COMPANIES TO COMBINE.

Taranaki Daily News, 4 August 1921, Page 5

COMPANIES TO COMBINE.

INSURANCE AMALGAMATION. NEW ZEALAND AND SOUTH BRITISH. By Telegraph.—Press Association. Auckland, Last Night. Circulars issued to shareholders of the New Zealand and South British Insurance Companies state thftt as a result of conversations between the directons of the companies the conclusion arrived at was that a. complete partnership would materially further the interest of both, and subject to the consent of k the shareholders, an agreement to this effect has been entered into. Already they are partners in the Eastern States of America. The history of the two companies shows that the underwriting profits have been just about equal. The only differences are that the New Zealand Company has a larger return from its investments and hftF nn uncalled liability on its shares of £500.000 greater than the South British Company. These differences can be adjusted' by the South British Company making an issue to its shareholders Of £500,000 contributing shares of £1 each and calling up such sum, estimated to be about 6/8 per share, as would bring one company on equality with the other, both as regards interest, earning capacity and capital liability. A basis of equal partnership lias been agreed to and as soon as possible after the close of the South British Company’s financial year on August 31 definite proposals will be laid before the shareholders of each company.