ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1922.

Appendix to the Journals of the House of Representatives, 1923 Session I-II, H-08

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Session 11. 1923. NEW ZEALAND.

ANNUAL REPORT OF THE GOVERNMENT INSURANCE COMMISSIONER FOR THE YEAR ENDED 31st DECEMBER, 1922.

Presented to both Houses of the General Assembly 'pursuant to the Provisions of the Government Life Insurance Act, 1908.

Government Insurance Office, Wellington, 26th March, 1923. I HAVE the honour to submit the following report upon the transactions of the Department for the year ended the 31st December, 1922, and its position at that date. The Revenue Account, Balancesheet, and Statement of Business are appended. New Business and Amount of Business in Force. —During the year 4,482 proposals were dealt with, for the assurance of £1,540,950. The number of policies actually completed was 3,777, assuring £1,286,609, with annual premiums amounting to £40,071. Twenty annuities were also granted, on which the purchase-money was £10,593. The total business now in force, including 425 immediate and deferred annuities for £23,616 per annum, is 59,487 policies, bearing an annual premium income of £483,394. The sum assured is £15,995,235, to which are attached reversionary bonuses amounting to £1,453,866. The total business on the books thus amounts to £17,449,101. Income. —The total income of the Department was £778,915 —viz., premium income, £473,141 • interest income (less land and. income tax), £294,914 ; annuity purchase-money, £10,593 ; and other receipts, £267. The total income for the year is greater than that of last year by £23,396. Outgo for Claims. —During the year 813 policies matured, for £198.131, and 534 policies became claims by the death of policyholders, the amounts payable being £204,561. Accumulated Funds.— -The total assurance, annuity, and endowment funds, apart from a special investment reserve of £288,773, now stand at £5,922,825, an increase of £196,468 over the amount at the end of 1921. The Balance-sheet. —On the 31st December, 1922, the total assets of the Department amounted to £6,276,019, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the previous year for purposes of comparison : —

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At 31st December, 1921. At 31st r )ecember, 1922. . , Percentage Amount. of Total As « eta Class of Investment. Amount. Percentage of Total Afsets. £ 2,743,405 45-1 percent. 794,546 13-0 1,960,400 32-2 224,909 3-7 136,016 2-2 145,918 2-4 84,907 1-4 Mortgages on freehold property Loans on policies Government securities Local bodies' debentures Landed and house property Miscellaneous assets Cash in hand and on current account £ 2,743,870 854,240 1,982,900 233,025 136,895 162,941 162,148 43-7 per cent. 13-6 31-6 3-7 2'2 2-6 2-6 6,090,101 100-0 per cent. Total 6,276,019 100-0 per cent.

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The rate of interest credited to the Insurance Fund was £5 6s. 6d. per cent, gross on the mean fund, and after deduction of land and income tax from interest was £5 Is. 3d. per cent. General. —l am pleased again to report that the year's progress of the Department has been satisfactory. The new business of over one million and a quarter, while less than that of last year, compares very well indeed with the standard of previous years. There have been substantia] increases in both the premium and interest income, accompanied by a decrease in the rate of expenses from 21-4 per cent, to 18-3 per cent, of the premium income and from 13-4 per cent, to 11-4 per cent, of the total income, and there has been a record increase in the funds. A valuation of the policies on the books at the end of last year disclosed a highly satisfactory result. As this report practically coincides with the occasion of my retirement from the Department after a service of over forty years, something in the nature of a retrospect may be permitted. The following figures illustrate the progress of the Department from the time I took charge as Commissioner in 1890 to the present date : —

