Total Premiums N umber Amount of Annual Single received to Class of Annuity. ot Annuities Premiums. Premiums. 31st December, Policies. 1938. £ s. d. £ s. d. Deferred (premiums returnable) .. 27 1,195 0 21 15 6 Deferred (premiums not returnable) 2 180 o o 1 4 ° ° Deferred (annuity assurances)* .. . . 675 64 • • Not calculated Not calculated. Contingentf •• •• •• 59,439 12 o 3,077 15 n Annuity certain . . • ■ 1 180 2 8 .. Totals .. •• 30 £61,670 14 0 £3,113 11 5 * The number of policies and the premiums for these classes are included in the answers to Question. p Q j ic j es an( j 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 qualitv 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.

19

H.—B.

FIFTH SCHEDULE.

Appendix No. 1. THE PUBLISHED TABLES OF PREMIUMS Which were in Use on the 31st December, 1938.

20

Age Nearest Birthday. Class of Assurance, with Participation j j j — ; : j in Profits. Age J Age ! Age j Age Age I Age I Age ! Age ! Age j Age j Age IO - | 15- ! 2°- | 25. I 30. j 35- | 4°- | 45. j 50. | 55- | 60. Whole-life Assurance, with Premiums j £ s ' £ s ' d- £ s ' d- £ s - c ' £ s - c '- £ s - c '- £ s - c ' -I £ s - d. £ s - d. £ s. A. £ s. d. ceasing at the Policy Anniversary 1 T 4 7| 1 18 7 2 3 62 8 4 2 14 63 2 0 3 n 6j 4 4 05 0 56 2 11 7 14 9 nearest to age 80, Annual Premiums ! ! 1 to secure £100, payable at death only ! —Table 2L. Note.—In addition to participating in ordinary profits, a special reversionary bonus of 20s. per cent, per annum on the sum assured will be allotted in this table. . i >, 0 0 I ' H 0 53 A | Annual premiums dur- 1 7 9 1 11 3 1 15 7 1 19 11 2 5 5 2 12 43 1 3 3 13 24 9 2 5 11 57 37 1 <» S S 1 ing the whole term gS g . I I ! Bs Single payments .. 27 11 030 7 033 12 036 10 039 19 043 16 048 2 053 1 058 10 064 9 07016 o g g) • " . o Annual premiums.— 2 o o U B 10 Limited to 10 years 3 15 04 1 84 9 10 4 17 05 5 45 15 06 6 16 19 47 15 28 14 69 19 4 W-S-S B r 5 » T 5 » 2 14 8 2 19 9 3 5 11 3 11 3 3 17 7 4 5 o 4 13 9 5 4 6 5 17 10 6 15 3 7 18 11 a rT B 20 « 20 " 24 10 2912 14 22 18 93423 10 73 x8 54845 I 25 18 8 S g S« I B 25 „ 25 „ [ 19 1 2 2 11 2 7 6 2 11 7 2 16 7 3 2 7 3 10 o 3 19 10 4 13 o •§ Sis ! B 30 " 30 " 1 15 S t 19 o 2 3 3 2 7 1 2 11 10 2 17 9 3 5 3 3 15 4 a o « a H . B jj n 35,, 1 13 01 16 420524228112 14 10 327 W 1 I i " 4) £ u Annual premiums.— _ "C « Term 10 years .. 9 8 o g 9 1 9 11 6 9 12 0 9 13 3 9 14 8 9 16 5 9 19 810 4 510 12 311 5 2 a £ « „ 15 « 5 19 360662863564 10 66668 11 6 13 i 1 6 19 4797861 §•" £ « 20 „ .. 4 5 9 4 7 1 4 9 1 4 10 1 4 11 9 4 13 11 4 17 o 5 2 2 1 5 10 3 6 3 o » 2 5 » •• 3 6 3 3 7 8 3 9 9 3 10 11 3 12 11 3 15 7 3 19 6 4 6 o 4 15 10 £ „ 30 . 2 13 10 2 15 5 2 17 7 2 19 o 3 1 4 3 4 7 3 9 7 3 17 4 § C » 35 » -.255272295 2 11 22 14 02 18 1340 „ 4° « ..119721523112612962143.. .. .. .. "i-O 45 .. 1 15 5 1 17 5 2 o 3 2 2 10 2 6 10 .. 0 ® » 5° » I I 2 6 I 14 9 I 17 IO, 2 O IO ■- 55 • • I 10 5 1 12 II 1 16 4 .. .. .. .. 1 « & 60 ,, i 9 1 1 11 10 » 65 „ ..183.. .. :: a? rt , y 5 g i . $ £ <43 Annual premiums.— H J; Term 25 years .. 3 18 10 4044254384584854 12 64 19 2594 £ SB ca -3° » -.3543703933108313231664194910 <5® 2C ; }0 y S3 Note. —In addition to participating in ordinary profits, a special reversionary bonus of 20s. per cent, per annum b m •" on the sum assured will be allotted in this table. W W g § 0 a i r\a u i a £ nj j Double Endowment Assurance—G. g Annual Difference between Age of Elder and 4j Premiums. Younger Life. For the assuiance of £100 in the event of •a death during the term, and an endow P ment of £200 in the event of the life U tearlsTSay" 5 ° Years. . Year, 4 Years. I 6 Years. 8 Year, j 10 Years. assured term. 8 " . ! J 1 Term. Annual cj c E I Premium. S° £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. S3 20 2 14 11 2 16 1 2 17 4 2 18 10 3 o 7 3 2 6 £ s. d. < 25 3 o 11 3 2 5 3 4 2 3 6 o 3 8 2 3 .10 7 10 years 18 o o <u S J 30 3 8 11 3 10 9 3 12 11 3 15 4 3 18 1 4 1 2 15 „ 11 7 o 3 u 35 3 18 10 4 1 3 4 4 o 4 7 1 4 10 10 4 15 2 20 „ 800 gJs 40 4 11 7 4 14 9 4 18 6 5 2 11 5 7 10 5 13 6 25 „ 600 S 45 5 9 o 5 13 5 5 18 5 6 4 2 6 10 11 6 18 9 30 „ 415 o o 50 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, 1938.

