NEW ZEALAND GOVERNMENT INSURANCE DEPARTMENT.

Appendix to the Journals of the House of Representatives, 1887 Session II, H-12

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Sess. 11.—1887.

NEW ZEALAND GOVERNMENT INSURANCE DEPARTMENT.

Jk.lsriNrTJ-A.Xj IR, IE IP O IR, T, 1886, TOGETHEB WITH THE ACTUARIES' REPORT ON THE FINANCIAL CONDITION OF THE AFFAIRS OF THE DEPARTMENT AS ON THE 31st DECEMBEK, 1885.

WELLINGTON: BY AUTHOBITY : GEOEGE DIDSEUBY, GOVEBNMENT EBINTEB.

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COMMISSIONER: SECRETARY AND ACCOUNTANT: D. M, LUCKIE, F.S.S. J. H. EICHAEDSON, A.1.A., F.I.A.V. INSPECTOR OF AGENCIES: CHIEF MEDICAL OFFICER: S. W. D'AECY lEVINE. A. JOHNSTON, M.D.

GOVERNMENT ACTUARY AND STATIST: P. W. FEANKLAND, F.I.A. ASSISTANT ACTUARY: MOEEIS FOX, A.I.A.

AGENCIES AT NEARLY ALL THE MONEY ORDER POST OFFICES IN THE COLONY.

Tables of Eates, Forms of Proposal, and all otheb Infoemation can be obtained on Application at any Agency of the Department.

HIE .A. ID OPPIOB: Custom House Quay, Wellington.

IsTEW ZEALAND GOVERNMENT INSURANCE DEPARTMENT, ESTABLISHED 18 70.

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ANNUAL EEPOET OV THE GOVERNMENT INSURANCE COMMISSIONER.

Prepared for Presentation to both Houses of the General Assembly pursuant to the Provisions of "The Government Insurance and Annuities Act, 1874;" "The Public Revenues Act, 1882;" and " The New Zealand Government Life Insurance Act, 1886."

Wellington, 30th July, 1887. In accordance with the provisions of the statutes above cited, I have the honour to submit the annual accounts of the Government Life Insurance Department for the year ended the 31st December, 1886, and to report on the business of the year. ORDINARY BRANCH. New Business. In this branch there were received for life assurance 5,035 proposals for a total amount of £1,136,836 19s. lid. These applications comprised 3,503 proposals for assurance in the general section and 1,532 in the temperance section. Of these proposals 453 were declined; 3,560 were completed, and policies to that number were issued. The remaining proposals were not completed. The amount assured under the policies issued was £717,464 9s. sd. This sum was distributed as follows : In the general section, 2,327 assurance policies, assuring £514,163, and 95 endowment policies, assuring £4,282 9s. sd; in the temperance section, 1,129 assurance policies, assuring £199,019. In addition to these there were issued nine annuity policies, for which the sum of £3,864 10s. Bd. was received; the annual payments on these annuity policies amount to £448 16s. 4d. This new business represents a total amount

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ANNUAL REPORT. in new annual premiums of £22,377 15s. 4d., in addition to £4,839 18s. received for annuities sold and for single insurance premiums. Of the 3,560 policies issued, 748, assuring £33,572 14s. lOd., consisted of transfers from the Industrial Branch, which is now being closed. Considering, amongst other causes, the depressed condition of trade and commerce in the colony, and the hostile competition of foreign offices, together with the misrepresentation by which that competition has been so largely accompanied, these figures show a fairly satisfactory result of the year's new business. Tables giving full particulars are attached to this report. . ■ Claims. Claims on policies emerging by death in the period reported on numbered 154, representing the demise of 140 policyholders, and the sums assured amounted to £48,136 11s. 3d., or, after deduction of contingent debts, to £48,023 9s. Id. By maturation of time-policies 19 claims were preferred for the sum of £5,400. These made a total of 173 claims, the payments on which, including reversionary and prospective bonuses added to the nett sums assured, amounted to £56,113 19s. Id. Annual Income —Interest—Accumulated Funds. The income for the year from all sources was £255,603 3s. 2d., which is £14,826 10s. 7d. in excess of the income of the previous year. Interest received for the year on invested funds amounted to £58,205 2s. 10d. This exceeds the sum paid for claims in the period by £2,091 3s. 9d. The Accumulated Fund of the department has been increased during the year by the sum of £129,899 4s. lid., and at 31st December last amounted to £1,231,933 16s. 10d. THE VALUATION REPORT OF THE LONDON ACTUARIES. In accordance with law there will be also presented to Parliament the Valuation Report of Messrs. Bailey, Hardy, and King, of London, the Consulting Actuaries who were appointed to investigate the condition and value the assets and liabilities of the department. The voluminous data transmitted to them were prepared under the immediate direction and superintendence of the Government Actuary and Statist, Mr. Frankland. The schedules embodying the requisite information extended over 1,043 large sheets, and the London Actuaries record their " appreciation of the intelligent care bestowed upon the preparation of these schedules," and state that " their clearness and completeness materially diminished the heavy labour attendant upon the valuation of so large and varied a body of risks "as that embraced by the large number of policies to which these data referred. These policies, including 4,193 belonging to the Industrial Branch, numbered in all 27,411. Those submitted to the Actuaries for valuation for the quinquennial period ending in 1880 numbered 11,707, or only a little over 42 per cent, of the number on which they had on this occasion to adjudicate and report. The Actuaries say that the extent and variety of the business of the department much exceeded their anticipations, and that the results, disclosed by their investigation were more favourable than they expected. Their report shows that the surplus cash profits in the G-eneral section for the five and a half years reached the substantial sum of £245,315 11s. lid. Of this amount the Actuaries recommended the division of £150,000 among the policyholders, leaving a reserve of £95,315 11s. lid. for future bonuses and contingencies. The amount

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set apart for division represents no less a sum than £319,391 4s. of reversionary bonus additions to the policies of the assured. These figures are of a most satisfactory nature, and of themselves testify to the sound condition of the department. Taking the age of the office into account, they show results which, I am assured, are unequalled in the history of the life assurance institutions of Great Britain or her dependencies. On the subject of the Temperance section the Actuaries state that this section showed a deficiency of J2,759. On this circumstance these gentlemen, in their preliminary letter to the Agent-General, remark that it " need excite no uneasiness, as no surplus could have been expected to accrue during the short period of the three years and a half of the existence of this separate section." The nett cash profits, after allowing for the Temperance deficiency, are £242,556 11s. lid. The results were transmitted by cable message and duly published. A brief interim report was also subsequently received. It was found, however, that a considerable time would elapse before the full Report of the Actuaries would reach this colony. In order to save time in computing and allocating the bonuses and notifying the same to policyholders the Government resolved that there should be exercised the provisional powers vested in the Governor by the Act of 1886, under which His Excellency can direct that the profits may be divided although the Actuaries' Report has not been laid before both Houses of the Assembly. Accordingly an Order in Council was issued directing that the proportion of the cash profits recommended for division by the Actuaries should be so divided and allocated. The calculation of the bonuses to the individual policyholders necessitated a large amount of work. Much time has also been required to prepare the comprehensive tables attached to the Report which had subsequently to be computed and compiled here in reply to the statutory queries specified in the schedules of the Act referring to the valuation procedure. THE INDUSTRIAL BRANCH. The closing of this branch is now nearly completed; all the large centres have been practically closed, except two, and the winding-up of the business there is now rapidly approaching completion. THE RISE AND PROGRESS OP THE DEPARTMENT. At this stage in the history of this institution a brief narrative of its origin and progress may not be devoid of interest. The Government Insurance Department has now been in existence nearly eighteen years. It was established by Act of Parliament in 1869. The Bill which became law was introduced by the present Colonial Treasurer, Sir Julius Vogel, who described the disastrous effects* which the failure of numerous private insurance offices had produced in Great Britain, and

* It was shown on this occasion, from a petition presented to the British Parliament in the previous year, that, out of about 400 assurance companies which had been established up to that time in Great Britain, only about 120 then existed; that one-half of the latter number had been set on foot within the previous seven years ; and that more than fifty companies were then winding-up in Chancery. It was shown further that serious decrease in the value of life policies had occurred in these cases, although the policyholders had fulfilled their original contracts. Several years ago Mr. Morrice A. Black gave a list of 130 companies which had either been bankrupt, abortive, or fraudulent. Recent years have disclosed numerous other examples of a similar kind in both Great Britain and the United States, in which the bankruptcy of private companies has produced serious loss and disaster to the policyholders and those dependent on them. The most notable of these companies were the Albion, the European, the Albert, the Great Britain Mutual, the Oak, the London and Westminster, the Security Mutual, the Briton Medical and General, and -the Continental of America ; besides various others, including the French Credit Viager, and the Mutual Trust Fund Life Association of New York.

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demonstrated the necessity for legislative action to preserve people in this colony from such disasters, and to provide, for the benefit of all policyholders who insured in the Government office, the certain security of the State. The Bill was passed not only without opposition, but with the full concurrence of Parliament. An amending Act was passed in 1870. In 1874, another Act consolidated the provisions of the previous Acts, and otherwise provided for the expansion and more effective working of the department. The tables of premiums were not originally calculated with a view to profits, but merely at such low rates as to secure safety, the main object of the Legislature being to provide an inviolable guarantee to the assured. Notwithstanding the low premium rates, there were at that time (1874) indications leading to the belief that considerable profits on the business of the office would ultimately accrue. To add to the attractiveness of a National Security Life Assurance Institution, the Legislature, by the Act of that year, provided that the profits should, under competent actuarial recommendation formally approved, be divisible among the assured. The experience of the last thirteen years has fully justified these expectations, as successive valuations have shown. The first valuation made for the period up to June, 1875, showed a surplus cash profit of £12,191, but the Actuaries, though considering the result satisfactory, were of opinion that no division should then be made. The second valuation for the five years ended in 1880 produced a surplus cash profit of £73,670 175., of which £56,000 was divided, being equivalent to £124,552 2s. of reversionary bonuses added to the policies of the assured. The third and latest valuation above referred to has yielded still more satisfactory results. For some time prior to the year 1884 there was entertained an opinion that it was desirable to establish the department as a corporate association. In that year an Act was passed incorporating the office, and placing it as an association in charge of a body of ten directors, partly appointed by statute, partly nominated by the Governor, and partly elected by the policyholders. After a brief experience of this arrangement Parliament deemed it undesirable to continue the institution as then constituted, and in the session of 1886 passed an Act repealing the Association Act, abolishing the corporation, and re-establishing the office on the basis of a Government Department. Under this latest Act a Board was constituted for the purpose of managing and controlling investments upon mortgage of freehold lands. The provision for lending a portion of the office funds on such security was one of the principal features in the Association Act. This provision is continued by the new Act now in force. The Board of Investment numbers six members, comprising the Colonial Treasurer, the Solicitor-General, the Surveyor-General, the Property-tax Commissioner, the Public Trustee, and the Government Insurance Commissioner. All loans on mortgage are limited in amount to not more than one-half of the actual value of the property to be mortgaged as the same may be determined by valuators appointed by the Board. No loan on mortgage is granted for any sum beyond £5,000. The Act further provides that not less than one-half of the moneys standing at the credit of the Government Insurance Account shall be invested in securities of the Government of the colony, or upon loans to local authorities, such as counties, boroughs, &c, constituted under Act of Parliament. All such loans must be secured by special fixed rate leviable on the rateable value of property within the town or country district; this rate continues leviable until the loan is repaid. Considerable sums have been so invested, as the attached balance-sheet shows. The Department recently introduced a mode of lending on mortgage, by which mortgagors make repayment of principal and interest by half-yearly instalments extending over periods of twelve, fifteen, or twenty years. The advantages attending this system of progressive reduction and ultimate and easy liquidation of both principal and interest have proved attractive. Large numbers of applications have been received, and a fair proportion has been entertained and loans have been completed after careful selection. The growth of the business, the steady increase of the annual revenue, and the equally

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steady increase in the amount of the Accumulated Fund are shown in the following table, which embraces the whole period of the department's existence : —

Among the special advantages which New Zealand enjoys are its favourable climatic conditions, productive of a generally equable temperature. These conditions have naturally exercised and will continue to produce a beneficial influence on the progress of this department, inasmuch as they tend to increase the longevity of the people. The New Zealand tables of mortality show a death-rate materially below that of any other of the Australasian colonies, or indeed of any other State or country. This important factor in the success of the office is made manifest by the figures contained in the subjoined table, which specify the death-rate per thousand of the population in the several colonies of the Australasian group : — Death-ratei rw,™ Death-rate Colony. per 1,000. i c ol° n y- per 1,000. Queensland .. .. •• 1958 | Tasmania.. .. .. .. 1540 Western Australia .. .. .. 17-61 I Victoria .. .. .. .. 14-73 New South Wales .. .. • • 16-02 i South Australia .. .. .. 12-48 New Zealand 1061. The differences here set forth range from fully 174 per cent, in the lowest to nearly 85 per cent, in the highest death-rate in the other colonies in excess of the rate of mortality in New Zealand. In conclusion, taking into consideration the actual results above narrated, and the manifold and unique advantages which this institution secures, it may be permitted to affirm that its prospects in the future are full of promise, and will exceed in their realisation the satisfactory experience of the past. D. M. LUCKIE, Commissioner.

