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State Fire Insurance Office, Wellington, 31st May, 1950. I have the honour to submit the report and balance-sheet of the Government Accident Insurance Office for the year ended 31st December, 1949. Under the Workers' Compensation Amendment Act 1947, Part I, which came into effect as from the Ist April, 1949, an Employers' Liability Insurance Account was established, and I am required under the Act to submit a revenue account and balance-sheet as at the 31st December in each year in relation to the Employers' Liability Insurance Account as separate and distinct from the fund assets and liabilities of the other business of the State Fire and Accident Insurance Office. I therefore submit the report and supporting accounts in two parts, on the one part the forty-ninth annual report and balance-sheet of the Government Accident Insurance Office, and on the other part the first report and balance-sheet of the Employers' Liability Insurance Account for the period Ist April, 1949, to 31st December, 1949. GOVERNMENT ACCIDENT INSURANCE ACCOUNT (GENERAL BUSINESS) The following comparison with the two previous years shows the position briefly 1947. 1948. 1949. Income — £ £ £ £ £ £ Unearned premiums reserve at Ist January.. 182,201 210,014 233,023 Premiums .. .. .. ..420,028 466,046 337,716 602,229 676,060 570,739 Less unearned premiums reserve at 31st December .. .. .. .. 210,014 233,023 179,931 Earned premiums .. .. .. 392,215 443,037 390,808 Interest and other income .. .. .. 27,826 30,160 30,179 420,041 -473,197 420,987 OutgoBonus and profit-sharing schemes .. .. 24,623 33,338 5,364 Claims .. .. .. ..292,304 318,329 308,816 Working-expenses .. .. .. 81,905 98,062 80,798 398,832 449,729 394,978 Surplus, apportioned as follows — Government taxes .. .. .. 8,268 14,570 22,900 Reinsurance Reserve .. .. .. 10,000 Reserve Fund .. .. .. .. 2,941 8,898 3,109 21,209 23,468 26,009 420,041 473,197 420,987 Reserves and funds as at 31st December .. 777,800 809,706 759,723 Per Cent. Per Cent. Per Cent. Ratio of claims to earned premiums .. .. 74-53 71-85 79-02 Ratio of working-expenses to earned premiums 20-88 22-13 20-67 Ratio of underwriting deficit to earned premiums 1-69 1-51 1-07 The net premium income for the year was £337,716, being £128,330 less than that of the previous year. This decrease is more than accounted for by the transfer of the workers' compensation insurance business previously carried on by the Office under the competitive system to the Employers' Liability Insurance Account set up under the Workers' Compensation Amendment Act, 1947. Notwithstanding this loss of premium income the business of the Office has shown considerable progress, and the result of the years working can be considered, in the circumstances, very satisfactory. The members of the staff have again rendered excellent service during the year, and I desire to express my thanks to them for their co-operation and efficient assistance.

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