STATE FIRE OFFICE

Dominion, Volume 13, Issue 216, 7 June 1920, Page 5

STATE FIRE OFFICE

$ SUCCESSFUL YEAR'S BUSINESS. The State Fire Insurance Office hod a particularly successful finaucial year in IJI9. "Tho not income at the office for the year ended December 31 last," ,said the Minister in charge of the Department (Hon. G. J. Anderson) on Saturday, "amounted to £110,564, and showed the substantial increase of £11,105' over the previous year. _ This tno greatest increase secured in ' any single year's operations 6ince tho office commenced business. The gross income' showed an even greater inorease of .£13,872. bringing 'the gross income for tho year up to £151,935. "The increase in income is necessarily reflected in the total sum (new and renewal) underwritten, which for the year amounted to tho large sum of and showed an increase of .£2,200,000 over, that of 1918. Tho surplus for the year from all sources amounted to ,£57,184 195., which has been allocated as follows:— Unearned premium reserve, £4274 lis. 24: investment fluctuations reserve, .£1000; income tas, £1-1,867 Gs. 6d.; leaving a net profit of £37,013 Is. 4d. Tho largest net profit of any previous year amounted to £25,472. 7s. 5d., which waa obtained in 1918. The assets of Ithe office at the close of the year amounted to £288,349, which places tho office in ,t 6lrong financial position. It is now able to stand any call likely to be made upon its finances unless the calls come from something in the nature of a great national disaster such as this country haa not yet experienced. "Tho loss ratio for the year was extremely low, and represented only 23.04 of the premium income. The high cost of buildings aud the difficulty in replacing stocks have undoubtedly caused prt>to exercise '_ very much greater care in fire prevention than waa the case in pre-war times, when the average loss ratio ranged from 50 to 60 per cent, of tho premium income. Tho working expenses ratio shows on increase of 2.84 per cent., due to cost of living increase in salaries, ".coupled'with the very greatly enhanced-increases in printing, stationery, motor-cars, etc. The total increase amounts to over £5000 per annum, and represents 5 per cent, on the income, but, owing to the greater volume of business handled, tho ratio of salaries paid to each £100 of premium is less in 1919 than in 1914, and ..the acitual increase has been cut down t0 ; 2.84 per cent. "Tho progress of'tho business for the current year to date is considerably greater than that of last year for tho. samo period, and Ifchere is every indication of another record increnso in the; year's income."