12

H.—9,

FOURTH SCHEDULE. Valuation of Endowment Assurances, comprising 31 per cent, of the total sum assured. Every policy was separately valued as at the next renewal date, assuming the next premium just due and unpaid. The premium valued was the net premium that would have been charged if the policy had been renewable yearly. The valuation formula used was A x+n : t-n 1~~ "x:7\ (* Tax + n : )• The valuation age, x+ n, was obtained by deducting the year of birth from 1891. The unexpired term, t-n, was obtained by subtracting 1891 from the year of maturity, and adding that fraction of a year corresponding to the premiums falling due between 31st December and the anniversary of the policy. The following table will show the amount reserved on endowment assurances for every £100 of sum assured :—

TABLE III.—ENDOWMENT ASSURANCES.-SPECIMEN RESERVES.

Limited-premium Policies, comprising 5 per cent, of the total sum assured, were valued in the same manner as ordinary wholelife policies for the sum assured, and like endowment assurances for the pure premiums, except that the premium is for an assurance payable at the moment of death. {b.) The Principles adopted in allotting the Surplus. —The divisible surplus was allotted amongst the policyholders thus :— (1.) The profit arising from the excess of interest realised over the valuation rate of 4 per cent, was divided amongst those participating policies in force at the last valuation date which remained in force at the present valuation, in proportion to their TI M 4 per cent, reserves at 31st December, 1885. (2.) The remaining surplus was divided amongst all the participating policies in proportion to the loading on the premiums paid on each policy during the quinquennium, policies secured by a limited number of premiums being treated as though the premiums had been spread over the whole term of the policy. The approximate profit from favourable mortality in the General Section and Temperance Section respectively was ascertained, and

III10. III20. III35. Age at Entry. Duration. Duration. Duration. Age at Entry. 1 Year. 9 Years. 1 Year. 5 Years. 10 Years. 19 Years. 1 Tear. 5 Tears. 101'ears. 20 Years. 15 20 25 3° 35 40 45 5° 55 60 8-296 8-094 8-091 8-050 8-023 7-967 7-950 7-834 7-741 7-566 87-924 87-812 87-789 87-731 87-664 87-581 87-43I 87-207 86-844 86-241 3-4I3 3-I79 3-197 3-172 3'I75 3-178 3-249 3-277 18-052 17-290 17-410 17-285 17-211 I7-349 I7-358 I7-553 39-439 38-934 38-899 38-678 38-612 38-545 38-398 38-359 92-605 92-508 92-462 92-385 92-284 92-138 91-896 9I-5I9 1-535 1-306 1-364 1-393 1-485 I 7-762 6-999 7-323 7-477 7-859 16-136 15-666 15-992 16-313 17-205 39-243 38-809 39-I75 39-652 40-651 15 20 25 30 35 40 45 50 55 60 ••