H.—B.

ACTUARY'S REPORT.

It will be seen by the Consolidated Eevenue Account (Table C) that, after making a further reserve of £18,000 for possible depreciation of freehold and mortgage securities, the accumulated funds at the 31st December, 1893, amounted to £2,128,589 18s. There is, therefore, a gross surplus of assets over liabilities of £190,000, as shown by the valuation balance-sheet given in Table D. ALLOTMENT OF SURPLUS. Of the total ascertained surplus of £190,000 the profit made during the triennium was £152,000, the balance of £38,000 being the special reserve of £32,652 made at the last valuation with interest accumulations. Having ascertained that a special reserve of £50,000 would serve to bring the present valuation up to the standard of [—I M 3f per cent., I recommended in my interim report of the 21st March that a further reserve of £12,000 should be drawn from the profits of the triennium for that purpose. This recommendation was accepted, and, in the interval which has elapsed, the divisible surplus of £140,000 has been allotted to the participating policyholders, securing reversionary additions to policies amounting to £277,267 18s. The surplus was divided between the General and Temperance Sections in accordance with " The Government Life Insurance Acts Amendment Act, 1890," the result being that Temperance policies received slightly higher bonuses than General policies, which were like them in all other respects. This point is illustrated in the following Table of Reversionary Bonuses allotted to whole-life policies in the two sections: —

The premiums having been twice raised—in 1877 and in 1885 —I have distinguished between the policies under the three different rates. After eight years' duration, the Temperance bonuses in the foregoing table relate to policies which were transferred from the General Section in the years 1887 and 1888. MOKTALITY, INTEREST, AND EXPENSES. Mortality.— The mortality experienced by the policyholders has been very light throughout the triennium. The profit from this source was estimated and divided amongst the policyholders by the method devised by Messrs. Bailey, Hardy, and King in 1887. The question of the relative vitality of abstaining and non-abstaining policyholders is doubtless an extremely interesting one, and on the present occasion the monetary results are slightly in favour of the total abstainers.

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TABLE OF REVERSIONARY BONUSES NOW ALLOTTED TO WHOLE-LIFE POLICIES OF £100. Ages at Entry. a o 2O. 3O. 4O. BO. a o g A General. Temperance. General. Temperance. General. Temperance. General. Temperance. H d n 1885 PREM :UM RATES. Tears. 3 6 £ s. 4 3 4 5 £ s. 4 5 4 7 £ s. 3 11 3 12 £ s. 3 13 3 14 £ s. 3 3 3 8 £ s. 3 5 3 10 £ s. 2 16 3 3 £ s. 2 17 3 4 Years. 3 6 1877 PREM; :UM RATES. 9 12 15 4 G 4 19 5 4 4 8 5 1 5 6 2 18 3 9 3 14 3 0 3 11 3 15 2 18 3 10 3 16 2 19 3 10* 3 17 2 18 3 10 3 18 2 19 3 11 3 19 9 12 15 1870 PREM UM RA' 'ES. 18 21 24 3 15 4 2 4 8 3 16 4 3 4 9 I 4 1 4 10 4 17 4 3 4 13 4 18 3 19 4 8 4 14 4 0 4 8* 4 15 I 3 17 4 4 4 13 3 18 4 4* 4 14 18 21 24 * The reversionary bonuses being taken to the nearest shilli sections for £10U policies, but for larger policies the Temperance ing, it happens in a few instances that they are the same in hot! bonuses are higher.