State Fire Insurance.

Te Aroha News, Volume XXVII, Issue 4380, 2 March 1909, Page 2

State Fire Insurance.

PROBABLE RISE IN RATES.* It has been persistently rumoured iD town (says the Wellington correspondent of thp Herald) that one of 'the leading insurance companies has offered to take over all the business of the State Fire Insurance Department. The matter was mentioned to the Prime Minister (Sir Joseph Ward) by a Dominion reporter last night. “ I do not think there is anything in it, ” said Sir Joseph ; “ at all events, I have not heard of any such offer, but even if it were made it would not be entertained. We shall continue to carry on the fire insurance office in the interests of the country. It is trne that the Department has made a loss during the past year, but it does by any means follow that the business should be abandoned. Most of the fire insurance companies lost on their New Zealand business during the year. ” “ But do they not make up by profits in other countries ? ” “ They certainly have an advan- • tage over us in having their business spread over a wider field, and also inasmuch as they have an income for the investment of accumulated funds. ._ The State Fire Insurance Department is as yet too young to have accumulated funds for investment but that will come in time. _ Fires have been very heavy during year, and the State Department come in for its share of the losses. We cannot expect every year to be a successful one, and this is the first year the Department has made a loss. At the same -time there is no use in shutting one’s eyes to the fact that the Department has done a great deal of good indirectly to insurers.” “Is it likely there will be a rise in the rates ? ” “ I cannot tell what steps we may decide to take. Of course, we do not want to carry on an unprofitable business. ’’ Iu reply to further questions, the Prime Minister said that a new manager of the Department, in succession to Mr J. /V. Brindley, has not yet been appointed.