21

Class of Assurance without Participation in Profits. Immediate Annuities. Endowment Assurance, j Showing the Sum to be paid j Whole-life Assurance. Annual Premium to Temporary Assurance. £° f r p^awV^HalTPremium required to secure £100, payable at to be Propordonat^PaymTnt 1 to | Death only. dicated, or at Death /ioo on a Single Life. the Date of Death j if prior. Age Premium Limited to Annual Annual Annual Age Hoarest Single Annual . Term I Term Premium ! Premium Premium j Last „ . Female Birth- Premium. Premium. ■ | 25 Years. | 30 Years. i for for for Birth- Male ' remale. day. 10 Years. 20 Years. I Year. 3 Years. 5 Years. day. £ s. d. I s. d. £ s. d. £ s. d. I £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 10 23 2 o 1 2 1 2 15 9 1 14 t 2 17 3 2 5 5 ) 40 168 5 o 177 19 o 15 24 II O 140 2 19 4 I 16 4 2 17 8 2 5 II j- I OO 106 I I O 41 166 5 O 176 5 O 20 26 8 o t 6 6 3 3 10 i 19 2 2 18 3 2 6 9 J) 42 164 2 0 174 10 o 25 28 14 o t 9 10 396 229 2 19 2 2 7 10 108 1 o II 114 43 161 18 o 172 13 o 30 31 16 o 1 14 5 J 17 2 279 3° 7 299 130 135 1 3 10 44 159 13 o 170 14 o 35 35 7° 203 461 2 13 8 329 2 12 7 153 160 167 45 157 60 168 14 o 40 39 8 o 279 4 16 6 3 o 10 365 •• 186 1 8 11 197 4 6 154 16 o 166 13 o 45 44 t 0 2 17 6 5 8 10 3 9 10 .. .. t 12 6 1 14 1 1 15 7 47 152 5 0 164 10 0 5049303102631410 .. .. 206 221 240 48 149 11 o 162 6 o 55 54 16 o 4 7 o 7 o 1 4 15 9 .. ■■ •• •• 49 146 16 o 160 o o 60 60 19 o 598 8 o 10 5 15 9 •• •• •• •• 5° 143 18 o 157 12 o 51 I4 1 00 155 3 0 ■ ' ' * ' ~ ~ 52 138 o o 152 13 o Deferred Assurances for Children. 53 x 35 0 0 150 1 o 54 131 19 o 147 7 o Yearlv Premiums for a Deferred Endowment Assurance of £1,000, with Profits after Age 2t. 55 128 18 o 144 11 o 3 50 125 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 119 11 o 135 14 o nearest to Age 80. All Premiums will be returned with 4 per cent, compound interest if Death occur before 6q 120 q o Age 21. Valuable alternative Options exercisable by the Nominee at Age 21 are guaranteed on the Policy. gl \ Q I2 g Q ] 1 62 106 17 o 122 18 o TABLE AVir.—Age of Parent or Guardian at Nearest Birthday. Premium ®3 I0 3 12 0 119 10 o TABLE AVI. payable during Term of Policy, but if Parent or Guardian dies before the 04 100 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, du ??f r Ag M^ f 3 t Ud ' 66 93 ®9 ° 109 I o Nearest lerm of Policy. Nearest nn th n mem n Birthday Under 30. 3°-39- 40-44- 45-49- Birthday. °7 90 14 0 105 10 o oiruiucty. , gg IQ 0 IQI x g Q 69 84 5 o 98 5 O Yearly. j Yearly. ; Yearly. Yearly. Yearly. 70 81 o o 94 II o ' jg 71 77 16 o 90 17 o £ s. d. £ s. d. £ b d £ s. d. £ s d. 72 74 » o 87 4 o 6 15 to 7 3 4 7 6 8 7 10 10 7 15 10 o 68 4 o 79 18 o 7 1 » 792 7 'o 6 I I I I I 75 65 2 o 76 5 0 2 776 7150 7 18 4 826 ® 7 6 2 7662^0721^0 3 7 I 4 2 818 85 0 884 8 13 4 3 so 6 o 6Q 2 o 4 818 884 8 xi 8 8 15 o 8 19 2 4 78 56 12 o 65 13 o 5 892 8 15 10 818 4 918 9 5 10 5 79 54 0 0 62 5 o 6 8 17 6 9 3 4 o 9 5 10 984 9 12 6 6 , „ 0 58180 7 9 5 10 9 11 8 913 4 9 T 5 10 9 19 2 7 8 9 14 2 10 o 0 10 1 8 10 3 4 10 6 8 8 g 10 3 4 10 8 4 10 10 o 10 11 8 10 14 2 9 IO * 10 12 6 10 17 6 10 19 2 11 o 0 11 2 6 10 * Children aged 10 (last birthday) cannot be accepted.

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, 1938.

