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192/. NEW ZEALAND,

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1926.

Presented to both Houses of the General Assembly pursuant to Section 22 of the Government Accident Insurance Act, 1908.

State Fire Insurance Office, Wellington, 28th April, 1927. I have the honour to submit the twenty-sixth annual report of the Government Accident Insurance Office for the year ended 31st December, 1926, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the progress made :— 1924. J 925. 1926. Income — £ £ £ Net premiums .. .. .. .. .. .. 39,613 49,966 58,340 Interest .. .. .. .. .. .. .. 8,372 8,983 10,198 Outgo — Claims .. .. ~ .. .. .. .. 24,764 30,552 33,854 Ratio of claims to premiums (per cent.) . . .. . . 62-5 61-15 58-03 Ratio of working expenses to premuims (per cent.) .. .. 26-7 26-6 26-3 £ £ £ Reserves and funds at 31st December .. .. .. .. 174,883 187,934 206,035 Total assets at 31st December .. .. .. .. .. 187,836 202,003 217,796 Surplus for year .. .. .. .. .. .. 9,449 8,390 14,332 Income. —The increase in premiums, £8,374, may, in view of the strenuous competition met with during the year, be considered very satisfactory. The income from interest shows an increase of £1,215 over that for the previous year. Claims. —The Department's claim ratio over all classes of accident business shows a satisfactory fall from 61-15 per cent, in 1925 to 58-03 per cent, in 1926, but the ratio in workers' compensation business alone, although lower, has not fallen to the same extent. Legislation. —During the year an amendment to the Workers' Compensation Act was passed, substantially increasing benefits to workers. With no consequential increase in the rates paid by employers the margin for working-expenses, &c., will be much narrower than ever before in this country, and even with the strictest economy in administration it may be doubted whether Workers' Compensation business as a whole will show an underwriting profit. As the amendment did not come into force until the Ist January, 1927, the figures reviewed in this report are not affected. Investigation of Experience. —The result of the actuarial investigation into the claim experience was made available during the year, and the new rating schedule based thereon, which increases rates in certain occupations and reduces them in others, operates as from the beginning of 1927. J. H. Jerram, General Manager.

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Revenue Account of the Accident Branch of the State Fire Insurance Office for the Year ended 31st December, 1926. £ s. d. £ s. d. Premiums after deduction of reinsurances 58,340 8 2 Free-year bonus on personal accident £ s. d. policies .. .. .. .. 149 6 3 Interest .. .. 10,198 10 1 Claims .. .. .. .. 33,854 7 2 Less land and income tax 1,068 13 7 Commission .. .. .. 6,113 13 0 9,129 16 6 Salaries .. .. .. .. 7,235 0 0 Contribution to Public Service Superannuation Fund .. .. .. 165 0 0 Expenses of management .. .. 1,852 0 9 Further appropriation to reserve for unearned premiums .. .. 3,768 2 3 Amount of accident funds, 31st December, 14,332 15 3 1926 £67,470 4 8 £67,470 4 8 Balance-sheet of the Accident Branch of the State Fire Insurance Office on 31st December, 1926. Liabilities. £ s. d. Assets. £ s. d. Accident funds, as per Revenue Account 14,332 15 3 Debentures issued under authority of the Claims admitted (proofs not yet com- j Finance Act, 1915 .. .. 10,000 0 0 pleted) .. .. .. .. 10,000 0 0 New Zealand inscribed stock—War loans 90,500 0 0 Government taxes .. .. .. 1,068 13 7 New Zealand inscribed stock .. .. 3,000 0 0 Commission .. .. .. 524 510 Local authority securities .. .. 78,503 5 6 Premium and other deposits .. .. 163 11 10 Mortgages on property .. .. 4,575 0 0 Sundry creditors .. .. .. 410 0 Fixed deposits and at short call .. 15,000 0 0 Officers' Fidelity Fund .. .. 500 0 0 Interest accrued but not due .. .. 2,890 17 3 Reserve for unearned premiums .. 26,253 3 8 Agents'balances .. .. .. 212 311 Investment Fluctuation Reserve .. 3,000 0 0 Sundry debtors .. .. .. 1,786 9 3 Reserve fund constituted under section 6 Cash in hand and on current account .. 11,328 9 1 of the Government Accident Insurance Amendment Act, 1924 .. .. 161,949 410 £217,796 5 0 £217,796 5 0 J. H. Jerram, General Manager. 11th April, 1927. C. B- Redward, Accountant. I hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. —G. F. C. Campbell, Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given; printing (1,300 copies), £2 15s.

Authority : W. A. G. Skinner, Government Printer, Wellington.—l 927.

Price -3d.]

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