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ACTUARY'S REPORT ON THE VALUATION OV the government insurance department AS AT 31st DBCEMBBE, 1917.

Presented to both Houses of the General Assembly pursuant to Section 40 of the Government Life Insurance Act, 1908.

Wellington, 19th April, 191b. In accordance with instructions received I have made a valuation as at the 31st December last of the actuarial liabilities of the Department, with the object of ascertaining the net surplus available for division amongst the policyholders, and in compliance with section 40 of the Government Life Insurance Act, 1908, I have now the honour to report the results of the investigation. Progress op the Department. The progress of the Department during the last three years when compared with the three previous trienniums, in respect of new business and total business in force, is as follows :—

From the above it will be seen that there is a considerable falling-off in the new business, which is wholly accounted for by the number of men engaged in the Expeditionary Forces. In this connection it has to be remembered that life-insurance companies are charging inadequate rates for the war risk, so that an undue accession of new business at the present juncture would be a direct cause of immediate loss. The Consolidated Eevenue Account, given below, shows the total income and expenditure for the past three years, and the growth of the funds of the Department during the triennium.

New Business of Trio: mium. ium. Annual Premiums. In Force at End of Triennium. Triennium. Number of Policies. Sums assured. .Reversionary Bonuses. 1906-1908 1909-1911 1912-1914 1915-1917 Number ol ' Sums Policies. assured. £ 9,739 2,261,767 •10,476 2,487,472 11,721 8,197,694 10,129 2,709,163 £ 72,803 77,477 89,715 90,017 £ 47,033 10,955,749 49,376 11,514,657 52,273 12,550,465 53,058 12,884,531 £ 1,068,950 1,168,620 1,246,610 1,304,243 Annual Premiums. £ 331,830 348,285 370,882 387,377 J