22

Office Annual Premiums. lAge ! Number of Amount Bonus _ Age attained, j Policies. assured. Additions. attained. Ordinary. Extra. £ £ S- £ S. d. £ s. d. 10 I 2,000 .. 27 10 o .. 10 11 2 500 40 730 .. 11 12 3 1,500 25 4 21 7 6 .. 12 13 10 4,650 163 19 66 3 4 . . 13 14 9 4,900 124 o 71 16 7 14 15 6 3,200 32 10 49 18 4 .. | 15 16 20 11,105 221 8 173 16 5 .. 16 17 29 13,o 2 3 175 4 208 14 6 .. 17 18 29 18,061 355 9 299 06 .. 18 19 | 2i 8,950 83 8 155 o 9 .. 19 20 j 26 17,105 457 18 301 19 8 .. 20 21 | 43 19,064 267 14 342 19 10 676 21 22 j 80 40,088 734 12 728 50 5 4 2 | 22 23 J 69 28,750 424 14 539 65 4 6 8 | 23 24 j 77 29,437 4 J 7 19 568 12 2 5 o o ; 24 25 104 45,832 870 10 898 4 11 .. ,25 26 J 121 47,257 834 10 948 46 13 18 o j 26 27 | 114 48,128 847 1 991 12 10 3 10 o 27 28 | 123 52,668 1,210 1 1,101 13 1 5 10 o 28 29 J 130 54. 022 1,145 5 1,164 7 3 ° 9 4 29 30 147 76,174 1,706 15 1,669 6 8 22 5 6 30 31 17 2 75, "9 2 .35 x 5 1,691 13 8 7 19 1 31 32 149 66,897 1,792 o 1,54° 1 11 677 32 33 121 50,250 1,694 8 1,181 26 480 33 34 148 71,100 1,805 17 i,737 r 3 6 2 18 o 34 35 135 53.982 1,351 3 1,359 77 200 35 36 135 61,197 2 . 1 55 0 I ,563 17 o 16 10 o 36 37 143 7 2 ,327 2,149 8 1,910 49 3 12 o 37 38 150 68,378 2,401 1 1,825 o 10 13 o o 38 39 138 65,964 2,513 1 1,816 18 2 150 39 40 125 54.3 28 1,966 12 i,554 10 5 6 10 o 40 41 130 59,208 2,492 17 1,726 15 .. 41 42 100 43,382 1,782 1 i,3°7 91 1 10 o 42 43 106 46,735 1,669 8 1,463 78 200 43 44 94 39,324 1,376 18 1,286 81 100 44 45 114 55,727 2 >35 2 18 1,850 18 1 10 o o 45 46 133 63,374 3.477 *3 2,150 5 11 5 o o 46 47 105 47,168 2 ,144 3 1,674 16 7 250 47 48 100 43.491 2,057 14 1,603 74 5 10 o 48 49 108 46,582 2,404 8 1,760 26 5 5 o 49 50 119 44.579 2,686 11 1,732 13 11 o o 50 51 88 35,361 1,800 2 1,420 58 .. 51 52 81 37, 8 75 3.201 15 1,484 15 2 o 10 10 52 53 81 37,601 2,562 it 1,596 16 10 25 o o 53 54 72 32,765 2,3 2 7 4 | 1,456 15 11 11 1 8 54 55 71 27,480 1,751 11 ] I, 2 76 17 6 5 10 o 55 56 58 38.4 20 4>°57 5 1,754 24 63 5 2 56 57 62 28,133 3,657 15 1,265 11 8 276 57 58 63 18,331 2,872 2 843 7 5 150 58 | 59 55 !7> 2 55 3.35° 3 768 19 4 .. 59 60 55 2 3.70o 5.210 17 1,120 62 .. 60 61 59 18,060 6,166 13 710 5 10 100 61 62 59 34> *75 8,105 16 1,714 i° 11 4 10 o 62 63 76 33.5oo 11,756 16 1,466 70 2 15 o 63 64 61 16,925 9,008 16 455 16 7 390 64 65 91 20 .539 11,911 6 543 17 1 2 15 o 65 66 88 23,281 13.611 16 640 15 6 5 17 8 66 67 83 26,441 14.658 3 790 13 7 10 o 67 68 in 27,419 18,892 19 541 80 o 15 o 68 69 87 27,741 16,094 13 806 14 7 1 15 o 69 70 H2 3o,575 20,016 2 786 01 6 13 o 70 71 84 24,620 17.424 1 492 91 250 71 72 120 36,100 25,248 o 728 36 526 72 73 113 3 2 .989 23,990 13 682 4 2 10 6 3 73 74 107 27,882 19,841 11 600 71 10 3 10 74 75 80 23,244 16,823 1 491 8 11 1 10 o 75 76 98 27,892 19,279 9 617 19 9 4 16 6 76 77 81 23,292 16,991 6 526 36 2 16 o 77 78 7 2 2 3,645 15, 2 9o 11 695 8 11 702 78 79 66 20,220 14,362 15 448 78 o 19 8 79 80 82 2 3,075 16,860 15 531 13 2 16 13 2 80 81 74 19,278 [ 12,804 12 | 456 16 7 I 8 18 o 81 82 66 16,437 i 2 .157 o 380 10 3 4 15 o 82 83 48 15.076 10,011 2 35 2 5 1 268 83 84 42 10,420 7.817 8 250 42 280 84 85 23 6,700 5,286 11 169 80 3 10 4 85 86 28 9,500 5.567 7 226 97 10 12 11 86 87 29 7.7°° 5.776 13 184 13 10 104 87 88 14 3.184 2 -445 15 85 16 9 .. 88 89 20 5.75o 4.859 4 149 o 3 3 7 6 89 90 7 1.506 1 '37° 3 38 14 8 .. 90 91 4 900 666 o 21 18 4 .. 91 92 5 2 ,3°o 1,881 15 66 13 10 .. 92 93 6 1,400 1,210 18 36 13 4 .. 93 94 1 200 3 10 5 16 8 . . 94, Totals 6,472 £2,574,523 £471,710 12 £72,753 13 5 £419 2 6

23

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, 1938.

