H.—B

Accumulated Funds. —The net increase in the funds during the year amounted to £169,022, and the total assurance, annuity, and endowment funds now stand at £3,991,599- The following statement shows the growth of the Department in this and other respects during the past fifteen years:—

The Balance-sheet. —On the 31st December, 1906, the total assets of the Department amounted to £4,107,929, and were invested as shown in the following comparative statement: —

It will be noticed that foreclosed properties, after being gradually reduced from the maximum of £37,684 in 1892, have entirely disappeared from the list of assets. Overdue interest now stands at the remarkably low figure of £382, being less than J- per cent, of the total interest charges. The progress of the Department has been well maintained through the operations of the year. The new-business returns have again improved, and there have been satisfactory increases in both the interest and premium income. The mortality experience has continued to be favourable, and an interim actuarial valuation of the liabilities under policies in force shows that the profit resulting from the year's business has been highly satisfactory, auguring well for the bonus-distribution due at the end of next year. J. H. RICHARDSON, Government Insurance Commissioner.

2

Year. Number. Sum Assured. Bonuses. Annuities in^™'^,!'' Policies in Force. Revenue from Interest. Ratio of Total Accumulated Expenses Funds. (including Taxes) to Total Income. 1891 .. 1906 .. 29,226 45,981 £ 7,782.734 10,667,591 £ 608,069 1,183,901 £ 6,347 53,588 £ 234.496 331.546 £ 96,379 175,512 £ 1.847.797 3.991,599 Per cent. 161 •34 improvement in 15 years •6-755 2,884,857 ! 575.832 47,241 97,050 79,133 2,143,802 27 (Decrease).

At 31st December, 1905. At 31st Dei :ember, 1906. Amount. Percentage of Total Assets. Class of Investment. Amount. Percentage of Total Assets. £ 2,132,039 667,965 679.493 67,614 '54.334 122,436 103,119 804 54-3 per cent. 17-0 „ "7'3 17 3*9 3*i 2-7 0-0 „ Mortgages on freehold property Government securities Loans on policies Cash on current account ... Local bodies' debentures ... Landed and house property Miscellaneous assets Properties acquired by foreclosure... £ 2,171,237 667,980 694,847 183,102 163,444 122,436 104,883 52-8"per cent. 16-3 16-9 „ 4-5 4'o 3*o 2*5 £"3,927,804 ioo-o per cent. Total ... £4,107,929 ioo-o per cent.