STATE INSURANCE

Southland Times, Issue 18847, 12 June 1920, Page 5

STATE INSURANCE

RECORD FOR FIRE DEPARTMENT. NET PROFIT OF £37,043. The financial year of the State Fire Insurance LUiicc, which closed on December 31 shows results which are far in advance of anything previously attained, "llie net income,’’ said the Minister in charge oi tile Department (the Hon. G. .1. Anderson), when discussing the matter during the week, "amounted to £1111.564 and snowed the substantial increase of £11,105 o\or the previous year. This is the greatest increase secures in any single years operations since tite, oil ice conn m-net a business, 'the gross income showed an even greater increase of £13,872, bringing the gross, income for the year up to £151,035. “The increase in income is necessarily reflected in the total sum (new and renewal I underwritten winch tor Use year amounted Vo tne large sum oi £26, Kid,29o, and snowed an increase oi £2,26(1,660 over that of 1918. The surplus ior tne year from ail sources amounted to £5/,iß-i, I9s, widen has been allocated ’as follows-Unearned premium reserve, £4274 lis 2a; investment i.actuation reserve, £1606; income tax,

£14,867 6s tici; leaving a net profit, oi £37,043 Is 4d. Ihe largest net prom of any previous year amounted lo £28,4(2 <s sd, which was obtained in 1918. „'ihe asset., of the office at the close of the year amounted lo £288,349, which places the office in a strung financial poislma. It is now able lo stand any call likely to be malic: upon its finances unless the calls come irom soini thing in the nature of a

great national disa.-ter such as Un.s country has not yet. experienced.

••‘1 he loss ratio for the year was extremely low. ar.ri represented only 2d.04 of me premium income. The high cost of buildings and the diiliculty in replacing slocks have undoubtedly caused properly owners to exercise very much greater care in fire prevention than was the case in pre-war times, when the average loss ratio ranged irotji 30 to GO per cent oi the premium income. The working ex; tenses ratio shows an increase of 2.84 per cent, due to cost oi living increase in salaries, coupled with tire very greatly enhanced increase in pruning, stationery, motor ears. 'etc. The total increase amounts to over £SOOO per annum, and represents 5 per cent on the income, i.su, owing to the greater volume of business handled the ratio of salaries paid to each £IOO of premium is less in 191'J than in 1014 and the actual increase has been cut (.own to 2."si per cent. •The progress of ilir bu.-iness for the current year to date !-■ cnsK lerahly greater than (hat of last year lor the same period, and there is every indication of another record increase in the year's income.”