Year of Office Annual Premiums. Age ExDirv of Number of Amount Bonus attained. Premium Policies. assured. Additions. Ordinary. Extra. £ £ s - £ s- d. £ s. d. 13 2005 1 500 45 18 8 12 11 17 2001 1 300 .. 650 18 2000 1 200 .. I 434 21 1997 1 200 .. 4 8 10 22 1996 1 1,000 .. 22 13 4 23 1995 1 250 68 4 4 16 8 24 1994 2 800 36 12 18 13 o 26 1992 2 400 24 11 9 13 6 27 1991 6 3 > 00 ° 595 15 67 3 2 2 14 2 28 1990 2 1,300 402 15 27 17 8 29 1989 6 1,400 347 15 31 5 6 30 1988 7 2,550 686 8 58 19 1 31 1987 3 700 179 14 16 17 3 32 1986 5 2,600 519 9 66 11 9 1 13 o 33 1985 5 1,150 301 13 28 2 8 34 1984 14 6,800 1,895 *3 j 69 13 8 35 1983 7 2,450 771 16 60 14 1 36 1982 6 2,750 855 6 71 o 10 37 1981 10 5,600 i>727 12 143 4§3 38 1980 6 2,250 464 14 60 10 6 39 1979 13 4,984 1,284 12 139 31 40 1978 1 300 60 9 990 41 1977 12 5,600 1,629 3 159 9 2 1 11 6 42 1976 8 4,100 973 2 131 19"'"" 1 43 1975 2 800 72 7 27 3 o 44 1974 3 9°o 312 5 26 193 45 1973 10 3,700 743 8 122 10 1 8 108 46 1972 2 700 162 9 24 3 8 47 1971 5 1,600 385 8 j 55 15^1 48 197° 6 1,950 356 5 70 18 4 49 1969 5 2,400 675 o 85 19 6 o 10 o 50 1968 8 4,6.1 r i,599 19 158 12 1 51 1967 3 1,800 566 13 67 19 8 52 1966 3 1,500 382 9 55 15 10 53 1965 3 1,500 450 4 60 3 4 54 1964 8 8,000 2,314 12 338 15 2 55 1963 4 2,200 626 17 98 19 10 5 3 4 56 1962 3 850 253 7 38 i 6 57 1961 4 2,200 449 6 102 18 2 59 1959 2 1,300 372 8 66 19 o 60 1958 1 200 75 18 9 11 4 61 r 957 1 2,000 508 19 115 16 8 62 1956 1 500 145 8 28 5 o 63 1955 1 500 214 12 25 2 1 66 1952 2 2,000 721 10 123 89 73 1945 1 1,150 22 6 91 4 8 Totals .. 199 £93,546 £24,282 11 £3,116 9 11 £12 12 8

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, 1938.