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Period. Policies issued. Sums assured. Annual Eevonue. [norease in Funds. Total Funds. £ £ £ £ Period ended 30th June, 1871 463 206,361 5,045 Year „ 1872 1,357 461,310 18,101 10,011 15,056 1873 1,157 428,615 31,491 21,746 36,802 1874 1,499 510,010 45,735 30,303 67,105 1875 1,374 483,223 63,614 42,863 109,968 1876 1,249 481,170 78,934 43,749 153,717 1877 1,411 564,228 91,995 65,677 219,394 1878 1,994 681,109 111,202 73,129 292,523 1879 2,073 687,574 132,622 79,367 371,890 1880 2,266 722,554 146,205 87,446 459,336 1881 1,790 550,351 156,616 97,895 557,231 1882 2,523 702,909 171,316 96,659 653,890 Half-year ended 31st Dec., 1882 2,547 631,279 189,578 50,999 704,889 Year ended „ 1883 5,113 1,039,916 215,550 141,271 846,160 1884 3,309 800,016 228,434 126,616 972,776 1885 4,379 859,770 240,777 129,259 1,102,035 1836 3,560 717,464 255,603 129,899 1,231,934

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ANNUAL REPORT.

Eevenue Account of the Government Life Insubance Depaetment (Ordinary Branch) for the Year ended 31st December, 1886. £ s. a. £ s. d. £ s. d. Amount of funds at 31st December, 1885 1,102,034 11 11 Claims under policies, AssurEenewal premiums — Assurance, An- ance, including bonus adnuity, and Endowment .. .. 183,079 0 7 ditions .. .. .. 55,713 19 1 New premiums on 3,551 policies, assuring Endowments matured .. .. 400 0 0 £717,464 9s. 5d., and yielding an annual Bonus surrendered for cash ~ 542 4 2 revenue of £22,377155. 4d... .. 9,405 5 1 Annuities .. .. .. 3,595 3 3 Single premiums—Assurance and En- Surrenders .. .. .. 21,408 6 4 dowment .. .. .. .. 975 7 4 Commission, new .. .. 7,189 0 3 Consideration for annuities granted .. 3,864 10 8 „ renewal .. 1,093 1 5 Interest .. .. .. .. 58,205 2 10 ■ 8,282 1 8 Fees .. .. ~ .. 73 16 8 Property-tax .. .. .. 3,745 2 3 Expenses of Management,— Directors' fees .. .. 600 0 0 Salaries—Head Office .. 8,790 11 4 „ Branch Offices and Agents .. 5,399 17 9 Extra clerical assistance 547 9 4 Medical fees .. .. 4,150 17 0 Travelling expenses .. 2,343 9 6 Advertising .. .. 1,107 11 3 Printing and stationery .. 2,309 19 6 Rent .. .. .. 1,288 8 3 Postage .. .. 1,000 0 0 Telegrams .. .. 825 12 5 Exchange .. .. 145 13 10 Office furniture depreciation .. .. .. 274 1 8 General expenses .. 1,862 15 2 Quinquennial expenses .. 1,370 14 6 32,017 1 6 Amount of funds at 31st December, 1886 1,231,933 16 10 £1,357,637 15 1 £1,357,637 15 1 Government Insurance Office, 31st March, 1887. D. M. Luckie, Commissioner. Audited and found correct. —James Edwaed FitzGebald, Controller and Auditor-General.

Balance-sheet of the Government Life Insubance Depaetment (Ordinary Branch) on 31st December, 1886. Liabilities. £ s. d. i Assets. £ s. d. Total Assurance, Annuity, and Endow- Loans on policies .. .. .. 148,853 14 10 ment Funds (as per Eevenue Account) 1,231,933 16 10 Government securities .. .. 559,100 0 0 Claims announced not paid .. .. 8,257 12 0 Railway debentures (guaranteed by GoSurrenders .. .. .. .. 28 1 vernment) .. .. .. 40,000 0 0 Annuities .. .. .. .. 37 11 9 Railway debentures .. .. .. 35,000 0 0 CommissionT(new) .. .. .. 339 011 Municipal Corporation debentures .. 67,572 0 0 Medical fees .. .. .. 685 13 0 | County securities .. .. .. 1,000 0 0 Postage .. .. .. .. 250 0 0 | Otago University debentures .. .. 15,000 0 0 Premium deposits .. .. .. 1,668 2 7 I Harbour Board debentures .. .. 10,000 0 0 Mortgage on property taken over by the ' Landed and house property .. .. 87,132 15 3 Association not yet paid .. .. 10,000 0 0 \ Office furniture (Head Office and Valuation fee deposits .. .. 22 1 0 Agencies).. .. .. .. 2,452 2 11 Mortgages on property .. .. 209,480 0 0 Overdue premiums on i policies in force .. £9,815 0 8 Outstanding premiums due in December, 1886 16,787 7 8 26,602 8 4 Interest outstanding .. 2,754 16 0 Interest accrued not due 11,678 11 10 14,433 7 10 Agents' balances .. .. .. 1,601 5 6 Temporary advance to Industrial Branch 130 3 8 Sundry accounts owing .. .. 1,441 3 10 Cash on current account .. .. 33,392 4 0 £1,253,191 6 2 £1,253,191 6 2 Government Insurance Office, 31st March, 1887. D, M. Luckie, Commissioner. Audited and found correct. —James Edwabd FitzGeeald, Controller and Auditor-General.

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Eevenue Account of the Government Life Insurance Department (Industrial Branch), for the Year ended 31st December, 1886. £ s. a.! £ s. a. Amount of funds at beginning of year .. 2,057 15 10 Claims under policies .. .. .. 493 4 0 Premiums .. .. .. ..1,476 18 8 I Surrenders .. .. .. ..2,174 1111 Interest, &o. .. .. .. .. 70 15 2 Commission renewal .. .. .. 358 3 6 Pees 011 6 Expenses of Management— Salaries .. .. £240 5 8 General expenses.. .. 11 8 0 Aeency-closing expenses .. 304 10 0 556 3 8 Funds at 31st December, 1886 .. 23 18 1 £3,606 1 2 £3,606 1 2 Government Insurance Office, Wellington, 31st March, 1887. D. M. Luckie, Commissioner. Audited and found correct.—James Edward FitzGerald, Controller and Auditor-General.

Balance-sheet of the Government Life Insurance Department (Industrial Branch) at 31st December, 1886. Liabilities. £ s. d. i Assets. £ s. d. Assurance funds .. .. .. 23 18 1 Agents' balances .. .. • • 86 17 1 Ordinary Branch .. .. .. 130 3 8 Cash on hand .. .. .. ■ • t>7 4 a £154 1 9 £154 1 0 Government Insurance Office, Wellington, 31st March, 1887. D. M. Luckie, Commissioner. Audited and found correct.—-James Edward FitzGerald, Controller and Auditor-General.

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APPENDIX TO PART I.—Statement of Policies issued and

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Assuraxi :e. Gc: teral. Temperance. No. Sum Assured. Annual Premium. Annual Extra Eisk. No. Sum Assured. Annual Premium. Annual Extra Eisk. £ 1. d.\ £ *• <*• \£ ,.. a. £ 1. a.\ £ s. a. £ s. a. Total Policies in force at beginning of year Add Policies issued during the year 19,217 5,801,361 15 2 176,710 19 9 f 406 16 2 2,894 627,080 16 o' : l8 .254 5 7 16 3 8 2,327 514,163 o o l6,2II I 3 9; 006 1,129 199,019 o o 6,066 11 3 Total Deduct Policies discontinued during the year.. 21,544 .6,315,524 15 2 192,922 13 6 |406 16 8: k.023 826,099 16 o I 24,320 16 10 16 3 8 ; 1,524 433,848 o o 13,863 6 3 ! 55 19 o I 337; 73,773 o o j 2,033 2 1 3 15 10 Total Policies in force at end of year.. 20,020 5,881,676 15 2 179,059 7 3 350 17 8! : 3 ,686, 752,326 16 o, 22,287 14 9 12 7 10 PART II. —Particulars of How Discontinued. ly Death Maturity Surrender Lapse Changes Other Causes .. 146 16 46,865 o o 5,000 o o 109,904 o o 270,110 o o 1.579 o 4 380 16 5 3,487 10 6; 7,74i 1 3 19 9 5 655 8 4 , 3 7° 6 18 10 8 1,271 11 3 11,600 o o 59,445 o o 49 4 10 329 5 1 1,601 13 11 1 6 9 1 51 11 6 o 10 10 250 337 1,014 •46 I 277 1,969 o o II o o 5 o o, 29 13 2i 6 1,456 8 9 « 100 Total void i,524| 433,848 o o 13.863 6 3 55 19 o 337) 73.773 o o 2,033 2 1 3 15 10 PART III.—Progress of Business of the Government Insueance sneral Section. No. of Policies. Sum Assured. Annual Premiums. Annual Extra Eisk. I Annuity. 'otal issued "otal discontinued Total in force £ s. a. ■■ 33,5" 9,590,562 6 6 •• 12,483 3,672,147 17 8 .. 21,028 I 5,918,414 8 10 £ s. a. 9,590,562 6 6 3,672,147 17 8 £ s. a. 300,402 2 6 119.522 5 7 £ s. a. 1,504 16 7 1,153 18 11 £ s. d. 5,257 13 5 1,025 7 o 180,879 16 11 35o 17 8 4,232 6 5

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ANNUAL REPORT. discontinued during the Year ended 31st December, 1886.

