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1888. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1887.

Presented to both Houses of the General Assembly pursuant to the Provisions of " The Government Insurance Amendment Act, 1874," " The Public Seventies Act, 1882," and " The New Zealand Government Life Insurance Act, 1886."

Wellington, 31st May, 1888. 1 have the honour, in accordance with statutory provisions, to submit the accounts of this department for the year ended the 31st December, 1887, together with tables specifying in detail the business done in the period reported on, and indicating the progress of the department since its establishment in 1870. New Business. The number of proposals received and dealt with for the year was 4,517, representing the sum of £1,121,095 18s. Id. During the year 3,124 proposals were completed and became policies, 405 were declined or deferred. The remaining proposals were not completed. The amount insured under these policies was £766,952 2s. 4d., being £49,487 12s. lid. in excess of the amount of assurances effected in the year immediately preceding. The 3,124 policies issued were classed as follows: In the General Section, 2,607 assurance policies, amounting to £662,702, and 29 endowment policies, assuring £2,965 2s. 4d.; in the Temperance Section, 477 assurance policies, representing £101,285. The policies issued included 11 contracts for annuities, for which the annuitants paid £3,075 19s. 3d., the annual payments under these being £346 Is. 3d. The new annual premiums represented by the business above specified amounted to £22,061 3s. 9d., besides £7,659 11s. 9d. received as single premiums, and as the price of annuities granted as above mentioned. Mortality and Claims. Claims by death were preferred under 177 policies, arising through the decease of 166 insured persons, and representing an assured sum of £59,973 95., including bonus additions. Claims on endowment assurances matured numbered 15, the amount payable, including bonus additions, being £3,462 3s. The number of children's endowments which matured were 7, insuring the sum of £800. One annuitant, the annual payment to whom was £50, died during the year. A sum of £30,305 ss. 3d. was paid as cash value for reversionary bonuses surrendered. The mortality of the yeax is considerably under the expectation, although the accidental deaths during the period were 23, equal to very nearly 14 per cent, of the total mortality experienced, and representing claims paid amounting to £9,355, exclusive of bonuses, or nearly 17 per cent, of the total amount insured under the policies emerged by reason of death. Of the 23 accidental deaths 9 were caused by drowning and 4 by suicide. This large percentage of accidental deaths would appear to exhibit the low mortality referred to in a still more favourable light. Annual Income and Inteeest. The gross income for the year from "all sources was £268,372 6s. 5d., showing an increase on the income of the previous year of £11,220 17s. lid. The interest on invested funds for the year amounted to £66,380 Is. Id., being £8,104 3s. Id. above that credited in the preceding twelve months, and £2,144 9s. Id. in excess of the total amount payable for claims arising during the year, and bonuses thereon. The average rate of interest on the mean funds of the year was £5 3s. Bd., which was an increase of 3s. lid. on the rate for the previous year. The Accumulated Fund. The accumulated fund on the 31st December, 1887, amounted to £1,328,493 6s. 2d., showing an increase for the period of £96,535 lls. 3d., notwithstanding that £30,305 ss. 3d. was paid for reversionary bonuses surrendered, and £1,562 for bonuses on claims payable in the preceding year.