24

Age Number Sum Reversionary Average Age Ordinary J „ . p rem i um | attained. Number. . assured. Bonuses. Premium! attained. Premium. Hxtra Premium. I £ £ a- £ a. A. 11 I 2 1,500 30 O 16 ) 1 10,000 200 o 17 3 10,400 204 o 18 1 200 40 19 4 1,300 10 o 20 1 300 4 10 21 1 10,000 200 o 22 1 300 30 23 1 300 60 24 4 1,800 38 11 25 5 1,500 34 2 26 4 1,700 12 1 27 H 4,°3° 59 3 28 7 2,950 17 16 29 10 3,150 87 1 30 5 1,600 36 15 1939 59 3 14 8 31 7 2,267 113 18 1942 72 576 13 4 32 5 i,55o 20 11 1943 58 79 14 2 33 7 3,300 51 9 1944 47 13 12 o 34. 8 3,350 33 8 1946 56 8 11 o o 10 o 35 6 2,350 57 17 1948 54 74 "8 36 1 200 8 2 1951 50 107 16 o 37 2 400 23 17 1952 55 56 3 9 38 1 500 5 o 1953 52 30 18 6 39 7 4,3°° I2 4 4 1955 44 116 7 8 40 2 250 17 15 1957 31 189 22 o 19 2 41 3 1,200 33 15 1958 42 71 2 7 42 5 4,845 *4 1 1959 39 269 3 1 44 2 1,100 40 8 1961 37 12 o 6 45 3 2,400 56 5 1962 38 16 15 o 46 2 1,112 42 13 1963 34 102 20 47 1 200 14 4 1964 32 42 13 o 48 1 400 24 9 1965 31 191 310 49 4 i,5°° 7° 7 1966 36 5 14 4 50 4 1,125 55 8 1967 23 312 12 10 51 2 1.038 10 15 1969 29 112 7 7 52 2 600 40 9 1971 18 229 186 53 2 549 11 o 1972 16 188 12 1 54 4 3,041 50 6 1974 19 25 16 4 .. • 55 6 2,239 131 17 1976 20 600 56 2 400 8 o 1980 18 3 10 4 57 2 1,020 107 4 59 2 950 616 1 60 3 1,525 120 8 61 1 200 137 3 62 3 245 169 12 63 4 1,953 9i6 10 .. .. 64 2 1,500 1,269 2 65 6 2,187 1,655 13 66 4 r,114 I 762 10 67 4 807 866 15 68 7 4>4 10 1 , 8 5> 1 69 10 4,561 1 ,206 19 70 12 3,718 3,308 1 71 7 1,170 636 15 72 12 9,354 4,241 11 73 10 1,581 1,492 14 74 10 4, 6 35 4,063 17 75 7 i,791 1.808 6 76 8 2,897 2,722 3 77 4 1,37° i,i53 17 78 7 1,893 1, 8 33 18 79 5 7°3 837 o 80 3 394 327 14 81 2 400 26 10 82 3 228 223 13 83 5 1,964 1,699 7 84 5 1,667 1,700 16 85 4 1,527 i,37o 16 86 1 300 167 15 87 3 1,130 i,i77 13 88 3 3,756 4,326 1 89 5 1,862 i,4&3 14 Totals 314 £154,058 £46,267 16 I £2,846 16 11 £19 2

H.—B.

FIFTH SCHEDULE.

Appendix No. 5. ASSURANCES FOR THE WHOLE TERM OF LIFE, WITHOUT PROFITS, In force at 31st December, 1938.

4—H. 8.

