STATE FIRE INSURANCE

Hokitika Guardian, 17 August 1926, Page 4

STATE FIRE INSURANCE

annual report. The total net income from all sources amounted to £207,418, being an increase of £17,118 over 1924. The net premium income was £176,664, as compared with £165,070 for 1924, the increase for the year being £11,594. At the end of the year policies on the hooks of the Office numbered over one hundred thouasnd. The claims totalled £56,997. against £60,817 for 1924. This result may he considered as very satisfactory in view of the fact that (although final figures are not yet'available) it is reliably estimated that the total paid in fire claims by all offices during 1925 exceeded the previous year, when claims amounted to £1,008,746, which is the largest sum yet recorded as having been lost l>v insurance offices in one year. Uninsured property is not included in this total. The steady increase in fire losses in fbe last three years should direct public attention to the fact that lire waste is an irreparable loss, and fire insurance merely a method of distributing some part of that loss in the form of a tax on the insuring public. ■Exclusive of Government, taxes (which amounted to 5.8 per cent.). Fire Board contributions (2.4 per cent.) and depreciation of Office premises (1.95 per cent.), the working expense ratio to premium income was reduced from 25.1 to 23.8 per cent., and inclusive of Fire Board contributions and depreciation of Office premises from. 29.48 to 28.14 per cent. The average ratio for all offices for 1924 was 37.43 per cent, The surplus for the year, after making full provision for rebates, reserves, and depreciation and writing-down of Office premises, was £35,917. The assets totalled £604,096, showing an increase of £73.818 over the total for 1924.

The period for which the second rebate of 10 per cent, was declared expired on 31st. July, and was continued hv resolution of the Board until the close of the financial year, 31st. December last, when a third rebate was declared at the increased rate of 12) per cent. The cost to the Department of its rebates has been as follows: Year 1923 (five months) £10.996; year 1924, £22,005; year 1925, £17,405. total £50,406. This substantial concession represents only a. part of the benefit derived by the public in consequence of the introduction of the State Fire system of rebates, each rebate as declared having been folowed by the associated companies. In this connection the Government Statistician in his annual report for 1924 estimates that- no loss than £413,234 lias been directly and indirectly saved to the public as a result of -the rebates instituted by the State Fire Office.