N.Z. Insurance Co. Ltd.

Hokitika Guardian, 17 August 1922, Page 1

N.Z. Insurance Co. Ltd.

As an instance of the keen eye which Australian investors keep upon New Zealand companies the following extrae from the “Sydney Daily Telegraph’s” “Financial Spotlight” column of July 31, is instructive, Mr Alex. Jobson, the conductor of the column puts the position thus:— Amount to he invested, £lsl os. Buying 100 £1 shares paid to 10s.

Price, 00s 3d (sale.) Yearly income, £0 13s Id. Return, £4 11s per tent. Though the yield is low, these shares have* special merits as an accumulative investment, which justifies acceptance by investors. The company earns good profits, both from underwriting and from interest on its investment. In 1021 the underwriting profit Cl(>2,000 and the interest revenue, £122,000, were individually sufficient to provide the dividend of £l3 0s 8d per cent., absorbing £IOO,OOO. Its reserves of almost £1,100,000 exceed the paid-up capital by £350,000, and there is accordingly ample in hand for purposes of capitalisation. As no bonus issue has been made since that of £150,000 in 1019, the market anticipates that the directors will make a further one before long. It is possible that the May, 1022, report, due next month, may show less satisfactory profits than the 1921 period, as insurance companies during the past year have not been doing so well as formerly. Still, the shares are worth consideration by investors with an eye to the future. Assets value 24s 7d per £1 share, paid to 10s. It need only lie added that the latest balance-sheet justifies the prophecy. The year’s surplus lias been reduced from £170,021 to £134,432. The latest reported sales of Now Zealand Insurance in this country are at the rate of 28s, which makes the return on investment at the current rate of dividend £4 15s 2d per cent.