TARANAKI FARMERS' MUTUAL FIRE INSURANCE ASSOCIATION.

Stratford Evening Post, Volume XXX, Issue 24, 3 May 1916, Page 7

TARANAKI FARMERS' MUTUAL FIRE INSURANCE ASSOCIATION.

. .«<£«» ; I The animal meeting of the nalci Kannoi ;' Mutual Kin" Insurance Association was held at the Town Hall, Kltham, on Saturday afternoon, Mr J. T. Qniti, chairman, presiding j The secretary (Mr \V. J. Tristram) 'road the amial repoU and balance-sheet las follows :• The eleventh annual report of your 'directors shows a furtiier improveIment in the financial position of the 'Association for the year just closed. ! The net premium income for the year amounted to £9BO is lOtl, b< i:ig £lO9 Ms in excess of that of tiie pr<'jvious year. j The insurance liability at the close of the year under rc-\ iew (after allowing for reinsurance) amounted to £303 070 LOs, as against £233,13! at the close of the previous your, being an increase of 600,619 10s. This liability is classified as follows : —Farin and non-hazardous risks 128 j policies, amounting to £300,013 10s; dairy factory, two policies, £-300; reinsurance, four policies, £2,127. The total policies in force numbei 1257, bringing the general average to approximate ly £lßl, against that of the previous year, £299. If ire losses amounting to £l3 occurred during the year.

The liquid assets of the lire branch at the end of the financial year (after making provision for ail general liabilities.) amounted to £6504 18s 2d, being £Ol Si Os lid in advance of the previous year. The premium notes in force at the close of the year under review amounted to £16.282 Is 3d, being an increase of £372-1 10s 3d. The total fire branch general assets over general liabilities amount to £23,047 7s JW, an increase of £4409 16s'3d. Accident Business: Pursuant to resolution of last annual meeting, the Association has established an accident branch for indemnity of employers' liability claims of its members. Business Was commenced on 18th .November, 1913. The total receipts from premiums amounted to £4l 8s 9rl. Claims amounting to £7 were paid, and after allowing for proportion of salaries, commission, unearned premiums and stationery, the amount to debit of this .branch y at the end of financial period! was £l3 Is lod; but the prospects, Xor accident business for the current year are, however, promising.- , The directors have to report that at tjioir November meeting the secretary's salary was increased from £l5O per annum to £250 per annum, plus a bonus of -H j.vr cent, on yearly profits. Certain directors retire by effluxion of time, and it will be necessary for you to appoint se\ en new directors. They are all eligible for re election. You will also be asked to appoint an auditor and to fix his rsmuueratipn. Mr Parrott's services are again available. ' \ I The chairman moved the adoption of the report and balance sheet, and in doing so said that during the e::ist-

ence of the association the avefiagt' loss per year had been £133 Lis (J;!, and for four years there bad been no losses. They bad one big loss :iu J 008of €7OO, and during the last tv.dv.e months a loss of £l<3. On looking over the balance sheet they would find thai the expenses were very heavy. The; wages and commission could not be cut down, nor could the directors' fees, as they were very small. The only way was to get more insurances. The farmers ivcre not loyal, and instead of having policies amounting to £3O0 } 000 they should be £600,000. The question for the incoming directors was what were they going to do with the reserve fund. He did not think they should reduce the premium rate until they had a reserve fund of £IO,OOO, and they at present had one of £6OOO.

Ylr Jl. Gibson seconded the motion. Mr lianc thought that the business of the association had been well managed, and it' the farmers were loyal insurance could l»e done at 2s 6d per cent, instead of at 6s Bd. MrH. D. Forsyth said that the business was increasing very rapidly, and tho premiums wore .waller than any of the other companies. Mr Gibson suggested that perhaps one reason why the farmers did not support '.he association was because they were not all f"<™ RR n "ts in the matter of insurance. Mr Wright said that the fanners had an inborn conservatism not to change their office. Continuing, lie

said that perhaps n different point ot view was.a goo; 1 . thing. He thought that the present balance sheet was the poorest ever put through. As far as losses were concerned it was good, and another excellent thing was that there was an income of nearly £IOOO. Howover the income had all been swallowed lip by management expenses. If the association had struck a big year of losses, how would they have beer, met? The association would have | )Pe ,i hotter off had they not put on a travelling representative. There was not an advertisement in a single newspaper showing where the association was The directors should advertise in three or four of the papers and not keep the association such a dark secret. Ho considered that a travelling representative was not as good as a newspaper advertisement. Mr E. .Maxwell said it would be a crreat mistake to meet and not discuss things. The association had steadily, from year to year, built up a reserve fund.' The association had started under great difficulties, but got a great lift by securing the dairy companies. They had given them up and had mora than made up that great loss, because it was a mutual association they were not going to get all the farmers. They would have forged ahead if they hud insured at '2s 6d por cent., but what institution would have trusted them. They had now formed a good reliab'e institution and had had to [io-ht the long established companies. He was satisfied that the directors had followed a wise policy in getting a live canvasser. The balance sheet showed a very satisfactory condition The real trouble; was the disloyalty ot the farmers, to thetr own association. If there was any gentleman present who could increase the business at a gi-ater rate he. should go on the directorate. "One thing that had oeeii missed and Midi was well to bear in mind was, that the small loss Had been the care'in the acceptance/ of risks. "■ : ' . „ The report and balance sheet an read were nna'nimmisly adopted. Directors for'the 'ensuing year were Elected as follows:--Hi D. Forsyth, J. B es fc V Maxwell, It. Lambie, A. Hunter, J. Christolfel, and Si Death, Junr. Mr L'arrott was re-appointed auiu:MY Qaim declined nomination for the directorate. Mr Wright said that Mr Qmn had rendered, great services to the association and moved a hearty vote ot thanks to him'. • _ ' Mr Ciane seconded the motion, wlneii was carried by acclamation. •U a subsequent meeting Mr H. ItForsyth was elected chairman of directors.— (Eltbam Argus).