STATE FIRE INSURANCE OFFICE: ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1907.

Appendix to the Journals of the House of Representatives, 1908 Session I, H-06

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1908. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE: ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1907.

Presented to both Houses of the General Assembly pursuant to the provisions of the Act relating to Government Fire Insurance.

In compliance with statutory provisions, I have the honour to submit the following report for the year ended 31st December, 1907. The year 1907 is the third financial year of the State Fire Insurance Office. The net income for the three years since the inauguration of the Department is as follows: 1905, £13,127 lls. 9d.; 1906, £20,962 Bs. ; 1907, £23,194 13s. It is therefore pleasant to be able to show that the insuring public has given the State Fire Insurance Office an increasing support each year. The rates of premium during the whole of 1907 were the same as those which prevailed at the end of 1906. That the rates of premium for fire insurance in New Zealand are too low is shown by the fact that the results attained by the State Fire Insurance Office on its operations during the past three years show a profit result of only £1,566 17s. 5d., after writing off £1,902 15s. and reserving £7,731 lls. for unearned premiums. The insuring public, however, have reaped the benefit of the reduced rates, seeing same approximately amount to £450,000 for the past three years. The Revenue Account and Balance Sheet attached hereto show that after writing off £634 55., being the third quarter of the preliminary expenses, and reserving an additional £744 Is. Bd. for unearned premiums, the Profit and Loss Account shows a credit balance of £867 7s. Id., which I consider a very satisfactory result, seeing that same has been attained free ot cost to the public, in the face of strong and active competitive opposition, and at rates which have during the whole period been the lowest in the world for similar risks. Id further support of my views respecting the inadequacy of the present rates of premium, I beg to point out that the State Fire Insurance Office now has to pay its pro rata share of the insurance companies' contributions towards the purchase and maintenance of fire brigades wherever same are established and operating under " The Fire Brigades Act, 1907," and this additional charge will range from 5 per cent, to 7| per cent of the premiums received at each centre where a fire brigade working under the Act is in operation. J. W. Brindley, General Manager.

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Revenue Account of the State Fire Insurance Office for the Year ended 31st December, 1907. £ s. d. £ s d Amount of Fire Insuranoe Funds at the Losses by fire (after deduotion of reinsurbeginning of the year .. .. 699 10 4 anoes) .. .. 12 701 8 9 Premiums after deduotion of reinsurances 23,194 13 0 Appropriated to Reserve for unearned pr'eOther receipts— miums (in addition to £6,987 9s. 4d. Interest .. .. .. .. 107 14 4 already reserved) .. .. .. 744 1 8 Interest on Capital guaranteed by the Government .. .. ,. 72 10 0 Commissions .. .. .. .. 2,122 13 0 Salaries .. .. .. 3,702 2 4 Contributions to Fire Boards under '• The Fire Brigades Act, 1907" .. .. 223 3 1 Expenses of Management— £ s. d. Travelling-expenses .. 234 12 10 Printing, stationery, and advertising .. .. 376 11 2 Rent .. .. .. 635 1 8 Exchange .. .. 10 18 8 Postages and telegrams, cablegrams, and sundry oharges .. .. 899 19 4 Furniture written off .. 77 12 9 2,234 16 5 Preliminary Expenses written off .. 634 5 0 Amount of Fire Insuranoe funds at end of year .. .. .. .. 1,566 17 5 £24,001 17 8 £24,001 17 8 J. W. Brindley, 30th May, 1908. General Manager. Examined and found correct.— J. K Warburton, Controller and Auditor-General.

Balance-sheet of the State Fire Insurance Office on the 31st December, 1907. Liabilities. Assets Capital authorised by "The £ s. d. £ s. d. Investments- ' £ s d £ s A w^iol 1 " Insuranoe inn Government 4.per-cent.Deben. " ' Act, 1903" .. 100,000 0 0 tures .. .. 10 000 0 0 Less not raised .. 98,000 0 0 Agents , Balances- " „ 2,000 0 0 Head Office .. 142 2 1 Keserve for unearned premiums .. 7,73111 0 Christchurch 48 11 Fire Insurance Funds, as per Revenue Dunedin 25 0 9 Aooount .. .. .. .. 1,566 17 5 „.- .„ „ Premiums and other deposits .. .. 101 18 7 Outstanding Premiums . 761 Jfi 11 Outstanding Fire Losses .. .. 1,080 0 0 Interest accrued but not due 67 18 11 Other sums owing by the offioe— £ s. d. Cash .. ., 466 3 9 Interest on Capital .. 48 6 8 Cash in bank in transit " \\ 2,313 4 11 Reinsurance premiums Preliminary Expenses .. *634 5 3 due .. .. 2,419 7 5 Offioe Furniture .. " 62fi 1 q Contributions to Fire " Boards under "The Fire Brigades Act, 1907" .. .. 137 5 10 2,604 19 11 £15,085 6 11 £15,085 6 11 J. W. Brindley, 30th May, 1908. General Manager Examined and found correct.— J. K. Warburton, Controller and Auditor-General. Approximate Coat of Paper.—Preparation, not given ; printing (1,600 copies;, £116s. Od. _ . B y Authority : John Mackay, Government Printer, Wellington.—1908 Price 3d.]