SOUND PROGRESS

Sun (Auckland), Volume I, Issue 262, 26 January 1928, Page 14

SOUND PROGRESS

M. AND G. INSURANCE COY. BALANCE-SHEET REVIEWED That profits are still to be made in the insurance business by regular companies opening up in New Zealand has been clearly demonstrated by the Mercantile and General Insurance Company, Ltd. A New Zealand company, financed by New Zealand capital, the firm is now in its fourth year, and in a very healthy position. Premium income has shown a steady improvement, indications being that the ratio of increase will be greater as the company obtains a footing in the territory it intends to cover. The company received a slight setback in the early stages of its career through some technicality of the Companies’ Act requiring it to reinsure the whole of its accident business for its first financial year, a period of 14 months. Thus, while during the first year, the actual gross premium was £19,594, a total of £14,265 of reinsurance was effected covering both accident and fire business. Gross premium income rose to £20,037 in the second year, however, while, for the year ended July, 1927, the income from that source was shown at £28,413. The expense ratio over the period registered a very satisfactory decrease as follows: —1925, 150 per cent; 1926, 87.57; 1927, 47.66 per cent. In 1927 the loss ratio was 40 per cent., so that the total losses and expenses accounted for 87.66 per cent. This can be considered very satisfactory business for a new company in a year when fire losses were reported by all companies to be especially heavy. The accident department is shown to be in a particularly healthy position, the gross income for the year 1927 being £12,019, against which gross losses of only £2,965 were registered. The balance sheet, which is of particular interest to investors, reveals £36,350 sunk in Government and local body securities, and £19,677 loaned out on first mortgages in New Zealand. Added to this .is £6,000 on deposit with the Government of New South Wales, leasehold property in Wellington, the goodwill of which is valued at £12,704, office equipment and motor-cars (less depreciation), £2,394, and sundry debtors £8,294. While the value of the leasehold may be open to question (improvements during the year paid out of income were allowed to offset depreciation), the total summing up shows approximately 14s 5d of tangible assets against every £1 of paidup capital. Branches have been established in the four main centres of New Zealand, while all worth-while territory is covered by agents. A branch opened in Sydney is also reported to be on the way to showing profitable results. Reviewed from most angles the M. and G., considering the fact that it has only been going little over three years, appears to be in a fairly satisfactory position, and well on the way to rewarding the confidence of its shareholders.

