State Fire Insurance.

Hokitika Guardian, 6 January 1922, Page 3

State Fire Insurance.

COMMISSIONER’S REPORT. The annual report of the Government Insurance Commissioner (Mr J. 14. Richardson) upon the transactions of the Department for the year ended December 31st 1920, and its position ut that date contains the following: NEW BUSINESS.

During the year 5708 proposals were dealt with, for the insurance of £l,956,375. The number of policies act ually completed was 4872, assuring £1,659.660. with annual premiums amounting to £51,221. This Is .lie largest new sum assured ever obtained by the Department in a single year. Thirty-four annuitities were also granted, on which the purchase-money was £24,980.

The total business now in force, including 444 immediate and deferred annuities for £24.159 per annum, is 57 - 321 policies, bearing an annual premium income of £449,123. The sum insured, payable at (loath or maturity, is £14,824,147. to which are attached reversionary bonuses amounting to £1 >- 335,163. The total business on the books thus amounts to £16,259,310.

INCOME. The total income of the Department was £730,908 —viz., premium income, £435,816; interest income (less land and income tax), £270,112; annuity purchase-money, £24,980. Each of these items of income as well as the total constitutes a record ill the Depart ment’s history. The total income for the( year is greater than of last year by £29,485. During the year 783 policies matured for £185,319 and 567 policies became claims by the death of policy-holders, the amounts payable being £190,509. The outgo for death claims is smaller than for any years since 1914, and represents an approximation to normal conditions. The total assurance, annuity and endowment funds, apart from a special investment reserve oi £288,686, now stands at £5.542,552, an increase of £187,648.

THE 1?A LANCE SHEET. On December 31, 1920 the total assets of the Department amounted to £5,927,557. The total at December 31st 1919, was £5,728,681. The most marked increase was in Government securities (£1,635,800 to £1,869,800, an increase from 28.6 per cent, to 31.6 per cent). The rate of interest realised on the mean funds, after deduction of land and income tax from interest, was £4 19s 2d. I

TRIENNIAL INVESTIGATION. The triennial valuation of the department’s liabilities and assets as at December 31st, 1920, was completed by the actuary early this year and the re- ( stilts are set out fully in the -actualy s report. A surplus of assets over lia- . bilities amounting to £228,704 was dis- , closed. Of this sum £217,706 has been allotted in the shape of compound re- . ' versionary bonuses upon the sum assured and the bonuses in force, thus giving •. increasing bonuses to those policy-hold- | ers who have maintained their previous t bonus intact. The resultant bonuses in j the general section range from £1 per • cent, per annum of the sum assured in , the case of new policies to £1 15s per cent per annum in the ease of policies with longer durations. As between the temperance and general sections, the more favourable mor- , tality in the temperate section has re-

sulted in policies in that section becoming entitled to bonuses at a rate of 5 per cent, higher than similar policies in the general section. The total surpluses distributed since the commencement of business in 18 tO amount to £2,234,382 which sum has converted into reversionary addition to the sums assured amounting to £8,907,698.

LEGISLATION. During the year the Life Insurance Amendment Act 1920, was passed. The Act, which came into force on April 1, 1921, amongst other things, provides in cases where a husband has assigned his policy to his wife, ol‘ vice versa greater facilities for the reversion of the policy to the original status on the death of the assignee, does away with the necessity for probate or letters of administration when the policy becomes a claim in those cases where the sum assured is in excess of £2OO, but tho balance payable is less than that amount, and remedies certain defects in the existing legislation regarding the powers of minors to deal with their policies; GENERAL. The result of the year’s operations lias been very satisfactory. As indicated above, there has been a record inflow of new business, bringing tho aggregate business to the highest point yet reached, whilst the disturbing effect of the war upon mortality has virtually ceased. It is gratifying that at a time when so many insurance offices in different parts of the world have found it necessary to make drastic reductions in their periodical bonuses or even to omit their allotment altogether, while a leading company in a neutral European State is in more* sciious difficulties, this Department can point to the fact that it has been able to maintain a strong position and a satisfactory rate of bonus. In addition to the satisfactory condition disclosed, the outlook for the future is very promising.