THE GOVERNMENT INSURANCE DEPARTMENT.

Globe, Volume XXIII, Issue 2311, 31 August 1881, Page 4

THE GOVERNMENT INSURANCE DEPARTMENT.

[Br Telbqbaph.J [PBOM THB OWN COBBBSFONDBNT OF THB "PBB9S."] WELLINGTON, August 30. Tho report of the London actuaries on this department was Hid on the table of the House this evening. Tno report states that the nob fund in 1880 was £459,335, tho number of policyholders 6543 males, and females. The actuaries remark that the Institute of Actuaries H. M. table is the most suitable to adopt for the present valuation, but they have thought it prudent to make further provision beyond what an estimate on this basis would provide. Tho rate of interest realised has been 1875 6, £5 Is 31 ; 18/6 7,£4 17j lidj 1877 8, £4 18J sd; 1878 9, £5 8* lOd ; 1879 80, £5 Is 7d. At tho last valuation the rate assumed was 4* per cent. They do not think it prudont to assume that the fund will earn more than 4£ in future ; and they doubt whether in after years thiß rate will not be found too high. They think, however, that on the present occasion the valuation may be made on tho <&i per cent, basis. Tho realised assets on June 30sh wore £459,331 ; tho estimated net liability was £361,740 ; surplus, £77,595. They recommend that the distribution on this oocasion should bo restricted to a sum not exceeding £60,000. The actuaries have examined the tables of rates, and consider them sufficient under present circumstances. Thoy aro undoubtedly low, and especially so at the older ages, and if the rates of interest in tho colony were to fall materially the rates in question would require revision before new transactions were entered into. The actuaries have teetod the table of surrender values, and consider that the amounts promised to be allowed can bo granted with safe'y, but do not think that it should be increased. The report concludes—- " The results of our valuation Bhow that the finanoes of tho department are in a sound oondition, and considering the low rates of premium paid by the assured, the amount of the divisible surplus appears to us very satisfactory, and the business of the department to have been well conducted, and in suoh a manner as to reflect great credit on those who have been responsible for its management. '