It will be seen that the Department has maintained a condition of progress throughout the period. The continued investment and reinvestment of the large funds of the Department has naturally called for a great deal of time and care, but I am able to say that the losses made during the period have been singularly few. During the whole period of its existence the Department has operated in strenuous competition with private offices, and the period during which I have had control has been no exception. As an example and possibly a conspicuous example of State enterprise in commercial competition, the Depa-rtment has attracted world-wide attention not always of a disinterested nature, but it has earned a very good name as an example of successful State management in a difficult and strenuous commercial business. During the term of my management stress has always been placed upon the policy of making the actuarial soundness of the Department the first consideration, and in this connection the Department was able to stand the strain of paying extra claims due to war causes to the extent of £500,000 with only a very slight decrease in its rate of bonus, notwithstanding which the present position as shown by the office valuation is an exceedingly good one. I may also point to the fact that although the Department's business is restricted to so small a population as that of New Zealand, the Office nevertheless takes a considerable rank in point of magnitude among the offices of a great country like England ; and, as previously pointed out, the Department's operations have been in some degree responsible, for the fact that the population of New Zealand is one of the best-insured in the world, the sum assured per head in 1917 working out at £42 in New Zealand, as against £31 in Australia, and approximately £29 in Great Britain. I would add that I leave the Department with every confidence that its position in point of soundness is unchallengeable and that its outlook for the future is excellent. Though only the second year of the triennium has elapsed, the surplus, assuming the same valuation basis, is already in excess of what is usually brought out at the end of a triennial period. J. H. Richardson, Commissioner.

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Date. Number of Policies in force. Premium Income. Interest Income. .Funds. st January, 1890 ilst December, 1897 . . list 1905 .. (1st December, 1913 .. list December, 1922 .. 27,218 36,174 45,137 51,343 59,487 £ 217,308 269,688 321,759 366,833 483,734 £ 81.386 128,424 169,153 233,224 310,190 £ 1,582,448 2,725,106 3,822,577 4,980,131 5,922,825

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Revenue Account of the Government Life Insurance Department for the Year ended 31st December, 1922. £ s. d. £ s. d. Amount of Funds at Ist January, 1922 5,726,356 7 8 Death claims under polioies, Assurance, Renewal premiums —Assurance, An- including bonuß additions .. .. 204,560 19 0 nuity, and Endowment .. .. 434,137 4 9 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 191,351 0 0 of first year's premiums falling due Endowments matured .. .. 6,780 1 0 in the year) .. .. .. 38,441 11 11 Premiums returned en endowments .. 