ADDINGTON STOCK MARKET

MOST SECTIONS DECLINE Press Association. CHRISTCHURCH, Wednesday. Heavy entries were the rule at Addington to-day in practically all classes except fat sheep. Store Sheep. —There was the biggest entry of store lambs this season. Competition was much more restrained and best lambs were down in price by 2s a head and others by 2s 6d. Prices previously had been beyond the parity of fat lambs, in addition to which the weather has set in very warm. Good mixed sex half-bred lambs made 23s to 24s 8d; forward rape lambs, 21s 6d to 22s 9d; medium rape lambs, 18s 6d to 21s; backward sorts, 14s 7d to 18s; good four, six and eight-tooth half-bred ewes, 27s 9d to 30s lid; medium four, six and eighttooth ewes, 22s 3d to 25s lid; extra good two-tooth half-bred ewes to 32s lOd; inferior aged ewes, 12s to 16s; cull ewes, 5s 9d to 11s lOd; forward four, six and eight-tooth wethers to 23s 7d; medium four, six and eight-tooth wethers, 18s 6d to 21s lid; two-tooth wethers, 23s 6d; low-conditioned wethers, 14s 3d. Fat Lambs.— -A total of 3,200 was yarded and met with a keen sale at full export prices. Extra prime realised up to 34s Id; prime, 28s 6d to 325; medium, 26s 6d to 28s; light, 23s to 265. Fat Sheep. —The entry of 11 races was comprised mainly of ewes, with very few prime wethers.* For the latter the market was about held, but rates for big ewes were down by Is to Is 6d a head. Exporters bought lighter sheep. Extra prime wethers made up to 34s 4d; prime wethers, 30si to 325; medium wethers, 26s 6d to 295; light wethers, 23s 6d to 26s- %***• t 2, 2aS 7d: PHme eWe ».' £3s t>d to 26s 6d; medium ewes, 18s to 235; light ewes, 13s 9d to 17s. | „ r a \ Ca . tt,e *~ -A- heavy entry of 520 head \vas too large for a mid-summer sale and the advance recorded last week was lost. Best light prime beef made 37s 6d to 40s; ? xc fP^ 01 ? a * P er 1001 b; medium, 34s £° f 6s J„ heav y. 32s to 355; medium cow beef, 29s to 325; and rough down to 255. Extra heavy steers brought up to £lB 6 _ d : prime heavy steers, £ls 15s to . £l7 medium-weight prime steers, £l3 to £ls 10s; light steers, £lO to £l2 10s; extra prime heifers to £l4 7s 6d; prime 5s to £l3; medium heifers, £9 to £11; light heifers, £6 to £8 10s; extra prime cows to £l4 2s 6d; prime cows, £lO 5s to £l2 ss; medium cows, £7 10s to £10; aged and light cows, £5 7s 6d to £7 ss. Vealers. —Lower prices ruled all round. Twelve to 18-months sorts brought up to £6 15s; good vealers, £4 to £5 ss; others, 30s to £3 10s; calves, 4s to 10s. Store Cattle. —A large entry and a good sale for forward stock with good colours. Three and four-year steers brought £ 9 to £lO 2s 6d; two-year, to £6 11s; yearling heifers, £3 to £4 ss; cows, £2 5s to £5 10s; bulls, £3 10s to £8 10s. Dairy Cattle. —Best second to fourth calvers, £8 to £ll 10s; medium, £6 10s to £7 15s; others, £4 to £6; heifers, £7 to £lO 10s; others, £4 to £6 10s. Fat Pigs. —There was no buying for export, prices being a shade on the high side. Choppers made £2 to £4 13s 6d; baconers. 47s 6d to 52s 6d; heavy baconers, 55s to £3 4s 6d (average price oer lb, 4d to s|d); porkers, 32s 6d to 37s 6d; heavy porkers, 40s to 45s (average price per lb, 5Sd to 7d). Store Pigs. —There was good competition for the entry, which comprised for the most part large stores and slips. Weaners made 10s to 15s; extra good, to 18s; stores, 18s to 23s 6d; good stores, 25s to 29s 6d; extra good, 32s to 36s 6d. SYDNEY WOOL SALES By Cable.—Press Association. — Copyright. SYDNEY, Wednesday. At the wool sales the market closed firm at the best rates of last week, with keen general competition. There was a continued strong demand for come-backs and crossbreds. Greasy Merinos sold to 31 id. —A. and N.Z. PRODUCE IN SYDNEY By Cable.—Press Association. — Copyright. SYDNEY, Tuesday. The following are to-day’s quotations on the Sydney produce markets:— Wheat: At country stations, 4s 9d to 4s 9ad; ex-truck, Sydney, 5s 4id to 5s sd. Flour: The export trade is lifeless. Local, £l3 ss. Bran: £6 10s. Pollard: £7 10s. Oats: Tasmanian and Algerian, 5s 2d; white, 4s 9d. Maize: 4s. Potatoes: Tasmanian, new, £4 10s to £B. Onions: Victorian, £ll. The following are the quotations at Adelaide: — Wheat: Growers’ lots, 5s 2d to 5s 3d. Flour: Bakers’ lots, £l3 10s. * Bran: £6 10s. Pollard: £7 2s 6d. Oats: 3s 7d to 3s 9d.—A. and N.Z. CHICAGO WHEAT By Cable. — Press Association. — Copyright. Reed. 9.45 a.m. CHICAGO, Wednesday. Wheat.—March, 1 dollar 291 cents a bushel; May, 1 dollar, 30 cents; July, 1 dollar 26 1-8 cents.—A. and N.Z.