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Endowments and Investments. Annuities. TOTAL. General. General. Gene] ■al and Temper! bnce. No. Sum Assured. Annual Premium. No. Annual I Premium Annuity. No. Sum Assured. Annual Premium. Annual Extra Risk. Annuity. £ s. a. £ s. a. £ : a. £ *■ a. £ s.a. £ s. a. £ *. a: £ «. a. 1,044 37,833 17 2 1,892 17 10 63 19 19 2 3,911 10 1 23,218 6,466,276 8 4 196,878 2 4 422 19 10 3,911 10 1 95 4,282 9 5 193 4 8 9 448 16 4 3,56o 717,464 9 5 *22,47i 9 8 006 448 16 4 1,139 42,116 6 7 2,086 2 6 72 rg 19 2 4,360 6 5 26,778 7,183,740 17 9 219,349 12 o 423 o 4 4,36o 6 5 200 5,37 8 " 11 285 12 o 3 12S o o 2,064 512,999 12 11 16,182 o 4 59 14 10 128 o 0 939 36,737 13 8 1,800 10 6 69 I19 19 2 4,232 6 5 24,714; '6,670,741 4 T 11 8 363 5 6 4,232 6 5 * £22,377 li is. 4d. annual ] >romiuin income on new policies; £33 14s. 4d. increase in premium income by changes. Policies discoi^ :tinued d iring 1886. 3 9 183 400 o o 424 17 8 4,125 15 1 29 3 7 24 6 7 217 o 4 o 11 10 14 9 8 3 128 o o 157 19 392 i,474 48,136 11 3 5,400 o o 121,928 17 8 333,680 15 1 1,628 52370 410 00 3,841 22798 9,559 15 6 13 5 o 21 8 o 500 721 9 6; 30 13 2 128 0 o 428 0 2 22 3,853 8 11 5 200. 5,378 12 11 285 12 o 128 o o 2,064 512,999 12 11 16,182 o 4! 59 14 io 128 o o Department since Date of Establishment to 31st December, 1886. Temper) mce Section. TOTAL. Poffctes. Sum Assured. Annual Premiums. Annual Extra Risk. No. of Policies. Sum Assured. Annual Premiums. Annual Extra Risk. Annuity. £ s - a. 4,553 937,296 16 o 867 184,970 o o £ >. a. 27,432 13 4 5,i44 l8 7 £ * a. 25 13 8 13 5 10 38,064 13,350 £ s. a. 10,527,859 2 6 3,857,117 17 8 £ s - a. 327,834 15 10 124,667 4 2 £ s. a. 1,530 10 3 1,167 4 9 £ s. a. 5,257 13 5 1,025 7 ° 3,686 752,326 16 o 22,287 14 9 12 7 10 24,714 6,670,741 4 10 203,167 II 8 363 5 6 4,232 6 5

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REPORT BY THE CONSULTING ACTUARIES ON THE FINANCIAL CONDITION OF THE AFFAIRS OF THE NEW ZEALAND (iwrnment Jnawrarrte %mMm, As on the 31st day of December, 7885, Made under "The New Zealand Government Insurance Association Act, 1884."

Report by the Consulting Actuaries, Messrs. Arthur Hutcheson Bailey, Ralph Price Hardy, and George King , , on the Financial Condition of the Affairs of the New Zealand Government Insurance Association, as on the 31st day of December, 1885, made under " The New Zealand Government Insurance Association Act, 1884." Sir, — London, 25th March, 1887. 1. Pursuant to the instructions we had the honour to receive, and in accordance with the provisions of " The New Zealand Government Insurance Association Act, 1884," we have made an investigation into the financial condition of the affairs of the New Zealand Government Insurance Association as on the 31st December, 1885, and we now submit our report. 2. Since the last valuation some important changes have taken place in both the arrangements and constitution of the body now represented by the present Association, which it will be convenient to record here. The Association was originally founded as a department of the New Zealand Government. On the 30th June, 1880, the last valuation epoch, there were two branches only, viz., the Ordinary and the Industrial, the latter being insignificant. On the 13th March, 1882, the Industrial Branch was reconstituted, and a considerable accession of that class of business was secured. On the Ist July, 1882, a special and separate section was opened in each branch for lives adhering to the principles of total abstinence from intoxicating liquors; the profits of the section to be reserved solely for its own members.

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The whole body was thenceforth constituted in four divisions, viz. :— _~ _, , fl. General Section. Ordinary Branch < „ m „ ~ J (2. Temperance Section. _, (3. General Section. Industrial Branen < . m „ ~ (_ 4. Temperance Section. By "The New Zealand Government Insurance Act, 1884/' the existing body was incorporated under the title of "The New Zealand Government Life Insurance Association;" and, by clause 71, the profits appertaining to contracts entered into after the 31st December, 1884 (new series) were made subject to a deduction of one-tenth, for the purposes prescribed by the statute. The whole body thenceforth, and at the point of the present valuation (31st December, 1885), was constituted in six divisions, no further subdivision of the Industrial Branch having been directed, viz.: — C n i c ,- ( 1- Old series. I General Section .., < „ __ \ I 2. New series. Ordinary Branch j CB. O\& series. / Temperance Section ... ■< . - T 1 (_ 4. New series. T 1 ~,.,, . ( General Section. 5. Industrial Branch < m o ,■ c , ( Temperance Section. o. From information communicated to us by the Agent-General for New Zealand, we learn that the old and new series have been consolidated. The Association has reverted to the constitution as existing just prior to the Act of 1884, and our valuation has been made accordingly. 3. Amongst the varioiis papers furnished to us, through the Agent-General, were copies of the periodical reports and accounts of the Association for the period elapsed since the last valuation ; also schedules, in great detail, containing particulars of the policy and annuity contracts in force on the 31st December, 1885, for each of the six divisions in which the Association was constituted. The number of contracts scheduled for valuation was, in all, 27,411, viz. : —

These schedules extended over 1,043 large sheets. We feel it due to the officers of the Association to record our appreciation of the intelligent care bestowed upon the preparation of these schedules, and to state that their clearness and completeness materially diminished the heavy labour attendant upon the valuation of so large and so varied a body of risks. Ordinary Branch. 4. A preliminary analysis of the risks showed that there were no less than 207 different groups to be dealt with (irrespective of the Industrial), each of which required distinct

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Branch. Section. Series. No. of Contracts. Ordinary - .. f J I General .. Old New 17,075 3,249 Total 20,324 Temperance Old New 1,784 1,110 Industrial f 1 Total 2,894 3,907 286 General .. Temperance Total 4,193

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valuation, in some cases, of every separate composing item, and, in others, o£ minor groups extending over a wide range of ages. It may be interesting to note the different groups of risks, and the number of contracts contained in each, since they represent the modes in which the present population of the Colony of New Zealand effect their assurances.

The following table will supply some materials on this head: —

Again, the following analysis of the main class of risks, namely, those of the ordinary whole-term assurances, is worth placing on record: —

5. The accounts of the General and Temperance Sections not having been kept separate, and it being indispensable, before the surplus of each separate section can be ascertained, to show the amount of the fund belonging to each, we have, in accordance with the instructions in Mr. Luckie's memorandum, given our best consideration to the principles upon which the dissection of the accounts should be made. We think, however, that this apportionment should be undertaken, in future, by the officers of the Association, who are better qualified to make the division, as they have fuller knowledge of the details of the charges. In any case it is essential that, henceforth, the accounts should be separately stated. The method adopted, on this occasion, has been, for each year, — To assign to the respective sections, the expenses that admit of being specifically appropriated—such as commission and medical fees ; To divide the remaining expenses between the two sections, in proportion to the premium-income of each; To divide the interest, between the two sections, in proportion to the average fund of each for that particular year.

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Genebal and Tempebamce Sections combined. Number. Nature of Contract. >ri< Annual Premiums payable. When payable. of Contribution. Groups for Separate Valuation. Contracts. Amount assured. Assurances Death Death or fixed ago Special Fixed periods Current and deferred .. Life Fixed periods .. Special Fixed periods .. 24 24 123 23 5 8 12,602 886 8,592 181 894 63 £ 3,902,731 431,997 2,110,152 28,740 20,593 3,911* £ 107,416 11,121 76,123 1,105 1,118 19 Investments .. Annuities 207 23,218 6,554,213 3,911* 190,902 * Per annu:

Geni :eal Sin JTION. Temperance Section. Propon Distrit donate •ution. Averaj f e Age. Proportionate Distribution. Average Age. Premium payable. Number of Policies. Average Sum assured. 2» §3.2 ■2.8 go a H 4= Number of Policies. Average Sum assured. O ■ ■§.S |S |o 5S a o Yearly Half-yearly Quarterly Monthly 1,901 4,593 3,738 895 389 338 269 275 17-53 41-06 33-41 8-00 21-39! 43-52, 28-201 6-89; 36-05 36-71 37-33 35-35 42-46 ! 42-48 42-00 39-22 42-46' 168 42-48 482 42-00 638 39-22 127 42-05 1,415 168 482 638 127 294 11-87 14-60 32-37 33-86 255 34-07 30-34 32-70J 34-24 218 45-09 41-12 34-84 30-41 212 8-97 7-94 31-92 33-56 239 100-00 1 100-00 33-55i 35-10 I I 294 255 218 212 All classes 11,187 319 ioo-oo! 100-00 36-68

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ACTUARIES' REPORT.

In this manner, accounts have been prepared of the two sections for the five and a half years that have elapsed since the last valuation. Of these, the following is the summary: —

7. Of the surplus of £245,315 in the General Section, we recommend that .£150,000 be divided on the present occasion, and that £95,315 be reserved. The deficiency in the Temperance Section need not excite uneasiness, since no surplus could have been expected to accrue during the short period that this separate section has been in existence. 8. The surplus of £150,000 proposed for distribution in the General Section should, in our opinion, be divided among the policies on the participating scales, in proportion to the loading on the premiums paid under each since the last valuation of the 30th June, 1880. For policies that were in force at that date, the loading must therefore be taken for five and a half years ; and, for those granted subsequently, from the dates of their respective issue. No exclusion should be made, but every participating policy, however short the time it may have been in force, should share. By " loading " is meant, (in whole-term cases where the premium is payable annually throughout life,) the difference between the premiums set out in the policies and the corresponding |—j M 4| per cent, premiums. If an extra premium has been charged on account of the life being under average, it is intended that the loading at the increased age be taken ; but, if the policy has been charged with a fixed or sliding debt, then the loading at the true ago.

15

Income. General Section. Temperance Section. £ s. d. 459,335 17 0 843,731 1 1 11,519 4 2 216,322 15 6 122 13 1 £ s. d. Fund, 30th Juno, 1880 Premiums Annuity purchase-money .. Interest Fees 34,786 13 10 999 6 7 Tota .. 1,531,031 10 10 35,786 0 5 Outgo. Claims Surrenders Bonus surrendered Annuities Property-tax Expenses, including commission £ s. d. 217,491 3 0 64,864 13 6 8,104 1 0 13,686 18 0 1,828 19 5 139,610 6 0 £ s. d. 4,338 10 0 281 16 10 17 0 9 14,559 10 10 Fund, 31st Doc, 1885 1,085,445 9 11 16,589 2 0 6. The valuation has been made on aation has been made on the data and principles explained in par i tl [graphs 11, 2, 13, and 14; and the results are as fo and the results are as follow : — jllo" General Section. Temperance Section. Fund as above Estimated liability £ s. a. 1,085,445 0 0 840,130 0 0 £ s. a. 16,589 0 0 19,348 0 0 Surplus 245,315 0 0 Deficiency 2,759 0 0

H.—l2.

ACTUARIES' REPORT.

