NEW ZEALAND INSURANCE COMPANY,

Otago Witness, Issue 2814, 19 February 1908, Page 17

NEW ZEALAND INSURANCE COMPANY,

ANNUAL MEEHNG.

THE QUESTION OF RATEiS. (Fhom Oue Own Corrbsmwdent.)

AUCKLAND, PeWuary 12.

The annual meeting o.t fche Ne# Zealand Insurance Company, was held to-day, when the balance sheet was unanimously adopted.' -sin -the course j^- hiS speech the <pfiairaftSss (thef^Hani i^litecae- Gfebrge) made e&nW remarks '-Wf^ni&reet to insurance- circles. He said : " Tfie ' business of the company iB increasing in a most eatisfactory manner, j and we have again a record to place before' you in our premium income, which sn^icnia to the large sum of £616 416, being an., in- : crease on the previous year of £51;2§8, > I which shows that we are still maktnj steady progress in the insurance world: j Our interest and rents amount to £26,342, : giving a return of 3.84 per cent. This is' ,a- .decrease from fast yeas/', but 'this is partly accounted for by the fact that tome securities were realised in order to meet our liabilities , caused,, b? calamity at SSa-BF E^ncj*x*j*-alacr^esfc: •fc&reV *M*raeuiiis m cash considerably over the values it ' irbicb"th&£* stood in our" botittt. ' Th%t~r3suit is that we are now carrying a larger proportion of gilt-edged securities, whioh consequently means a low rate of interest no j less than £147,612 of these securities hearing interest at 3£ per cent, or under<. As regards the San Francisco disaster, shareholders will be pleased to. know that our estimate, of £285,694 for these loaees is ample, 'and now that- they have been, virtually all settled, there is a small surplus from this amount in our favour. Our expenses are £144,765. This is an increase en the previous year, but as our business expands, let U6 also expect to see an- increase in our expenses. Our losses during the year amount to £406,577, and full provision has been made for all known and unadjusted losses. The loss ratio to premium income is ""65^96 per aent., and our surplus on' underwriting amounts to £65,073, being equal to 10.56 per cent, on our net premium income, which result shareholders trill no doubt consider satisfactory

" After allowing for the interim dividend, paid last August, the available balance you have 'to deal with amounts to £83,674, from which your directors recommend the following appropriations : —£25,000 to be transferred to the Reserve Fund, which will then amount to £155,000 ; and £35,000 to the Reinsurance Fund, which will khe-n , atand at £235.000. These two funds amount, to the substantial figure of £390,000. The I directors feel assured that the policy of , building up the reserves will meet with the approval of shareholders, and that the quesi tion of increased dividend should stand over in the meantime. The" ' balance of £21,674 is carried forward to the new account, out of which your directors recommend the payment of a dividend at the rate of 2s per share, amounting to £15,000, making 10 per cent, for the year. It has become nece6sary to make further acoommodation for our increasing business, and a new building is to be erected in Brisbane at an estimated cost of £20,000. The offices at present occupied will be sold. At Sydney we have purchased, an addition to our ! present building, which is to. be at qnoe \ altered ro enable us to carry on «ur accident branch in the same premises'. In Wellington a new building- is being erected in Ferro concrete, at a cost of £12,000, to replace our former offices, which were destroyed in the large conflagration of October, 1906. These buildings and alterations ar6 absolutely necessary to enable us to carry on in a satisfactory manner our large and increasing business. An amended Fire Brigades Act was passed during the last session of Parliament, and existing fire brigades and others now being formed will shortly be operating under the act. This will mean a considerable extra expense to the companies, and one that is sure to grow as new fire boards are formed from time to time. As the insurance companies generally have not found that the underwriting in the Dominion during the last few years has been profitable, and as they are' not philanthropic institutions, it will be necessary, in order to meet this new tax, that the tariff must be raised, and a probable return to something nearer the rates of 1904 will be needful, -so that underwriters may obtain a ,fair return for the risks they are undertaking-." ' '

Measrs A. M Myers, P. "C Carr, and C. V. Houghton were re-elected to the directorate , „ " .