H.—B.

FOURTH SCHEDULE. 2. The net liabilities and assets of the Department, with the amount of surplus, are shown in the Valuation Balance-sheet given on page 13. VIII. All participating policies in force at the date of the valuation share in the profits. The surplus is allotted in the form of compound reversionary bonuses which vest immediately and are payable with the sum assured in the event of a claim ; but, except in the case of short-term double-endowment policies, they do not acquire a cash value for surrender purposes until the policies to which they belong have been two years in existence. IX. The results of the valuation are as follows (1) The surplus arising during the year ended the 31st December, 1935, including a balance of £22,437 carried forward from 1934, was £242,950, of which amount £2,965 has been paid as interim bonuses during the year. (2) The surplus divided among the policyholders as at the 31st December, 1935, was £217,790, which has been converted into reversionary bonuses amounting to £350,381. The number of policies which participated was 60,329, assuring the sum of £17,704,242, or, including reversionary additions, £20,705,258. (3) The following are specimens of the bonuses which have been allotted for the year ended the 31st December, 1935, to policies for £100 issued under the present premium tables and upon which all previously allotted bonuses had been allowed to remain : —

Endowment Assurances Maturing at Age 80.

The cash values of the reversionary bonuses are computed by the Hm Table of Mortality, with interest at 4| per cent. S. Beokingsale, F.1.A., Actuary.

14

AGE AT ENTRY, j AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 20. 5 30. 30. 50. Number 01 01 Years in Years in Force. Reversionary Cash ? Reversionary] Cash Reversionary] Cash Reversionary Cash Force. Bonus. Value. | Bonus. j Value. Bonus. : Value. Bonus. Value. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 5 2 3 ° 0105 230 o 13 3 230 0170 230 123 5 10 280 0130 280 01610 280 11 10 280 180 10 15 2 11 o o 15 8 2 11 o 102 2 11 o 164 2 11 o 1 13 7 15 20 2 14 o o 18 11 2 14 o 146 2 14 o 1 11 6 2 14 o 1 19 10 20 25 2 16 o 122 2 16 o 1 8 11 2 16 o 1 16 10 2 16 o 2 6 11 25 30 2 19 o 169 2 19 o 1 14 5 2 19 o 237 2 19 o 2 19 o 30 I Endowment Assurances.—Term 20 Yeabs. 5 i 17 o j o 19 11 1 17 o 102 1 17 o 108 1 17 o 1 . 1 11 j 5 10 2101170 210 172 210 17 10 210 185 10 15 240 1 15 5 240 1 15 7 240 1 15 9 240 1 16 1 I 15 20 260 260 260 260 260 260 260 260 20 I ; _ . I I