RECORD NETT INCOME

Taranaki Daily News, 20 September 1940, Page 9

RECORD NETT INCOME

N.I.M.U. INSURANCE CO. "The nett inome was carried up to a record of £224,110 14s 6d, an increase of £28,170 11s lld over " the figures for 1939," states the report which is to be presented at the rnnual meeting of the North Island Motor Union Insurance Company at Hawera on Monday night. "At the end of the financial year the number of eomprehensive policies in force was 38,210, being 5389 more than the 1939 total. Income from investments realised £4685 15s 6d, an increase of £622 10s lOd. "The nett amount paid and payable for claims was £146,686 10s 6d. The ratio of claim payments to nett prcmium income is 65.4 per cent., an increase of 4.o per cent. compared with the previous year. Another reduction in the ratio of working expenses to nett premium income was achieved. Last year the ratio of 21.5 per cent. was considered to be very low, but this year the ratio is only 20.4 per cent. This decrease of 1.1 per cent. indicates the continued economical conduct of the affairs of the company. "The surplus for the year was £.)8HU 6s lld. The sum of £2500 was„ transferred to the profits for distrihution reserve, while the balance of £3380 6s lld was added to accumulated funds. The accumulated funds. comprising accumulated surplus £40.152 12s ld. and reserve for unexpired risks £112,055 7s 4d, total £152,207 19s 5d. an increase of £17,4t)J 12s lld on the figures at the opening of the year. An amount of £14,08o bs, being 50 per cent. of the amount of; increase in nett premium income, has been added to the reserve for unexpired risks. An amount of £10,000 was added to reinsurance reserve, which now stands at £13,366. Under existing conditions members will approve of tlie precautionary measure taken in placing a sum o£ £5000 to the investment fluctuation reserve, which now stands at £o892 4s oit. "Many of the employees of Ihe company are already serving with His Majesty's forces, and probably a large number of others will be called on to serve. Realising their responsibilities to the young men who are fighting for their Empire. the directors have placed a sum of £1000 to a newly-formed reserve, styled 'Rep«triation Reserve,' for use as required to re-establish these men in civil life upon' their return to New Zealand. "The plan whereby surplus protits were rebated to members had to be discontinued in August, 1939. Over £30,000 was distributed amongst the members under this plan over the five years of its initial operation. This year the sum of £2500 was added to this reserve, which now contains £2932 6s 4d. It is the intention of the directors to build up this fund and revive the practice of rebating surplus profits as soon as clrcumstances make it possible."