STATE FIRE OFFICE

Nelson Evening Mail, Volume LXIII, 20 July 1929, Page 12

STATE FIRE OFFICE

SATISFACTORY YEAR «

GENERAL MANAGER’S REPORT*

(By Telegraph) (From “Tho Mail’s” Parliamentary Reporter)

WELLINGTON, IBLII July. Tho annual report of the general manager of the State Fire In.sura 11 go Office (Mr J. H. Jerrain) for the year ended 31st December, 1928, states that the ratio of working expenses to premium income exclusive of income tax and hire Board contribution (23.54 per cent.) was lower than for the past fifteen years, and the surplus (£75,600) a record. In thisconnection the report goes 011 to say that during 1928, when fire claims on all insurance offices rose in the aggregate to a figure little short of a million and a half sterling—the highest ever recorded —the State hire undciwrfting results, on the whole, were more satisfactory than for years past. The premium income was £211,634 and other receipts £40,459. Claims absorbed £81,585 and the bonus rebate £26,421. Reserves and funds totalled £744,271. Tho general manager makes the following comment in regard to income tax:—“lt is not generally understood that the office pays income tax, although not quite on tlie same basis as insurance companies so far as reinsurances placed outside Die Dominion are concerned. According to returns published bv the Government Statistician, the State Fire Office has been for years past the largest fire insurance taxpayer in the Dominion. For the five yeajjs ending 1927 the State Fire Office paid a total of £68,523 in income tax, while the next largest total paid by any one office for the same period was £37,186. For 1927 (tho latest year for which comparative figures have been published) flic State Fire Office, with 13.27 per cent, of the total fire premium income, provided no less than 35.09 per cent, of the total income tax collected from all fire insurance offices.” Reporting on the accident insurance branch of the State Office, Mr Jerrain states that- while claims (£43,807) show- I cd an increase over the previous year, j the income) (£71,731 from premiums and £12,368 from interest) was greater, the ratio of working expenses, exclusive of income tax (22.98 per cent.) lower, and the surplus (£17,592) larger than in any previous year in the history of tho office. The reserves and funds at 31st December totalled £245,909.

A satisfactory year’s business is reported by the Government Insurance Commissioner (Mr A. E. Allison) in his annual report presented to Parliament yesterday. , New sums assured for the year ended 3lst December, 1928, totalled £1,915,465, as compared with £1,791,845 for 1927. Tho total of sums assured stood at £22,084,471. The) total claims met during the year amounted to £512,697, as compared with £473,199 in the previous year. Since the inception of the Department the total claims paid have been £11,'244,750, “The course of business during the year lias been distinctly favourable,” says the Commissioner. “New business has been satisfactory—indeed, as previously mentioned, the amount written represents the largest ever transacted by the Department in any one year, and

expense ratios show a substantial reduction. The funds have been kept closely and profitably invested, and the net average interest earnings, although slightly lower than (hose of 1926 and 1927, are still nearly 2,} per cent, in excess of the valuation (3 per cent. OM) rate. And the mortality experience continues favourable.”