To policies secured by a limited number of premiums, the sum apportioned in cash should be the same as if the policies had been effected by premiums payable throughout life. In the case of policies subject to half-yearly, quarterly, or monthly premiums, the equivalent annual premiums should be employed; and, if, since the last valuation, premiums have been paid for a number of years and a fraction (for instance, for three and a quarter years), the proportionate amount of cash-bonus should be allotted. The same principles should be applied to endowment assurances, to assurances on joint lives, and to participating policies of all other classes. 9. Where the bonus is to be applied to increase the sum assured, or to reduce the future premiums, we recommend that the conversion of the cash appropriation should be calculated at 3-2 per cent, interest. The deferred-bonus policies must have their proper cash allotments on the above principles ; and, these will have to be converted into reversionary amounts, vesting at the end of the stipulated periods. 10. We think that, until the next valuation, the intermediate bonuses to be allowed should not exceed four-fifths of the rate of cash-bonus now declared. 11. In each of the two preceding valuations, the Institute of Actuaries' " Healthy Males " Mortality Table was employed for the assurance contracts; and, on the present occasion, it has been again adopted. In making the valuation of the contracts of a life assurance institution, regard must be had to the probable rates of mortality up to the extreme limits of human life. The Association has, however, existed for fifteen years only, and, therefore, cannot, from its own experience, supply the required information. For the annuity contracts, the tables used were those based upon the recently made analysis (1884) of the duration of the lives of the British Government annuitant nominees; and the sexes have been distinguished. The liability under the endowment and investment contracts has been estimated by accumulating the premiums paid at 4 per cent, compound interest. 12. W T here policies have been granted on lives presumed not to come up to the average vitality, and which have, therefore, been charged with an extra premium, the surcharge has been made in three distinct ways, viz. : — (a.) By increasing the premium payable; (b.) By charging the sum assured with a fixed debt, which after a given period is extinguished, leaving the assurance thereafter in force for the full amount; and, (c.) By charging the sum assured with a sliding debt, diminishing year by year, until it becomes extinguished. In all these cases, neither the additional premiums nor the debts have been taken into account in the valuation, but have been treated as a fund to provide year by year for the increased mortality expected to arise in this class. 13. The question of the rate of interest to be assumed in the valuation has received our careful consideration. Looking, first, at the rates that have been realized, an analysis of the accounts, for the five and a half years since the last valuation shows the following results : — £ s. a. 12 months 1880—81 ... ... 5 4 4 per cent per annum. 12 „ 1881-82 ... ... 5 3 5 6 „ December, 1882 ... 5 4 3 „ 12 „ 1883 ... ... 5 6 2 12 „ 1884 ... ... 5 6 7 „ 12 „ 1885 ... ... 5 0 7 „

16

H.—l2

ACTUARIES' REPORT.

By the Act of 1884, the powers of the Association with regard to investments were enlarged, with the object of placing the funds to the best advantage; but, on the other hand, there is a tendency for the rate of interest to become equalized throughout the world, and, consequently, to fall in New Zealand. Giving due weight to all the circumstances, we are of opinion that, on the present occasion, it may fairly be assumed that a rate of £4 10s. per cent, per annum will continue to be realized in New Zealand. As stated in paragraph 15, we, however, recommend that a further reserve be made, so that, if thought expedient, the assumed rate of interest may be reduced at future valuations. 14. In the valuation, provision has been made for the immediate payment of claims. For the half-yearly, quarterly, and monthly cases, the true corresponding net premiums have been adopted; and, in all cases, the full loading has been reserved for future expenses and profits, with the proper additional reserve in respect of those policies where the premiums are payable for a limited period only. 15. By employing the true half-yearly, quarterly, and monthly net premiums, instead of the equivalent annual premiums, the estimated liability has, on the present occasion, been somewhat reduced, and the surplus, to an equal extent, increased ; but, we do not think that this portion of the surplus should be divided. The additional premiums paid in respect of policies on under-average lives, and the debts charged against other similar policies, have been, so far as we can judge, more than sufficient to meet the extra mortality already experienced; but, we think that the surplus from this source should, for the present, be reserved. It is possible that the extra mortality may be only deferred, and we think it will be prudent to retain a fund in hand to meet such a contingency. As already remarked in paragraph 13, we think provision should be made for reducing, if deemed expedient, the assumed rate of interest of future valuations. For these, amongst other, reasons, we have recommended in paragraph 7, that the ascertained surplus of £245,315 should not all be divided, but that £95,315 should be reserved. If our recommendation be adopted, the effect will be to place the Association in the position of having made a netpremium valuation at 4 per cent, interest, and of having set aside an additional reserve for under-average lives. 16. In the Appendix, will be found a tabular statement detailing the contracts as valued, and the results of the valuatior.. (See pages 24 and 25.) Industrial Branch. 17. On the 31st December, 1885, there were in force in this branch 4,193 policies for assurances, amounting to .£59,514 145., and yielding in premiums £2,732 16s. 4d. per annum. The average amount assured by each policy is £14 4s. ; the average weekly premium being threepence. Sixty-five per cent, of the policies are on the lives of children. The amount of the fund is £2,058. We have made a valuation of the liabilities, and are satisfied that, while the fund is sufficient, there is no surplus available for division in this branch; and, as we learn from Mr. Luckie's memorandum that the branch is to be closed without delay, any further discussion seems unnecessary. We are, Sir, Your obedient servants, ARTHUR H. BAILEY. RALPH P. HARDY. GEORGE KING. The Hon. the Colonial Secretary.

3—H. 12.

17

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APPENDIX CONTAINING I. Statement respecting the Valuation of the Liabilities under Life Policies repaired by the Fourth Schedule to the Act. 11, The Consolidated Revenue Account. 111. Abstract of the Valuation of the Policies. IV. The Valuation Balance-sheet. V. Statement of the Life Insurance Business required by the Fifth Schedule. VI. Tables of Premiums. VII. Table of Surrender Values.

H.—l2.

FOURTH SCHEDULE. Statement respecting the Valuation of the Liabilities under Life Policies and Annuities or the Government Insurance Department, to be made by an Actuary or Actuaries. Question I.—The date up to which the valuation is made, and the principles on which it is made, showing—(a.) Whether whole-life policies are valued individually or in classes : (b.) The formula according to which whole-life policies are valued : (c.) The manner in which the age at valuation is arrived at: (d.) When the next payment of premium is assumed to be due after the date of the valuation : (c.) How long after death the sum assured is assumed in the valuation to be payable, and how long after death claims are actually payable : (/.) In what manner policies on under-average lives, issued at additional rates on account of unfavourable family or personal history, are dealt with in the valuation. Answer. —The 31st December, 1885, was the date up to which the valuation was made, and it was made upon the principles explained in paragraphs 11, 1.2, 13, and 14 of the Actuaries' Report, pages IC, 17. Death claims are paid immediately after the necessary proofs and other documents have been received. Question 2. —The principles upon which the distribution of profits among the policyholders is made. Answer. —The surplus has been divided among the policies on the participating scales which were in force on the 31st December, 1885, in proportion to the loading on the premiums paid under each policy since the date of the last division, viz., 30th June, 1880. The loading was obtained by subtracting from the tabular annual premium the corresponding H M 4| per cent, premium. In converting the cash surplus into reversionary bonuses, the H ( |s table of mortality was used, with 4 per cent, interest. The loading on joint-life policies was obtained by using the Carlisle 4| per cent, pure premium, and the cash was converted into reversionary bonus by Carlisle 3| per cent. Policies secured by a limited number of premiums were treated as though the premiums had been spread over the whole term of the policy. In all cases of rated-up lives, such lives were treated as though they had been of the higher age. Question 3. —The Table or Tables of Mortality used in the valuation. Answer. —See paragraph 11 of Actuaries' Report, page 16. Question 4. —The rate or rates of interest assumed in the calculations. Answer. —See paragraph 13 of Actuaries' Report, page 16. Question 5. —The proportion of the annual premium income (if any) reserved as a provision for future expenses and profits, stating separately the proportion reserved on participating and non-participating policies. Answer. —The whole of the loading has been reserved on the participating policies. The whole of the premium has been reserved on the non-par-ticipating policies (in which division there are no ordinary whole-life or endowment-assurance policies). Question 6.—The Consolidated Revenue Account since the last valuation. Answer. —See page 23.

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FOURTH SCHEDULE.

Question 7.—The liabilities of the Department under life policies and annuities at the date of the valuation, showing the number of policies, the amount assured, and the amount of premiums payable annually under each class of policies both with and without participation in profits; and also the net liabilities and assets of the Department, with the amount of surplus or deficiency. Answer. —See pages 24, 25, 26. Question 8. —The time during which a policy must be in force in order to entitle it to share in the profits. Answer. —Every participating policy in the general section issued before or on the 31st December, 1885, and which was in force at that date, shared in the profits. Question 9. —The results of the valuation, showing— (a.) The total amount of profit made by the Department since last valuation. (b.) The amount of profit divided among the policyholders, and the number and amount of the policies which participated : (c.) Specimens of bonuses allotted at the distribution of profits to policies for £100 effected at the respective ages of 20, 30, 40, and 50, and having been respectively in force for three years, five years, ten years, and npwards, at intervals of five years respectively, together with specimens of the amounts apportioned under the various modes in which the bonus might be received : (d.) Specimens of the net premiums valued for a whole-life policy of £100 for ages at entry, 20, 30, 40, 50, and 60, and the rate of interest and mortality by which they have been computed : (c.) The amount reserved by the method of valuation under policies for £100 effected at the respective ages of 20, 30, 40, 50, and 60, and in force for one, two, three, four, five, six, seven, eight, nine, and ten years. Answer. — (a.) The total amount of profit made by the Department since last valuation was £242,556 11s. lid. (b.) The amount of profit divided amongst the policyholders was £150,000, and the number and amount of policies which participated were 19,203 for the sum of £5,794,861 15s. 2d., or, including reversionary and special bonus additions, £5,882,798 9s. 2d.

(c.) Specimen bonuses in respect of the period, 30th June, 1880, to 31st December, 1885, allotted to policies of £100 each, for the whole term of life.

21

Policies ii FORCE FOR 8 Years. 5 Years. Age at Entry. Age at Entry. Beversionary Addition. Cash Value. Beduction of Premium for Life. Beversionary Addition. Cash Value. Beduction of Premium for Life. £ 3. d. 720 £ 3. d. 1 8 7 £ s. d. 016 || £ s. d. 12 o o £ 3. d. 2 10 7 £ >■ d. 029 20 20 30 4 18 0 1 5 4 o 1 5 7 17 o 229 026 30 40 4 7 0 1 9 4 O I II 6 19 o 670 298 034 40 50 400 1 15 7 O 2 IO 2 19 8 050 5° {Continued,

H.—l2.

FOURTH SCHEDULE.

Specimen Bonuses— continued.

(d.) Specimens of net premiums valued: whole-life assurance of £100. Hm. 4½ per cent.

(e.) Schedule showing the amount reserved on whole-life policies, for different ages and durations.

22

Policies in force fob 10 Years. 15 Years. Age at Entry. Age at Entry. Reversionary Addition. Cash Value. Reduction of Premium for Life. B A V dditon ary Cash Value. Reduction of Premium for Life. 20 / s. a. 740 £ 3. a. 1 14 7 £ s . a. O I II £ s. a. 6 10 o £ 3. a. 1 15 5 £ s. a. 021 20 30 7 10 o 268 O 2 II 6 13 o 277 0 3 3 30 40 6 10 o 2 13 4 O 3 II 5 17 o 2 15 o 047 40 SO 4 16 o 2 11 3 o 4 II 470 2 12 3 o 5 10 50

Age. Net Premium. 20 £ n697 30 1-5798 40 2-2470 50 3-4240 60 5-5881

Duration of Policy. Ago at Entry. Age at Entry. 1 Year. 2 Years. 3 Years. 4 Years. 5 Years. 20 £ 0-593 £ 1-177 £ 1-780 £ 2-423 £ 3-111 20 30 0-886 1-799 2-742 8-719 4-727 30 40 1-332 2-720 4-161 5-647 7-176 40 50 2-015 4-085 6-200 8-353 10-542 50 GO 2-959 5-918 8-867 11-799 14-724 60 Duration of Policy. Age at Entry. Age at Entry. 6 Years. 7 Years. 8 Years. 9 Years. 10 Years. £ 3-836 £ 4-593 £ 5-369 £ 6-160 £ 6-968 ;<0 20 30 5-764 6-825 7-913 9 030 10-181 30 40 8-735 10-315 11-921 13-557 15-225 40 50 12-759 15-003 17-272 19-565 21-873 50 60 17-650 20-584 23-536 26-523 29-515 60

H.—l2

FOURTH SCHEDULE.

