3

H.—B

The Balance-sheet. —The total assets of the Department amounted to £2,788,670 on the 31st December, 1897, and were invested as follows:—

It will be seen that there has been an increase of in loans on policies during the year, and a decrease of in Government securities. A number of properties acquired by foreclosure have been disposed of at satisfactory prices, and I am pleased to be able to add that during the first half of the present year their realisation has proceeded still more satisfactorily. The most noticeable feature, however, in the year's accounts is an increase of in loans on first mortgage of freehold property, and it is highly gratifying to add that the overdue interest on all accounts, which last year stood at the low figure of £*]b\, has been still further reduced, and now amounts to the trifling sum of representing almost exactly three-eighths per cent, of the total interest receipts. To be able to collect 12s. 6d. out of every of interest due is, I venture to say, a record which few financial institutions can point to. In concluding a report upon various technical matters in connection with the Department's business, Messrs. Ralph Price Hardy and George King, the eminent London consulting actuaries, observe, — " We take the opportunity of repeating what we have already said as to the satisfactory position which the New Zealand Government Life Insurance Department has attained. The test valuations have been entirely confirmed by the official valuation, and the Government must be pleased to find that not only has it been possible to declare a substantial bonus, but that the prospects of the future are of great promise." J. H. Richardson, Commissioner.

At 31st December, 1896. Percentage Amount. of Total Assets. Class of Investment. At 31st December, 1897. Percentage Amount. of Total Assets. £ 812,586 872,016 464,829 167,068 146,076 30-7 per cent. 3 2- 9 17-6 „ 6-3 . 5 - 5 Mortgages on freehold property Government securities Loans on policies Local Bodies' debentures ... Landed and house property, and properties acquired by foreclosure Cash on current account ... Miscellaneous assets £ 983.452 827,829 499.531 151,678 145,264 35-2 per cent. 297 I7-9 5'5 5'2 109,990 75.593 4'1 2'9 103,462 77.454 37 2-8 lOO'O It Total IOO'O tt