H.—B

1925.

NEW ZEALAND

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER

FOE. THE YEAR ENDED 31ST DECEMBER, 1924.

Presented to both Houses of the General Assembly pursuant to the Provisions of the Government Life Insurance Act, 1908.

Government Insurance Office, Wellington, 24th June, 1925. Pursuant to the Government Life Insurance Act, 1908, I beg to make the following report upon the transactions of the Department for the year ended 31st December, ] 924. The Revenue Account, Balance-sheet, and Statement of Business are appended. Business. —The year has been one of satisfactory all-round progress, as shown in the following comparative figures :— New policies issued— 192:5. 1924. (a.) Number .. .. .. .. 4,754 5,149 (b.) Insuring ..... .. £1,581,722 £1,718,842 Business in force - fa.) Number .. .. .. .. 60,545 61,804 (6.) Insuring (exclusive of bonus) .. .. £16,549,451 £17,190,783 Income — £ £ (a.) Premiums .. .. .. .. 489,171 511,380 (b.) Interest .. .. .. .. 315,425 331,850 (e.) Annuity purchase-money .. .. 10,042 11,361 (id.) Total income .. .. .. .. 814,638 854,591 Outgo for claims— (a.) Deaths.. .. .. .. .. 166,797 185,777 (b.) Matured policies .. .. .. .. 235,409 229,359 Accumulated funds .. .. .. .. 6,222,485 6,448,658 Insurance without Medical Examination. —This system, which was instituted primarily to meet the difficulties of securing business in out-of-the-way localities where no doctor is available, continues to give abundant evidence of its success, a fact which testifies to the care with which the business is handled by the Department's staff both outdoor and indoor. Notwithstanding that a very large amount of this kind of business had been written, the Department had up to the end of the year been called upon to meet only two claims, totalling £450, and even these were the outcome of accidents sustained by the assured, and therefore not indicative of any weakness in the operation of the system. The claim experience is being kept under separate observation, and as soon as sufficient data have accumulated the rates of mortality will be specially investigated by the Actuary.

I—H. 8.

H.—B

2

Interest. —The net effective, rate of interest credited to the Insurance Fund, after deduction of land and income tax from interest; was £5 7s. 7d. per cent., which is slightly in excess of the yield obtained during the previous year. The constant investment of the accumulating funds of a vigorous and progressive life-assurance institution is a task of no mean magnitude, and in the face of the statutory limitation upon the Department's lending-powers, to which reference was made in my report of a year ago, the resulting interest-yield is satisfactory. General.—The number of new policies and the amount of new assurances completed during the year constitute records in the history of the Department, and, what is even more important, the business was secured at a cost which has been excelled in point of cheapness on only one other occasion—viz., during the year 1919, when the special circumstances arising out of subscriptions to war loans conduced to the acquisition of new business at an. expense-rate much lower than normal. In view of the fact that in a life-insurance office the transaction of a larger amount of new business than usual constitutes a clog upon the profits, it is all the more noteworthy that the profit made in 1924, as disclosed by the annual valuation by the Actuary, is the largest ever shown for one year. Having regard also to the stringency of the basis upon which the liabilities are valued, the prospects for the future appear very bright A. T. Traversi, F.1.A., F.C.A.S., Commissioner.

Revenue Account of the Government Life Insurance Department for the Year ended 31 st December, 1924. £ s. d. £ s. d. Amount of Funds at Ist January, 1924 (1,222,484 13 0 Death claims under assurance policies, Renewal premiums — Assurance, An- including bonus additions .. 185,495 12 0 nuity, and Endowment .. .. 458,943 11 4 Endowment Assurances matured, inNew premiums (including instalments | eluding bonus additions .. .. 222, 902 8 6 of first year's premiums falling due I Endowments matured .. .. 6,390 11 0 in the year) .. .. .. 49,481 310 Premiums returned on endowments .. 281 11 1 Single premiums—Assurance and En- Bonuses surrendered for cash .. 10,337 18 1 dowment .. .. .. 2,955 7 0 Annuities .. .. .. 20,880 410 Consideration for Annuities .. 11,300 11 8 Surrenders .. .. .. 35,077 2 2 Interest and Rent .. £343,210 14 2 Loans released by surrender .. 49,883 2 9 Less land and income Commission, new* .. £33,274 13 2 tax, £8,504 125.; „ renewal 3,242 13 4 property expenses, — 30,517 0 0 £2,801 lis. Id. 11,300 3 1 Contribution to Superannuation Fund 1,200 18 4 331,850 11 1 Expenses of management— Salaries. £s. d. Head Office ..20,885 9 0 Branch offices and agents .. 12,044 10 4 Extra clerical assistance .. .. 1,150 12 5 Medical fees and expenses .. .. 5,777 3 9 Travelling-expenses 1,340 8 4 Advertising .. 323 15 5 Printing and stationery 2,473 10 8 Rent .. .. 5,511 11 7 Postage and telegrams 1,000 12 8 Exchange .. 45 16 5 General expenses .. 3,739 15 5 Triennial expenses .. 3,878 19 1 58,778 17 7 Amount of funds, 31st December, 1924 0,448,058 5 7 £7,077,075 18 5 £7,077,075 18 5 * Including agents' allowances.

