NZI assets approach $3B mark

Press, 29 January 1986, Page 34

NZI assets approach $3B mark

PA Wellington NZI Corp, Ltd, assets could top the S3B mark after reaching $2,805M in the half-year ended on September 30. NZl’s asset value jumped 11 per cent from 52518 M since last March, according to the company’s interim report NZI has fixed assets, mainly land and buildings, of $213.5M, while its assets amount to 51165.8 M. Investments, including shares, Government securities and company debentures, total 51426.3 M. The report also says the market value of the corporation’s investments was S47M more than the book value. In his review of the half-year, the managing director, Mr David Chalmers, said the result of the general insurance division ($25,499,000 profit) was satisfactory given the impact of the

firmer dollar and the highly competitive environment In New Zealand, the situation was compounded by increasing costs and an unusually high number of major property losses. However, there had recently been an improvement in underwriting and prospects for the remainder of the year had improved.

General insurance results from Australia were good and most other International markets were generally satisfactory. The continued adverse results from Fiji had meant a planned withdrawal from the country from last December, Mr Chalmers said. The policy of expanding merchant banking activities through NZI Securities, Ltd, had continued, with the subsidiary making a substantial contribution to the finance division’s profit. “The deregulation of the finance and banking sectors is welcomed and it is expected that the company will be an active participant in the opportunities arising from that deregulation.”

The life insurances division posted a profit of $6,908,000 ($2,426,000), the sharp increase resulting from a special bonus after amalgamation of the two Australian life funds owned by the group.

The trustee services division earned $1,134,000 ($640,000), investment services $855,000 ($399,000), and information service $131,000 ($67,000). The group’s re-insur-ance activities are being re-organised through the new re-insurance division trading as NZ Re, Mr Chalmers said.