H.—B.

1938. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1937.

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

Government Insurance Office, Wellington, 26th April, 1938. I have the honour to submit the following report upon the transactions of the Department for the year ended 31st December, 1937, and its position at that date. The Revenue Account, Balance-sheet, and Statement of Business are appended. New Business and Amount of Business in Force.—New business for the year amounted to 9,727 policies, assuring the sum of £3,431,940, the premiums thereon being £77,770 per annum. Fiftythree annuities were also granted, the purchase-money being £44,772. The total business in force at the end of the year (including immediate, deferred, and contingent annuities for £90,401 per annum) comprises 80,959 policies, bearing an annual premium income of £716,807. The total sum assured is £26,099,449, to which reversionary bonuses amounting to £3,309,687 have been added. Income. — The total income amounted to £1,219,305, made up as follows : Premium income, £765,146 ; interest income (net) £409,387 ; annuity-purchase money, £44,772. The total for the year exceeded that for the previous year by £34,605. Outgoings.—During the year 1,622 policies became claims by the death of the policyholders and by maturity, the payment involved being £553,308. The total amount paid in claims since the inception of the Department amounts to £15,848,645. Accumulated Funds.—Assurance, Annuity, and Endowment Funds, apart from special reserves of £416,954, now stand at £10,349,248, an increase of £396,937 over the previous year. Investments. —On the 31st December, 1937, the total assets of the Department amounted to £10,853,413, and were invested as follows : — Class of Investment. Percentage °f Total Assets. Mortgages of freehold property .. .. .. . . .. 42 • 2 Government securities, including rural advances bonds .. . . 23 • 2 Local-body debentures .. .. .. .. .. ..16-6 Loans on policies .. .. .. .. .. .. ..11-4 Landed and house property .. .. .. .. .. .. 3-4 Miscellaneous assets . . . . . . .. .. . . .. 3-2 Annual Bonus Distribution.—The usual bonus investigation was carried out by the Actuary, and his report, appended hereto, discloses a net surplus of £251,978 (excluding interim bonuses paid during the year) in respect of this year. Of this sum, £243,182 was allotted in the form of compound reversionary bonuses upon the sum assured and existing bonuses, the total reversionary bonuses thus allotted amounting to £398,855. The bonus at the rate declared last year has been maintained. Since the inception of the Department in 1870, £5,332,113 in cash has been distributed by way of bonus, the corresponding additions to the sums assured being £8,862,505.

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