INSURANCE YEAR

Sun (Auckland), Volume II, Issue 494, 25 October 1928, Page 14

INSURANCE YEAR

SOUTH BRITISH COMPANY INVESTS WELL SHAREHOLDERS’ MEETING The progress made and the results I achieved during the past year by the South British Insurance Company were discussed by a fully-attended i meeting of shareholders, held this ! morning. Mr. Y. J. Lamer, chairman of directors, presided, and the annual report and balance-sheet, already published by The Sun, was submitted to the meeting. In moving the adoption of the report and balance-sheet, the chairman said that the premium income was less than last year by £8.706. On the other side, losses were more by £10,996 and, in relation to premiums, reached the high ratio of 60.55 per cent. Expenses were higher by £•>10,70.7, but the percentage of 31.1 per cent, was still at a point which could be considered not unreasonable. The balance dt credit of underwriting account was £86,976, being 8.4 per cent, of the premiums. Of this amount, New Zealand’s contribution was small. In the profit and lyss account, the return from investments was £126,149 —an increase of £5,370 on last year. On the other side, dividends had absorbed £120,358; and £75,000 of the balance brought down from underwriting account had been passed to the reserve fund. PROPERTY INCREASE Properties had increased by further payments on the new building and by completion of the Hamilton property. Government securities were less owing to maturity of loans, proceeds of which had been reinvested in municipal and harbour board debentures. On the liabilities side, payment of the call of 5s a share made last year had increased the paid-up capital to £1,031,640. The subscribed capital was now fully paid up. The directors recommended payment of a dividend of Is 3d a share. This, with the interim dividend of Is 2d paid last April, made a distribution of 2s 5d for the year. In workers’ compensation business the claims ratio continued to rise. The responsibility was, he believed, carried out in a manner satisfactory to both parties. It involved a great deal of labour which could scarcely be done more expeditiously or more economically. The margin between premiums received and compensation paid was, however, becoming so very narrow that, after meeting the expenses of conducting the business, little or nothing was left. In no other part of the world was the proportion of compensation to premiums so large as it is in New Zealand. This high claims ratio, combined with the excessive fire wastage, were important factors of the company’s high loss ratio during the year. THIRD PARTY RISKS The Motor Vehicles Act would come into operation on January 1 next. The Act doubtless would achieve its object; but whether it would protect the lives of citizens was another question. To insure regardless of a motorist’s past record or the condition of the vehicle was to invite trouble. Recognition of this was shown by a provision in the Act permitting any insurance company to apply to a magistrate for an order to cancel the licence of any motorist on the ground that he was a danger to the safety of the public. He added that the operations of the Guardian Trust continued to expand, and the business of trusteeship ' demanded and received the close personal attention of the directors. The motion was seconded by Mr. J. H. Upton, who was described by the chairman as “the father of the board.” Professor Thomas suggested that electrical installations should be tested from time to time, as they tended to deteriorate, thus creating fire risk. Messrs. J. H. Upton and E. R. N. Russell, the retiring directors, were reelected. and Messrs. J. A. Duncan and N. A. Duthie were re-elected auditors A vote of thanks was accorded the company’s chairman, directors, staff and agents, and the meeting closed. The chairman of directors for the ensuing year will be elected at the meeting of directors on Tuesday nsxt.