STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER, FOR THE YEAR ENDED 31st DECEMBER, 1928.

Appendix to the Journals of the House of Representatives, 1929 Session I, H-06

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1929. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER, FOR THE YEAR ENDED 31st DECEMBER, 1928.

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

State Fire Insurance Office, Wellington, 10th June, 1929. I have the honour to submit the twenty-fourth annual report of the State Fire Insurance Office, for the year ended 31st December, 1928, with the Revenue Account and Balance-sheet. The following comparative figures for the last three years show the progress made : — 1926. 1927. 1928. Income — £ £ £ Premiums .. .. .. .. .. .. 197,471 207,610 211,634 Other receipts .. ... .. .. .. .. 36,074 35,884 40,459 Outgo — Bonus rebate to policyholders .. .. .. .. 24,496 25,765 26,421 Claims.. .. .. .. .. .. .. 79,062 98,134 81,585 Per Per Per Cent. Cent. Cent. Ratio of claims to premium income .. . . .. 40-04 47-27 38-55 Working-expenses (exclusive of income-tax and Fire Board £ £ £ contributions) .. .. .. .. .. 50,048 50,295 49,804 Fire Board contributions.. .. .. .. .. 5,304 6,903 7,283 Income-tax .. .. .. .. .. .. 15,073 11,957 9,789 Per Per Per Ratio of working-expenses (exclusive of income-tax and Fire Cent. Cent. Cent. Board contributions) to premium income .. .. 25-35 24-23 23-54 Ratio of Fire Board contributions to premium income .. 2-68 3-32 3-44 Ratio of income-tax to premium income .. .. .. 7-63 5-76 4-63 £ £ £ Carried to reserve for unearned premiums .. .. .. 8,322 4,055 1,609 Surplus, apportioned as follows — £ £ £ Reinsurance Reserve Fund .. .. .. .. 5,000 5,000 10,000 Bonus Rebate Reserve .. .. .. .. .. 1,500 1,500 1,000 Written off office premises .. .. .. .. 4,000 4,000 3,000 Reserve Fund .. .. .. .. .. .. 40,737 35,883 61,600 Total .. .. .. .. .. £51,237 £46,383 £75,600 Reserves and funds at 31st December .. .. .. .. £623,622 £670,061 £744,271 The new business available was less than in previous years. Reductions in the rating classification of several districts whsre the Office holds a large number of risks also affected the increase in premium income. The ratio of working-expenses to premium income, however, was lower than for the past fifteen years, and the surplus a record. In this connection it is particularly gratifying to be able to report that during 1928, when fire claims on all insurance offices rose in the aggregate to a figure little short of a million and a half sterling —the highest ever recorded —the State Fire underwriting results, on the whole, were more satisfactory than for years past. Bonus Rebate. —This was fixed for 1928 at the same rate as for the previous year —viz., 12J per cent. The cost of rebates to the Office up to the end of 1928 has been as follows : — £ Year ended 31st December, 1923 .. .. .. .. 10,996 1924 .. .. .. .. 22,005 1925 .. .. .. .. 17,405 1926 .. .. .. .. 24,496 1927 .. .. .. .. 25,765 1928 .. .. .. .. 26,421 £127,088 Income-tax.—-It is not generally understood that the Office pays income-tax, although not quite on the same basis as insurance companies so far as reinsurances placed outside the Dominion are concerned. According to returns published by the Government Statistician, the State Fire Office has been for years past the largest fire-insurance taxpayer in the Dominion. For the five years ending 1927 the State Fire Office paid a total of £68,523 in income-tax, while the next largest total paid by any one office for the same period was £37,186. For 1927 (the latest year for which comparative figures have been published) the State Fire Office with 13-27 per cent, of the total fire premium income, provided no less than 35-09 per cent, of the total income-tax collected from all fire-insurance offices. J. H. Jerram, General Manager.

