THE SOUTH BRITISH INSURANCE COMPANY.

Globe, Volume XXII, Issue 1914, 13 April 1880, Page 3

THE SOUTH BRITISH INSURANCE COMPANY.

[By Teieqeafh.T AUCKLAND, April 12,

The fifteenth half-yearly meeting of shareholders of the South British Insurance Company was held to day, at their offices, Queen street. Captain Daldy, chairman of directors, presiding. The manager, Mr O. A. Boardman, read the report and balance-sheet, and the statement of accounts for tho fifteenth halfyear of the Company’s business, ended February 29th last. The income from fire and marine premiums has been £61,385 14s 5d ; from investments, £5 823 Xos.3d ; transfer foes, £5 5s ; total, £67,214 9s 8d ; which, added to £4,051 9s 9d, brought forward from previous half-year, makes a total of £71,215 19s sd. The total expenditure has been : Fire and marine losses paid and outstanding at close of books, £30,909 15s 8.1 ; reinsurances, £14,436 19s ; commission, salaries, printing, advertising, and general charges, £13,576 Is 4d ; making £58,922 16’, and with £5,000 dividend paid, £63 922 16s, leaving a balance of £7,343 3s sd, from which the directors recommend the payment of a dividend at the rate of 10 per cent, per annum. The chairman, in moving the adoption of the report and balance-sheet, said that the directors met the shareholders with much greater satisfaction now than on tho last occasion, because then the balance-sheet showed that they were not in a position to pay fully a dividend out of the profit. They had, therefore, to take £IOOO from tho reserve fund for the purpose. The present balance-sheet not only indicated that their funds were amply sufficient to justify them in declaring tho usual dividend, but were large enough also to leave a substantial balance. As this was only a halfyearly meeting there was not much for him to say, but there were points in the accounts to which ho might direct their attention. The fire and marine losses during tho last six months had been much less than they were during the preceding half-year, and had it not been for the unfortunate loss of the Knowsley Hall there would have been £6OOO more to their profits. However, this was one of tho incidental chances or risks to which insurance companies were naturally subject. From the reports it would be seen that the expenses had absorbed upwards of £13,000, and perhaps a little explanation was needed in regard to that fact, inasmuch as tho sum was in excess of that which had been paid during the last two years. In view of a diminution in business, shareholders would naturally enquire the reason of this. It was due then principally to tho enormous reductions which had been made in the rafe of premiums, and to the excessive competition which had prevailed between the various companies. A large business had been done in the number of

policies taken, though the receipts were smaller, and therefore the working expenses had been greater than usual. In Auoklai d the rate of premiums had been reduced 100 per cent., while some companies had actually accepted rates which ruled in Melbourne, a city which had the most splendid water supply in the Australian colonies. He hoped that this would now cease, and that a return would be made to a fair and equitable rate of insurances—fair and equitable alike to both insurers and insurance companies. He trusted that this explanation would prove satisfactory. The revenue had been about £SOOO less than it was for the corresponding period of last year, but the recent excessive competition fully accounted for this While it was encouraging to know that their business was steadily increasing, there was another matter that assisted to cause the reduction in receipts. The directors had seen tbat it was wise to materially reduce amounts held in respect of single bottoms, for experience had taught them the folly of having too large a sum on one bottom. They therefore took steps to reinsure. There won signs abroad that showed that the excessive competition to which reference had been made would soon drop. In some places it whs still going on, notably in Australia ; but in this colony there was a desire abroad to establish the rates to such a fair basis as would enable the various companies to pay a reasonable dividend to their shareholders, who would then receive a proper return for their capital. Ho would also draw attention t ,> the investments, which took a much less sum than they had previously, but, on the other hand, their debts were much less in amount also. When heavy debts fell due the directors had not cared to distress those to whom money had been lent by calling it in at once, but obtained it in other ways. The debt (hus contracted had now been almost wiped off. After referring to the item £30.000 for losses, and remarking en passant that the business of the 'past six weeks had been of a very favorable character, the chairman spoke of the increasing value of the company’s property in the various centres of population, and the large revenue which might be expected to accrue therefrom. The motion was then seconded by Mr Bimme, and agreed to nem. con. Messrs J. Batger and A. L. White wore re-elected auditors.