INSURANCE COMPANY.

Gisborne Times, Volume XXIII, Issue 1817, 25 July 1906, Page 2

INSURANCE COMPANY.

I’ItESS ASSOCIATION Auckland, lasi night. A resolution increasing the capital of the New Zealand Insurance Company by a quarter of a million, in order to meet the ban Francisco liabilities, and making the liability limited, was unanimously adopted at a meeting of shareholders At the New Zealand Insurance Com

any’s meeting, the Chairman said the

financial position disclosed was a particularly strong one. The directors had no difficulty in the awful and unexpected disaster in San Francisco and arranging their finances so as to meet all liabilities as they arise, giving proof of the wisdom of flic policy of building strong reserves. The business under normal conditions would enable reinforcement of the reserve by substantial sums from year to year. The

disaster was a great object lesson, noi only to the Uovcrmncut, who thought lit to start a fire insurance department, but to people of the colony, which is not altogether free from earthquake risks. What

would happen should such a calamity as that of ban Francisco occur in our leading cities How could the State Department meet such a loss with no reserves, their policy being to insure at the lowest possible rate, without a desire to make a profit, or to build substantial reserves to

meet a disaster such as this The directors were of opinion that the scheme submitted was the least'onerous to the shareholders, whilst those unable, for financial reasons to take up new shares, will be able to obtain for their rights a sum probably equal to their loss of dividend this year.