THE GLOBE. WEDNESDAY, JULY 11, 1877.

Globe, Volume VIII, Issue 950, 11 July 1877, Page 2

THE GLOBE. WEDNESDAY, JULY 11, 1877.

The progress of this colony in material wealth during the last few years has been very great, and no more striking proof of this fact can be given than the extraordinary prosperity of the various banking and insurance companies which have lately sprung up. Within the last few days the prospectus of yet another one, " The Union Fire and Marine Insurance Company of New Zealand," has been issued, with every prospect of a grand success. The new aspirant to popular favour is not necessarily an opponent of the other local companies. The rapidly growing trade of New Zealand justifies its promoters in starting it, and in anticipating support from the general body of the public, without materially affecting the prosperity of existing institutions. In proof of this we need only quote the case of the New Zealand Insurance Company, which, notwithstanding the increase in the number of local institutions, has continued to do a rapidly growing business. In the year 1871 the premiums received by the New Zealand Insurance Company were £66,549; and although since then the South British, the National, and the Standard Companies, have all been started, yet in 1876 the net premiums received by the premier company of the colony had increased to £165,606. The progress of the South British and the other companies has been equally satisfactory. No better illustration of the great and rapid development of the trade of New Zealand, and of the urgent necessity for the formation of new companies from time to time to keep pace with the growing requirements of the country, could be given than the figures we have just quoted. That insurance business in New Zealand is a profitable one, there can be no doubt, as the experience of existing insurance companies fully testifies. It is therefore manifestly to the advantage of the country generally that such profit should be retained here, instead of going to swell the income of outside capitalists. The result will no doubt be that foreign companies will suffer, but that is there own concern. HldW is ver 7 properly a feeling amongst ! l S in favour of colonial institutions, and at' the present time the local insurance companies are unable to take all the risks offered, but are compelled to avail themselves of open policies to enable them to fully cover their customers' risks.

Canterbury, as a rule, lias never been particularly successful in the initiation of colonial companies, but the opening for the one under notice is so patent, that there is no reasonable possibility of it being other jbhan a most complete success. Insurers in Chrjstehurch will have the satisfaction of having the head office in their midst of what promises to be the very largest insurance company in New Zealand. It

may be well here to draw attention to the fact that the capital will be £2,000,000, which is double that of any other started in the colony, and that it is intended to call up £IOO,OOO to begin with. This is evidence we think that the promoters have resolved to start a really sound concern. In initiating such institutions, it is well known, there is a great inclination to call up a very small amount of capital, and rely for security upon the position of the shareholders. But the directors of the Union Company are evidently determined to place it upon a thorougly sound basis at once.

The Directory comprise, without doubt, the strongest list of names that has ever appeared in connection with any company floated in Christchurch, and from the number of well-known and eminently prudent but energetic business men on the Board, there is every guarantee to investors that the company will be managed on the soundest principles. Canterbury, from its large export trade happens to be particularly strong in the amount of marine insurance it can offer, and this is usually the most profitable part of insurance business. It is very noticeable, therefore, that the Directory comprise almost the entire export portion of our mercantile community, so that the new company starts with an assured business in the most profitable department.