25

Office Annual Premiums. Age Number o£ Amount a5Suted> Afje attained. Policies. < attained. Ordinary. j Extra. £ I s. d. £ s. d. 19 2 i ,200 14 19 o . . 19 20 1 500 6 10 o . . 20 21 3 1,100 861 . . 21 22 2 700 5190 .. 22 ! 23 7 1,950 25 6 7 .. 23 24 8 4,870 59 19 5 .. 24 25 12 7,000 85 13 10 .. 25 26 12 6,100 80 1 2 .. 26 27 11 3,700 53 15 11 .. 27 28 14 5,280 80 7 11 .. 28 29 20 9,200 130 13 4 8 18 4 29 30 18 10,233 153 3 1 30 31 28 14,870 231 19 3 .. 31 32 35 15,200 241 10 1 200 32 33 29 14,248 237 11 1 .. 33 34 29 11,150 195 05 .. 34 35 42 22,500 386 9 10 .. 35 36 33 15,630 281 00 .. 36 37 44 24,100 443 18 6 .. 37 38 50 25,560 485 17 100 38 39 65 32,205 604 31 750 39 40 73 31,420 597 4 7 40 41 75 37,300 725 18 8 .. 41 42 70 4i,75o 837 12 4 150 42 43 70 27,930 563 o 5 o 15 o 43 44 71 29,150 588 10 5 200 44 45 9i 39,717 859 18 11 6 14 2 45 46 90 47,610 992 17 4 5 10 o 46 47 113 46,450 1,011 12 4 800 47 48 131 55,685 1,199 9 5 800 48 49 152 59,416 T ,392 30 500 49 50 139 62,800 1,466 9 11 800 50 51 119 53,105 1,216 19 3 250 51 52 165 65,253 1,588 10 8 600 52 53 153 63,925 1,593 13 o 22 10 o 53 54 197 97,184 2,558 12 19 8 6 54 55 204 79,219 2,096 44 250 55 56 172 77,241 2,075 17 6 15 10 o 56 57 157 60,250 1,722 95 18 6 8 57 58 192 76,820 2,370 14 2 600 58 59 166 70,250 2,278 10 5 9 15 o 59 60 183 65,94.8 2,034 no 7 10 o 60 61 157 60,700 2,002 16 8 9 10 o 61 62 137 61,830 2,189 16 o 6 10 o 62 63 132 47,141 1 ,648 53 450 63 64 122 49,340 1,830 2 11 12 10 o 64 65 97 39,607 1,595 87 600 65 66 81 31,800 1,303 71 300 66 67 80 39,5oo i,735 19 5 3 10 o 67 68 74 23,820 1,013 17 8 500 68 69 56 32,450 i,497 19 10 4 10 o 69 70 57 21,043 1,034 17 6 300 70 71 44 19,900 1,027 15 8 •• 71 72 47 19,150 921 60 300 72 73 37 15,040 77i 7 n •• 73 74 14 5,035 269 56 .. 74 75 14 9,450 615 06 .. 75 76 16 16,450 902 71 .. 76 77 9 3,200 174 16 200 77 78 IO 3>200 202 13 I I 78 79 10 3,55o 206 14 2 .. 79 80 2 650 39 14 4 .. 80 81 4 450 24 3 11 .. 81 82 1 300 17 15 6 .. 82 83 1 500 28 18 4 .. 83 84 5 1,300 86 15 7 .. 84 1 Special group policy. Totals : 4,456 £1,921,125 £54,722 7 5 £236 12 8 * The sums assured and premiums under this policy have been included under the respective ages above and in Appendix No. 6.

