STATE INSURANCE.

Press, Volume LVI, Issue 16854, 7 June 1920, Page 6

STATE INSURANCE.

KECOED EOE FIRE DEPARTMENT.

NET PROFIT OF £37,043

The financial year of the State Fire Insurance Office, which closed on 31st December last, shows results which aro far in advance of anything previously attained. "The net income," said the Minister in charge of the Department (the Hon. G. J. Anderson), whon discussing the matter on Saturday, ''amounted to £110,56-1, and showed the substantial increase of £11,105 over the previous year. This is the greatest increase secured in any single year's operations since the office commenced business. The gross income showed an even greater increase of £13,372, bringing the gross incomo for the year up to £151.935.

"The increaso in income is necessarily reflected in the total sum (new and renewal) underwritten, which for the year nmountod to the largo sum of £26,160,290, and showed an increase of £2,200,000 over that of 1918. The surplus for the year from all sources amounted to £57,184 19s, which has been allocated as follows:—Unearned premium reserve, £4274 lis 2d; investment. fluctuations reserve, '£1000; income tax, £14,867 6s 6d; leaving a net profit of £37,043 Is 4d. The largest net profit of any previous year amounted to £28.472 7s od, which was obtained in 1918. Tho assets of the office at the close of the year amounted to £28-8,349, which places the office in a strong financial position. It is now able to stand any call likely to be made upon its finances, unless the calls come from something in tho nature of a great national disaster such as this country has not vet experienced.

"The loss ratio for tho year was extremely low, and represented only 23.04 of the premium income. The high cost of buildings, and the difficulty in replacing stocks, have undoubtedly caused property owners to exercise very much greater care in fire prevention than was tho caso in pre-war times, when the average loss ratio ranged from 50 to 60 per cent, of the premium income. The working expenses ratio shows an increaso of 2.84 per cent., due to cost of living increase of salaries, coupled with the very greatly enhanced increase in printing, stationery, motor cars, etc. The total increaso amounts to over £5000 per annum, and represents 5 per cent, on the income, but, owing to the greater volume of business hand'ed. the ratio of salaries paid to each £100 of premium is less in 1919 than in 1914, and the actual increase has been cut down to 2.84 per cent. - "The progress of the business for the current year to date is considerably greater than that of last year for, the samo period, and there is every indication of another record increase in the' year's income."