N.Z. INSURANCE CO.

New Zealand Times, Volume XXXVII, Issue 8345, 4 February 1913, Page 6

N.Z. INSURANCE CO.

There is something more than mer* uneasiness and misgiving in the minda of the more prudent section of the Now Zealand Insurance Company’s shareholders concerning tho proposal of the directors to transfer a sum of £150,000 from reserve fund to capital. The fact that a call of £1 per share is to be made, and a bonus of like amount ia to bo paid out of reserve to the shareholders, suggests that this operation ia being carried out with a keener eye to share profits on the market than to tho financial security of the company. The reserve fund of the New Zealand Insurance Company was built up to its present considerable proportions during a long period of shrewd and careful management, and its value to the company in a moment of trying crisis waa exemplified at the time of tho serious losses in connection with tho San Francisco earthquake, so that tho action of the directors in reducing it now by such a largo amount, whether for tho pecuniary benefit of the shareholders or not, does not appear to bo either wise or far-seeing. With an insurance company as with a bank, tho reserve fund furnishes tho best guarantee of secnr rity.