IT.—B.

FIFTH SCHEDULE.

Appendix No. 6. ASSURANCES FOR THE WHOLE TERM OF LIFE BY LIMITED AND SINGLE PREMIUMS, WITHOUT PROFITS, In force at 31st December, 1938.

26

Acv« Number of Average Office Annual Premiums. • PoSL. expiry a t tamed. ~77 Premiums. Ordinary. Extra. I £ S. d. 19 . . 250 1939 59 165 19 20 .. 400 1940 53 95 16 8 21 ■• 5°° 194 1 55 103 12 10 22 . . 900 1942 60 100 123 23 . . 2,700 1943 50 14. 17 6 24 3 4.650 1944 52 23 7 8 130 25 | .. 3,150 1945 51 58 16 1 26 .. 3,200 1946 70 45 13 8 27 .. 3,150 1950 53 12 7 10 28 | .. 2,850 1951 50 45 17 o 29 | .. 2,900 1952 51 35 2 3 30 • • 2,350 1953 50 35 17 6 31 ! •• 2,350 1954 49 41 1 10 32 .. 2,950 1955 56 65 10 9 33 1 4,150 1956 45 75 7 8 34 I 4,4°° 1957 46 22 7 11 35 .. 3,100 1958 45 81 10 11 36 3 2,868 1959 44 19 13 6 37 .. 3,15° i 96O 43 27 16 7 38 2 4,300 1961 42 41 19 3 39 2 2,906 1962 41 52 18 10 40 1 2,500 1963 40 49 15 9 41 1 2,450 1964 39 62 8 o 42 1 1,657 !965 38 100 11 5 43 3 2,250 1966 37 70 19 9 44 2 930 1967 36 61 2 1 45 2 4,900 1968 35 66 17 1 46 2 1,350 1969 34 72 14 6 47 2 1,488 1970 33 77 12 4 48 4 2,240 1971 32 58 5 4 49 3 1,562 1972 31 45 15 4 50 7 2,773 1973 27 76 19 5 51 10 4,486 1974 29 52 14 6 52 11 3,328 1975 28 49 9 3 53 4 2,434 1976 27 51 14 11 54 3 7*7 1977 26 5185 55 8 2,873 1978 25 48 5 4 56 4 952 1979 24 40 6 7 57 6 992 1980 23 40 4 5 58 7 4,870 1981 22 13 9 7 59 4 1,959 1982 21 6 10 <5 60 7 2,802 1983 20 544 61 5 1,813 1984 19 331 62 2 600 .. .. 63 3 973 .. .. 64 6 5,564 65 4 848 66 2 600 67 2 230 68 .. .. .. .. .. ;; 69 3 1,311 70 4 920 71 11,000 72 .. .. .. .. ;; 73 1 597 • • .. !! 74 77 2 489 79 4 479 81 2 169 Totals . . 145 £,122,280 .. .. £2,271 2 1 £13 0