229 19 0 Single premiums—Assurance and En- Bonuses surrendered for oash .. 4,660 6 9 dowment .. .. .. 562 4 0 Annuities .. .. .. .. 21,006 8 8 Consideration for Annuities.. .. 10,593 8 6 Surrenders .. .. .. 30,076 3 4 Interest and Rent ..£310,190 2 8 Loans released by surrender 35,298 13 9 Less land and income Commission, new* .. £28,266 310 tax, £10,689145. od.; . renewal 2,899 11 3 property expenses, 31,165 15 1 &c, £4,586 17s. sd. 15,276 11 5 Expenses of management— — 294,913 11 3 Salaries— £ s. d. Defalcations reoovered .. .. 267 6 6 Head Office .. 23,683 19 8 Branch offioes and agents .. .. 12,803 0 4 Extra olerioal assistance 607 16 6 Medical fees and expenses .. .. 5,479 3 6 Travelling-expenses .. 827 13 9 Advertising .. .. 461 3 6 Printing and stationery 1,999 0 8 Rent .. .. 4,170 19 9 Postage and telegrams 2,446 2 4 Exohange .. .. 53 1 9 General expenses .. 4,380 12 11 Triennial expenses .. 405 0 0 57,317 14 8 Amount of funds, 31st December, 1922 5,922,824 13 4 £6,505,271 14 7 £6,505,271 14 7 * Including agents' allowances. Balance-sheet of the Government Life Insurance Department on 31st December, 1922. Liabilities. Assets. * s. d. £ g< d . £ 8 . d . Total Assurance, Annuity, and En- Loans on policies .. .. 854,240 2 2 dowment Funds (as per Revenue Government securiAccount) .. .. .. 5,922,824 13 4 tiesClaims admitted, proofs not yet com- Consolidated stock 625,900 0 0 pleted .. .. .. .. 51,342 14 2 Debentures issued Annuities .. .. .. .. 731 12 6 under the auCommission .. .. .. 1,385 9 7 thority of the EiMedical fees .. .. .. 471 9 0 nance Act, 1915 40,000 0 0 Premium and other deposits.. .. 6,829 14 9 New Zealand InSundry creditors .. .. .. 2,760 16 7 scribed Stock — Officers' Fidelity Fund .. .. 900 0 0 War Loans . ..1,157,000 0 0 Investment Fluctuation Reserve .. 288,772 18 1 New Zealand Inscribed Stock — Finance Act, 1919 50,000 0 0 New Zealand Inscribed Stook — Discharged Soldiers Settlement Loan.. .. 110,000 0 0 1,982,900 0 0 Municipal Corporation debentures .. 141,126 16 3 County securities .. .. .. 5,138 0 0 Harbour Board debentures .. .. 33,800 0 0 Town Board debentures .. .. 29,193 6 1 Road Board debentures .. .. 21,800 0 0 Drainage Board debentures .. .. 1,967 4 4 Landed and house property .. .. 134,089 11 10 Landed and house property (leasehold) 1,612 2 0 Mortgages on property .. .. 2,743,869 15 3 Properties acquired by foreclosure .. 1,193 13 9 Overdue premiums on £ s. d. policies in force .. 8,209 16 5 Outstanding premiums due but not overdue.. 47,870 2 6 56,079 18 11 Overdue interest .. 12,812 1 4 Outstanding interest due but not overdue.. 8,944 i 6 Interest aoorued but not due .. .. 75,047 1 5 ■ 96,803 7 3 Agents'balances .. .. .. 6,042 16 11 Sundry debtors .. .. .. 4,015 1 9 Cash in hand and on current account.. 162,147 11 6 £6,276,019 8 0 £67276^019 _ B_o8 _ 0 Government Life Insurance Department, 12th March, 1923. J. H. Richardson, Commissioner. G. A. Kennedy, Acting-Secretary. The Audit Office, having examined the Revenue Account and balance-sheet, and compared them with the relative books, documents, and securities, hereby certifies them to be in accordance therewith. G. V. C. Campbell, Controller and Auditor-General.

