H.—B.

BEPORT ON THE VALUATION OP THE GOVERNMENT INSURANCE DEPARTMENT AS AT 31st DECEMBER, 1932.

Presented to both Houses of the General Assembly pursuant to Section 40 of the Government Life Insurance Act, 1908.

Wellington, 27th March, 1933. In accordance with jrour instructions, a valuation of the annuity and the assurance contracts of the Department has been made for the year ended 31st December, 1932, with the object of ascertaining the net surplus available for distribution amongst the policyholders, and, in compliance with section 40 of the Government Life Insurance Act, 1908, and amendments, 1 have the honour to report as follows : — The business to be valued consisted of 08,650 policies, assuring, inclusive of bonus additions, i:2:5.(i19,759, and £36,638 immediate and deferred annuities per annum; the Office premiums thereon amounting to £638,426 per annum. The bases adopted for the valuation were as follow: — (o) The British Offices Om Table, 1893, and the British Offices Annuity Tables, 1920, were employed in the case of assurances and annuities respectively, with 3 per cent, interest; and lb) The, net premium method of valuation has been followed in arriving at the value, according to the above tables, of the liabilities iu respect of the Department's contracts. Adequate additional reserves have been included for future bonuses, expenses, and other contingencies. As shown below, the valuation has disclosed a total surplus of £209,683, of which the sum of £3,835 has been applied to the payment of interim bonuses during the year, the balance (£205,848) being available for distribution. £ Total funds at 31st December, 1932 .. .. .. .. 8,744,549 Less value of Liabilities .. .. .. .. .. 8,538,701 Net surplus .. .. .. .. 205,848 Add interim bonus paid during year .. .. .. .. 3,835 £209,683 As required by the Act, surplus arising from favourable mortality has been investigated separately for the General and Temperance Sections, the results indicating that the same rates of bonus should be allotted to policies of the same class in both sections. I accordingly recommend that the following rates of compound reversionary bonus be declared on the sum assured and existing bonuses in respect of each full year's premium paid during the year: — Policies issued under present premium tables. Per Cent. Whole-life assurances, and long-term endowment assurances (Tables A, B, £ b. d. and A Special) .. .. .. .. 117 0 Endowment Assurances (excluding Tables A, B, and A Special) .. 113 0 Double-endowment assurances and pure endowments .. .. ..140 Policies issued under premium tables which have been closed. Whole-life and endowment assurances .. .. .. ..1110 Double endowments .. .. .. .. .. ..170 The above bonuses will absorb the sum of £197,587, and I recommend that the balance of the net surplus (£8,261) be carried forward. S. Beckingsale, A.1.A., Actuary. The Government Insurance Commissioner, Wellington. Approximate Cost of Paper. —Preparation, not given; printing (1,790 copies), £56.

By Authority: G. H. Loney, Government Printer, Wellington.—l 933. Price 9d.]

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