3

H.—B

Balance-sheet of the Government Life Insurance Department on 31st December, 1924. Liabilities. I Assets. £ s. d. | £ s. d. £ s. d. Total Assurance, Annuity, and En- ! Loans on policies .. .. 890,402 11 5 dowment Funds (as per Revenue Government securiAccount) .. .. .. 6,448,058 5 7 ties — Claims admitted, proofs not yet com- Consolidated stock 025,900 0 0 pleted .. .. .. 45,629 1 6 Debentures issued Annuities .. .. .. 379 7 6 under the auOommission .. .. 1,900 19 5 thority of the FiMedical fees .. .. .. 554 18 6 nance Act, 1915 40,000 0 0 -Premium and other deposits .. 5,184 10 11 New Zealand InSundry creditors .. .. .. 0,763 15 2 scribed StockAccident and Fidelity Fund .. 1,570 0 0 War Loans .. 1,201,370 0 0 Investment Fluctuation Reserve .. 202,247 1 4 New Zealand Inscribed Stock— FinaneeAct,l9l9 50,000 0 0 New Zealand Inscribed Stock —• Discharged Soldiers Settlement Loan .. 110,000 0 0 j New Zealand Inscribed Stock issued under the Aid to Public Works and Land Settlement Act, 1921 .. 150,000 0 0 2,177,270 0 0 Municipal Corporation debentures .. 187,742 7 1 County securities .. ... .. 20,551 3 8 Harbour Board debentures .. 32,000 0 0 Town Board debentures .. .. 37,171 1 8 Road Board debentures .. .. 21,800 0 0 Drainage Board debentures .. 1,922 13 10 i Bower Board debentures .. .. 386,986 4 6 Landed and house property .. 134,563 11 10 Landed and house property (leasehold) 1,539 13 3 Mortgages on property .. .. 2,592,866 17 8 Properties acquired by foreclosure .. 4,747 11 1 Overdue premiums on £ s. d. policies in force .. 7,582 13 10 Outstanding premiums due but not overdue 45,071 5 11 52,653 19 9 j Overdue interest .. 7,842 2 2 ! Outstanding interest due but not overdue 7,082 7 2 j Interest accrued but not due .. 83,775 13 1 98,700 2 5 | Agents' balances .. ■. . . 4,508 9 2 Sundry debtors .. .. 1,763 8 7 Cash in hand and oil current account 65,698 4 0 £6,712,887 19 11 £6,712,887 19 11 A. T. Traversi, F.1.A., F.C.A.S., Commissioner. G. A. Kennedy, Secretary. Government Life Insurance Department, Bth June, 1925. The Audit Office, having examined the Revenue Account and Balance-sheet, and compared them with the relative books, documents, and securities, hereby certifies them to be in accordance therewith.—G. F. C. Campbell, Controller and Auditor-General.

2—H. 8.

