NEW ZEALAND INSURANCE COMPANY.

Ashburton Guardian, Volume V, Issue 1046, 10 January 1884, Page 2

NEW ZEALAND INSURANCE COMPANY.

The annual meeting of the New Zealand Insurance Company was held at Auckland yesterday afternoon. The Directors' report was as follows : —The Directors have now the pleasure to lay before the sha r e v iolders a statement of accounts for the year terminated the 30th November last. In accordance with a resolution passed at an extraordinary general meeting held on the lO.h January last, and subsequently confirmed on the 26th January, it was resolved that the annual instead of the halfyearly statement of accounts be presented to you. The business of the Company after the settlement of all claims, making 1 ample provision for losses and averages, and paying an interim dividend of 3s per share in July last, has resulted in a balance of profit amounting to L 67,445 8j fid. Of this sum Llfi.OOO has bean carried to investment fluctuating account and L 30,000 to the reserve fund. After payment of a dividend of 3s per share (making a total of 6j per share for the year), the sum of L 7.445 8s fid is carried forward to next year’s account. Instead of .setting aside the sum annually to provide for liabilities on current policies, as is , the custom of some companies, your Directors in May, 1870, devoted a sum of LIO.OOO to the formation of » re-insur-ance fund, which has been added to from time to time, and now amounts to LIOO,OOO. This and the reserve fund now stands at L 200,000. The dividend will be payable at the head office to-morrow, and at the branches and agencies on the receipt of advice. Profit and loss—Dividend for the half year ending the 30th November, JBB2, Llfi.OOO ; dividend (interim), May 31st, 1883, L 15,000; comm ssions, salaries and other expenses, L 46,554 17s 8d; Government taxes and payments to fire and marine associations, L 3,422 5s fid ; fire and marine losses and appropriations for unpaid L-sses, L 123 569 Us 7d ; reserve • fund, L 30.000 ; investment, fluctuations account, Llfi.OOO 2s ; balance, L 22,445 8s fid; total, L 270.992 4s Id; by balance 30-h November, 1882, L 19.487 4s 4d ; fire and marine premiums, less returns and reinsurances, L 200,180 16s 8d ; interest, rents, and profit on investments, L 51,324 3s Id ; total, L 270.992 4s Id. Balancesheet—To capital, L 200.000; re-insurance fund, L 100,000; reserve fund, LIOO,OOO ; appropriation for unpaid losses, L 23.757 ; deposits and other liabilities, L 40,963 14s 3d ; investment, fluctuation account, Llfi.OOO ; balance, L 22,445 8s 51 ; total, L 502.161 2s 8d; by investments, mortgages and shares, L 210.625 7s fid ; Company’s freehold office, premises and other real estates, L 122.850 Is Id; United States bonds, L 10.500; de entures, L 61.020 ; loans at call, short periods and fixed Bank deposits, L 67,204 Is 6d ; accrued interest and rents, L 3,692 9s fid ; bills receivable, JL2.664 13s 8d ; sundry debtors, L 1,793 8s lOd. Branch and agency balances, L 27.230 2s 2d ; cash in Bank and in hand, L 4,580 18 1 7d ; total, L 502.161 2s Bd. The Hon J. Williamson, in moving the adoption of the report said : —Gentlemen, this year, like its predecessor, has been signalised by a large number of casualties, in which we, in common with other insurance companies engaged in marine underwriting, have sneered severely. Haying regard to the exceptional number of marine losses which have occurred by colliaoD and otherwise during the past year all over the world, and to the experience of other companies, I cannot but regard the result of our last year’s business as satisfactory. Past years of profitable business have had the effect of increasing the number of companies competing for fire insurance, some cf whom have found that profits to be derived from the business have not met their expectations, and who, in trying to make up in quantity, have reduced premiums below the rate which experience proves is sufficient to I yield a reasonable profit. We have, therefore, found it inexpedient to throw up the business so affected, and our premiums | income has had somewhat to suffer, 4t the same time we have been avoiding, as far as possible, questionable business at unprofitable rates, and rejecting everything of a doubtful charater. We have striven to do a safe and sound business, and push it only when it could be done with safety. There appears to be some grounds for hoping that the unhealthy coinpetion for fire insurance business which has for some time past prevailed here and else where is being checked, and that the attention of head officers have b.eu directed to the subject. It iqayloaijtoiaoro |

adequate rates of premium being obtained in future. Our losses in this b.anch, though numerous, have in no case been excessive from any one fire. By prudent management, constant and careful inspections of risks, and extending our business in all legitimate channels, we hope to continue to afford the security we desire, and yield also profitable results, can I think, satisfactorily point to this company during its twenty-four years' history aa one of steady and solid progress. We have sought security rather than display, and considering the difficulty of getting business, the great opposition we have now to contend against, it is with no little

pleasU'e that we can point to a net premium income of upwards of 1200,000 in the year, the largest we have had since the formation of the Company. As you have already learnt in'the report, it has been determined to cirry 1.30,000 to the reserve fund, which is applicable to meet the losses of an extraordinary character, or if necessary to equalise dividends. '1 he leserve fund now stands at 1100,000, and the re-insurance fund at a like amount. Securities have been carefully examined, and from the profit on investments 115,000 has been carried to an investment fluctuation fund. It will be satisfactory for you to know that the values of our securities stand in the accounts at a considerably less sum than they would realise if placed in the marxet. I would conclude by urging shareholders to assist the officials in their efforts to extend our business. We shall take care only to accept such extensions as we think safe and profitable. I m .ve—That the report and balance-sheet for the year 1883 be received and adopted.” The motion was seconded by Mr 0. J. Stone, and carried.

Messrs Browning, Campbell and Russell, the retiring directors, were reelected. Mr Reader Wood said he had much pleasure in moving that the thanks of the shareholders should be given to the directors, officers, ana agents of the Company. There was one point to which he wished to direct the attention o" the directors, and particularly of thareholders, viz , the very large amount of reserve and insurance fund, no less than 1200,003, or just equal to the amount of the capital subscribed by shareholders During the whole of the time that this had been accumulating, shareholders had been receiving a tolerably uniform dividend. It was usually 15 per cent., although sometimes it had been less than that, but it had never been more, tie might be wrong in his view, but still he could not see the use of accumulating such an excessively large reserve fund. He hoped in future shareholders would be permitted to enjoy a little more of the prosperity of the Company than they had in the past, either by receiving larger dividends or through the capital being increased by additions from the reserve fund. They were now nominally receiving dividends of 15 per cent, unpaid up capital, but seeing that the addition of the accmulaied reserve fund was 1200,000, and the capital of the Company was really 1400,000, their dividends were only at the rate of per cent., which was very small considering the amount of funds in the hands of the direct .-rs.

Major George, in seconding the motion, endorsed Mr Woods’ remarks about the large amount of accumulated reserve fund, and the small amount of ihe dividends

The motion was then passed. The Chairman and Mr G. P. Pierce, local manager, acknowledged the vote of thanks.