H.—9a

Total Business. At the close of the year now reported on, there were in force 12,447 policies, assuring a sum of .£4,355,777Accounts. The accounts for the year in the form prescribed by regulation, and certified by the Audit Office, are appended to this report. These accounts show the income of the Department for the year from all sources (including .£2OB 15s. 6d. received in the Industrial Branch) to be ,£156,824 ss. nd., giving an increase on the year's income of-£10,371 i4d. Bd. as compared with the year preceding. Accumulated Funds and their Increase. The funds of the Department, which are promptly invested as they accrue, amounted at tho end of the year to .£557,230 us. iod., being an increase of -£97,894 14s. iod. since 30th June, 1880. The interest received on the invested funds for the twelve months amounted to .£26,505 13s. 7(1, or within .£2,000 of the sum payable for the death-claims arising for the same period. The rapid advance of the accumulated fund year by year is a noticeable feature in the history of the office. The following figures (which omit fractional parts of a pound) will show how these accumulations have grown during the past six years : —■ Year ended Amount of Increase on 30th June. Funds. previous Year. 1876 -. >£i53.7i7 .£43,75° 1877 219,394 65,677 1878 292,523 .. 73, 129 1879 371,889 79,366 1880 459-335 87,446 1881 557,230 97,895 In the three years ended on 30th June, 1881, the Funds at the credit of the Department have risen from -£292,523 to .£557,230, being an increase of or upward of 81 per cent, of an addition for the three years. These figures are exclusive of the Funds at the credit of the Industrial Branch, which amount to -£829 13s. 9d. Expenses of Management As heretofore,: the expenses of management continue low, being for the year reported on slightly under 1 5 per cent, of the premium income, which is an extremely low ratio for an office that has existed less than twelve years. The Quinquennial Investigation, and Division of Bonus. Herewith will be presented the Valuation Report of the Consulting Actuaries, Mr. Bailey and Mr. Hardy, of London, to whom were submitted the official data on which their valuation is founded. These data were prepared and collated under the immediate superintendence of Mr Knight, the Actuary of the Department, and their accuracy was carefully verified and certified to by Mr F W Frankland, the Actuary in the Government Statist's Department, prior to their being transmitted to London. The testimony borne by Messrs Bailey and Hardy, whose eminence in their profession is well known, to the success and condition of this Department, is a circumstance that cannot fail to be gratifying. It is also satisfactory to learn that these gentlemen concur with the Actuary of the Department both as to the basis of the Valuation and the mode of distributing the surplus, the sum recommended for division by each Valuation being also nearly approximated the latter advising that ,£56,000 be divided, while the Consulting Actuaries recommend for division "a sum not exceeding -£60,000." Section 45 of the Act, under which the Consulting Actuaries were appointed, provides that the sum recommended for division, or such less'sum as shall be fixed by resolution of both Houses of the General Assembly as the amount for division, shall be divided amongst policy-holders according to such scheme as shall be approved by such resolution. Immediately the amount to be divided has been determined, and the scheme of distribution approved by Parliament, the requisite calculations for allotment will be proceeded with. When these are completed, notices of the bonuses allocated will be sent to the respective policy-holders. As the latter are numerous, and the calculations laborious, some weeks must elapse before the work can be accomplished. It will, however, be pressed on with all possible speed.

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Mode of Termination. - o d Z Assurance Policies. n u "G "o D"o d Z Endowment Policies. o 0. o d Z Annuity Policies. "5 "3 C d Z Industrial Policies. Sum Annual Assured. Premiums. Sum Assured. I Annual Premiums. Sum Annual Assured. Premiums. 1 Amount of! Annual Annuity. Premiums.; £ 28,425 100 £ 9. d. 938 8 10 9 10 3 2,117 1 8 7,853 4 o 369 16 4 373 4 9 22 17 2 £ £ s. d. £ £ s. d. £ s. d. £ s. d. i_y death „ maturity „ surrender „ lapse ,, expiry ,, reduction „ cancellation ... ,, transfer to ordinary branch 80 1 143 795 6 60,901 265,678 3.650 8,300 850 "i 3 2 1 655 400 200 200 50 14 8 19 o 10 1016 6 12 5 o 2 j ... 11 1,064 3 °39 o o Total decrease 367,904 ",584 3 ° 1,064 3 °39 ° 1,027 12 1,455 92 17 11