FORM REFERRED TO UNDER HEADING No. 6 IN FOURTH SCHEDULE. CONSOLIDATED REVERE ACCOUNT OF THE For the Period commencing ist July, 1880, and ending 31ST December, 1885.

ORDINARY BRANCH.

T I £ s. d. £ s. d. Amount of Funds on ist July, 1880.. .. 459.335 17 o Claims under Policies, Assurance .. .. 218,674 J 3 ° Renewal Premiums .. .. .. 806,793 12 4 Claims under Policies, Endowments matured 3,155 o o New Premiums .. .. .. .. 61,075 3 8 Annuities .. .. .. .. 13,686 18 o Single Premiums.. .. .. .. 10,648 18 11 Surrenders .. .. .. .. 65,146 10 4 Consideration for Annuities granted .. 11,519 4 2 Bonuses paid in Cash .. .. .. 8,104 l ° Interest .. .. .. .. .. 217,322 2 1 Commission, New .. £40,755 19 4 Fees .. .. .. .. .. 122 13 1 Commission, Renewal .. 6,203 12 10 46,959 12 2 Expenses of Management,— Salaries .. .. 49,733 6 11 Medical Pees .. .. 22,210 18 10 Travelling Expenses .. 5>393 19 4 Advertising .. .. 2,544 10 7 Printing and Stationery.. 7,858 14 3 Rent .. .. .. 2,803 16 7 Postage .. .. 4,000 o o Telegrams .. .. 1,854 J 6 3 Exchange .. .. 663 13 2 Office Furniture depreciation .. .. .. 1,117 9 3 General Expenses .. 4,644 11 6 Compensation for loss of Office .. .. 634 8 o Quinquennial Valuation Expenses .. .. 2,900 o o Alterations in Offices .. 250 o o Directors' Fees .. 600 o o 107,210 4 8 Property-tax .. .. .. .., 1,846 o 2 Amount of Funds on 31st December, 1885 .. 1,102,034 XI xl £1,566,817 11 3 £1,566,817 11 3

INDUSTRIAL BRANCH. £ s. d.\ £ s, i, Amount of Funds on ist July, 1880 .. .. 722 14 6 I Surrenders .. .. .. .. 3>4i3 15 o Premiums .. .. .. .. 20,330 11 6 Commission .. .. .. .. 5,000 11 9 Interest .. .. .. .. .. 299 13 5 Claims .. .. .. .. .. 2,054 10 o Fees .. .. .. .. .. 219 4 Expenses of Management,— Salaries .. .. .. 3,582 10 4 Medical Fees .. .. 966 5 10 Travelling Expenses .. 279 15 6 Advertising .. .. 305 12 9 Printing and Stationery .. 449 13 11 Rent .. .. .. 128 15 o Postage .. .. .. 450 3 5 Telegrams .. .. 70 8 6 General Expenses .. 286 9 n Interest .. .. .. 79 6 10 Preliminary Expenses written off .. .. 2,201 12 8 Office Furniture depreciation 7 15 8 Miscellaneous .. .. 20 15 10 8,829 6 2 Amount of Funds on 31st December, 1885 .. 2,057 15 10 18 9 £21,355 18 9

23

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24

Form referred to under SUMMARY AND VALUATION OF THE POLICIES OF THE As at the 31st GENERAL

particu: 1ARS OF th: DESCRIPTION OF TRANSACTIONS. Number of Policies. Sums assured. Bonuses, including Special Bonuses. Yearly Permanent Reduction of Premiums. WITH PARTICIPATION IN PROFITS. Assurances. £ £ £ I. For the Whole Term of Life, subject to uniform Premiums throughout Life II. For the Whole Term of Life, Limited and Single Premiums III. Endowment Assurances 11,187 3,568,156-40 56,105-10 13-876 873 412,298-559 15,442-75 3-313 7,126 1,809,405-80 16,388-85 8-913 IV. Joint Lives 17 5,000 Total Assurances with Profits.. 19,203 5,794,861-759 87,936-70 26-102 WITHOUT PARTICIPATION IN PROFITS. V. Simple Endowments without Return of Premiums VI. Simple Endowments with Return of Premiums XI. and IV. Term Policies (Assurance) 5 145 164 1,300 15,940 6,500 Total Endowments and Assurances without Profits 23,740 VII., VIII., IX., and X. Annuities V. Investment Policies 63 894 3,911-506* 20,593859 Total of the Results I 1 5,839,195-618 3,911-506* 1 I 87,936-70 26-102 20,324 * Per annum. TEMPER .HOE WITH PARTICIPATION IN PROFITS. Assurances. I. For the Whole Term of Life, subject to Uniform Premiums throughout Life II. For the Whole Term of Life, Limited and Single Premiums III. Endowment Assurances i.4 I 5 338,468-80 I 13 4,256 1,466 284,356 Total of the Results 2,894 627,08080 ;

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25

heading 7 in Fourth Schedule. GOVERNMENT INSURANCE DEPARTMENT OF NEW ZEALAND, December, 1885. SECTION.

4—H. 12.

'OLICIES FOR VA: .UATION. VALU. .TION. Yearly Reductions of Premiums, including Temporary Reductions. NET LIABILITOffice Yearly Premiums.' Pure Yearly Premiums. Sums assured. Bonuses. Office Yearly Premiums. Pure Yearly Premiums. Reserve of Loading. £ s. a. 98,736 14 1 10,996 18 o £ 78,884-183 8,866-686 £ 1,377,295 164,768 £ 24,504 6,328 ! I 1 £ 181 \ 149 1 30 I 9 J 33 1 !5 J £ 1,275,215 64,687 / 1,049,693 52,686 £ 25,335 £ 352,436 143,784 66,673 10 6 55,132-187 168-543 883,516 9,903 712,364 2,015 590,368 500 303,599 201 3 2 2,659 1,727 932 176,608 5 9 2,428,238 40,735 417 2,054,281 1,694,474 25,835 143,051-599 800,751 54 4 7 720 12 3 128 16 o 50-666 707 5,873 65 7°7 5,873 65 903 12 10 50-666 6,645 6,645 19 19 2 1,118 I o 30,709 2,116 no 91 30,618 2,116 178,649 18 9 143,102-265 2,467,708 40,735 417 2,054,391 1,694,565 25,835 840,130 BCTIOIT. 8,680 o 1 6,834*339 108,378 125,669 100,567 7,811 124 1 9 8S759 1,131 1,310 975 99 255 9,45o 3 9 7,701-472 112,331 123,919 101,049 11,282 221,840 250,898 19,348 18,254 5 7 14,624-570 202,591 99

H.—l2.

FOURTH SCHEDULE.

Form referred to under heading 7 in Fourth Schedule. VALUATION BALANCE-SHEET OF THE Govern/AENT Insurance Department, As at 31st December, 1885.

Dr. £ s. d. Cr. £ s. d. To Net Liability under Assurance and By Life Assurance and Annuity Funds Annuity Transactions (as per Sum- (as per Consolidated Revenue mary Statement provided in Fourth Account provided under heading Schedule) .. .. .. 859,478 o o No. 6in Fourth Schedule) .. 1,102,034 11 11 To Surplus.. .. .. .. 242,556 11 11 £1, 102,034 11 11 /i,102,034 11 11

26

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FIFTH SCHEDULE. Statement of the Life Assurance and Annuity Business of the Government Insurance Department on the 31st December, 1885. Question 1. —The published Table or Tables of Premiums for assurances for the whole term of life, and for endowment assurances, which are in use at the date above mentioned. Answer. —See pages 29-31. Question 2. —The total number of policies and amount assured on lives for the whole term of life, with equal annual premiums payable during remainder of life, which are in existence at the date above mentioned, distinguishing the portions assured with and without profits, stating separately the total reversionary bonuses, and specifying the sums assured for each year of life, from the youngest to the oldest ages. Answer. — See page 32. (There are also special bonuses for £1,327 in addition to the ordinary bonuses shown in the Table.) Question 3. —The amount of premiums receivable annually for each year of life, after deducting the abatements made by the application of bonuses in respect of the respective assurances mentioned under heading No. 2, distinguishing ordinary from extra premiums. Answer. —See page 32. Question 4. —The total number of policies and amount assured under classes of assurance business other than for the whole term of life, distinguishing the number of policies and sums assured under each class, and stating separately the amount assured with and without profits, and the total amount of reversionary bonuses. Ansiver. — See page 33. (There are also special bonuses for £61-5 in addition to the ordinary bonuses shown in the Table.) Question 5. —The amount of premiums receivable annually in respect of each such special class of assurances mentioned under heading No. 4, distinguishing ordinary from extra premiums. Answer. —See page 33. Question 6. —The total amount of premiums which has been received from the commencement upon all policies under each special class mentioned under heading No. 4, which are in force at the date above mentioned. Answer. — See page 33. Question 7. —The total amount of immediate annuities on lives, distinguishing the amounts for each year of life. Answer. —See page 34. Question 8. —The amount of all annuities other than those specified under heading No. 7, distinguishing the amount of annuities payable under each class, the amount of premiums annually receivable, and the amount of consideration-money received in respect of each such class, and the total amount of premiums received from the commencement upon all deferred annuities. Ansiver. —See page 34. Question 9. —A Table of Minimum Values, if any, allowed for the surrender of policies for the whole term of life, and for endowments and endowment assurances, or a statement of the method pursued in calculating such surrender values, with instances of its application to policies of different standing, and taken

H.—l2

FIFTH SCHEDULE.

out at various interval ages, from the youngest to the oldest; and a statement to be furnished of the manner in which policies on under-average lives, accepted at additional rates on account of unfavourable family or personal history, are dealt with. Answer. —See page 35. Question 10. —A summary similar in form to the Third Schedule, showing the total number of policies in force at the date of the last valuation, the number issued, and the number discontinued by death, maturity, surrender, lapse, and all other causes since the last valuation, stating the number in force at the date above mentioned, and the total annual income. Answer.—See pages 36 and 37.

28

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FIFTH SCHEDULE.

ANSWER TO QUESTION 1. The Published Tables of Premiums which were in Use on the 30th June, 1875.

