H.—B.

The Balance-sheet. —On the 31st December, 1913, the total assets of the Department amounted to £5,135,829, 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 : —

The above shows an increase of £108,939 in mortgages on freehold property and £33,248 in loans on policies. Overdue interest (which is included above in " Miscellaneous Assets ") has decreased from £1,537 to £882, representing the extremely low rate of 7s. 9d. per cent, of the total interest income. General. —l am pleased to report again that another year's progress of the Department, while not marked by any striking incidents, has been entirely satisfactory. Attention may be specially drawn to a few oustanding features: (1.) The new business has been well maintained. (2.) There have been substantial increases in the income, both from premiums and interest. (3.) The mortality experience has again been favourable. (4.) There has been a decrease in the expenses. (5.) An official valuation of all the policies as they stood at the end of last year disclosed increased profits for dm two years of the current triennium which have elapsed, and affords the best of reasons for thinking that the results of the statutory triennial investigation of the assets and liabilities, to be made at the end of the present year, will prove satisfactory to the policyholders, and that they will again receive increased bonuses. J. H. Richardson, Government Insurance Commissioner.

Revenue Account op the Government Life Insurance Department for the Year ended 31st December, 1913. £ s. d. £ s. d. Amount of Funds at Ist January, 1913 4,829,141 4 9 Death claims under polioies, Assurance, Renewal premiums — Assuranoe, An- including bonue additions.. .. 154,631 16 4 nuity, and Endowment .. .. 328,972 10 1 Endowment Assurances matured, inNew premiums (including instalments eluding bonus additions .. .. 132,029 13 11 of first year's premiums falling due Endowments matured .. .. 1.726 10 0 in the year) .. .. .. 27,430 15 11 Premiums returned on endowments .. 296 18 6 Single premiums—Assurance and En- Bonuses surrendered for cash .. 4,631 11 0 dowment .. .. .. 3,171 6 4 Annuities .. .. .. .. 17,812 9 2 Consideration for Annuities .. .. 7,255 2 7 Surrenders .. .. .. 22,338 16 4 Interest .. .. .. .. 233,223 12 2 Loans released by eurreuder.. .. 34,205 4 0 Fees .. .. .. .. 11 17 1 Commission, new* .. £20,880 17 5 renewal 2,623 10 5 * 23,504 7 10 Land and income tax .. .. 15,353 9 Expenses of management— Salaries— Head Office ..£17,885 15 2 Branoh offices and agents .. .. 8,159 10 1 Extra clerical assistance 66 19 9 Medical fees and expenses .. .. 4,978 12 8 Travelling-expenses .. 925 12 11 Advertising.. .. 1,173 9 2 Printing and stationery 1,493 16 1 Rent .. .. 2,855 3 3 Postage and telegrams 1,629 0 11 Exchange .. .. 11l 18 4 Office-furniture depreciation .. .. 270 9 3 General expenses .. 2,496 16 2 Triennial expenses .. 500 0 0 42,547 3 9 Amount of Funds, 31st Deoember, 1913 4,980,131 8 9 £5,429,209 8 11 £5,429,209 8 11 * Including Agents' allowances.

2

Amount. At 31st December, 1912. Percentage of Total Assets. Glass of Investment. At 31st December, 1913. A — j of tSTSKu. £ 3,045,274 808,884 668.089 171,169 136,586 116,467 30,479 61-2 per cent. 16-3 13-4 3-4 2-8 2-3 0-6 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 £ 3,154,213 842,132 665,900 174,236 136,529 119,374 43,445 61 4 per cent. 164 „ 130 „ 3-4 „ 2-7 „ 2-3 0-8 Total 4,976,948 100-0 per cent. 5,135.829 100-0 per cent.