UNION FIRE AND MARINE INSURANCE COMPANY OF NEW ZEALAND.

Globe, Volume XX, Issue 1366, 2 July 1878, Page 2

UNION FIRE AND MARINE INSURANCE COMPANY OF NEW ZEALAND.

The first general meeting of this company was held to-day, at noon, in their offices, Hereto'(i street. There was a large and influential attendfoica of shareholders. The following report and balance-sheet were circulated in tho meeting: “In presenting their first report, your directors have pleasure in congratulating the shareholders on the progress of the company. After paying the whole of the preliminary and other expenses incidental to the formati u of a new company, and ,£10.510 Os 2d for re-insurances, there remains to the credit of profit and loss account, a balance of .£14,142 5s Id which is a highly satisfactory result for the time the company has been working. “Your directors aroof opinion that tho interests of the company will be best served by carrying the whole of tins amount forward to next year, and, therefore, do not recommend the payment of a dividend, though the balance shown would be amply sufficient for t he purpose, after waking

due allowance for the value of unearned premiurns on risks current on the 31a fc May. “ Since the forni'ition of the company, branch offices have hcen opened at Dunedin, Wellington, Auckland, Melbourne, Sydney, and London, and agencies have been established in almost every town in Mew Zealand. Your directors propose to extend the operations of the company as opportunities for doing so, with profit, present themselves. , . . , “ Your directors cordially recognise the assistance hitherto given by the shareholders, and trust that this support, upon which the success of the company so materially depends, will be continued in the future. “It will devolve upon the meeting to elect directors in place of M ossrs Carru’hers, Montgomery, and iStudholme. who retire from the Board by lot. but are eligible for re-election, and offer themselves accordingly; also to elect two auditors for the ensuing twelve months, and to fix dates for future general meetings, “ For the directors, “ J. T. Peacock, Chairman. “ Bal vncb Sheet, Mat 31,1878. LIABILITIES. £, s. d. £ s. d.

“ We have examined the above balance sheet and profit and loss account, together with the vouchers, accounts, the books of the company, and securities, and hereby certify that the above is a correct statement of the affairs of the company. “ F, E. Wright} “ E. S. Harley > Andltors- “ Christchurch, June 24th, 1878.” The Hon. J. T. Peacock, chairman of directors, presided, and utter the manager had read the advertisement calling the meeting, made the following statement: — Gentlemen, —If no desire is expressed to have the report read, I will presume you accept it as read. In moving the adoption of the directors report and balance-sheet, I would first remark as to the period embraced in the sheet now presented. It is I believe not usual to submit a balance-sheet for a period of nine months, and we should have preferred coming before you with a twelve months report, but by the articles of association we were bound to have a meeting within a year, consequently nine months was considered a convenient period for balancing the books. With respect to the accounts submitted to-day I think you will agree with me that we have every reason to he satisfied with the progress made by the company, both as regards the actual premiums received and the profit made. The premium income might have been larger, had we not determined to pursue a conservative policy, being convinced that largo premiums do not always mean large pro'fits. I may say that during our short career we have refused several lisks which have since come to grief. The heavy amount we have paid for re-insurances, coupled with the small amount of losses, indicates the cautious policy just alluded to. It mav be that some of our shareholders are somewhat disappointed that wo have not recommended a dividend; but I think the majority will agree with the directors that at the ontset a new company should endeavour to strengthen its financial position, and make provision for that rainy day which always does come in the history of every insurance company. Those of you who have carefully examined the balance-sheets lately presented by some of our contemporary companies, will have noticed that had not reserves been built up in their early days, they would certainly not be in a position to pay large dividends now. The report indicates the various places at which we have already established branches and agencies. We have every reason to congratulate ourselves on the gentlemen secured by us as managers and agents. This fact is one which cannot fail to be of very considerable advantage to the company in the future. The directors propose to extend the operations of the company wherever openings present themselves for doing a profitable business. You will have noticed as you came upstairs that we are now altering these premises to m <ke suitable offices. We were fortunate enough to secure the site on reasonable terras. When the work is complete we shall not only have sufficient room for ourselves, but enough to let, and leave us at a very small rental indeed. favourable comparison with respect to the business done, as compared with other companies, during the same period of their existence might be made, more especially when we consider the increased competition we bad to from the number of previously established offices. I would urge upon shareholders the necessity of co-operating with their directors, by giving a fair portion of their business to ns, in order that this company may be placed in a leading position. The business of the company is steadily progressing, and hitherto the losses have been comparatively small. Yon will observe that all preliminary expenses have been written off, the directors considering it better to do so, rather than spread them oyer a logger period, and all re-insurances and ascertained losses hr, ve been paid. The investments are in a very satisfactory position ; the interest therefrom in future will form a very considerable item of revenue. By clause 33 of the articles of association all general meetings subsequent to this one should be fixed by the company, but if no action is taken, then the meetings must be held halfyearly. The directors recommend that such meetings should be annual, because they cannot see any advantage in having them oftener, besides it causes a very large amount of extra expense and work in the office, apart from which a eix months’ report does not give a correct idea of the business. In conclusion, I have only to reiterate that we should feel well satisfied with the past, and the prospects of the future. Mr John Anderson seconded the adoption of the report, which was agreed to unanimously. Messrs Carrutbera, Montgomery, and Stndholme, the retiring directors, were re-elected, on the motion of Mr P. Cunningham, seconded by Mr H. H. Hennah. Messrs F E Wright and E. S. Harley were re-elected auditors. 1 ' On the motion of the Chairman, seconded by M> Stead, it".was resolved that the annual general' meeting be field j/i the first week of July in each year. A vote of thanks to the general manager and officers was carried, Mr Meares returning thanks. , . With a vote of thanks to the chairman and Board of Directors the meeting closed.

Capital — Allotment 25,000 0 0 Capital—Third call 12,500 0 0 Less amount unpaid ... 96 17 c - 12,403 2 6 Capital—Fourth call paid in advance 2,721 6 Profit and loss 14,142 5 1 .£51,266 10 1 ASSETS. Deposits hearing interest 24.500 0 0 Investments , 19,180 0 0 Office promises 2,712 11 1 Office furniture . 753 8 *J Cash at branches! and amounts owine at head office and agencies ... , 6,859 7 7 Cash in Bank 261 3 £54,266 10 1 Pkoittanu Loss Account. To fire and marine losses 3,799 10 9 To preliminary expenses (includ. ,£500 registration fee) 2,473 9 7 To stationery 1,263 14 6 To fire and marine re-insnrancea i 10,51b O 2 To marincldiscounts, agents’ com mission and sundry charges ... 11,140 2 1 To balance 14,142 5 1 £43,335 2 2 Bv fire and marine premiums ... 42,355 18 5 By transfer fees 188 2 6 By interest 791 1 3 £43,335 o 2