29

For the Assurance of Lives res: lent in a: ly Part of the World. Endow: cent Assueancb.—An: be paid as indicati 5UAL PEEMIUMS TO BE' m, ob at Death, ie pj JUEE £100, TO HOB. I'm MIUMS TO SEOTBE £100, PAYABLE AT DEATH. K c3 op.a Annual Premium, Whole Life. Annual Premium TO CEASE AETEE 15 Years. 20 Years. Single Premium. At Age 65. At Age 60. At Age 55. At Age At Age 50. 45. At Age 40. t3 >• 5 Years. 10 Years. 25 26 27 28 29 £ 3. d. i 14 11 1 16 o I 17 I I 18 2 I 19 4 £ 3. d. 6 14 o 6 16 11 701 7 3 0 760 £ 3. d. 3 15 o 3 16 9 3 18 8 404 4 1 11 £ *■ d. 2 15 10 2 17 1 2 18 7 2 19 10 312 £ 3. d. 268 2 7 9 290 2 10 4 2 11 5 £ 3. d. 31 2 4 31 15 10 32 9 10 33 7 o 33 17 2 £ 3. d. i 19 3 207 223 2 3 11 256 £ S. d. 242 260 2 7 n 2 10 o 2 12 1 £ 3. d. 2 11 g 2 14 3 2 16 10 2 ig 8 326 £ 3. d. 3 3 4 3 6 g 3 10 g 3 14 10 3 19 3 £ 3. d. 4 1 9 4 7 3 4 13 4 504 5 7 11 £ 3. d. 5 14 4 6 4 4 6 15 11 7 9 5 8 5 4 25 26 27 28 29 30 31 32 33 34 2 0 6 2l8 2 2 IO 24O 2 5 2 7 9 1 7 11 9 7 14 7 7 17 8 8 o 11 4 4 3 4 5 2 4 6 11 4 8 g 4 10 6 327 3 3 9 3 5 0 3 5 11 3 6 10 2 12 5 2 13 5 2 14 6 2 15 IO 2 17 O 34 9 6 35 1 11 35 14 10 36 8 6 37 3 o 271 2 8 g 2 10 8 2 12 6 2 14 7 2 14 3 2 16 6 2 18 11 3 1 7 3 4 6 3 5 8 3 9 0 3 12 6 3 16 8 410 442 4 9 5 4 15 4 520 5 9 7 5 16 5 662 6 17 5 7 10 8 865 9 4 1 30 31 32 33 34 35 36 37 38 39 2 6 6 280 296 2 II 2 2 12 II 840 876 8 11 3 8 15 o 8 18 10 4 12 6 4 14 8 4 16 10 4 19 1 5 1 4 380 3 10 2 3 12 8 3 14 4 3 16 1 2 l8 2 2 ig 8 310 327 340 37 18 o 38 13 4 39 9 10 40 6 3 4i 3 2 2 16 11 2 ig 5 321 3 4 11 382 3 7 9 3 11 3 3 15 o 3 19 1 4 3 8 460 4 11 6 4 17 7 5 4 5 5 12 1 5 18 3 683 6 ig 10 7 13 4 8 9 3 9 5 5 35 36 37 38 39 40 41 42 43 44 2 14 8 2 16 5 2 18 2 2 19 II 3 I IO g 2 10 965 9 10 2 9 13 10 9 17 5 5 3 8 5 5 8 5 7 10 5 IO o 5 11 11 3 17 10 3 19 5 410 429 4 4 4 3 5 7 3 7° 3 8 5 3 10 o 3 11 6 41 19 n 42 16 o 43 !2 o 44 8 o 45 4 10 3 11 3 3 14 7 3 18 3 421 466 487 4 13 10 4 19 9 562 5 13 6 6 0 g 6 10 8 7 1 9 7 14 9 8 10 3 g 8 5 40 41 42 43 44 45 46 47 48 49 3 3 10 360 3 8 5 3 II O 3 14 o 10 1 2 10 5 o 10 9 0 10 13 IO 10 18 9 5 13 11 5 16 3 5 18 7 6 1 g 6 5 1 461 4 7 11 498 4 12 2 4 14 11 3 13 0 3 14 9 3 16 10 3 19 2 4 1 8 46 1 11 47 o 1 47 19 4 48 19 11 50 2 5 4 II 2 4 16 5 525 5 9 3 5 17 2 6 1 10 6 n 5 725 7 15 6 8 11 3 g 8 g 45 46 47 48 49 50 51 52 53 54 3 17 4 4 1 1 4 5 0 4 9 3 4 13 6 11 3 9 11 9 10 11 15 9 1222 12 8 7 6 8 g 6 12 o 6 15 4 6 19 2 7 3 6 4 17 8 5 1 7 5 5 8 5 9 0 5 12 8 4 4 0 469 4 10 5 4 14 5 4 18 3 51 6 6 52 12 1 53 18 2 55 4 8 56 11 7 662 6 16 9 7 8 10 8 2 11 8 ig 7 9 10 3 50 51 52 53 54 55 56 57 58 59 60 4 18 o 529 5 7 0 5 11 8 5 16 7 617 12 15 2 7 8 10 5 16 6 523 57 19 3 9 19 8 55 56 57 58 59 60

H.—l2.

FIFTH SCHEDULE.

ANSWER TO QUESTION 1-continued. The Published Tables of Premiums which were in Use on the 30th June, 1880.

30

For the Assurance of Liv: s resident in any Part of the World. PREMIUM! TO SECU3] £100, PAY. !LE at ;ath. Endowme: it Assurance.—Annual Premiums to secure £100, to be paid as indicated, ob at death, ie pbiob. Annual Premium during whole of Life. Annual 'BEMIUM LI] [ITED to Single. Premiums. In 10 Years. In 15 Years. In 20 Years. In In In g^ 25 Years. 30 Years. 35 Years, o" Twenty Payments. ' Fifteen Payments. Ten Payments. 25 26 27 28 29 £ s. d. 1 15 9 1 16 8 I 17 8 1 18 8 1 19 9 £ 3. d. 2 11 1 2 12 1 2 13 2 2 14 2 2 15 3 £ 3. d. 3 1 5 327 3 3 9 3 5o 363 £ s. d. 429 443 4 5 10 4 7 6 492 £ 3. d. 33 17 I0 34 9 6 35 2 2 35 14 4 36 7 7 £ 3. d. 9 1 5 9 1 8 g 1 11 922 925 £ s. d. 5 15 3 5 15 6 5 15 10 5 16 1. 5 16 5 £ 3. d. 4 3 3 4 3 7 4 3 11 4 4 3 4 4 7 £ s. d. 3 5 1 3 5 5 3 5 9 362 367 £ 3. d. 2 13 9 2 14 2 2 14 7 2 15 1 2 15 7 £ s- d. 266 270 276 2 8 1 288 25 26 27 28 29 30 31 32 33 34 2 o 10 220 232 2 4 5 2 5 9 2 16 4 2 17 6 2 18 8 2 ig II 3 1 3 3 7 7 3 8 11 3 10 3 3 11 8 3 13 1 4 10 10 4 12 7 4 14 4 4 16 2 4 18 1 37 o 4 37 14 1 38 7 3 39 1 2 39 15 10 928 9 2 11 932 9 3 5 9 3 9 5 16 8 5 16 11 5 17 3 5 17 7 5 17 11 4 4 11 4 5 3 4 5 8 461 466 3 7 0 3 7 5 3 7 11 3 8 5 3 9 0 2 16 1 2 16 8 2 17 3 2 17 11 2 18 7 2 9 3 2 9 11 2 10 8 2 11 5 2 12 3 30 31 32 33 34 35 36 37 33 39 272 287 2 10 1 2 11 8 2 13 4 327 3 3 11 3 5 4 369 384 3 14 7 3 16 2 3 17 9 3 19 5 4 1 2 500 520 540 5 6 1 5 8 4 40 11 1 41 5 8 42 o 9 42 16 4 43 13 9 9 4 1 9 4 5 9 4 9 9 5 1 9 5 5 5 18 4 5 18 9 5 19 2 5 19 8 602 470 4 7 7 482 4 8 9 4 9 5 3 9 7 3 10 3 3 11 o 3 11 9 3 12 7 2 19 4 302 3 1 1 320 3 3 0 2 13 2 2 14 2 2 15 3 2 16 5 2 17 8 35 36 37 38 39 40 41 42 43 44 2 15 2 2 17 1 2 ig 1 3 1 3 3 3 6 3 10 o 3 11 9 3 13 6 3 15 5 3 17 5 4 3 0 4 4 11 4 6 10 4 8 11 4 II 1 5 10 7 5 12 11 5 15 5 5 18 o 608 44 10 1 45 7 10 46 5 6 47 4 4 48 2 9 9 5 9 963 9 6 10 9 7 5 982 609 614 621 6 2 10 6 3 9 4 10 2 4 10 11 4 11 10 4 12 10 4 13 11 3 13 6 3 14 6 3 15 8 3 16 11 3 18 4 3 4 2 3 5 5 3 6 9 384 3 10 o 2 19 o 40 41 42 43 44 45 46 47 48 49 3 5 11 3 8 6 3 11 2 3 14 o 3 17 o 3 19 7 4 1 11 4 4 3 468 4 9 4 4 13 5 4 15 10 4 18 4 5 o 11 5 3 7 6 3 5 664 694 6 12 5 6 15 7 49 2 3 50 2 6 51 2 4 52 2 II 53 3 11 9 8 11 9 9 9 9 10 8 9 11 7 9 12 7 6 4 9 6 5 10 670 682 696 4 15 2 4 16 7 4 18 1 4 19 8 5 1 4 3 19 10 416 4 3 3 4 5 2 4 7 3 3 11 9 45 46 47 48 49 50 51 52 53 54 402 4 3 6 4 7 1 4 10 11 4 15 o 4 12 1 4 14 11 4 18 o 5 1 4 5 4 10 5 6 5 5 9 4 5 12 6 5 15 10 5 19 5 6 18 10 722 7 5 8 7 9 5 7 13 4 54 5 2 55 6 4 56 8 2 57 10 7 58 13 4 g 13 8 9 14 10 9 16 2 9 17 9 9 19 5 6 10 11 6 12 7 6 14 4 6 16 4 6 18 7 5 3 2 5 5 2 5 7 5 5 9 11 5 12 8 4 9 7 50 51 52 53 54 15 15 »7 i8 i9 ;o 4 19 4 5 4 0 5 9 0 5 14 5 603 667 588 5 12 8 5 17 1 6 1 II 672 6 12 11 632 672 6 11 4 6 15 11 7 o 11 764 7 17 5 818 863 8 11 2 8 16 6 923 59 17 3 61 o o 62 4 6 63 10 o 64 16 4 66 3 11 10 1 3 10 3 4 10 5 8 10 8 3 10 11 3 10 14 9 710 7 3 8 767 7 9 11 7 13 8 7 18 o 5 15 8 55 56 57 58 59 60

H.—l2.

FIFTH SCHEDULE.

ANSWER TO QUESTION 1-continued. The Published New Tables of Premiums which were in Use on the 31st December, 1885.

