NATIONAL INSURANCE SHARES.

Evening Star, Issue 3696, 26 December 1874, Page 2

NATIONAL INSURANCE SHARES.

To the Editor. SIR, —Judging from the crude views abou investment which the writer of the letter in Saturday’s Star signed “Sensible,” apparently has, I must congratulate him on assuming a name de plume which must completely hide his idem ity. Those who are in the habit of thoroughly sifting matters before investing their money do not care, so much for the amount of actual dividend so long as they are persuaded tha> the shares they purchase will increase in value year by year. Even supposing a buye now pays 30s per share on 10s paid-up in the National nsurance Company, he would make a capital inves’naent, and for this reason !he first year of its existence it cleared net profit, after paying all preliminary expenses, 50 per cent, on the pad-up capital. The directors wisely only declared 10 [. er cent, dividend, and. carried tlie balance forward to a reserve fund, so that a buyer at 30s would be, even taking the first year (which is always the most unfavorable), receiving 164 per cent, on the money invested. This ha ! f-year everyone admits will be the most favorable, aud indeed it is expected that a far better balance than the two previous half years put together will be shown. Insurance companies are something like snow-balls whep once they get a good start; they inprease their capital year by year, so that shares that only 10a niay have beeu paid up on, in a few years are often worth as many pounds. Look at the New Zealand Insurance Company, for instance, where only about L 6 was paid up* and very lately they not be had for less than L9O. The Norwich Union Company, again, baa only L3O per share paid up, and I believe it ia difficult to buy them at L3OO. The National has had a far better start than the New Z-aland or ■'Outh British ever had, so there is no saying what the shares may be worth in a short, time. It has the advantage of being under the management of a gentleman, than whom, for thorough knowledge of insurance busi ness, coupled with extreme caution, no better is to be found ia New Zealand Its directors are thorough business men, and command almost the entire shipping of th< port. Ihese are the best guarantees of its continued prosperity. Befog a local institaturn it has the good wishes of all right taipkiug colonists, i f tis any consolation tor ' hfusible ’’ to know I never bought any sha es at 355. though many a shrewder man thin myself did ao.—l am, &c., t* ~ Bona Fides. Dunedin, 21sfc December, 1874.