Insurance Companies.

Gisborne Times, Volume XXIV, Issue 1933, 15 November 1906, Page 3

Insurance Companies.

PIiHSS ASSOCIATION. Dunedin, la3t nigh*. At tho annual mooting of tho National Insurance Company tbia afternoon Mr liitohie, tho Chairman, said ; 11 You will ' ha pleased io soo Shut wo have had a prosperous year, I will only sr.y that thin har boon duo chicUy to out - luck in escaping heavy losses, added to careful management, though that does not always by any means have tho desired offset on losses, and that tho underwriting profits have not boon ohitfly made in Now Zealand, ft is only prudent and faic to treat rho resuls of tho present year as exoeptional, and not io reckon upon it us a nominal average cf what may be looked for. RsferriDg to the way in whioh the Board have treated, aud propose to treat tho balanoe of profit and loss aeoount, I hope you will agree that it would bo unwise to inoceaso the dividend because of the oxoepiionally favorable year, and also that it is only wise to udd to our reserves and to our oarry forward, Since our last meeting wo have had a very striking object lesson in this direction in the great San Franoiaoo disaster. In spito of the unprecedented ohainoier of this oatas> tropbe, it nevertheless oannot bo passed over as impossible of recurrence. Wo are , not by any moans iminuuo from earthquakes in Now Zealaud, and should also always keep before us the possibility arising out of the failuro of water, wind, congestion of risks, and so on. There has not been a meeting of in3urauoo companies since tho disaster at San Franoisoo at whioh tho lessons of that fire have not been discussed, and in one oaso an intended iuorease of dividend was oauoolled, though tho profits were there to pay it. Oar not! premiums have deoreased during the yoar, oaused ohiefly by a further revision of rates, but to some extent also by reduction of our holdings in city blooks. Lengthened experience proves that that class of Bisks do not pay sufficient to oover normal looses and expenses, and yonr direotors oonsider that they ought to do ~ not only this, bnt to be high enough to oover conflagration risk as well. So long as they appear inadequate we shall exercise speeial caution in dealing with the usual limits for mty blooks. In spite of shrinkage of total premiums, we have, however, to oarry ioereased sums insured, and therefore we have thought it proper to maintain tho reservo for unexpired risks at the same figure of £5000.”