New Zealand Times. (PUBLISHED DAILY.) SATURDAY, SEPTEMBER 18.

New Zealand Times, Volume XXX, Issue 4523, 18 September 1875, Page 2

New Zealand Times. (PUBLISHED DAILY.) SATURDAY, SEPTEMBER 18.

. —« The sixth annual report of the Government Insurance Commissioner, presented to both Houses by command of his Excellency, is very satisfactory. The new business effected during the past year was as under : No. of policies 1,450 Sum assured £493,715 Single premiums .. .. .. 7.619 Annual premiums 15,484 In other words, the total new premiums amounted to £23,104 Is. sd. for the year ended June 30th, 1875. The policies are thus divided :—lnsurance, 1,347 ; endowment, 17; annuity, 7; industrial, 79. The sum assured in the Industrial branch was £8,357 6s.; —not a large amount, but still a beginning which is promising enough, when it is remembered that the various friendly and benefit societies have hitherto monopolised this branch of business. The advantages which the Government Insurance offers to working men are so superior, however, that as they become more generally understood a much larger business will be done by the Industrial branch. The number of claims during the year has been 32, caused by the death of 30 persons, and amounted to £12,050. A summary of the policies discontinued since the establishment of the department shows the following results:—

Under the foregoing heads details are also furnished of the Endowment, Annuity, and Industrial branches, but these are too insigniGcant to specify in this place. The number of policies issued since the establishment of the department is 5928, assuring £2,097,87425. ; of which BG4 have been discontinued, leaving 50G4 existing policies, assuring £1,841,322 2s. This certainly is a most satisfactory result, and proves, if proof were required, the wisdom of the Legislature in establishing the Government Life Assurance and Annuity department. The Commissioner, Mr. Gisbornb, attaches to his report the accounts prescribed in the 41st section of the Government Insurance and Annuity Act, 1874. The receipts for the year, from all sources, amount to £63,099 Is. 6d. ; and the excess of receipts over disbursements is £41,419 lis. lid. The balance at the credit of the department on the 30th of June last was £108,525 Is. 7d. Mr. Gisborne makes the following remarks on the cost of management:—"ln the " ordinary branch the yearly ratio of ex- " penses of management, including com- " mission, to the premium income, has " been reduced from 37*41 per cent, in " 1872, to 19-24 per cent, in 1875. " Agencies having now been fully estab- " lished throughout the colony, a further " reduction year by year may safely be " anticipated. It is, in the meantime, a " gratifying fact to record that the pre- " sent ratio of such expenditure, in the "sixth year of the age of this depart- " ment, has so much decreased. The " average ratio of the cost of manage- " ment of 120 Life Insurance Companies "in Great Britain was 1512 per cent. " for 1874, and their average age was 39 " years; but taking only those whose " age did not excPed 10 years, the " average was 57'32 per cent." Care is taken to invest the receipts in such a way as to accumulate funds. " The receipts," the report adds, " with " the exception of a small working " balance, are invested week by week in " Treasury bills, bearing interest at the " rate of £5 2s. 6d. per cent, par annum ; " the total amount so invested at the " close of the past financial year was " £105,300. The working balance, upon "which the department receives interest " at the rate of 3 per cent., has averaged " less than £2000."

We have already commented on the business of the Industrial branch, but it may be proper to mention in this place that Mr. Gisborne reports favorably of it. "Experience and information gained " on this subject," he writes, " have in- " duced us to recommend the extension " of this system to all who may desire to " avail themselves of it."

j The report then proceeds to state tho arrangements made for the quinquennial actuarial investigation of the affairs of the department, which appear to be satisfactory. The result will be looked forward to with much interest in the colony, in which the Government Assurance office is becoming one of tho most popular and justly prized of its public institutions. In his general remarks, Mr. Gisborne bears testimony to tho great advantage of the consolidating and amending Act of last session. It enables tho department to make loans to policy holders among other things, and provides for the periodical distribution of ascertained profits, on certain conditions, among the holders of policies. " The Government, more- '' over, have been able, by departmental "regulations, to make the terms of life "insurance more liberal; to form a " special table for the assistance of "religious denominations, in estab- " lishing pensions and charitable funds " for ministers, and to commence an " Industrial branch, with a view to "bringing its benefits practically within " tho reach of tho mass of the commu- " nity generally, thus, a system has been " constructed under which tho State " offers to every person an easy means of "providing for his family, and guaran- " tees that provision, while at the same '• time it relinquishes to him tho profit, " if any, of tho transaction. The Stato "is satisfied with tho recompense it de- " rives from tho increase of provident " habits, and the decrease of destitution " among its people, and tho insurer re- " ceives the more immediate advantage. " Tho continued success of such a system " is a social object of inestimable worth, " and should be carefully cherished. The " whole community collectively, and

" members of it individually, are directly " interested in that success, and directly " share in the gain." We shall add nothing to the foregoing extract from the report, beyond saying that it embodies our own views on the subject. The country is, however, to be congratulated upon having at the head of this great social institution a man of the untiring industry, high intelligence, and wide range of sympathies of Mr. Gisbornb. His personal qualities contributed not a little to the success of the department in its early days, and now that it is iirmly fixed in the confidence of the people, we are doing a simplo act of justice to state how much of this result is due to the first Commissioner.

How - 8 ASSOUAN ce Branch Discontinue! 1 63 Sum Assured Annual Premiums. By Death.. „ Expiry „ Surrender „ Change ,, Lapse.. 23 ot taken £ s. A. 849 2 5 46 4 11 162 1 8 141 3 11 0,241 18 1 Totals .. 1 847 254,800 1 7,440 11 0