STATE INSURANCE

Hokitika Guardian, 9 June 1920, Page 3

STATE INSURANCE

RECORD FOR .FIRE DEPARTMENT

NET .PROFIT QF £37,043

1 ' WELLINGTON, Juno 7. j The financial year of the State Fire Insurance Office, which closed on 31st December last, shows results which are far in advance of anything previously attained. “The net income,” said the 1 Minister in charge of the Department, i (the HOll G. J. Anderson), when i ing the. matter “amounted to £110,564, < I and showed the substantial increase of j j £11,105 over the previous year. This; ,is the greatest increase ’ secured , !in any single year’s . operations ’ i since the office commenced husiiness.- The gross income showed an even greater increase of £13,872, bringing the gross income for the year up to : ! £15L935. ‘ I

“The increase in income is necessarily reflected in tlie total sum (new and renewal) underwritten, which for the year amounted to the large sum of £26.160,290, ancl showed an increase of £2,200,>• 000 oroi; that of 1918. The surplus for the year, from all sources amounted to £57,184 19s, which has been allocated as follows : Unearned premium - reserve, £4275 11s 2d; investment fluctuations reserve, £1000; income tax.* £14,867. 6s 6d; leaving a net profit of £37.043* Is 4d. The largest net - profit i iof any previous, year amounted to i £28.472 7s sd, which was obtained in 1918. The assets of the office at the dose of the year amounted to £288,349, | ! which places the office in. a strong financial position. It is now able to stand any call likely to lie made upon . its finances, unless the calls come frog] ; something in tile nature of a groatnational disaster such as this country, has not yet experienced. “The loas ratio for the year was extremely low, and represented only 23.04 of the premium' income. The working expenses ratio' shows an increase of 2.84 per , cnt., due to cost of living increase *of salaries, coupled with the very greatly enhanced increases in printing, stationery, motor cars, etc.. The total increase aniounts to over £SOOO ner annum and represents 5 per cent, on the income, but owing to the greater volume of business handled the ratio of salaries paid to each £IOO of premium is less in 1919 than in 1914. and the actual increase has been cut down to 2.84 per cent. “The progress of the business for current year to date is considerably greater than that of last vear for t h n same period, and there is even indication of another record increase in the year’s income.”