STANDARD INSURANCE COMPANY.

Globe, Volume XXIV, Issue 2470, 7 March 1882, Page 3

STANDARD INSURANCE COMPANY.

IPEBSS ASSOCIATION TELEGRAM.] DUNEDIN, Maroti 6. The sixteenth half-yearly meeting of the shareholders <n the Standard Insurance Company was held this afternoon, the chairman of directors (Mr John Beid) presiding. The Chairman said, in moving the adoption of the report—lt is very gratifying to be able to submit for your consideration a report and balance sheet so favorable as the one now before you, and which closed the sixteenth half-yearly period of the company's existence, I think the directors may fairly congratulate the shareholders on the result, particularly when this has been achieved in the face of the extremely unwholesome competition which prevails in some parts of the colony, and the fact that for months past the fire and marine casualties have been more than usually numerous and disastrous. Yon will observe that we have standing to the credit of profit and loss account £9143 14a 3d—an amount sufficient not only to pay a 7i per oent. dividend, but to carry the substantial sum of £2500 to the credit of the reserve fund (the importance of which ueeds no comment from me), and also to carry forward to the next half year, £3831 4,s 3d. I may also add that the dividend now recommended barely absorbs the interest received from our investments for the half year, and that we do not therefore require to apply any part of the profits of underwriting account for this purpose. Our premium compares very favorably with the corresponding period of the previous year, showing as it does a very satisfactory increase. Tour directors have steadily pursued the same cautious line of policy in accepting business as indicated by them last year ; believing it to be, as I then said, the only course consistent with the main object of our business, namely, safety and profit. You will notice that full provision has been made in the accounts for outstanding and unadjusted losses. Before concluding I have another matter, gentlemen, to which I wish shortly to allude. Your directors, after careful consideration, have determined to bring before you a proposal to dispense with the present system of issuing half-yearly reports and balance-sheets, and in lieu thereof to make them annual. You will also be asked to grant power to your directors to declare an interim dividend, I have no doubt whatever that the change I have indicated will readily commend itself to yon. Under our present system a large proportion of the premiums received from wool and agricultural business naturally comes to account in the first half of the year, whilst the losses arising from the same business mainly fall to be met in the latter half of the year. The circuit of the year would, therefore, show fairer and steadier results. To effect this change, an extraordinary general meeting will be held during the month, and resolutions submitted as required by the articles of association, when I hope shareholders will give their cordial support to the proposal. I may remark that your directors have long been persuaded of the importance of this alteration, but have not previously deemed it expedient to propose it. In answer to a question, the chairman said Anticipating that a question would be put regarding the Alma case I prepared a reply. The Standard is not alone in this case. Our policy was for £ISOO, of which two-thirds were reinsured, viz , £SOO with the New Zealand and £SOO with the Adelaide, and the owners had a further sum of £SOO with the South British. The companies interested have acted together throughout in defending this action, and will bear the expense in equal proportions. We consider the decision of the Court to be contrary to the weight of evidence, and counsel advises, ua that the judge misdirected the jury on points of law. As the case involves questions of vital importance to underwriters, our solicitors moved the Court for leave to appeal. This they obtained, and the companies interested are considering their future action. The mount of the verdict and costs will have to be paid into Court, aud for this liability, full provision is made in the balance-sheet now before you, although it xa possible we may, on appeal, get the decision reversed. (Applause. J Mr A. Bennie seconded the adoption of the report, which was unanimously agreed to. The retiring directors were, re-elected, and a vote of thanks accorded to the directors and officers.