THE STATE FIRE INSURANCE OFFICE: ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDING 31st DECEMBER, 1911.

Appendix to the Journals of the House of Representatives, 1912 Session I, H-06

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Session I. 1912. NEW ZEALAND.

THE STATE FIRE INSURANCE OFFICE: ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDING 31st DECEMBER, 1911.

Presented to both Houses of the Ge?ieral Assembly pursuant to the Provisions of the State Fire Insurance Act, 1908.

State Fire Insurance Office, Wellington, 26th February, 1912. I have the honour to submit the following report on, and Eevenue Account and balance-sheet of, the State Fire Insurance Office for the year ending 31st December, 1911. The year under review has been one of the most successful yet experienced by the office, the profits being with one exception (1910) the largest of any year since the office commenced business, and the ratio of working-expenses is the lowest on record. New business is but a trifle less than the previous year, which showed the greatest advance since 1906. The net premium income, after deducting reinsurances, amounted to £47,744 11s., as against £40,551 15s. 2d. for the previous year, showing the very substantial increase of £7,192 15s. 10d. The increase for 1910 was £7,270 os. 7d. The profits for the year, after appropriating a further sum of £2,877 2s. 4d. to reserve for unearned premiums, amounted to ££,391 9s. lid., as against £8,487 13s. for 1910 and £2,698 13s. 7d. for 1909. The net losses for the year amounted to £27,536 11s. 7d., as against £18,913 18s. 4d. for 1910, the ratio of loss to premium income being 57-67 per cent, for 1911, and 4664 per cent, for 1910. As stated in my report for 1910, the ratio of loss for that year was greatly below the average to be expected. During the past year the office was not as fortunate in avoiding losses from bush-fires and city blocks as was the case in 1910. In my ■■ last report I was able to show a very substantial reduction in the ratio of workingexpenses. I am glad to be able to say that the balance-sheet now presented shows a further reduction. The ratio of expenses for 1911 is 27-5 per cent., for 1910 was 28-3 per cent., and for 1909 was 30-5 per cent. The reduction of 3 per cent, in two years represents a saving on the 1911 business .of £1,432 as compared with 1909. Included in these expenses is a sum of £801 ss. 7d., being the amount contributed to the funds of Fire Boards under the Fire Brigades Act. It will be noticed from the balance-sheet that the investments of the office now amount to £25,000, as compared with £20,000 in 1910 and £10,000 in 1909. The reserves for unearned premiums amount to £19,097 16s. 5d., as against £16,220 14s. Id. for 1910. During the year an Inspector has been appointed, whose duty it is, amongst other things, to personally inspect all properties on which this office has issued policies of insurance. The work already accomplished by this officer has shown very clearly the necessity for the appointment in order to safeguard the interests of the office. In comparison with other countries, this Dominion does not hold an enviable position in connection with its fire-loss ratio. There are many natural features which contribute to a high loss ratio, but it seems to me that one of the worst contributing agencies is overinsurance. If some means could be found whereby overinsurance could be prevented or greatly minimized, a great saving in national wealth would in my opinion result. That a means can be found to greatly reduce the evil there is little doubt, but it requires the honest co-operation of all fire underwriters to put any such means successfully into operation. C. E. C. Eobibson, General Manager.

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Eevenue Account of the State Fire Insurance Office foe the Year ended 31st Decembee, 1911. £ s. d. £ s. d. Amount of Fire Insurance funds at the Losses by fire (after deduction of reinsurbeginning of the year .. .. 7,046 3 6 ances) ... .. .. .. 27,536 11 7 Premiums after deduction of reinsurances 47,744 11 0 Appropriated to reserve for unearned preOtber receipts—lnterest and commission 1,186 13 10 miums (in addition to £16,220 14s. Id. already reserved) .. .. .. 2,877 2 4 Interest on (Japital raised, guaranteed by Government .. .. .. 72 10 0 Commission .. .. .. .. 3,815 10 5 Salaries .. .. .. .. 5,735 14 4 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. 801 5 7 Expenses of management — £ s. d. Travelling-expenses .. 364 19 10 Printing, stationery, and advertising .. .. 571 10 6 Bent .. .. .. 684 14 2 Exchange .. .. 30 17 11 Postages and telegrams, cablegrams, and sundry charges .. .. 928 14 11 Office equipment written off 120 3 4 2,701 0 8 Amount of fire-insurance funds at end of year .. .. .. .. 12,437 13 5 £55,977 8 4 £55,977 8 i 15th February, 1912. C. E. 0. Eobieson, General Manager. Examined and found correct.—E. J. Collins, Controller and Auditor-General.

Balance-sheet of the State Fire Insurance Office on the 31st December, 1911. Liabilities. Assets. £ s. d Capital authorized by the £ s. d. £ s. d Investments — Government debentures State Fire Insurance and Consols .. .. .. 25,000 0 0 Act, 1908 .. .. 100,000 0 0 Outstanding premiums .. .. 3,194 17 5 Less not raised .. .. 98,000 0 0 \ Interest accrued but cot due .. .. 415 18 7 —. 2,000 0 0 ; Cash in Bank of New ZeaReserve for unearned premiums .. 19,097 16 5 land at Wellington, or in £ a. d. Premiums and other deposits .. .. 297 7 9 transit to Wellington .. 9,094 5 1 Outstanding fire losses .. .. 1,512 0 0 Imprest Account balances— Other amounts owing by the £ s. d. office— £ s. d. Head Office ..212 6 3 Interest on capital .. 48 6 8 Auckland .. 41 10 3 Reinsurance premiums Christchurch 159 16 11 due .. .. 2,329 5 7 Dunedin .. 18 8 0 Commission .. .. 750 5 11 Palmerston Rent .. .. 204 811 North .. 47 16 4 Printing, stationery, and New Plymouth 49 16 5 advertising .. .. 2 18 6 529 14 2 Postages and sundry 9,623 19 3 charges .. .. 28 111 ! Office equipment .. .. .. 473 910 3,363 7 6 Fire - insurance funde, as per Revenue Account .. .. .. .. 12,437 13 5 £38,708 5 1 i £38,708 5 1 j 15th February 1912. C. E. C. Eobieson, General Manager. Examined and found correct. —K. J. Collins, Controller and Auditor-General.

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