H.—B.

In regard to the income from premiums and interest, the past eight years' results are given, together with the accumulated funds and the yearly rates of interest earned by them :—

The return on the growing funds is substantial and keeps up well, being considerably higher than eight years ago. ° 6 Outgo. -During: the year 899 policies became void by death, for claims amounting to £126,813 (a decrease of £27,201) and this amount is considerably under what is provided for in the tables of mortality used by the Department. Pour hundred and thirty-two policies also matured as claims during hfettme for £106,762. The total sum which has been paid in respect o7 claims byleX £4 410T14 SmCe foUndatlon of the Department forty-two years ago has amounted to moJ?* 1 ™ ° £ i he tri f nial . distribution of profits, and having regard to the increase in the investC fl rv P hr^nnon PaS Th Perlod ' '* hM b °?n thought wise to increase the Investment Fluctuation Reserve by £30,000. This reserve now stands at £113,663. Accumulated Funds—The net^ increase in the funds during the year was £145,240, and the total assurance annuity, and endowment funds at the close of the year (apart from special reserves) amounted to £4,699,970. <»P<"u ironi special £4 n^ nee : sh / et -- 0a 31st December, 1911, the total assets of the Department were ±,4,856,102, invested as shown in the following comparative statement:—

Triennial Investigation.-The valuation of the Department's liabilities on the 31st December 1911, was completed early this year, and full particulars are contained in the Actuary's Be^rt' After strengthening the valuation basis, thereby making it equivalent to an H» 3i-r>er-eent valuation, an £30 000 to the Investment Fluctuation" Beserve, there remained of T dmded amoa B st th ? policyholders by way of bonus, and the balance of £8,966 carried forward. As on former occasions, the surplus divided was allotted as a compound reversionary bonus on the sum assured and bonuses in force, thus Kg tonnes increasing with the duration of the policies to those policyholders who had not snfSered their previous bonuses The bonuses so allotted range from 21s. to 31s. per cent. PS™ num on tS sums assured, and show a substantial increase all round compared with those for the laTtrLnium with the exception that, whereas the bonuses in the Temperance Section were slightlyh gher nan sect Tons S6Ctl ° n ■'* PreVi ° US ValUati ° n ' ° n tWs OCCasion in the two of thjDVpttme e n?TnT8 a 7 r 0 y 0 " 63 thiS J 6 *' k amou » ted *> Since the inception ««™j- IJe P™ ent m 1, 870 > £1,598,377 in casn has been distributed by way of bonus the corre sponding additions to the sums assured being £2,907,530. «,« J n sumi ? arizi I D g the Potion it may be stated that the valuation basis has been strengthened the bonuses have been increased, and the strong reserves indicate still larger bonuses in the future' J. H. BICHAKDSON. Government Insurance Commissioner.

2

Year. Premium Income (excluding Annuities). Interest Income. Total Income. Accumulated Funds. | Rate of Interest on ' : Mean Funds. 1904 1905 1906 1907 1908 1909 1910 1911 £ 309,239 314,003 . I 319,775 325,903 330,806 330,927 338,487 342,977 £ 158,196 169,153 175,512 183,618 193,870 201,327 206,552 215,530 £ 480,716 490,925 507,070 526,713 534,441 546,566 561,150 575,849 £ 3,665,583 3,822,577 3,991,599 4,147,411 4,264,685 4,405,141 4,554,730 4,699,970 I £ s. d. ; 4 8 2 4 10 4 4 9 10 4 10 3 4 12 2 4 12 11 4 12 3 4 13 0

At 31st December, 1910. I Class of Investment. Amount. . Percentage ■• of Total Assets. ~£ | "~f~ 2,723,876 ; 57-9 per cent. Mortgages on freehold property 775,190 ; 16-5 „ Loans on policies 668,049 ! 14-2 ,, Government securities.. 168,436 3-6 ,, Local bodies' debentures 135,334 i 2-9 ,, Landed and house property 111,577 2-4 „ Miscellaneous assets 117,886 2-5 ,, Cash on current account 4,700,348 100-0 per cent. Total ' At 31st December, 1911. i Amount. , £ e ™° n ' a 8 e ; of Total Assets. £ .. ! 2,899,753 59-7 per cent. 791,704 16-3 668,069 13-7 .. , 168,208 3-5 135,879 2-8 114,808 2-4 77,681 1-6 „ •. 4,856,102 | 100-0 per cent. i