13

H.—9

FOURTH SCHEDULE. specially divided amongst the members of the respective sections. The result was that general and temperance policies which were alike in all respects received equal reversionary bonuses on this occasion. The divisible surplus was converted into reversionary bonuses by means of the H M table of mortality with 4 per cent, interest. In all cases of rated-up lives, such lives were treated as though they had been of the higher age for bonus purposes. Question 3. —The table or tables of mortality used in the valuation. Answer. —For assurances, the Institute of Actuaries' Healthy Males (H M ) Table was used; and for annuities the Government Annuitants' Experience, 1884. Question 4. —The rate or rates of interest assumed in the calculations. Ansiver.- —The rate of interest assumed throughout was 4 per cent. Question 5. —The proportion of the annual-premium income (if any) reserved as a provision for future expenses and profits. Ansiver. —The whole of the loading, amounting to £35,139 per annum, has been reserved for future expenses and profits, in addition to a special reserve of £15,388 for limited-premium policies. Question 6. —The Consolidated Revenue Account since the last valuation. Answer. —The Consolidated Revenue Account since the last valuation is given in Appendix No. 2. Question 7. —The liabilities of the Department under life policies and annuities at the date of the valuation, showing the number of policies, the amount assured, and the amount 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. Ansiver. —The liabilities under life policies and annuities are shown in Appendix No. 1. The net liabilities and assets of the Department, with the surplus, are shown in Appendix No. 3. Question 8. —The time during which a policy must be in force in order to entitle it to share in the profits. Answer. —Every participating policy which was in force on the 31st December, 1890, shared in the profits. The bonuses follow the sum assured, vesting immediately, but not acquiring a surrender value until the policy has been two years in force. 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 policyholders, and the number and amount of the policies which participated : (3.) Specimens 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. — (1.) The total amount of profit undivided on the 31st December, 1890, as shown by the valuation, was £232,652 ss. 9d. Interim bonuses amounting to £8,077 Bs. Id. were paid during the quinquennium.