STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1930.

Appendix to the Journals of the House of Representatives, 1931 Session I-II, H-06

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1931. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1930.

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

State Fire Insurance Office, Wellington, Ist June, 1931. I have tie honour to submit the twenty-sixth annual report of the State Fire Insurance Office, for the year ended 31st December, 1930, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years : — 1928. 1929. 1930. Income — £ £ £ Premiums .. .. .. .. .. .. 211,634 217,990 221,909 Other receipts, less land-tax .. .. .. .. 40,459 41,003 49,508 Profit on realization of investments . . . . .. .. .. 794 Outgo— Bonus rebate to policyholders .. .. .. .. 26,421 27,208 27,001 Claims.. .. .. .. .. 81,585 75,316 90,001 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. . . .. 38-55 34-55 40-56 Working-expenses (exclusive of income-tax and Fire Board £ £ £ contributions) .. .. .. .. ..49,804 52,194 52.624 Fire Board contributions. . .. .. .. .. 7,283 7,709 8,027 Income-tax .. .. .. .. .. .. 9,789 15,746 21,153 Ratio of working-expenses (exclusive of income-tax and Fire Per Cent. Per Cent. Per Cent. Board contributions) to premium income .. .. 23-54 23-94 23-71 Ratio of Fire Board contributions to premium income .. 3-44 3-54 3-62 Ratio of income-tax to premium income .. .. .. 4-63 7-22 9-53 £ £ £ Carried to reserve for unearned premiums .. .. .. 1,609 2,542 1,567 Surplus, apportioned as follows: — £ £ £ Reinsurance Reserve Fund .. .. .. .. 10,000 10,000 15,000 Bonus Rebate Reserve .. .. .. .. .. 1,000 1,000 500 Written off Office premises .. .. .. .. 3,000 4,000 5,000 Investment Fluctuation Reserve Fund .. .. .. .. 6,000 6,000 Reserve Fund .. .. .. .. .. .. 61,600 57,276 45,336 Total .. .. .. .. .. £75,600 £78,276 £71,836 Reserves and funds at 31st December . . .. .. ..£744,271 £821,090 £889,494 The claim ratio for 1930 was substantially higher than for the previous year, partly due, no doubt, to depressed financial conditions and the uncertain values of all kinds of insurable property. The State Fire rebate, which was again fixed at 12J per cent., has been since 1923 the means of conceding directly £181,297 to State Fire policy holders, and indirectly over £2,000,000 to the insuring public generally. The gross surplus, £71,836, after providing £21,153 for income-tax, must, under the difficult conditions which prevailed during the year, be considered satisfactory, and enables substantial additions to be made to reserve funds necessary to render the Office in times of abnormal losses financially independent of the Consolidated Fund. J. H. Jbrram, General Manager.

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Revenue Account of the State Fire Insurance Office for the Year ended 31st December, 1930. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 221,909 19 3 Bonus rebate to policyholders .. .. 27,00114 0 Profit on realization of investments .. .. 794 4 3 Losses by fire (after deduction of reinsurances) .. 90,001 22 Other receipts — Interest, com- £ s. d. Appropriated to reserve for unearned premiums mission and rent . 51,732 0 8 (in addition to £87,196 6s. Bd. already reserved) 1,567 13 0 Less land-tax .. .. 2,223 7 2 Income-tax 21,153 14 9 49,508 13 6 Commission .. .. •• ... 10,838 13 / Salaries 28,175 13 1 Contribution to Public Service Superannuation Fund 942 9 5 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. .. .. 8,027 13 5 Expenses of management — £ s. d. Travelling-expenses .. .. 1,807 7 0 Printing, stationery, and advertising .. . . 1,382 7 1 Rent .. .. .. 1,779 3 8 Exchange .. . . .. 43 11 10 Postages, telegrams, cablegrams, and sundry charges .. 3,252 3 4 8,264 12 11 Office equipment .. .. . ■ • • 1,131 5 6 Office premises—Depreciation .. .. 3,271 15 11 200,376 7 9 Investments Fluctuation Reserve Fund .. 6,000 0 0 Reinsurance Reserve Fund .. .. .. 15,000 0 0 Bonus Rebate Reserve .. .. • • 500 0 0 Office premises—Written off .. .. .. 5,000 0 0 Amount of fire-insurance funds at end of year .. 45,336 9 3 £272~212 17 0 £272,212 17 0 Balance-sheet of the State Fire Insurance Office on the 31st December, 1930. Liabilities. Assets. £ s. d. Capital authorized by the State Fire £ £ s. d. Government war-loan securities .. .. 112,140 11 3 Insurance Act, 1908 .. .. 100,000 Other Government securities .. .. 264,950 0 0 Less not raised .. .. 100,000 Local-authority securities .. .. . • 132,550 10 9 Nil. Rural Advances bonds .. .. .. 14,175 0 0 Reserve Fund .. .. •• .. 644,394 511 Rural Intermediate Credit bonds .. .. 20,000 0 0 Investments Fluctuation Reserve Fund .. 22,000 0 0 Fixed deposits and at short call .. .. 110,000 0 0 Reserve for unearned premiums .. .. 88,763 19 8 Land and buildings .. .. .. 8 5 Bonus Rebate Reserve .. .. •• 29,000 0 0 Outstanding premiums .. .. .. 8,618 2 1 Reinsurance Reserve Fund .. .. ■■ 60,000 0 0 Interest accrued but not due.. .. .. 10,404 18 1 Premium and other deposits .. .. .. 1,061 0 0 Rent accrued or due .. .. .. 247 18 10 Outstanding fire losses 6,052 0 0 Rent overdue .. .. .. •• 189 6 2 Government, taxes 21,153 14 9 Sundry debtors •• • 579 6 8 Sundry creditors .. .. . • • • 10,019 2 8 Cash in Bank of New Zealand at Other amounts owing by the Office— £ s. d. Wellington, or in transit to £ s d Reinsurance premiums due .. 174 10 6 Wellington .. .. 52,805 1 8 Commission.. .. .. 1,727 12 7 Imprest Account Printing, stationery, and adver- balances—• £ s. d. tising .. .. • • 16 311 Head Office .. 38 14 5 Postages and sundry charges .. 1,877 1.1 3 Auckland .. 110 11 S 3,795 18 3 Hamilton .. 00 3 Fire-insurance funds, as per Revenue Account .. 45,336 9 3 New Plymouth .. 214 9 Palmerston North 2 18 5 Napier .. .. 8 2 1 Nelson .. .. 17 1 6 Christchurch .. 36 16 10 Timaru .. .. 2 8 3 Dunedin.. .. 78 15 4 Invercargill .. 55 610 244 9 7 53,049 11 3 £9317576~10 6 £931,576 10 6 J. H. Jerram, General Manager. 30th April 1931. 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.— G. F. C. Campbell, Controller and Auditor-General. Approximate Cost of Paper. —Preparation, not given; printing (1,775 copies), £4.

By Authority : W. A. G. Skinnek, Government Printer, Wellington.—l93l. i Price 3d.]

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