31

For the Assurance of Lives re: ddent in ai iy Part of the Worl Endow: ient Assub BE PAID A! .nce.—An; indicate: IUAL Pbem: D, OR AT D] [UM3 TO SECURE £100, 3ATH, IE PEIOE. Pe: 5MIUMS TO SECURE £100, PAYABLE AT DEATH. CB £» C313 25 Annual Premium during whole of Life. iual Premium limited to Ten Five Payments. Paymonts. Single Payments. In 10 Years. In 15 Years. In 20 Years. In 25 Years. In In 30 Years. 35 Years. -^3 S'b CD-3 SpcS Twenty Payments. Fifteen Payments. 15 16 17 18 19 £ 3. d. 1 11 1 1 11 11 1 12 9 1 13 8 1 14 5 £ s.d. 2 6 11 2 7 11 290 2 10 1 2 10 11 £ 3. d. 2 16 8 2 17 10 2 19 1 304 3 1 4 £ s. d. 3 16 8 3 18 3 3 J 9 ro 4 1 7 4 2 11 £ s. d. 6 17 11 708 7 3 5 765 7 8 10 £ s. d. 29 8 o 29 19 o 30 10 o 3 1 3 0 31 12 o £ s. d. 9 4 8 9 5 3 9 5 ii 965 9 6 10 £ s. d. 5 17 3 5 17 9 5 18 3 5 18 9 5 19 2 £ s. d. 4 4 6 4 5 0 4 5 6 460 464 £ s. d. 3 5 8 362 368 3 7 2 3 7 6 £ s. d. 2 13 10 2 14 4 2 14 10 2 15 4 2 15 9 £ 3. d. 260 266 27 o 276 2 7 11 15 16 17 18 19 20 21 22 23 24 1 15 2 1 15 11 1 16 8 1 17 5 1 18 3 2 11 9 2 12 7 2 13 4 2 14 2 2 15 o 324 3 3 4 3 4 3 3 5 2 362 442 4 5 6 468 4 7 10 4 9 3 7 11 1 7 13 4 7 15 6 7 17 7 7 19 11 32 2 o 32 12 O 33 2 o 33 11 o 34 2 o 9 7 1 9 7 2 9 7 3 9 7 3 9 7 5 5 19 4 5 19 6 5 19 7 5 19 9 5 19 11 467 469 4 6 11 4 7 1 4 7 4 3 7 10 380 3 8 3 3 8 5 3 8 8 2 16 O 2 l6 4 2 l6 7 2 16 10 2 17 I 284 287 2 8 11 20 21 22 23 24 2 9 3 297 25 26 27 28 29 1 19 1 201 211 221 232 2 15 10 2 16 11 2 17 11 2 18 11 300 3 7 1 3 8 4 3 9 7 3 10 9 3 12 o 4 10 6 4 12 1 4 13 8 4 15 2 4 16 10 822 8 4 11 878 8 10 4 8 13 2 34 11 0 35 4 o 35 16 o 36 7 o 37 ° o 976 9 7 9 g 8 0 9 8 3 987 601 604 608 6 o 11 6 1 3 4 7 7 4 7 10 482 486 4 8 10 3 9 0 3 9 4 3 9 9 3 10 1 3 10 6 2 17 6 2 17 II 2 18 4 2 18 10 2 19 4 2 IO I 2 IO 7 2 II I 2 II 8 25 26 27 28 29 2 12 3 30 31 32 33 34 2 4 3 2 5 5 268 2 7 11 2 9 3 3 1 1 323 3 3 5 3 4 8 3 5 11 3 13 3 3 14 7 3 15 11 3 17 4 3 18 9 4 18 6 502 5 1 11 5 3 9 5 5 7 8 16 o 8 18 11 920 9 5 o 9 8 3 37 12 o 38 5 o 38 18 o 39 " o 40 6 0 g 8 10 9 9 1 9 9 4 9 9 7 9 9 11 617 6 1 10 622 626 6 2 10 4 9 3 4 9 7 4 10 o 4 10 5 4 10 10 3 11 o 3 11 5 3 11 n 3 12 5 3 13 o 2 19 IO 3 0 5 3 1 o 318 324 2 12 II 2 13 7 2 14 4 2 15 I 2 16 O 30 31 32 33 34 35 36 37 38 39 2 10 8 2 12 2 2 13 9 2 15 4 2 17 1 3 73 3 8 7 3 10 I 3 11 6 3 13 I 402 4 1 9 4 3 5 4 5 0 469 5 7 6 5 9 6 5 11 7 5 13 7 5 15 9 g 11 6 9 14 11 9 18 7 10 2 o 10 5 8 41 o o 41 15 o 42 II o 43 6 o 44 2 o 9 10 3 g 10 7 g 10 11 9 11 3 9 11 7 6 3 3 6 3 8 642 648 652 4 11 5 4 11 11 4 12 6 4 13 1 4 13 9 3 13 8 3 14 4 3 15 o 3 15 10 3 16 8 332 340 3 4 10 3 5 10 3 6 11 2 16 II 2 17 II 2 19 O 3 0 2 3 1 5 35 36 37 38 39 40 41 42 43 44 2 18 11 3 o 10 3 2 10 3 5 1 3 7 5 3 14 9 3 16 5 3 18 2 402 423 4 8 7 4 10 6 4 12 4 4 14 6 4 16 9 5 18 1 605 629 6 5 5 6 8 1 10 g 6 10 13 4 10 17 2 11 1 7 11 6 1 44 19 o 45 16 o 46 13 o 47 12 o 48 11 o g 12 o g 12 6 g 13 1 g 13 8 9 14 5 6 5 9 664 671 6 7 11 6 8 g 4 14 6 4 15 4 4 16 3 4 17 3 4 18 5 3 17 7 3 18 7 3 19 9 4 1 1 426 380 3 9 4 3 10 9 3 12 3 3 14 o 3 2 10 40 41 42 43 44 45 46 47 48 49 3 9 10 3 12 6 3 15 3 3 18 1 412 4 4 4 468 4 9 1 4 11 6 4 14 1 4 19 0 5 1 6 5 4° 5 6 5 5 9 2 6 10 10 6 13 9 6 16 10 6 19 8 7 2 11 11 10 5 11 15 3 12 o 1 12 4 8 12 9 9 49 9 o 50 10 o 51 10 o 52 9 o 53 11 o 9 15 3 9 16 1 9 17 o 9 17 II 9 18 II 6 g 10 6 10 11 6 12 o 6 13 3 6 14 8 4 19 8 5 1 1 526 5 4 2 5 5 10 4 4 1 4 5 9 476 496 4 11 7 3 15 10 45 46 47 48 49 50 51 52 53 54 4 4 4 4 7 9 4 11 5 4 J 5 4 4 19 6 4 16 10 4 19 9 5 2 10 563 5 9 10 5 11 11 5 14 11 5 18 1 6 1 5 650 761 7 9 5 7 12 11 7 16 8 807 12 14 8 12 19 9 13 5 1 13 10 8 13 16 5 54 11 o 55 12 o 56 14 o 57 17 o 59 o o 10 o 0 10 1 3 10 2 7 10 4 2 10 5 11 6 16 1 6 17 9 6 19 7 7 1 8 7 3 11 5 7 9 5 9 10 5 12 2 5 14 8 5 17 6 4 13 11 50 51 52 53 54 55 56 57 58 59 60 5 4° 588 5 13 8 5 19 2 6 5 5 6 12 o 5 13 9 5 17 9 621 670 6 12 8 6 18 7 6 8 10 6 12 9 6 16 11 7 1 7 770 7 12 7 849 8 8 11 8 13 5 8 18 4 9 4 I 9 9 11 14 2 6 14 8 4 14 14 5 15 1 3 15 9 2 15 17 2 60 4 o 61 6 o 62 10 o 63 15 o 65 5 o 66 14 O : 10 7 10 10 9 11 10 12 3 10 15 o 10 18 I 11 I II 764 7 9 1 7 12 1 7 15 6 7 19 5 8 4 1 607 55 56 57 58 59 60

H.—l2.

FIFTH SCHEDULE.

ANSWER TO QUESTIONS 2 AND 3. Assurances for the Whole Term of Life by Even Annual Premiums in force at 31ST December, 1885.

32

a "c3 CD CO < ft » .8 .2 s ° General Sec :ion. Annual Premiums. >6 o a I .2 Amount assured. — Temperance Section. Annual Premiums. Ordinary. Exti Amount assured. Bonus Additions. Ordinary. Extra. Q < ao.s Extra. £ 3. d. 20 0 o £ £ s - d. 063 £ *. d. £ 3. d. £ 3. d. £ s. d. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 1 1 2 7 8 17 21 42 44 50 56 77 77 122 143 174 203 237 261 281 3i5 336 334 343 333 346 370 395 412 478 419 422 433 486 4°7 394 387 39i 307 303 292 278 198 172 146 128 no 50 o o 220 o o 445 o o 1,565 0 o 3,170 o o 3,800 o o 11,050 o o 8,870 o o 13,350 o o 19,800 o o 24,540 o o 22,025 o o 38,100 o o 46,544 o o 52,074 o o 51,585 o o 73,900 o o 80,575 0 o 84,053 o o 102,350 o o 104,150 o o 110,611 o o 107,308 o o 101,300 o o 99,027 0 o 124,026 o o 115,243 o o 131,315 o o 160,102 o o 133,705 o o 134,453 o o 138,700 o 0 155,684 o o 114,779 o o 139,901 o o 131,076 o o 123,180 o o 101,395 o o 92,946 o o 92,116 o o 101,507 o o 69,461 4 o 55,778 4 o 52,600 4 o 45,580 o o 37,400 o o 30,157 0 0 30,403 o o 12,098 o 0 16,650 o o 12,615 o o 10,313 16 o 14,500 o o 12,290 o o g,050 o o 5,550 o o 1,700 o o 900 o o 500 o o 7-60 44-60 24-75 94-85 257-95 2I4-35 376-95 333-55 542-05 762-45 66g-g5 771-30 1,404-40 1,380-55 2,446-85 2,003-95 2,248-20 2,392-70 3,294-4° 2,965-45 2,317-50 3,292-85 3,036-40 2,980-05 1,880-60 2,592-20 2,228-40 2,416-75 2,336-00 1,32875 i,797-65 1,376-25 748-25 803-00 797-55 357-65 2gg'7o 295-90 327'95 345-55 412-10 237-85 234-35 29-10 . 36-90 32-00 o 18 4 3 9 o* 740 23 4 11 51 18 8 61 11 6 187 3 6 154 10 6 235 4 1 355 3 8 450 8 2 408 10 6 701 11 5 870 1 11 999 12 o 1,001 16 10 i,457 1 4 1,623 9 11 1,726 2 5 2,118 9 9 2,222 8 11 2,413 9 11 2,363 15 8 2,308 1 4 2,322 15 2 2,938 o o 2,815 7 o 3,259 13 I 4,132 2 II 3,499 o 3 3,612 14 7 3,757 6 8 4,409 14 3 3.34 1 8 7 4,091 6 10 4,086 11 7 3,895 8 3 3,358 16 7 3,090 19 1 3,197 13 o 3,644 1 3 2,456 17 o 2,147 2 7 1,979 7 8 i,777 4 6 1,605 16 7 i,3H 1 7 1,313 9 6 54i 9 6 853 16 5 606 14 3 534 o 1 792 15 10 605 15 4 534 5 9 297 3 o 86 7 9 52 17 4 27 18 4 I 10 o I o o i 15 o 100 600 1 5 o 1 5 o 250 5 5 0 200 600 500 926 4 17 8 3 10 o 11 15 o 12 17 6 8 16 2 23 10 o 11 7 6 11 10 4 15 12 o 14 18 6 926 15 5 o 4 18 10 4 4 8 12 12 o 650 500 094 4 5 0 300 7 5 0 1 15 o 024 040 o 5 10 o 10 o 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 1 5 10 16 17 19 26 25 34 29 32 43 47 42 53 37 48 57 48 48 48 44 46 37 46 39 53 43 30 44 45 41 29 37 32 23 20 100 o o 575 o o 1,920 o o 3,390 o o 3,050 o o 3,940 0 o 5,575 o o 5,900 o o 8,175 o o 9,200 o o 9,900 o o 10,800 o o 12,705 o o 11,250 o o 13,750 o o 8,900 o o 13,250 o o 13,950 o o 11,400 0 o 12,200 o o 11,125 o o 9,150 o o 11,350 0 o 7,500 o o 10,400 o o 9,080 o o II,000 o o 9,600 o o 6,100 o o 9,050 o o 12,270 o o 11,250 o o 7,550 o o 7,017 o o 6,400 o o 4,700 o o 4,350 o o 10,875 o o 4,940 0 o 4,975 o o 1,700 o o 490 o o 2,850 o o 1,966 16 o 550 0 o 750 o o 325 o o 225 o o 100 o o 100 o o 200 o 0 500 o o 1 n 1 920 29 8 3 55 o o 49 19 4 66 2 5 95 4 6 103 17 8 146 o 2 165 ig o 181 15 o 199 1 3 236 5 4 214 9 o 263 17 o 176 o 6 269 12 7 237 9 3 241 17 7 263 13 3 253 8 5 215 10 7 273 7 2 184 4 11 265 o o 239 17 1 298 n 3 262 n 3 174 14 9 266 10 5 374 o 6 380 6 9 251 6 8 242 7 n 228 10 9 - 179 5 1 169 o 8 424 12 10 200 14 8 219 4 o 76 6 9 23 5 8 136 16 4 101 2 o 31 8 4 41 13 o 19 5 4 12 18 6 6 11 8 6 11 8 13 3 4 43 3 4 100 o 10 o o 10 0 050 076 J 1 5 o 100 2 10 o o 10 o 24 21 20 12 5 11 7 4 5 4 2 100 7i 46 47 36 35 28 27 17 11 5 4 1 500 5 3 10 1 1 2 1 1 100 o o 8' 3 4 Totals 11,187 £3,568,156 8 0 £54,77810 £98,722 16 7 £247 10 6 1,415 £338,468 16 0 £8,680 0 1 £7 17 6

H.—l2

FIFTH SCHEDULE.