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Revenue Account of the State Fiee Insurance Office for the Year ended 31st December, 1928. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 211,634 7 0 Bonus rebate to policyholders .. .. 26,421 1 5 Other receipts—lnterest, commission, and rent .. 40,459 14 7 Losses by fire (after deduction of reinsurances) .. 81,585 2 0 Appropriated to reserve for unearned premiums (in addition to £83,044 7s. Bd. already reserved) 1,609 7 2 Government taxes .. .. .. .. 9,789 16 4 Commission .. .. .. .. 10,039 15 0 Salaries .. .. .. .. .. 26,971 5 3 Contribution to Public Service Superannuation Fund .. .. .. .. .. 468 9 3 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. .. .. 7,283 10 10 Expenses of management— £ s. d. Travelling-expenses .. .. 1,799 7 9 Printing, stationery, and advertising .. .. .. 1,303 12 1 Rent .. .. .. 1,869 16 11 Exchange .. .. .. 39 17 0 Postages, telegrams, cablegrams, and sundry charges .. 3,087 11 0 8,100 4 9 Office equipment .. .. .. .. 985 0 6 Office premises—Depreciation .. .. 3,239 15 4 176,493 7 10 Reinsurance Reserve Fund .. .. .. 10,000 0 0 Bonus Rebate Reserve .. .. .. 1,000 0 0 Office premises—Written off .. .. .. 3,000 0 0 Amount of fire-insurance funds at end of year .. 61,600 13 9 £252,094 1 7 £252,094 1 7 Balance-sheet as on the 31st December, 1928. Liabilities. Assets. £ £ s. d. £ s. d. Capital authorized by the State Fire Government war-loan securities .. .. 148,146 7 0 Insurance Act, 1908 .. .. 100,000 Other Government securities .. .. 123,150 0 0 Less not raised .. .. .. 100,000 Local-authority securities .. .. .. 87,696 4 4 Nil. Rural Advances bonds .. .. .. 14,175 0 0 Reserve Fund .. .. .. .. 525,516 19 11 Rural Intermediate Credit bonds .. .. 20,000 0 0 Investments Fluctuation Reserve Fund .. 10,000 0 0 Fixed deposits and at short call .. .. 90,000 0 0 Reserve for unearned premiums .. .. 84,653 14 10 Land and buildings .. .. .. 210,615 12 11 Bonus Rebate Reserve .. .. .. 27,500 0 0 Outstanding premiums .. .. .. 8,950 4 2 Reinsurance Reserve Fund .. .. .. 35,000 0 0 Interest accrued but not due .. .. 7,259 18 0 Premium and other deposits .. .. .. 814 17 3 Rent accrued or due .. .. .. 213 1 4 Outstanding fire losses .. .. .. 1,855 0 0 Rent overdue .. .. .. .. 292 8 7 Government taxes .. .. .. .. 9,789 16 4 Cash in Bank of New Zealand at Sundry creditors .. .. .. .. 5,687 12 5 Wellington, or in transit to £ s. d. Other amounts owing by the Office— £ s. d. Wellington .. .. .. 60,466 3 1 Reinsurance premiums due .. 7,085 11 0 Imprest Account Commission.. .. .. 1,664 811 balances — £ s. d. Rent .. .. .. 30 4 0 Head Office .. 635 4 9 Printing, stationery, and adver- Auckland.. .. 0 4 4 tising .. .. .. 17 4 7 Hamilton.. .. 511 9 Postages and sundry charges .. 742 11 2 New Plymouth .. 25 1 6 9,539 19 8 Palmerston North .. 411 9 Fire-insurance funds, as per Revenue Account .. 61,600 13 9 Napier .. .. 010 2 Nelson .. .. 10,7 7 Christchurch .. 283 8 0 Timaru .. .. 8 19 0 Dunedin .. .. 2 2 7 Invercargill .. 17 13 4 993 14 9 61,459 17 10 £771,958 14 2 — £771,958 14 2 27th March, 1929. J. H. Jerram, General Manager. C. B. Redward, Accountant. I hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— 6. F. C. Campbell, Controller and Auditor-General.

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