THE GOVERNMENT LIFE INSURANCE DEPARTMENT

Auckland Star, Volume LXXIII, Issue 165, 15 July 1942, Page 3

THE GOVERNMENT LIFE INSURANCE DEPARTMENT

ANNUAL. REPORT

SUBSTANTIAL INCREASE IN BUSINESS

The report of the Government Insurance Commissioner upon the transactions of his Department for the year ended December 31, 1941, which has now been presented to Parliament, reveals that the Department had another highly successful year.

Its main features are:—(l) The new business amounted to £2,800,408, an increase of £467,358 on the previous year; (2) the business in force at the end of the year totalled £32,445,977, to which are attached reversionary bonuses amounting to £3,814,177; (3) the total income, £1,360,056, exceeded that for the previous year by £33,952; (4) notwithstanding that the death claims in respect of policy-holders serving with the forces involved the payment of over £50.000, the total death claims increased by only £21,823; (5) surrenders decreased by over £60,000; (6) the total assets now exceed £12,300,000; (7) the reserves have been further strengthened.

Actuarial Investigation: The usual investigation disclosed a net surplus of £198,650. This is amply sufficient to enable bonuses to be declared at the same rates as for 1940. In view of the abnormal conditions arising out of the war, however, the Department regards it as its duty to its 100,000 policy-holders to adopt the prudent course and conserve the resources of the Department to the fullest possible extent. It has been decided, therefore, not to distribute the surplus which accrued during the year, a surplus which, as already stated, is amply sufficient to enable bonuses to be declared at the same rates as for 1940, but to keep liquid the amount, £198,650, as an additional reserve for war contingencies. In order that the interests of policy-holders shall not be prejudiced, interim bonuses will be granted at the 1940 rates on all policies becoming claims during the current year. War Loan Investments: Realising the necessity for rendering all possible support to the country in its prosecution of the war, the Department has to date subscribed sums totalling £652,180 to the various War Loans.

Over seventy members of the staff are on acthgf 1 service.—(P.B.A.)