NEW ZEALAND INSURANCE CO.

Auckland Star, Volume XXXVI, Issue 33, 8 February 1905, Page 2

NEW ZEALAND INSURANCE CO.

ANNUAL MEETING. The annual meeting of the New Zealand Insurance Company was held at the head office, Auckland, this afternoon, the Hon. Seymour Thorne George presiding, in the absence of the chairman. The annual report and balance-sheet have already been published. The following is the chairman's speech:—Before moving the adoption oi the report and balance-sheet, I have— much to his and our regret—to apologise for the absence of our chairman, Mr Arthur Nathan, who, acting under the ad vice of his medical adviser, is abstaining for a short period from all business. Now, as regards the company's operations for the past year, I think we may congratulate ourselves on the outcome of our business, notwithstanding the great number of large conflagrations that occurred during the period under consideration, in many of which we were interested. The result of our year's work, although not quite equal to 1903, has been very satisfactory. Our net premium income amounted" to £420,311, which is £19,-60 more than last year, and ia a record in the company's operations. The interest and rent account also shows an increase of £1057. Shareholders may consider that the rate of interest which we are receiving for our investments is somewhat low, namely, 3.92 per cent: but your directors are strongly in favour of the policy of keeping the company's assets in a fairly liquid form and mii vested in gilt-edged securities. from j which it naturally follows that you cannot expect a high rate of interest. We I feel sure that shareholders will approve I of the policy which we have adopted. I would also point out that—even at i this rate—your interest and rents I amount to I_:_ per cent, on your paid-up capital; and that we are looking forward I to the time when the revenue from this ! source will be sufficient to pay our dividend. I The next item which calls for remark is the profit on the sale of Argentine bonds, £9972. As you are aware, we held last year £24,500 in Argentine paper bonds, carrying interest at 6 per cent. During the year a iavourable opportunity occurred for selling the paper bonds, and replacing them with 4 per cent, gold bonds. This operation was carried out, and the result, was a net profit of £9972. We now hold in the place of paper bonds a more marketable investment, that has also appreciated in value since we purchased. Turning to the debit side of the account, the expenses, although somewhat larger in volume, are a shade lower than last year in comparison with the premium income. They amount to 26.08 per cent, on our net premium income, which is not excessive. In consequence of fires being so numerous (not only in the colonies, bi_£ in our foreign fields as well), and also through the expansion of our business, the losses show a considerable increase, having amounted to the sum of £273,621, an excess of £27,753 on the previous year. It w»3 perhaps hardly to be expected that we should have two years in succession so favourable as the previous one. The underwriting profit amounts to £37,079, equal to S.S2 per cent, on the net premium income, the losses being 65.1 per cent. The usual full provision has been made for all known but unadjusted claims at the time of closing the accounts. The results thus reported show that, besides making substantial additions to our reserve funds, we are well able to maintain our usual rate of dividend. At the half-yearly balance your directors thought it was desirable to equalise the instalment of dividends so far as could be forecasted, and an interim dividend of 3/ was declared. The available balance you now have to deal with, including the amount brought forward from last year, but deducting £ 15,000 for the interim dividend paid in July last, amounts to the sum of £81,519 7/8. The directors now recommend the payment of a further dividend of 3/ per share, absorbing £ 15,000; that the sum of £35,000 be transferred to the reserve fund, making it £200.000; that £5000 be transferred to the reinsurance fund, which will then stand at £ 175,009, being equal to over 40 per cent. on our premium income; and that the balance of £26,519 7/8 be carried forward to the new account. I would draw your attention to the total value of our assets, which amount to the large sum of £746,861, showing the substantial increase for the year of about £40,000. You will * notice amongst our assets the following new securities:—Natal Colony Security fixed deposit 5 per cent., £ 10,000, and Japanese Government 6 per cent, sterling bonds £ 10,156, being deposits that have had toi be made in these countries in accordance with their laws, to entitle insurance companies to cany on underwriting. As usual, the directors have given careful attention to the values of the company's properties and other investments, and are fully satisfied that the assets are in a round and healthy condition in this respect. As shareholders are aware, an expansion of business means an increase of expenses; and also more office room is required. It has been found necessary at Capetown to make better pro- I vision for office accommodation, and a compact, though not large, building has been erected, which is now in the occupation of the company. At Perth the \ old office has been pulled down and a more modern and up-to-date building is being erected. In London, also, the company have moved into their new offices, which occupy a prominent position at No. 1, Old Broad-street, and should prove a good advertisement for the company and lead to an increase of business. In consequence of a deposit law having been passed in Chile requiring a sum of over £20,000 to be placed in the hands of the Government in the form of local securities, your directors have decided to withdraw from that country, our business not being suffieientlv large to warrant our .making such a depcfsjlt. We have, therefore, given instructions to cease writing in that country. Since our last annual meeting the Government State Fire Insurance Department has commenced business. Shareholders may rest assured that developments in this connection are being closely watched by their directors, who will not allow their colonial business— the result of half a century's operations —to be filched from them. Once more we desire to record our appreciation of the cordial support we have received from the staff, whose best services are always freely rendered in the Company's interest. Before concluding, I must refer to the loss the Company has sustained through the death of the late Mr H. J, Bristow, of London- Mr Bristow was a gentleman well known to numbers of our shareholders, and had been connected through his firm with the management of the Company in London item its iaoeptaoaj

It wa_ largely due to his good advice and careful management that our agency there was placed on such a sound footing; and, when it was considered advisable to change it into a branch under one of our own staff, Mr Bristow still rendered us valuable service as a local director up to the time of his decease. Gentlemen, I now beg to move the adoption of the report and balance-sheet.