H.—B.

FOURTH SCHEDULE. 2. The net liabilities and assets of the Department, with the amount of surplus, are shown in the Valuation Balance-sheet given on page 11. VIII. All participating policies which were in force at the date of the valuation, however recently effected, share in the profits. The reversionary bonuses allotted to policies recently issued follow the sum assured—i.e., they vest immediately, and are payable with the sum assured as a claim, however short the duration; but, except in the case of short-term double-endowment policies, they do not acquire a cash value for surrender purposes until the policies to which they belong have been two years in existence. IX. The results of the valuation are as follows (1) The total amount of profit made by the Department during the three years ending the 31st December, 1926, including a balance of £18,787 carried forward three years ago, on the basis of a 3-per-cent. valuation, was £476,249, of which amount £29,457 has been paid as interim bonuses during the triennium. (2) The amount of profit divided among the policyholders as at the 31st December, 1926, was £430,363, which has been converted into reversionary bonuses amounting to £664,297. The number of policies which participated was 58,149, assuring the sum of £15,962,113, or, including reversionary additions, £17,437,119. (3) The following are specimens of the bonuses which have been allotted for the three years ending the 31st December, 1926, to policies for £100 upon which all previously allotted bonuses had been allowed to remain :—

Whole Life.

The cast values of the reversionary bonuses are computed by the Hm Table of Mortality, with interest at 4|- per cent. C. Gostelow, F.1.A., Government Actuary.

14

AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, AGE AT ENTRY, Number 2Q 3Q 4Q 5Q Number I Years in — Years in Force. Reversionary Cash Reversionary Cash Reversionary Cash Reversionary Cash Force. Bonus. Value. Bonus. Value. Bonus. Value. Bonus. Value. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 30 [650 2 15 3 650 3 10 11 650 466 650 506 30 35 6 15 o 376 6 11 o 425 6 11 o 4 18 9 6 11 o 5 10 10 35 40 760 429 730 4 18 11 700 5 12 7 700 637 40 Endowment Assubance.—Teem 20 Yeaks. 5 530 2 15 5 53° 2163I530 2 17 6 53° 310 5 10 580 3 11 1 580 3 11 7I580 3 13 4 580 3 14 10 10 15 514 o 4 11 8 514 o 4 12 1 5 14 o 4 12 8 5 14 0 4 I 3 7 I '5 20 600 600 600 6oo|6oo 600 600 20