H.—B

4

Statement of Business

TOTAL. Whole-life, and 'l'ervi Assurances. YEAR 1924. Annual Annuities. Annual c, 11YY1 Rever- Premiums. / immediate or v Sum ttever- Premiums. No> assured. Bonuses h 0rdiwxr V' entered upon. ' °* assured. I Ordinary. tonuses. 2 . Extra. 2. Deferred. 2. Extra. POLICIES ISSUED AND DISCON- £ £ £ s. d. £ s. d. £ £ £ s. d. Policies in force at 31st : 60,54516,549,451 1,357,161 / 499,333 9 6 20,67a 12 5 111,372 3,916,871 615,5531 f 93,428 18 2 ) December, 1923 j | 1,987 8 10 2,351 6 10 / j 1 |j 996 16 8 j New business .. .. 5,149 1,718,842 .. I 54,008 1 111,399 1 7) 5911 298,000 .. jl 8,051 18 2\ i 188 16 9; 278 7 5 J ! I 70 18 9 j Bonuses allotted .. .. .. 476,958 .. .. .. .. 87,888 Total.. .. 65,69418,268,293 1,834,119 ] 553,341 10 722,071 14 0111,963 4,214,871 703,441| J 101,480 16 4) | 2,176 5 7j 2,629 14 3) \\ 1,067 15 5/ Policies discontinued; 3,890 1,077,510 137,738 1 33,000 0 8' 1,054 10 3| 669 233,76lj 47,069!/ 5,638 16 11) during 1924 ( 126 9 3 137 3 4f ' 1 1 73 18 10) Total policies in force at 61,804 17,190,783 1,696,381 i 520,341 9 11 21,017 3 9) 11,294 3,981,110 656,372 / 95,841 19 5] 31st December, 1924 I 2,049 16 4 2,492 10 11/ I \ 993 16 7 / I I ' | I I PARTICULARS OP POLICIES DISCON How discontinued. I By Death .. 545 144,098 40,403 ] 4,329 5 7 1,053 15 31 300: 87,543 32,032 ] 2,174 12 9) t 57 16 0 137 3 4 J 1 ( 48 12 8 / Maturity .. 955 183,621 44,974 ] 7,070 5 2) 1 5 1 2 j Surrender.. 1,042 294,640 19,622 ] 9,031 4 31 .. 124! 42,831 5,859 / 924 8 11 I | 22 13 5 j [ j 8 16 2 [ Cancellation 216 62,350 87 / 1,810 12 11] .. 12 5,600 .. / 147 5 1 i ( 8 15 01 ; ( 5 0 0, Surrender of bonus .. .. .. 17,735 .. .. I .. 6,034 Lapse .. .. 1,130 391,225 14,421 / 10,377 19 8) .. 23lj 96,525 2,740 / 2,325 15 9 1 1 15 12 0) \ 6 10 0 } Expiry of policy 2 1,100 J 15 4 8| 2 1,100 .. j 15 4 8 ) Expiry of premium .. .. 250 .. / 176 12 7) .. j .. .. I 31 11 9 ) 1 11 n 8} j ( Miscellaneous .. .. 226 496 / 188 15 10) 0 15 0) .. 162 404 ] 19 18 0 ( 5 0 0) .. ) \ 5 0 0 / Total discontinued during 3,890 1,077,510 137,738 ] 33,000 0 8 1,054 10 3) 669 233,761 47,069 / 5,638 16 11) year 1924 | j 126 9 3 137 3 4) \ 73 18 10 | 1 . . j | PROGRESS OF BUSINESS OF THE GOVERNMENT LIFE INSURANCE Total issued .. .. 172,5441 45,189,713 4,384,655 | j! j 107,264 5 2 48,15215,355,159 2,088,867 1s' 113 *i *3 j Total void .. .. 110,740| 27,998,930 2,688,274 | g 83,754 10 6 37,158 11,374,049 1,432,495 gj Total in force .. 61,804 17,190,783 1,696,381 520,341 9 ll 1 23,509 14 811,294 3,981,110 656,372 95,841 19 5 Extra Premiums .. .. .. 2,049 16 4 .. | " 993 16 7 £522,391 6 3 i £96,835 16 0 Note. —The " ordinary " premium is the premium charged Wellington, 1st June, 1925.

H.—B

5

at End of Year 1924.

Approximate Cost of Paper.—Preparation, not given ; printing (1,475 copies), £11 I Ok.

Authority: VV. A. CI. Skimjmjsk, Government Printer, Wellington.—l92s.

