H.—B

The Bala\tee-sheet. —On the 31st December, 1916, the total assets of the Department amounted to £5,481,732, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the previous year for purposes of comparison :—

It will be noticed that Government securities have increased by £170,000, represented by the final instalment (£20,000) of the Department's Life Branch subscription to the 1915 local loan, and £150,000 out of £200,000 of the war bonds subscribed in 1916. The final instalment of these war bonds (£50,000) was paid over when it became due early in the present year. The rate of interest realized on the mean funds, after the deduction of land and income tax from interest, was £4 15s. Id. per cent. The Staff. —In common with those of other institutions the Department's staff has been seriously depleted by the enlistments of its officers in the New Zealand Expeditionary Forces. The total number who had enlisted up to the end of last year was thirty-three, whilst during the present year eleven more gentlemen have gone into camp or are on the point of being called up. It has been the consistent aim of the Department to encourage its officers to respond to the call of duty, and in spite of serious inconveniences no applications for exemption from service have hitherto been made on behalf of any members of the staff. Unfortunately the situation has become seriously aggravated by numerous transfers of experienced officers to' other Departments of the Public Service, but the Department will endeavour to continue its past policy as regards enlistments, and will not appeal for the exemption of any of its remaining officers from military service so long as it can possibly avoid doing so. J. H. Richabdson, Government Insurance Ccmn issior.er.

Revenue Account of the Government Life Insurance Department for the Year ended 31 st December, 1916. & S. d. £ s. a. Amount of Funds at Ist January, 1916 5,089,868 12 8 Death claims under policies, Assurance. Reuewal premiums — Assurance, An- including bonus additions .. .. 225,294 17 6 nuity, and Endowment .. .. 350,397 I 6 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 160,234 611 of first year's premiums falling due Endowments matured .. .. 3,357 5 0 in the year) .. .. .. 26,867 4 3 Premiums returned on endowments ~ '153 12 0 Single premiums-- Assurance and En- Bonuses surrendered for oash 2,400 4 6 dowment .. .. .. 1,578 18 8 Annuities .. .. .. 18,835 15 2 Consideration for Annuities .. .. 10,767 4 2 Surrenders .. .. .. 14,704 1.3 4 Interest .. £256,504 15 8 Loans released by surrender.. .. 34,141 10 9 r.esx land and in- Commission, new* .. £19,004 9 5 come tax .. 11,948 14. 3 „ renewal 2,813 9 7 244,556 1 5 21,817 19 0 Expenses of management— Salaries— Head Office ..£17,572 19 5 Branoh offioes and agents .. .. 8,072 15 3 Extra olerioal assistance 837 7 0 Medioal fees and expenses .. .. 4,128 9 6 Travelling-expenses .. 384 3 3 Advertising .. .. 579 13 8 Printing and stationery 1,233 9 7 Rent .. .. 2,841 10 1 Postage and telegrams 1,837 0 2 Exohange .. .. 59 8 10 General exponses .. 2,289 18 9 Triennial expenses' .. 300 0 0 4.0,136 15 6 Amount of Funds, 31st, December, 1916 5,202,898 6 0 5 8 £5,724,035 5 8 v Including Agents' allowances.

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At 31st December, 1915. Amount. , %?"**> of Total Assets, Class of Investment. At 31st December, 1916. , , Percentage Amount. , , n . , . ° . of Total Assets. £ 3,312,418 61-9 per cent. 832,301 15-6 685,900 ' 12-8 204,019 ; 3-8 134,963 25 125,108 2-3 55,834 1-1 Mortgages on freehold property Loans on policies Government securities Local bodies' debentures Landed and house property Miscellaneous assets... Cash in hand and on current account .€ 3,227,796 58-9 per coot. 809,533 14-8 855,900 15-6 210,487 ! 3-8 134,930 2-5 131,882 ; 2-4 111,204 2-0 5,350,538 100-0 per cent. Total 5,481,732 100-0 per cent.