ANNUAL REPORT

Hokitika Guardian, 13 October 1932, Page 6

ANNUAL REPORT

GOVERNMENT LIFE INSURANCE. The annual report of the Government Life Insurance Department states: New Business. —During the year 4,033’ policies were completed assuring £1,506,449, and providing for annuities amounting to £4,499. The annual premiums on new policies amounted to £40,529. The purchase-money on the immediate annuities granted during the year was £18,066. Business in Force. —The total business now in force, including immediate and deferred annuities for £27,635, comprises 71,075 contracts, bearing an annual premium income of £650,399. The sum assured, payable at death or maturity, is £21,472,761, to which reversionary bonuses amounting to £2,(580,587 attach. The total business on the books therefore amounts to £24,053,348.

Income. —The total, income amounted to £1,143,730, made up as follows: Premium income, £662,380 ; interest income (net), £463,284; annuity pur-chase-money, £18,06. The total for the year exceeded that for the previous year by £29,408.

Outgoings.—During the year 552 policies became claims by the death of the policyholders, and 1,056 policies matured, the payment involved being '£484,013. This *s £47,995 less than the amount for the previous year. 'The sum paid if claims since the inception of th e Department amounts to £12,753,940.

Accumulated Funds. Assurance, Annuity, and 'Endowment Funds ) apart from special reserves of £275,547, now stand at £8,568,627, an increase of £319,780 over the previous ye ß r. The Balance-sheet.—On the* 31st December, 1931, the total assets of the Department amounted to £8,912, 858 - Expense Rates.—The ratio of expenses' to (a) total income and (b) premium -income show a further reduction. The figures for 1931 are as follows:—(a) Total income 7.-71 per cent, (b) Premium income 12.96 per cent.

The -difference (between the ratios tor 1931 land 1930 B much greaterthan tire difference between those for 1930 land 1929. A•: part- of the improvement must, be attributed to th“ fact that the new business for 1931 Was less than that for 1930. In all life-insurance (offices the procuration of new business is very costly, and the payment of commission, med'cpl fees, and other expenses absorb? the greater part of the, first year’s premiums.