ANSWER TO QUESTIONS 4, 5, AND 6. General Section.

5—H. 12.

33

Annual Pkemiums. 'able. Class of Assurance. •O.g a-3 gfL, Sums assured. Reversionary Bonus. Total Premiums Received. Ordinary. Extra for Special Risks. With Profits. £ *■ a. £ 3. a. £ 3. a. £ *• d. £ 3. a. II. Limited number of Premiums and Paid up Policies 873 412,298 11 2 15,442 15 o 10,993 11 9 13 7 2 147,841 3 9 III. Endowment Assurances 7,126 1,809,406 16 o 15,743 17 o 66,664 I2 3 141 16 o 382,275 2 9 IV. Joint Assurances 17 5,OOO o o 201 3 2 426 2,047 15 8 Without Profits. Temporary Assurances (Joint Lives) 2,000 O O 45 o o 135 o o IV. I XI. Temporary Assurances 13 4,500 o o 83 16 o 95 13 11 V. Endowments 5 1,300 o o 54 4 7 566 5 o VI. Endowments 145 15,940 o o 720 12 3 4,752 18 7 Totals 8,180 .£2,250,445 7 2 ,£31,186 12 0 J278.763 0 0 J6159 5 8 .£537,713 19 8 Temperance ECTION. With Profits. II. Limited number of Premiums and Paid up Policies 13 4,256 o o 124 1 9 275 9 5 III. Endowment Assurances 1,466 284,356 o o 9,45o 3 9 8 6 2 16,782 o 4 Totals 1,479 .£288,612 0 0 .£9,574 5 6 j38 6 2 .£17,057 9 9

H.—l2.

FIFTH SCHEDULE.

ANSWER TO QUESTION 7. Total Amount of Immediate Annuities on Lives, distinguishing the Sex and the Amounts for each Year of Life.

ANSWER TO QUESTION 8. The Amounts of all Annuities other than those specified under Heading No. 7.

34

Amount oi Annuities. Age 31st December, 1885. Female. Male. 31-32 48-49 5o-5i 51-52 53-54 54-55 56-57 57-58 58-59 59-6o 6i-62 62-63 63-64 64-65 65-66 66-67 68-6g 69-70 70-71 71-72 73-74 74-75 75-76 78-79 7g-8o 81-82 83-84 86-87 £ s. d. £ >. d. 52 o o 30 o o 42 19 4 16 o o 12 10 8 62 15 6 171 19 8 47 18 4 38 8 4 198 "6 8 380 in 14 o 13 o o 27 1 9 17 17 10 557 o o 106 o 8 54 I 6 9 46"8 8 20 o o 221 4 1 72 I o 52 5 o no 17 8 423 3 o 36 10 o 36 19 6 100 o o 140 16 4 100 o o 50 o o 149 7 4 28 o o 80 o o Totals .. £933 9 8 £2,298 0 5

Table. Class of Annuity. Amount of Annuities. Annual Premiums. Single Premiums. Total Premiums received to 31st December, 1885. £ s. d. £ B. d. £ S. d. £ b. d. VIII. Survivorship 335 o o 932 1,137 o o 1,265 4 4 IX. Deferred 200 o o 592 1 8 1,2g6 5 o X. Deferred 85 o o 10 16 o 213 4 2 346 8 2 Special. Immediate Joint and Survivorship .. 60 o o 645 o o 645 o o Totals £680 0 0 £19 19 2 £2,587 5 10 £3,55217 6

H.—l2,

ANSWER TO QUESTION 9. SHOWING THE MINIMUM SURRENDER VALUE OF POLICIES FOR £100.

NOTE.—In the ease of Children's Endowments (premiums returnable) half the premiums paid are returned as Surrender Value after one year, and ninety per cent, after two years. Endowments without return of premiums are treated specially. Lives which have been charged extra premium " for any cause are taken at true age in calculating Surrender Values.

FIFTH SCHEDULE.

35

UNDER TABLE I. UNDER TABLE II 10 . UNDER TABLE 111 55 . UNDER TABLE III 25 . By Equal Annual Premiums for the Whole Term of Life. For the Whole Term of Life. Premiums limited to 10 Annual Payments. Endowment Assurances payable on attaining the Age of 55, or at previous Death. Endowment Assurances payable in 25 Years, or at previous Death. Age at Entry. MINIMUM SURRENDER VALUES AT THE END OF 5 Years 10 Years. 15 Years. 5 Years. 10 Years. 15 Years. 5 Years. 10 Years. 15 Years. 5 Years. 10 Years. 15 Years. £ *. *■ £ *■ d. £ s- d. £ *. i- £ *■ d. £ 3. d. £ *■ d. £ s. d. £ *• d. £ *• *■ £ «■ d. £ *. d. 20 2 13 3 5 16 o 998 io 18 i 24 g 10 27 4 11 5 9 8 12 3 II 20 8 10 9 13 11 21 15 o 36 16 5 25 3 4 11 7 1 1 11 10 7 12 2 7 27 5 o 30 9 8 742 16 1 2 27 o 3 9 14 o 21 14 6 36 15 1 30 3 19 5 S 12 8 14 2 3 13 ii 8 30 9 8 34 5 9 9 14 7 21 15 4 36 15 11 9 14 7 21 15 3 36 15 n 35 4 18 2 10 13 6 17 2 11 15 4 4 34 5 9 38 11 1 13 14 1 3° 16 3 52 5 11 9 17 2 22 o 2 36 18 7 40 6 2 10 13 o 9 20 9 1 17 3 7 38 11 1 43 2 n 20 13 o 46 n 6 100 o o 10 3 9 22 7 9 37 1 2 45 7 9 4 15 10 1 23 18 5 ig 4 10 43 2 11 47 19 1 34 I 8 i° 100 o o 10 II 1 22 15 4 37 3 o 50 8 17 3 18 2 n 27 10 6 21 5 5 47 19 1 52 16 3 100 o o 55 10 8 10 20 16 9 3i 2 7 23 4 1 52 16 4 57 9 9

H.—l2.

ANSWER TO QUESTION PART I.—Statement of Policies issued and discontinued

36

Assub. ion. Gei leral. Tem] >erance. No. Sum assured. Annual Premium. Annual Extra Risk. No. Sum assured. Annual A *™£ Premium. Extra £ *■ a. £ 3. a. £ *■ a. £ *■ a. £ *■ a. £ s. a. Total Policies in force on 30th June, 1880 Add Policies issued during the period 11,502 4,156,419 2 2 130,399 8 1 909 2 8 14,908 3,804,275 4 o 116,688 5 5 341 1 11 3,424 738,277 16 o 21,366 2 1 25 13 8 Total Deduct Policies discontinued during the period 26,410 7,960,694 6 2 247,087 13 6 7o,376 13 9 1250 4 7 843 8 5 3,424 530 738,277 16 o 111,197 o ° 21,366 2 1 3,111 16 6 25 13 8 9 10 o 7,193 2,159,332 11 o Total Policies in force on 31st December, 1885 19,217 5,801,361 15 2 176,710 19 9 406 l6 2 2,894 627,080 16 o 18,254 5 7 16 3 8| PART I.—Particu ,ars of Pol: :cies DISCO TINUE !y Death MaturitySurrender Lapse Change Other Causes .. How discontinued. 593 17 I,i53 5,397 204,988 o o 2,700 o o 419,796 II o 1,467,622 18 4 41,878 o o 22,347 1 8 7,i43 13 7 230 17 5 14,434 17 3 43,352 14 o 1,364 4 o 3,850 7 6 ! { ) 23 -I843 8 5 I 3 ° ] 4J 1 | 473 1 |J"4 4,325 o o 8,725 o o 93,347 o o 2,450 o o 2,350 o o 144 8 1 « 10 o 234 11 2 2,607 18 o 65 6 2 59 13 1 33 Total void 70,376 13 9 843 8 5. 3,111 16 6 7,193 2,159,332 11 o 530 111,197 o o 9 10 o PART III. —Progress of Business of the Government Insurance General Section. No. of Policies. Sum assured. Annual Premiums. Annual Extra Risk. Annuity. 'otal issued 'otal discontinued 3I,o8o 10,756 £ <• ■ a. 9,072,116 17 1 3,232,921 4 9 £ *■ a. 283,997 4 1 105,373 7 4 £ s - a. 1 ,504 16 1 1,097 19 11 £ s. a. 4,808 17 1 897 7 o Total in force 5,839,195 12 4 178,623 16 9 20,324 406 16 2 3,911 10 I

14

37

10, FIFTH SCHEDULE, during the Period 30th June, 1880, to 31st December, 1885.

Endowments and Ij [VESTMENTS. Annuities. TOTAL. General. General. General and Temperance. No. Sum assured. Annual Premium. No. Premium Annuity. No. Sum assured. Annual Premium. Annual Extra Risk. Annuity. £ s- a. £ s. a. £ s. a. £ s. d. £ »• d. £ s. a. £ s. d. £ 3. a. 118 15,085 o o 757 18 10 36 90 7 6 2,693 18 2 11,656 4,171,504 2 2 131,247 14 5 909 2 8 2,693 J 8 2 1,297 41,687 10 II 2,093 8 1 32 1,361 11 11 19,661 4,584,240 10 11 140,147 15 7 366 15 7 1,361 11 11 1,415 56,772 10 11 2,851 6 n 68 90 7 6 4,055 10 1 3i,3i7 8,755,744 13 1 27i>395 10 o 1,275 18 3 4,055 10 1 37i 18,938 13 9 958 9 1 70 8 4 144 o o 8,099 2,289,468 4 9 74,517 7 8 852 18 5 144 o o 1,044 37,833 17 2 1,892 17 10 63 19 19 2 3,911 10 I 23,218! 6,466,276 8 4 196,878 2 4 422 19 10 3,911 10 1 during the Peril id 30th June, 1880, ti 31st De< cemb *, l88 5 . 5 144 o 621 209,313 o o 5,655 o o 430,483 7 7 1,571,209 2 2 44,328 o o 28,479 15 o 7,288 1 8 430 8 9 14,760 19 8 46,459 14 o 1,429 10 2 4,148 13 5 j 852 18 5 \ 144 o o r 27 23 293 2,955 o 0 1,961 16 7 10,239 3 10 199 11 4 9i 11 3 499 2 o 44 1,206 6,163 '28 3,782 13 4 168 4 6 70 8 4 "'65 371 18,938 13 9 958 9 1 70 8 4 144 o 8,099 2,289,468 4 9 74,517 7 8 852 18 5 144 o o Department since Date of Establishme: Lt to 31st December, 1885. Tempera] ice Section. TOTAL. No. of Policies. Sum assured. Annual Premiums. Annual Extra Risk. No. of Policies. Sum assured. Annual Premiums. Annual Extra Risk. Annuity. £ *■ d. 738,277 16 o 111,197 ° ° £ *. d. 21,366 2 1 3,111 16 6 £ 3. a. 25 13 8 9 10 o £ 3. a. 9,810,394 13 1 3,344,118 4 9 £ 3. a. 305,363 6 2 108,485 3 10 £ s. a. 1,530 9 9 1,107 9 11 £ 3. a. 4,808 17 I 897 7 o 3,424 530 34>5°4 n,286 2,894 627,080 16 o 18,254 5 7 16 3 8 23,218 6,466,276 8 4 196,878 2 4 422 19 10 3,911 10 1