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Statement of Business

Wellington, 10th April, 1923.

TOTAL. Whole-life a md Term Assurances. YEAR 1922. I Annual Annuities. M Sum ' R ever - Premiums. | 1. Immediate or NO - assured. nSnSmla '■ Ordinary. entered upon. Bonuses. ., Extra. | 2. Deferred. N Sum assured. I _ Annual Kever- Premiums, sionary ; Ordinary. Bonuses. j; E J m *V POLIC IIES ISSUE] D AND DISCON- £ £ £ s. d.l £ s. d. £ £ £ s. d. Policies in force at 31st 59,18915,721,088 1,558,646 ( 472,116 15 521,255 13 61 Deoember, 1921 1 1,985 16 8 2,487 18 2f 59,189 11,3893,760,942 11,389 697,131 (87,818 3 4 I | 1,055 6 2 j New Business .. .. 3,797 1,286,609 .. I 39,916 5 7 1,242 12 10) 1 155 0 11 64 3 6 j 3,797 549 270,400 549 I 7,277 9 5( ( 51 15 0 / Total.. .. 62,98617,007,6971,558,046 ( 512,033 1 oJ22,498 6 4 1 I 2,110 17 2 2,552 1 8 f 62,986 17,007,697 1,558,046 ( 512,033 1 0 22,498 6 4 I 1 2,110 17 2 2,552 1 8 } 11,938! 4,031,342 697,131 ( 95,095 12 9 1 1 1,107 1 2[ Polioies discontinued 3,499 1,012,462 104,780 J 30,666 7 1,1,361 9 5 1 during 1922 | 159 17 5 73 3 2 f 3,499 1,012,462 104,780 1 30,666 7 1 1,361 9 5 1 I 159 17 5 73 3 2 f 674 260,182 46,008 ( 6,426 19 9 1 I 88 13 10 I Total Policies in force at 59,487 15,995,235 1,453,866 ( 481,366 13 11 21,136 16 11 1 31st December, 1922 | 1,980 19 9 2,478 18 6 j 59,487 59,487 15,995,235 1,453,866 ( 481,366 13 11 21,136 16 11 1 1 1,980 19 9 2,478 18 6 ) 11,264 3,771,160 651,123 ( 88,668 13 0 1 ( 1,018 7 4) I I PARTICUL How discontinued. PARTICUL. ARS OF PC LICIE I DISCON By Death .. .. 563 159,510 42,721 ( 4,821 6 4 ! 1,361 9 51 1 57 18 10 563 813 159,510 160,333 42,721 ( 4,821 6 4 i 1,361 9 51 I 57 18 10 .. ) j 6,330 15 8) 1 18 5 7| ( 7,015 18 6 .. I -i 25 16 9 73 3 2( I 1,426 12 51 i 3 14 41 325 108,391 36,695 ( 2,734 1 8 1 1 43 17 6 } I O I J-O ±U . . ) Maturity .. .. 813 160,333 35,516 ( 6,330 15 81 18 5 71 35,516 ( 10 o 1 1 Surrender.. .. 850 234,932 12,16'-' ( 7,015 18 6 .. I A 2s 16 n 73 3 2 850^ 234,932 12,16'-' 113 40,185' 3,046 ( 961 14 10 1 | 10 2 U j 151 4 6 1 1 2 10 0, Cancellation .. I63I 50,825 10 I 1,426 12 51 i 3 14 4 1 168 50,825 10 12 5,500 I 3 14 4 I Surrender of Bonus.. .. .. 7,092 7,092 3,499 Lapse .. .. 1,109! 405,061 6,886 f 10,604 1 41 1 an 1 a Q j l,109l 1 405,061 1,500 6,886 I 10,604 1 41 | 35 16 8) j 32 18 9 f 284* 18 10) 1 •• J [ 149 15 3): 1 18 5 3) 223 104,386 2,475 ( 2,495 16 3 I 1 19 4 0 } 1 32 18 9 l \ •• J I 26 11 4 I 24*12 5 1 j 13 0 0 f \ 35 16 8) Expiry of Policy .. 1 1,500 .. | 32 18 9 1 1,500 Expiry of Premium.. .. .. .. ( 284 18 10)i Miscellaneous .. .. 301 373 [ 149 15 31 1 18 5 3J 301 373 220 293 Total discontinued during 3,499 1,012,462 104,780 J 30,666 7 1 1,361 9 5) 1922 \ 159 17 5 73 3 2) 104,780 J 30,666 7 1 1,361 9 51 \ 159 17 5 73 3 2) 674 260,182 46,008 ( 6,426 19 9 I I 88 13 10 f PROGRESS OF BUSINESS OF THE GOVI 3F BUS 3INESS OF THE GOVI JRN1Y IENT ,IFE INSURANCE Total issued .. .. 162,641 41,889,149 3,907,698 j '^fs '910 8 1 104 - 556 2 ° Total void .. .. 103,154 25,893,914 2,453,832 j 80,940 6 7 3,907,698 I 1,286,644 15 5 I in . „,. „ „ 1 38,910 7 8 ) 104 ' 556 2 ° ( 805,278 1 6 I „„ Q .„ .. „ j 36*929 7 11 f 80 ' 940 6 7 47,141: 114,684,30! 2,000,979|pSl :^0i 8 8| 2,453,832 35,877 10,913,14! [ OO, VAV I lij J Total Id force .. 59,487 15,995,235 1,453,866 481,366 13 11 23,615 15 5 481,366 13 11 23,615 15 5 11,264 3,771,160| 651,123; 88,668 13 0 1,018 7 4 44 0 0 Extra Premiums .. .. .. 1,980 19 9 Eeduction of Premiums by Bonus, &a. .. 45 16 8 1,980 19 9 45 16 8 £483,393 10 4 £89,731 0 4 NOTK. — •The Or. linary Prei 1 mi is the premium charged

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at End of Year 1922.

J. H. Eighabdson,Commissioner. A. T. Travbksi, Actuary.

Approximate Cost oj Paper. —Preparation, not given ; printing (1,475 copies), £9.

Authority : W. A. G. Skinner, Government Printer, Wellington.—l 923.

Price 6d.]

