Page image
Page image
Page image
Page image
Page image
Page image
Page image
Page image

H.—B

1942. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1941.

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

Government Insurance Office, Wellington, 7th May, 1942. I have the honour to submit the following report upon the transactions of the Department for the year ended 31st December, 1941, and its position at that date. The Revenue Account, Balance-sheet, and Statement of Business ate appended. New Business and Amount of Business in Force.—New business for the year amounted to 6,858 policies, assuring the sum of £2,800,408, the premiums thereon being £54,528 per annum. Thirty-nine annuities were also granted, the purchase-money being £26,370. The total business in force at the end of the year (including immediate, deferred, and contingent annuities for £95,632 per annum) comprises 95,581 policies, bearing an annual premium income of £799,903. The total sum assured is £32,445,977, to which reversionary bonuses amounting to £3,814,177 have been added. Income.—The total income amounted to £1,360,056, made up as follows: Premium income,, £823,048 ; interest income (net), £510,638 ; annuity-purchase money, £26,370. The total for the year exceeded that for the previous year by £33,952. Outgoings. —During the year 1,802 policies became claims by the death of the policyholders and by maturity, the payfnent involved being £621,968. The total amount paid in claims since the inception of the Department amounts to £18,419,002. Accumulated Funds.—Assurance, Annuity, and Endowment Funds, apart from special reserves of £382,154, now stand at £11,854,254, an increase of £436,732 over the previous year. Annual Bonus. —The usual bonus investigation was carried out by the Actuary, and his report, which is appended hereto, discloses a net surplus of £198,650, excluding interim bonuses paid during the year. The surplus is amply sufficient to enable bonuses to be declared at the same rates as for 1940, but, in view of the conditions arising out of the war, it has been decided to postpone the allotment of the surplus. Interim bonuses, however, will be granted at the present rates on all policies becoming claims during the year. Expense Ratios. —The ratio of expenses to (a) total income and (b) premium income for 1939, 1940,. and 1941 is as follows : — Ratio of Expenses to 1939. 1940. 1941. (a) Total income .. .. .. .. 8-55 7-97 8-62 (b) Premium income .. .. .. .. 13-31 12-75 13-81 The increase in the expense ratios is accounted for by the expenditure relating to new commission, land and income tax, and war-damage insurance. A large number of the Department's officers are engaged on active service. In conclusion, I should like to pay a tribute to the good work done by members of the depleted staff who have cheerfully undertaken the extra duties occasioned by the war. 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.

H.—B

Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1941. £ Amount of funds at Ist January, 1941 .. 11,417,522 Death claims under assurance policies includ- £ Renewal premiums: Assurance, annuity, ing bonus additions .. .. .. 260,005 and endowment, lest reinsurance premiums 742,900 Endowment assurances matured, including New premiums (including instalments of first bonus additions .. .. .. 348,829 year's premiums falling due in the year), Endowments matured .. .. .. 12,565 less reinsurance premiums .. .. 46,356 Premiums returned on endowments .. 569 Single premiums : Assurance and endowment 33,792 Bonuses surrendered for cash .. .. 6,428 Consideration for annuities .. .. 26,370 Annuities .. .. .. .. 34,487 £ Surrenders .. .. .. .. 32,557 Interest, rent, and other income .. 521,648 Loans released by surrender .. .. 47,739 Less property expenses .. 11,010 £ 510,638 Commission, new .. .. 41,029 Commission, renewal .. .. 6,165 47,194 Contribution to Public Service Superannuation Fund .. .. .. .. 619 Land and income tax .. .. .. 45,986 Agents' retiring-allowances .. .. 1,329 Expenses of management .. .. 63,432 War-damage-insurance premiums .. 4,701 Property depreciation .. .. .. 6,884 Transfer to Investment Reserve Account .. 10,000 Amount of funds, 31st December, 1941 .. 11,854,254 £12,777,578 £12,777,578 Balance-sheet of the Government Life Insurance Department on 31st December, 1941. Liabilities. Assets. £ Total assurance, annuity, and endowment £ Loans on policies .. .. .. 1,165,772 funds (as per Revenue Account) .. 11,854,254 New Zealand Government securities .. 2,929,772 Claims admitted, proofs not yet completed .. 76,720 Loans to local bodies .. .. .. 2,129,764 Annuities .. .. .. .. 560 Landed and house property .. .. 512,401 Medical fees .. .. .. .. 287 Landed and house property (leasehold) .. 515 Premium and other deposits .. .. 30,943 Mortgages on property .. .. .. 5,061,755 Sundry creditors .. .. .. 4,083 Properties acquired by foreclosure .. 23,857 Accident and Fidelity Fund .. .. 5,000 Overdue premiums on policies in £ Investment Reserve Account .. .. 377,154 force .. .. .. 2,950 £ Outstanding premiums due but not Sinking funds on local-body loans .. 2,257 overdue .. .. .. 73,079 Interest accrued thereon .. 28 — 76,029 2,285 Overdue interest .. .. 3,525 Outstanding interest due but not overdue .. .. .. 12,050 Interest accrued but not due .. 106,630 122,205 Sundry debtors .. .. .. 1,350 Inoome-tax paid in advance .. .. 40, 000 Office furniture and fittings .. .. 3,000 Cash in hand and on Current Account .. 284,866 £12,351,286 £12,351,286 W. E. Arnold, Commissioner. J. W. Macdonald, Secretary. Government Life Insurance Department, 14th April, 1942. 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. — Cyril G. Collins, Controller and Auditor-General.

