NEW ZEALAND INSURANCE COMPANY.

Taranaki Daily News, Volume LI, Issue 46, 13 February 1908, Page 2

NEW ZEALAND INSURANCE COMPANY.

i ANNUAL MEETING. THE- NEW FIRE BOARDS ACT. Per Press Association. Auckland, Last Night. 'The annual meeting of shareholders of tiie New Zealand Insurance Company was held this altenio'on. In moving the adoption of the annual report, the chairman (Hon. S. Thorne George) said: "The business of the company is increas-

ing in a most satisfactory manner, and we have again a record to place before shareholders in premium income, which amounts to the large sum of £010,410, being ait increase on the previous year of £51,268. Our interest and rents amount to £ 20,342, giving a return of 3.54 per cent., which is a decrease from

last year. The result is that we are now carrying a larger proportion of gilt-edged securities, which consequently means a low rate of interest, no less

than C 147,012 of these securities beai ing interest at 3'/, per cent, and undci As regards the San Francisco disastei

'' shareholders will be pleased to know '• that our estimate of £285,004 for these losses has been ample. As to the debit ] side of the account, our expenses are 1 £111,705. Our losses during the vear amount to 0400,577. The loss ratio ' to premium income is (15.00 per cent., and our surplus on underwriting I iimiiiinlß to £05.073. being equal to 10.50 per eent. on our net premium income. Alter allowing for the interim dividend : paid last August, the available balance for you to deal with amounts to £81,074, from which your directors recommend the following appropriations: £25,000 to be transferred to the reserve fund (which will then amount to £155,000), and £35,000 to the reinsurance fund (which will then stand at £'233,000), these funds amounting to the substantial figure of £390,000. The balance of £21,074 is carried forward to the new account, out of which your directors recommend the payment of a dividend at the rale of 2a per sharo, amounting lo £15,000, and making 10 per cent, for the year. "An amended Fire Brigades Act wag passed dining the last session of Parliament, and existing fire brigades and others now being formed will shortly l>e operating under'the Act. This will mean considerable extra expense to the company—one that is sure to grow as new Fire Boards are formed from time [ to time. As the insurance companies generally have not found that under- , writing m the Dominion during the last lew years has been profitable, and as they are not philanthropic institution,*, if will be neressavv, in order to meet this new tax, that' the tariff be raised, and if is probable a return to something nearer the rates of ]!)0t will Ik> needful, so that underwriters mnv obtain a fair return for the risks they arc undertaking." Messrs. A. Si. Myers. It. O. Carr. and ('. V. Houghton were re-elected to Ibe directorate.