H.—33

2

Accounts. The revenue account and balance sheet have been prepared in accordance with the 41st section of " The Government Insurance and Annuities Act, 1874," and are attached to this report. In the Ordinary Branch, notwithstanding the expenses attending the quinquennial valuation (which are not properly chargeable to the year's expenses), the ratio of the expenses of management (including commission) to the premium income, has been reduced to 16- 3 per cent., as against 37- 4 percent, in the year ending 30th June, 1872, clearly showing that the expenditure incurred on new business has been a good investment, although no credit whatever was taken for such investment in the recent quinquennial valuation. Industrial Branch. The new business in this branch was discontinued at the end of the financial year, although it was fast increasing ; the Government having considered that there were circumstances connected with the business that rendered its continuance undesirable, and the report of the English Actuaries shows that this discontinuance was in accordance with their views. Investments. Investments continue to be made in the manner mentioned in the last report, and a comparison of the present balance sheet with the last will show that the Treasury Bills held by the department have increased during the year from £105,300 to £147,400. General Kemabks. Messrs. Bailey and Pattison having pointed out that the rates of premium charged on older ages were too low, the tables are now being revised on the basis of the " Mortality Experience of the Institute of Actuaries." A valuation is also being made by the department, which is intended to be done annually, in addition to the quinquennial investigation prescribed by law. The whole of the operations will thus be kept under review, while errors (if such should creep in) will be detected, and the stability of the office placed beyond doubt. These arrangements will give additional confidence to the public, and doubtless will tend still further to increase the business of the department. I have, Ac, J. Woodward, The Hon. the Colonial Treasurer. Deputy Commissioner.

REVENUE ACCOUNT of the ORDINARY BRANCH from 1st July, 1875, to 30th June, 1876.

BALANCE SHEET of the ORDINARY BRANCH, 30th June, 1876.

Amount of Funds on 1st July, 1875 Renewal Premiums New Premiums Single Premiums Consideration for Annuities granted Interest Fines ... ...' Miscellaneous £ s. d. ... 109,967 12 1 ... 61,136 13 6 ... 8,414 2 1 346 1 9 ... 2,356 4 5 ... 6,669 6 11 Nil. 11 19 0 Claims Surrenders Annuities... Commission, New ... Commission, Renewal Travelling Allowance, Agents' Medical Fees Travelling Expenses Advertising Salaries, Head Office Extra Clerical Assistance Salaries, Travelling Agents' ... Printing ... Rent Cost of Actuarial Valuation ... Miscellaneous Written off Furnituro Amount of Funds on 30th June, 1876... £ s. d. 21,550 0 0 820 4 7 1,384- 17 0 1,507 4 2 1,408 5 7 1,266 4 3 1,794 0 0 299 6 6276 7 3 2,500 0 0 284. 10 0 938 1 2 205 4 6 115 8 0 705 11 8 76 7 10 52 19 9 153,717 7 6 £188,901 19 9 £188,901 19 9

Liabilities. Total Funds, as per Revenue Account... Claims announced but not paid Annuities due and unpaid ... Commission, New ... Commission, Renewal Travelling Expenses Medical Fees Advertising Agents' Salaries Stationery Bent Messrs. Pattison and Bailey's Fees Miscellaneous £ s. d. 153,717 7 6 2,800 0 0 122 8 8 660 4 11 36 14 3 59 5 7 535 10 0 37 16 4 6 10 119 8 1 35 8 0 500 0 0 13 1 5 Assets. £ s. d. Loans upon Policies ... ... 581 1 3 Investments (Treasury Bills) ... 147,400 0 0 Office Furniture, Head Office and Agencies 476 18 6 Agents' Balances ... ... 55 17 4 Outstanding Premiums ... ... 5,817 2 4 Outstanding Interest ... ... 42 10 10 Accrued Interest ... ... ... 1,227 14 1 Advance to Industrial Branch ... 478 4 3 Cash ... ... ... ... 2,560 17 2 £158,643 5 9 £158,64,3 5 9