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 I Endowment Assurances Endowment Assurances Annual Premiums for the 1. P a V a e payable in Twenty-five Years, or at payable in Thirty-five Years, or at Whole Term of Life. | in 1 een 3 previous Death. previous Death. * previous Death. True ; ~~~ ~~~~ Age at Entry. MINIMUM SURRENDER VALUES AT THE END OF I • i n - ~T ~~r i i i 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. t I . I i 1 I I £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 15 3 1 0 6 8 0 10 2 0 18 18 0 30 Y 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 72 1 0 91 3 0 20 2 16 0 6 19 0 11 4 0 21 15 0 34 17 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 71 6 0 90 12 0 25 3 10 0 8 7 0 13 8 0 25 15 0 40 7 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 70 14 "0 89 18 0 30 4 2 0 9 18 0 16 1 0 30 4 0 45 19 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 70 0 0 89 3 0 35 4 19 0 12 0 0 19 3 0 35 5 0 51 17 0 25 0 0 89 5 0 11 8 0 26 10 0 67 5 0 90 2 0 6 11 0 15 8 0 37 8 0 69 6 0 88 6 0 4 0 6 2 0 14 10 0 22 17 0 40 10 0 57 9 0 24 6 0 88 7 0 11 4 0 26 6 0 65 14 0 88 12 0 7 4 0 16 19 0 38 15 0 68 12 0 87 8 0 45 7 7 0 17 5 0 26 17 0 45 19 0 62 4 0 23 16 0 87 14 0 11 5 0 26 8 0 64 15 0 87 15 0 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 13 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 .. .. .. .. .. .. I | ! I NOTE. —In addition to the above Values the full H M - 4£ pep 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, 1938. *

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

Wellington, 10th February, 1939. In accordance with your instructions, a valuation of the Department's liabilities under its policies has been made for the year ended 31st December, 1938, 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 86,155 policies assuring, inclusive of bonus additions, the sum of £31,648,139 and £96,011 immediate and deferred annuities per annum; the Office premiums thereon amounting to £746,268 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 table 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) and (c) 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 £239,799 as follows:— £ Total funds at 31st December, 1938 . . . . . . 10,575,749 Less value of liabilities . . . . . . . . .. 10,340,316 Net surplus .. . . . . . . . . 235,433 Interim bonus paid during year . . . . . . ... 4,366 Total surplus . . . . . . . . £239,799 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. £ s d Whole-life assurances, and long-term endowment assurances maturing at ages 80 and over . . .. .. 1 15 0 Other endowment assurances .. ~ .. .. 1 10 0 Double endowment assurances .. .. . . ..120 Pure endowments .. .. .. .. ..100 Policies issued under Premium Tables which have been closed. Whole-life and endowment assurances .. .. .. 1 10 0 Double endowments .. .. .. .. ..170 The above bonuses will absorb the sum of £220,192, and I recommend that the balance of the net surplus—viz., £15,241 —be carried forward. S. Beckingsale, F.1.A., Actuary. The Government Insurance Commissioner, Wellington.

Approximate Cost of Paper.—Preparation, not given ; printing (1,075 copies), £62 10s.

By Authority: E. Y. PAUL, Government Printer, Wellington.—l 939.

Priie !)d.~]

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