3

H.—l3.

Society of London. But the object of the death payments in these societies is not family provision or business requirements, but almost invariably to provide a small sum of money (not exceeding £10) for funeral expenses. In the Prudential Society the average amount assured by each policy is a little over £S, and the average weekly premium on the policies issued last year about Ifd : but the assurances of this branch of the department belong to an entirely different class, the average amount being £107. It is surely unnecessary to incur the trouble and expense of a separate organization for such business as this. It is not easy to understand that persons in a position to effect these assurances can have any real difficulty in paying premiums quarterly, and it is surely to their interest to avoid the increased expense which a system of weekly collections must occasion. We have only further to add that the several returns required by the Fourth Schedule of the Act have been prepared, and are annexed. We have, &3., Arthue H. Bailey. The Hon. the Colonial Secretary, New Zealand. W. P. Pattison.

FOURTH SCHEDULE. Statement respecting the Valuation of the Liabilities under Life Policies and Annuities of the Government Insurance Department, to be made by the Actuary. Question I.—The date up to which the valuation is made. Answer. —The date up to which the valuation was made was the 30th June, 1875. Question 2. —The principles upon which the valuation and distribution of profits among the policy-holders are made. Answer. —The principles upon which the valuation was made appear from the subsequent answers; and on the present occasion no distribution of profits has to be made. Question 3.—The table or tables of mortality used in the valuation. Answer. —The table of mortality used in the valuation of policies was the Institute of Actuaries Life Tables (H M), deduced from the mortality experience of Life Assurance Companies. Fourteen policies involving more than one life were valued by the Carlisle Table. The Annuities were valued by the Carlisle Table. Question 4.—The rate or rates of interest assumed in the calculations. Answer. —The rate of interest assumed in the valuation of all the policies and annuities was 4J- per cent. Question 5. —The proportion of the annual premium income (if any) reserved as a provision for future expenses and profits. (If none, state how this provision is made.) Answer. —The difference between the premiums payable under the policies and the computed net premium by Hm, 4J per cent., has been in each case reserved. The amount so reserved on the ordinary whole-life policies by an uniform premium amounted to 21 $ per cent, on the premiums payable. Question 6.—The Consolidated Eevenue Account since the last valuation, or, in case no valuation has been made, since the commencement of the business. Answer. —The return asked for under this question is appended. (See page 4.) Question 7. —The liabilities of the Department under life policies and annuities at the daet of the valuation ; showing the number of policies, the amount assured, and theamount of premiums payable annually under each class of policies, both with and without participation in profits, and also the net liabilities and assets of the Department, with the amount of surplus or deficiency. Answer. —The return asked for under this question is appended. (See page 5.) Question 8. —The time during which a policy must be in force in order to entitle it to share in the profits. Answer. —We are not aware that the New Zealand Insurance Department have yet determined this point. Question 9. —The results of the valuation, showing,— (1.) The total amount of profit made by the Department. (2.) The amount of profit divided among the policy-holders, and the number and amount of the policies which participated. (3.) Spet-iinens of bonuses allotted to policies for £100 effected at the respective ages of 20, 30, 40, and 50, and having been respectively in force for five years, ten years, and upwards, at intervals of five years respectively, together with the amounts apportioned under the various modes in which the bonus might be received. Answer. —The total amount of profits made by the Ordinary Branch was £12,191. In the Industrial Branch there is a deficiency.