ASSURANCES. Annuity Assurances. ANNUITIES. SIMPLE ENDOWMENTS, INVESTMENTS, ETC. Endowment Assurances. Annual M Sum Sever- Premiums. No assured. I' 0 " 1. Ordinary. uonuses. g Extra. ] No. No. 1. Sum Annuities. 2 1 Kevar I 1 - Entered Annual , "sionarv u P on - Premiums, pfonuses. i mi - Annuities. N Annual 1, Immediate or Premiums. entered upon. 2. Deferred. 1. Sum Annual assured. Premiums. NO ' "sionlrv" I-Ordinary. Bonuses. *■*"***■ TINUED DURING THE YE. \R 1922. I £ £ £ s. d. £ £ s. d. £ s. d. £ s. d. £ s. d. £ £ s. d. ,5,181 5,18111,545,859 858,034(372,679 3 7) 1 930 10 1/ 4£ 48 8 ( 11,385 164 4 10) 671 11 4 / ( 1,697 2,312 9 2j \ / 432 1 2 (432 .. 21,091 8 8 1 [ 2 14 0 0 175 9 0 f 10,933 17 2 1 1 1,784 .. / 2,137 3,099 j,099 991,409 .. / 81,839 19 5) ( 103 5 11 } .. | ( + )85 16 8 I .. ( 1 (-)85 16 6 } t 19 1 19 .. 1,156 16 2 ) 1 77 12 6 150 0 0] 129j 129 f 24,800 721 4 3 ) ,8,280 12,537,268 858,034 1404,519 3 0 I | 1,033 10 0 / 48 f 11,385 t 1,697 250 1 61 2,226 12 8)' 671 11 4 / 451 I 3 91 12 6 122,248 4 10 ) 325 9 0 / 2,266 ( 427,702 1 1,784 11,655 1 5 ) 705,330 57,601 I 22,939 11 0 1 I 71 3 7/ ( 500 t 136 73 3 2 ]' 87 13 8 ( 29 1,361 9 5 1 187 I 46,450 | 1,035 1,212 2 8 j 2,608 5,672 11,831,938 800,433 (381,579 12 0) ( 962 12 5/ 47 j 10,885 \ 1,561 250 1 61 2,153 9 6/ 583 17 8 f 422 I 3 91 12 6 20,886 15 5 1 325 9 0 / 2,079 07i 1 1 ( 381,252 I 749 10,442 18 9 1 TI UED I DURIN G THE YE. R .922. 51,119 6,026 I 2,087 4 8 I 1 14 1 4 j f 6,103 0 6 I I 18 5 7 )" ( 5,216 6 8 I 1 15 14 5 j j 1,260 8 1 I 1 14 4) 1.361 9 5 ) 209 j 29 773 154,583 34,330 I 106) I 500 ( 30 40 4i 12 to 21 3 ) \ 5,750 ( 1,030 L j 28,500 I •■ ) ( 1,400 1 •• 227 15 2 | 829 13 0 ! 14 19 10 [ ) 615 165,747 9,106 1 1 73 3 2 f 8 4 0 121 148 43,925 10 3 3,593 863 289,875 4,411 J 7,975 5 7 I 1 16 12 8 J 23 2: 23 ) f 10,800 132 19 6 ) ( 174 5 8 | 1 •• ) j 122 19 10 j I 5 5 3 } 79 7 8 | 4 14 2 | 2**1 0 I 81 75 0 2 0 •• 2,608 705,330 57,601 j 22,939 11 0 | 1 71 3 7 | 1 | 500 • • I ( 136 73 3 2j 87 13 8|J 29| 1,361 9 5 1 187 I 46,450 1 1,035 1,212 2 8 PARTM INT £ ilNCE DATE OF ESTABLISHMEN T TO 31st DI QCEMBER, 1922. DE] 107563) (26,208,951 1.895.17S (870,089 0 41 I 20,896 5 6J" (488,509 8 4) ( 19,938 13 1/ , in ,, ( 160,450 ' 311 1 81 1.1UD | 7j2]7 ; 5718 g 1Q | , n , q ( 149,565 61 0 21 ' ( 5,656 155033 5 4/ 8,619 15 8 992 439 13 4 47,058 5 6 5 5,839 ( 835,439 1 4,324 ] 454,187 I 3,575 26,046 17 5 ) 20 10 0 \ 15,603 18 8 J 20 10 0 61,891 |l4.377,013 ll,094,74£ 8,035 18 0 567 348 0 10 25,840 113 3,760 45,672 11,831,938 800,433 381,579 12 0 , 7 | 10,885 , 250 1 61 *' | 1,561 j2,153 9 6/ 583 17 8 425 583 17 8 91 12 6 21,212 4 5 2 2,079 j 381,252 1 749 10,442 18 9 | i _ 962 12 5 ' 1 16 8 £382,544 1 1 £583 17 8 £91 12 6 £ 10,442 18 9 true age ; the Extra, i Lum charged for any reason whatsi at thi ihe additional prem: lever.