STATE INSURANCE.

Dominion, Volume 3, Issue 863, 8 July 1910, Page 9

STATE INSURANCE.

REPORTS FOR YEAR. ! Reports of the Government Insurance Departments for tho past year were laid on tho tabic of the House on Wednesday. 1 During the year 421)8 proposals were dealt with by the Government Life Insurance Department, for the assurance of £985,559, and the number of policies actually completed was IMSI, assuring ( fi79ri,JiSß, being an advance- in both number of policies and .sums assured on the new business of the previous year. The annual premiums on now policies amounted to Twenty-three annuities were also granted, oil which tho purchase-money was t £W,3(l(i. The new business of the Department has shown a steady increase for some years past, as will be seen from the following:—-Mow sums assured: 1903, ,£702,350; 1005, .£710,021; Uu'y .£752,005; and I'M, .£795,339. Tho total business now in force is policies, assuring ,011,151,004 (and ,I'I,2!)P»,G;iJ bonuses) at death or maturity, together with '302 immediate and deferred annuities for .£20,.590 per annum; the total business bearing an annual premium income of t £330,873. Tho total income of the year was X' 540,500, oil increase of £12,125, made up as follows:— New premiums (including single premiums), ,£23,381; renewal premiums, J2307,5-l3; purchase-money for annuities, .£14,300; interest, .£201,327; fees, .£O. The income .from interest showed an increase of £7457, and the average rate of interest earned on the mean funds increased from JEM 12s. 2d. to £4 12s. lid. per cent. During tho year 39fi policies became void by death,'for claims amounting to .£135,412, being considerably under -what is provided for in the tables of mortality used by tho' Department. Vour hundred and eleven policies also matured as claims during lifetimo for <£111,210. .£3,908,291 has been paid in respect of claims by death and survival since, th& foandation of the Department forty years ago. Ordinary surrenders amounted to .£38,143," bonus surrenders to £13,041* and loans released bj surrender to .£20,001. Tlw total expenses were £72,120, the ratio of expenses to premium income being 20.9 per cent., and to total income 13.2 per cont. Tho net increase in the accumulated funds during the year was £140.456, and the total assuranc?, ann lity, and endowment fundi* at the close of the yc-ar (apart from spcdal reserves) f-mouiiiel to £4,405,141.

Profit on Firo Office. The result of the year's operations i.f the Fire Insurance Oitice shows a profit of X2.G9S Us. 7d., which is a better result than that recorded in any previous venr. 11l comparing this year's Revenue Account with "that of previous years, it must be remembered that the amount appropriated to reserve to cover prospective losses payable out of unearned premiums lva* for the first three years 3D l-3rd. per cent, of the net premiums, whereas for the last two years the amount reserved was 40 per cent. This, of course, reduces the net profit for 100!) as compared with that of previous years. The year l!l0S resulted in a loss," and the debit balance, which at the end of that year stood at itfUa .Is. Id., Ims now boon reduced to .£1441 9s. (id.

Tho chief features in fhe annual no, counts presented are the very satisfactory increase in the net premium income and tho low ratio of expenses lo net pirmiums. The not premiums received Miuw an increase ill 1509 of 24.K) per cent, over 1053, and tho ratio of expenses to premiums was only 30.5 per cent, in 100!) as against 38 per cent, in I.'IOS. This must be considered a very low ratio, especially when it is remembered I hat. the expenses include the statutory contributions to Fire Hoards.

It will be I'wnemhered flu. 1 the opening of the ollice in the year 1005 was tho Mgual for a very considerable reduction in the rates charged throughout the Dominion, and although for the last year the ollice has been able to show a profit while working under these reduced rates, it should not be forgotten that for the year previous a substantial loss was made. The office is certain to experience unfa-Durable years in the future, jts it has in tho past, and it would therefore be unwise lo gauge the adequacy or otherwise of tho current rates by the result of the past year's operations alone.

Accidcnt Branch Satisfactory. Tho nnnnnl report of the Accident branch, states that the financial position is on a very satisfactory footing. The premium income for .the past year amounted to ,£2(i,337, as against ,£2O,SOS in 190 S. Tho large amount of mining business placed with the Department owing to the dilliculfy which arose in consequence of tho inclusion of pneumoconiosis in the 190S Act is responsible for the exceptional increase of J'yl.lO on last year. The disf-.ise has, however, been removed from the list, and it is likely that a large amount of the business for which it was responsible will revert to fiio companies which formerly dealt with it. Therefore this item cannot be anticipated for the coming year. Tho income from interest was ,£2178, an increase of .£387 on the previous year. The claims made, and in course of settlement totalled .€i;!,So:i, an increa.-o of ,£B'9. The ratio of expenses to premiums earned was 53 per cent., and the provision for all outstanding claims now amounts to .£11,500.