H.—B

2

Interest. —The net effective, rate of interest credited to the Insurance Fund, after deduction of land and income tax from interest; was £5 7s. 7d. per cent., which is slightly in excess of the yield obtained during the previous year. The constant investment of the accumulating funds of a vigorous and progressive life-assurance institution is a task of no mean magnitude, and in the face of the statutory limitation upon the Department's lending-powers, to which reference was made in my report of a year ago, the resulting interest-yield is satisfactory. General.—The number of new policies and the amount of new assurances completed during the year constitute records in the history of the Department, and, what is even more important, the business was secured at a cost which has been excelled in point of cheapness on only one other occasion—viz., during the year 1919, when the special circumstances arising out of subscriptions to war loans conduced to the acquisition of new business at an. expense-rate much lower than normal. In view of the fact that in a life-insurance office the transaction of a larger amount of new business than usual constitutes a clog upon the profits, it is all the more noteworthy that the profit made in 1924, as disclosed by the annual valuation by the Actuary, is the largest ever shown for one year. Having regard also to the stringency of the basis upon which the liabilities are valued, the prospects for the future appear very bright A. T. Traversi, F.1.A., F.C.A.S., Commissioner.

Revenue Account of the Government Life Insurance Department for the Year ended 31 st December, 1924. £ s. d. £ s. d. Amount of Funds at Ist January, 1924 (1,222,484 13 0 Death claims under assurance policies, Renewal premiums — Assurance, An- including bonus additions .. 185,495 12 0 nuity, and Endowment .. .. 458,943 11 4 Endowment Assurances matured, inNew premiums (including instalments | eluding bonus additions .. .. 222, 902 8 6 of first year's premiums falling due I Endowments matured .. .. 6,390 11 0 in the year) .. .. .. 49,481 310 Premiums returned on endowments .. 281 11 1 Single premiums—Assurance and En- Bonuses surrendered for cash .. 10,337 18 1 dowment .. .. .. 2,955 7 0 Annuities .. .. .. 20,880 410 Consideration for Annuities .. 11,300 11 8 Surrenders .. .. .. 35,077 2 2 Interest and Rent .. £343,210 14 2 Loans released by surrender .. 49,883 2 9 Less land and income Commission, new* .. £33,274 13 2 tax, £8,504 125.; „ renewal 3,242 13 4 property expenses, — 30,517 0 0 £2,801 lis. Id. 11,300 3 1 Contribution to Superannuation Fund 1,200 18 4 331,850 11 1 Expenses of management— Salaries. £s. d. Head Office ..20,885 9 0 Branch offices and agents .. 12,044 10 4 Extra clerical assistance .. .. 1,150 12 5 Medical fees and expenses .. .. 5,777 3 9 Travelling-expenses 1,340 8 4 Advertising .. 323 15 5 Printing and stationery 2,473 10 8 Rent .. .. 5,511 11 7 Postage and telegrams 1,000 12 8 Exchange .. 45 16 5 General expenses .. 3,739 15 5 Triennial expenses .. 3,878 19 1 58,778 17 7 Amount of funds, 31st December, 1924 0,448,058 5 7 £7,077,075 18 5 £7,077,075 18 5 * Including agents' allowances.