H.—B.

As this is the last report which I shall be making, I should like to draw attention to the following achievements during my three years' control, which speak for themselves : —• (1.) A reduction in the uninvested balance at the end of the year from £205,142 in 1923 to £65,698 in 1924 and to £18,185 in 1925. (2.) An increase in the net effective rate of interest from £5 6s. Bd. per cent, in 1923 to £5 7s. 7d. per cent, in 1924 and to £5 9s. Id. per cent, in 1925. (3.) An all-round reduction in expense ratios, namely : — 1923. 1924. 1925. (a.) Total expenses to total premium income .. . . 18-234 18-460 17-998 (b.) Total expenses to total income .. .. .. 11-174 11-292 11-081 (c.) " Renewal " expenses to total premium income . . 8-7 8-8 8-2 (d.) " New business " expenses to new annual premiums .. 111-5 102-1 100-0 In addition, not only was the new business of the year the greatest ever transacted in a single year, but the increase as compared with the previous year (£191,171) is the greatest increase ever made in a year. lam also able to point to the fact that the rates of bonus are very much higher than have ever before been allotted in the history of the Department, whilst at the same time the reserves stand on the strongest basis in use amongst the offices of Australasia : thus, in short, I can point to an increased interest yield, reduced expense ratios, greater new business, increased bonuses, and a much stronger basis of actuarial reserves. I have abundant evidence that new hope has been instilled into the minds of the Department's field men : the increased new business returns in themselves prove this. In addition, I recommended to the Government legislation, which was approved, and passed last session, extending the powers of the Department to include (1) the transaction of sinking-fund, capital redemption, and other business ; (2) facilities which will permit the Department to safely reduce its bank balance to the lowest point, and thereby enable the funds to be more closely invested ; (3) power to make an annual distribution of bonuses in place of the present triennial distribution. It bad been my intention to commence distributing bonuses annually as from the end of this year, a reform which I feel sure would meet with the unqualified approbation of policyholders and the public. In conclusion I have to say that on entering into office I decided to make it my paramount duty to strive for the best interests of the policyholders, to whom the funds belong, and of the Department in general; on leaving office it is a source of pride to be able to feel that I have accomplished something in this direction. A. T. Traversi, F.1.A., F.0.A.5., Commissioner.

Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1925. £ s. d. £ s. d. Amount of Funds at Ist January, 1925 6,448,658 5 7 Death claims under assurance policies, Renewal premiums—Assurance, An- including bonus additions .. 182,058 1 0 nuity, and Endowment .. .. 478,583 12 9 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 245,151 18 0 of first year's premiums falling due Endowments matured .. .. 6,628 18 0 in the year) .. .. .. 54,873 0 0 Premiums returned on endowments .. 72 14 8 Single premiums—Assurance and En- Bonuses surrendered for cash .. 4,141 6 9 dowment .. .. .. 4,116 18 3 Annuities .. .. .. 21,451 710 Consideration for Annuities .. 22,791 9 0 Surrenders .. .. .. 30,746 7 1 Interest and Rent.. £364,702 16 7 Loans released by surrender .. 36,582 9 7 Less land and income Commissions, new* .. £36,745 7 9 tax, £10,870 3s. lid; „ renewal 3,645 4 8 property expenses, 40,390 12 5 £4,049 5?. .. 14,919 8 11 Contribution to Superannuation Fund 1,156 11 0 349,783 7 8 Expenses of management— Salaries £ s. d. Head Office .. 23,706 17 9 Branch offices and agents . . 11,384 4*B Extra clerical assistance .. .. 1,961 6 9 Medical fees and expenses .. .. 6,562 1 4 Travelling-expenses 902 10 11 Advertising .. 337 9 9 Printing and stationery 1,831 17 4 Rent .. .. 5,748 1 0 Postage and telegrams 1,529 6 3 Exchange .. 34 2 8 General expenses .. 4,810 9 8 Triennial expenses .. 500 0 0 59,308 8 1 Amount of funds, 31st December, 1925 6,731,117 18 10 £7,358,806 13 3 £7,358,806 13 3 ♦Including agents' allowances.

2