STATE FIRE INSURANCE

Dominion, Volume 10, Issue 3134, 12 July 1917, Page 6

STATE FIRE INSURANCE

ANNUAL REPORT, The General Manager of the State Fire Insurance Office (Mr. C. R. C. Robiesou), in his report for the year ended iJccember 31 last, states that the net profits amount to ,£35,097, exclusive of 02577 put to unearned premium reserve, and .£IOOO placed in investments fluctuation reserve. The profits exceed those of any previous year by .610,000. Income shows an increase of JJ6395. Tho working expense ratio is increased by 0.2 per cent., due solely, as the report explains, to heavier writing down of office equipment values. The loss ratio of the year was 25.22 per cent., which tho general manager regards as "quite abnormally" low. He adds: "It would appear from our loss ratio for tho past two years that tho war has had a marked influence on the destruction of. property by fire. I trust that this influence may be permanent."

The tela! "covet" issued by the office during the year amounted to ".£19,000,000. Assets (.£160,880) have increased by ,£40,4fi3 during the year. Investments, including J330.000 on fixed deposits, total -E12(>,786, but to that has to be added .£25,000 invested in the Now Zealand War Loan.

Tho office has set aside .£BOOO out of last year's profits for the purpose of granting a bonus to policyholders on premiums paid. .The assessment is deferred for the present on account of 50 per cent, of the trained staff of the office being on active service and the remaindor unable to fully cope with tho business.

Accumulated profits amount l<> .£121.015 this year, as compared with «£8G,217 last year; net income. -£82.fi!M, an increase of !fß3ns; losses, .£21,897, a decrease, of •£5570. or. roughly. 10 per cent. The capital of the undortakine is .£IOO.OOO, but it has not been raised. The office has been in existence for twelve years. Dividing this period into two, it is shown that, during the first half the working expense ratio was 34.0 per cent, and the ratio of loss-51.8. Tn the latter balf Hip expense, ratio wns reduced to 57.3 per cent., and the losses likewise cut down to +5.1 per rent., these being the per annum averages.