Pries (id.'\

ASSURANCES, SIMPLE ANNUITIES. ENDOWMENTS, Endowment Assurances. Annuity Assurances. INVESTMENTS, ETC. | Annual j !■ Siml Annuities. ! Annuities. Sur J} Annual vr. ! Sum i Premiums. ! 1. Immediate or Annual „ Annual 1. Immediate or N Premiutns - : assured. Z, 1■ Ordinary. ii™JrI entered upon. Premiums. Premiums. entered upon. sionarv '• 0r & mar V- \ \ Bonuses. E stm. j*. Deferred. \ _ _J 2. Bonuses. * Extra ■ TINUED DURING THE YEAR 1924. £ £ £ s. d. £ | £ s. d. £ s. d. £ s. d. j £ s. d. | £ i £ s. d. ■ 46,64612,242,193 740,116 /394,848 15 10 1 46 ( 10,535 266 12 10) 572 16 8 J 413 .. 20,405 19 7 ) 2,066(379,852 10,391 6 4 1 ( 990 12 2 J 1 1,492 2,051 6 10J \ 2 91 12 6! 300 0 0 f 1 •• •• J 4,4091,385,692 .. 144,633 13 9 1 .. .. / ( + )21 12 7 1 .. f 16 .. 1,377 9 0 1 131 | 35,150 895 15 10 1 | 117 18 0) 1 (-)21 12 7 ) { 2 426 13 4 300 0 0 j \ .. j 369,454 .. .. 454 .. .. .. .. .. .. 19,162 51,05513,627,8851,109,570(439,482 9 7 1 46(10,535 288 5' 5| 572 16 8(429 .. |21,783 8 7 1 2,197 ( 415,002 11,287 2 2 ) t 1,108 10 2 f 1 1,946 2,029 14 8) \ 4 518 5 10 j 600 0 0 j \ 19,162 .. J 3,050 815,149 88,947(26,417 6 6 1 If 1,350 .. I 93 12 0 / 21 .. 1,054 10 3 1 149| I 27,250 850 5 3) 1 52 10 5 j \ 236 137 3 4/ " > |l 1,486 " f 48,00512,812,7361,020,623 (413,065 3 11 45/ 9,185 288 5 51 j 479 4 8 / 408 .. 20,728 18 4 12,048 / 387,752 10,436 1611 1 \ 1,055 19 9) 1 1,710 1,892 10 11J I \ 4 518 5 10 | 600 0 0 j ' 1 17,676 .. j TINUED DURING THE YEAR 1924. 223 55,455 8,227 / 2,078 10 10 1 1 ( 1,1001 .. 1 76 2 0 / 21 .. 1,053 15 31 ... .. 1 1 9 3 4 / 1 144[ 137 8 4/: ( .. .. .. J 908 178,221 43,943/ 6,82118 81 .. / .. 1 .. .. .. 47/ 5,400 248 6 111 \ 5 1 2 J 1 43 [ j ( 988 .. I 841 237,659 13,763 | 7,645 5 41.. .. .. : .. .. 77 / 14,150 461 10 0 1 | 13 17 3 J j 1 .. J 200 55,450 87 / 1,623 11 41 .. .. .. .. .. .. 4| 1,300 39 16 6 [ { 3 15 0 j I 1 ) 11,652 .. .. 49 .. .. .. j .. .. .. ..I 878 288,300 11,183 / 7,952 14 7 1 .. •• •• 21 / 6,400 99 9 4) \ 9 2 0 J \ 498 .. f / 132 10 10 1 ../ 250 | .. 12 10 0 .. 1 11 11 8 | 1 •• i 64 92 | 162 15 4 | ! .. .. .. 5 0 0.. .. ] 0 15 0 j .. .. j 1 2 6 | 3,050 815,149 88,947 / 26,417 6 6 I 1 / 1,350 .. 1 93 12 0 / 21 .. 1,054 10 3 1 149 I 27,250 850 5 3 1 ( 52 10 5 f 1 236 137 3 4J .. .. J 1 1,486 .. [ u I DEPARTMENT SINCE DATE OF ESTABLISHMENT TO 31st DECEMBER, 1924. 115832 28,766,415 2,264,632 {1090 14 1 > 106 | 57148 10 111 8,619 15 8 1,026 866 6 8 49,766 8 8 6,128 1 1485 10 o} 67,82715,958,6791,244,009 J 589 ; 126 J 10 j 1,061 { J jj} 8,140 11 0 614 348 0 10 28,437 10 4 4,080 j S19 ; 937 17,502 3 J 48,00512,812,7361,020,623 413,065 3 1 45 j 9,^ 8 q x 892 8 l(f 11} 479 4 8 412 018 5 10 21,328 18 4 2,048 j 387 'g 5 g 10,436 16 11 | I .. 1,055 19 9 [ I : ■ I I 1 £414,121 2 10 £479 4 8 £518 5 10 £10,436 16 11 at the true age; the "extra," the additional premium charged for any reason whatsoever. A. T. Tkaversi, E.I.A., F.C.A.S., Commissioner. C. Gostelow, F.I.A., Actuary.