MARINE INSURANCE

Dominion, Volume 8, Issue 2420, 27 March 1915, Page 29

MARINE INSURANCE

:—e LLOYD'S ACTIVE AND PROSPEROUS. The year ended December 31 last was, it is almost unnecessary to state (remarks. the "Financial News"), one of unprecedented animation at Lloyd's, and during the concluding Jive months incident after incident relating to war risks at sea served to keep underwriters in a state of high tension. Happily, the net outcome of all the turmoil and excitement, created first of all by the outbreak of the European conflict, and subsequently maintained by the raids of German vessels , upon the British mercantile marine, involving very heavy financial losses to Englisn interests, has been to- 're-establish the position of-Lloyd's as the great underwriting centrc of the world. Twelve months ago- there were somo who thought they saw signs of decadence at Liid London ..institution and growing strength, at the Continental centres of marine insurance business. The war has put an end to any such tendency, and English underwriters can, consequently, look back with satisfaction upon the yast year's record; not that they arc entitled to take sole credit to themselves for the' prestige they now enjoy... 'l'hey have to thank the Government to a very considerable extent for the establishment of a. State Insurance Bureau, which on more than one occasion did a huge business, and thereby .created confidence,, at a time when private underwriters were temporarily paralysed owing to the very magnitude of their liabilities, and the uncertainty created by the operations of tho Emden, Konigsberg, and other similar vessels. This anxiety related, of course, to specie business, there having been on the water at one time after the outbreak of war. unprecedented amounts of gold in course of transit to this country. All's well that ends well, however,. and Lloyd's members, together with the marine insurance companies, may congratulate themselves that they made substantial last year, and will probably do so again during 1915. Up to the end of July the 'course of events at Lloyd's during 1914 was very quiet, the demand for insurance protection in the first seven months_ of the 1 year having, been substantially below the' average: "With the outbreak of the 'war,. however, the volume of business offering became such that both brokers and underwriters worked day and . night in order to cope with such a flow of orders .as has never been known before in the history of marine insurance. This is explained by the fact that not only was the actuah demand for cover of all kinds excessive, but'in addition marine insurance companies of German origin, which had previously conducted tlieir operations 'on a large scale, were, of course, entirely' out of tho ' market. Other Continental companies were also in a, state of suspended animation owing to the exigencies of the war, with the resijlt that commercial interests all over the world with maritime risks at stake turned to London for protection —and received it. "Without doubt the operations of tbe Emden cost the London market a very largo sum, and in one or two cases underwriters were in-

volved through this vessel in losses which swallowecl up the whole of their war premium account. Such instances are, however, exceptional, and it must be borno in mind that the activities of the Emden were themselves responsible for a large amount''if business which might otherwise -never have come forward, and if this be taken into account the depredations of that famous' vessel cost underwriters a much smaller sum than appears on the surface. The sinking of Admiral Cradock's squadron in the Pacific by Admiral von Spee naturally exercised a material influence at Lloyd's, and Pacific cargoes for some time were either uninsurable or only to be placed at an exorbitant figure. Fortunately witli tho disposal of Admiral yon Spee's boats by Admiral Sturdee this state of affairs disappeared and war risk rates all over the world at once declined substantially and are now down to a level which is well within tho ability of merchants and shipowners to pay. 'Underwriters are still very well employed and on terms which render the outlook for the current year very encouraging, and they, at least, have no cause for complaint concerning the effect of the war upon theii business. <