ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1925.

Appendix to the Journals of the House of Representatives, 1926 Session I, H-08a

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1926. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1925.

Presented to both Houses of the General Assembly pursuant to Section 22 of the Government Accident Insurance Act, 1908.

State Fire Insurance Office, Wellington, 14th May, 1926. I have the honour to submit the twenty-fifth annual report of the Government Accident Insurance Office for the year ended 31st December, 1925, together with the Revenue Account and Balance-sheet. In accordance with the provisions of the Government Accident Insurance Amendment Act, 1924, the control of the Government Accident Insurance Office passed from the Government Insurance Commissioner to the State Fire Insurance General Manager as from the Ist January, 1925. The transfer, and the organization of the Office as a branch of the State Fire Office, occupied the greater part of the year, but the results achieved already indicate that the association of State fire and accident insurance meets the convenience of the insuring public and is advantageous to both Departments. The following comparison with the previous year shows the progress made : — Income — 1924. 1925. Net premiums .. .. .. .. £39,613 £49,966 Interest .. .. .. .. .. £8,372 £8,983 Outgo — Claims .. .. .. .. .. £24,764 £30,552 Ratio of claims to premiums (per cent.) .. 62-5 61-15 ' Ratio of working-expenses to premiums (per cent.) 26-7 26-6 Reserves and funds at 31st December .. .. £174,883 £187,934 Total assets at 31st December . . . . . . £187,836 £202,003 Premium Income. —The increase in premium income for the year, £10,353 (representing an increase of over 26 per cent.), constitutes a record in the history of the Accident Branch. Claims. —The claim ratio over the whole of the business was slightly lower than for 1924, but the ratio in workers' compensation insurance followed the rising tendency of the last two years and was higher than in the previous year. Motor-car Comprehensive and Plate-glass Insurance. —During the year the Department accepted for the first time motor-car comprehensive and plate-glass insurance. Only a small amount of business was written by the end of the year, but it is anticipated that the addition of these classes of insurance will materially assist the Office and be appreciated by policyholders who wish to have the whole of their insurances with the State Department. J. H. Jerbam, General Manager.

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Revenue Account op the Accident Branch of the State Fire Insurance Office for the Year ended, 31st December, 1925. £ s. d. £ s. d. Premiums after deduction of reinsurances 49,966 16 6 Free year bonus on personal accident £ s. d. policies .. .. .. .. 197 0 0 Interest .. .. 8,983 1 2 Claims .. .. .. .. 30,552 10 11 Less land and income tax 1,874 811 Commission.. .. .. .. 5,589 16 8 7,108 12 3 Salaries .. .. .. .. 6,025 0 0 Contribution to Public Service Superannuation Fund .. .. .. 145 0 0 Expenses of management .. .. 1,515 011 Further appropriation to reserve for unearned premiums .. .. .. 4,660 1 5 Amount of Accident Funds, 31st December, 1925 .. .. .. .. 8,390 18 10 £57,075 8 9 £57,075 8 9 Balance-sheet of the Accident Branch of the State Fire Insurance Office on 31st December, 1925. Liabilities. £ s. d. i Assets. £ s. d. Accident Funds, as per Revenue Account 8,390 18 10 I Debentures issued under authority of the Claims admitted (proofs not yet com- ' Finance Act, 1915 .. .. .. 10,000 0 0 pleted) .. .. .. .. 12,000 0 0 New Zealand inscribed stock —War loans 100,500 0 0 Government taxes .. .. .. 1,229 7-2 New Zealand inscribed stock .. .. 3,000 0 0 Commission.. .. .. .. 684 18 11 Local-authority securities .. .. 26,000 0 0 Premium and other deposits .. .. 100 14 3 Mortgages on property .. .. 49,030 0 0 Sundry creditors .. .. .. 54 0 0 £ s. d. Officers' Fidelity Fund .. .. 500 0 0 Overdue interest.. .. 26 14 9 Reserve for unearned premiums ~ 22,485 1 5 j Outstanding interest due but Investment Fluctuation Reserve .. 3,000 00 | not overdue .. .. 30 0 0 Reserve Fund constituted under section 6 j Interest accrued but not due 2,342 4 9 of the Government Accident Insurance * I — 2,398 19 6 Amendment Act, 1924 .. .. 153,558 6 0 j Agents'balances .. .. .. 212 3 11 | Sundry debtors .. .. .. 6,819 8 4 I Cash in hand and on current account .. 4,042 14 10 £202,003 6 7 j £202,003 6 7 J. H. Jerram, General Manager. sth March, 1926. C. B. Rkdward, Accountant. I hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the books and documents submitted for audit, and correctly state the position as disciosed thereby. G. F. C. Campbell, Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given; printing (975 copies), £3.

Authority : W. A. G. Skinner, Government Printer, Wellington.—l 926.

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