H.—B

ACTUARY'S REPORT ON THE VALUATION OF THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DECEMBER, 1944

Presented to both Houses of the General Assembly pursuant to Section 40 of the Government Life Insurance Act, 1908 26th April, 1945. In accordance with your instructions, a valuation of the Department's liabilities under its policies has been made as at 31st December, 1944, with the object of ascertaining the net surplus available for distribution amongst the policyholders, and in accordance with section 40 of the Government Life Insurance Act of 1908, and amendments, I have the honour to report as follows : — The liabilities arise in respect of 101,893 policies assuring, inclusive of bonus additions, the sum of £41,346,082 and £108,437 immediate and deferred annuities per annum ; the office premiums thereon amounting to £891,643 per annum. The bases adopted for the valuation were as follows :— (а) Endowments : 3 per cent, interest without mortality. (б) Temporary Assurances : The proportion of the premiums corresponding to the unexpired risk. (c) All other classes of assurance : The O m mortality table with 3 per cent, interest. (d) Annuities : The a (m) and a (/) mortality tables with 3 per cent, interest. The net premium method of valuation was employed in respect of groups (a) and (c) above, and, in addition to the liability brought out on that basis, reserves were included for future bonuses, immediate payment of claims, and other contingencies, including those likely to arise out of the present war. The valuation disclosed a total surplus of £217,227, as follows £ Total funds at 31st December, 1944 .. .. .. .. 13,129,718 Less value of liabilities .. .. .. .. ■■ 12,920,565 Net surplus .. .. .. .. .. 209,153 Interim bonus paid during year .. .. .. .. .. 8,074 Total surplus .. .. .. .. .. £217,227 I recommend that £180,535 of the above net surplus be divided amongst all participating policies in the form of a compound reversionary bonus on the sums assured and bonuses existing at the valuation date at the undermentioned rates for each full year's premium paid during the year, and that the balance of the net surplus —viz., £28,618 —be carried forward Policies issued under present premium tables— Per Cent. Whole-life assurances and endowment assurances maturing at ages £ s. d. eighty and over .. .. .. .. .. ..140 Other endowment assurances .. .. .. .. ..100 Pure and double endowment assurances .. .. .. ..0170 Policies issued under closed premium tables .. .. .. ..100 S. Beckingsale, F.1.A., Actuary. The Government Insurance Commissioner, Wellington.

Approximate Cost of Paper.—Preparation, not given ; printing (848 copies), £8.

By Authority: E. Y. Paul, Government Printer, Wellington.—l94s.

Price 3d.]

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