2

H—B.

Statement of Business for the Year 1941.

3

Annual Premiums. Annuities. Year, 1941. Number. Sum assured. K*ycrsimiary - > Ordinary. Extra. Immediate. Deferred. Policies issued and discontinued during the Year 1941. £ £ £ s. d. I ■ £ s. d. I £ a. d. £ e. d. Policies in force at 31st 92,177 30,848,790 3,729,211 773,118 19 0 2,399 7 0 33,947 3 3 02,241 6 9 December, 1940 New business .. 6,897 2,800,408 .. 54,337 5 8 191 0 8 2,395 5 2 144 0 0 Bonus allotted .. .. .. 277,196 Total .. 99,074 33,649,207 4,006,407 827,456 4 8 2,590 7 8 36,342 8 5 62,385 6 9 P o 1 i c i e s discontinued 3,493 1,203,230 192,230 30,828 18 8 -685 1 9 1,774 18 1 1,321 5 11 during 1941 . Total policies in force at 95,581 32,445,977 3,814,177 796,627 6 0 3,275 9 5 34,567 10 4 61,064 0 10 31st December, 1941 Particulars of Policies discontinued during the Year 1941. How discontinued — £ £ £ s. d. £ s. d. £ s. d. £ s d By death .. .. 683 209,834 56,939 6,250 5 7 100 11 8 1,797 10 8 By maturity .. 1,119 . 273,417 80,206 10,397 2 10 17 14 1 By surrender .. 772 268,168 30,093 6,518 19 2 7 17 4 432 0 0 By change to other table 12 3,691 417 92 1 7 By cancellation .. 134 45,333 99 995 10 9 23 10 8 146 13 4 By lapse .. .. 773 402,787 17,876 8,874 12 9 -834 15 6 -169 5 11 889 5 11 Total discontinued during 3,493 1,203,230 192,230 30,828 18 8 —685 1 9 1,774 18 1 1,321 5 11 year 1941 Progress of Business of the Government Life Insurance Department since Date of Establishment to 31st December, 1941. £ £ £ a. <i. £ s. d. £ s. d. £ s. d. Totalissued .. .. 277,190 82,182,852 9,828,357 2,317,34112 7 41,672 15 10 .. 223,810 19 2 Total void .. .. 181,009 49,730,875 6,014,180 1,520,714 0 7 38,397 6 5 .. 128,179 8 0 Totalin force .. 95,581 32,445,977 3,814,177 796,627 6 0 3,275 9 5 95,63111 2

H. —8

ACTUARY'S REPORT ON THE VALUATION OF THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DECEMBEK, 194-1. Presented to both Houses of the General Assembly pursuant to Section 40 of the Government Life Insurance Act, 1908. 3rd June, 1942. In accordance with your instructions, a valuation of the Department's liabilities under its policies has been made as at 31st December, 1941, 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 95,581 policies assuring, inclusive of bonus additions, the sum of £36,260,154 and £95,632 immediate and deferred annuities per annum ; the Office premiums thereon amounting to £799,902 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 O m 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 were included for future bonuses, immediate payment of claims, and other contingencies, including those likely to arise out of the present war. The valuation disclosed a total surplus of £202,182, as follows : — £ Total funds at 31st December, 1941 .. .. .. .. 11,854,254 Less value of liabilities .. .. .. .. .. 11,655,604 Net surplus .. .. .. .. .. 198,650 Interim bonus paid during year .. .. .. .. .. 3,532 Total surplus .. .. .. .. .. £202,182 The above net surplus is more than sufficient to provide bonuses at the rates allotted for the year ended 31st December, 1940. In view, however, of circumstances arising out of the war, particularly depletion of staff and shortage of paper, I recommend that the above net surplus be carried forward and that interim bonuses be allotted to all policies becoming claims at the rates allotted for the year ended 31st December, 1940. S. Beckingsale, Actuary. The Government Insurance Commissioner, Wellington. Approximate Cost of Paper.—Preparation, not given ; printing (827 copies), £5 10s.

By Authority: E. V. Paul, Government Printer, Wellington.—lo42.

Price 3d.]

4

This report text was automatically generated and may include errors. View the full page to see report in its original form.
Permanent link to this item

https://paperspast.natlib.govt.nz/parliamentary/AJHR1942-I.2.1.9.7

Bibliographic details

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1941., Appendix to the Journals of the House of Representatives, 1942 Session I, H-08

Word Count
1,556

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1941. Appendix to the Journals of the House of Representatives, 1942 Session I, H-08

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1941. Appendix to the Journals of the House of Representatives, 1942 Session I, H-08

Log in or create a Papers Past website account

Use your Papers Past website account to correct newspaper text.

By creating and using this account you agree to our terms of use.

Log in with RealMe®

If you’ve used a RealMe login somewhere else, you can use it here too. If you don’t already have a username and password, just click Log in and you can choose to create one.


Log in again to continue your work

Your session has expired.

Log in again with RealMe®


Alert