STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1933.

Appendix to the Journals of the House of Representatives, 1934 Session I, H-06

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1934. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1933.

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

State Fire Insurance Office, Wellington, 16th April, 1934. I have the honour to submit the twenty-ninth annual report of the State Fire Insurance Office for the year ended 31st December, 1933, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years :— 1931. 1932. 1933. Income — £ £ £ Premiums .. .. .. .. .. .. 216,007 208,493 201,351 Other receipts, less land-tax and bad debts .. .. 4-9,496 46,749 42,906 Outgo — Bonus rebate to policyholders .. .. .. .. 26,187 25,294 30,060 Claims.. .. .. .. .. .. .. 112,932 70,444 49,005 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. .. .. .. 50,479 47,967 51,340 Fire Board contributions .. .. .. .. 7,927 7,835 7,968 Income-tax .. .. .. .. .. .. 26,152 28,201 33,912 Cash stolen or burnt, Hawke's Bay earthquake . . .. 26 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. .. 52-28 33-79 24-34 Ratio of working-expenses (exclusive of income-tax and Fire Board contributions) to premium income .. . . 23-38 23 •01 25 • 5 Ratio of Fire Board contributions to premium income .. 3-67 3-76 3-96 Ratio of income-tax to premium income .. .. .. 12-11 13-52 16-84 £ £ £ Carried to reserve for unearned premiums .. . . .. .. 15,482 Surplus, apportioned as follows : — Payment to Treasury under section 5, Finance Act, 1931 (No. 2) 2,612 3,484 3,484 Bad Debts Reserve .. .. .. .. .. 500 1,000 Written off Office premises .. .. .. .. 10,000 38,400 29,700 Investment Fluctuation Reserve Fund .. .. .. 7,000 15,000 15,000 Reserve Fund .. .. .. .. .. .. 21,687 2,134 3,788 Reinsurance Reserve Fund Bonus Rebate Reserve .. .. .. .. .. .. .. 20,000 Total .. .. .. .. .. £41,799 £60,018 71,972 Reserves and funds at 31st December .. .. .. £918,682 £952,299 £991,087 1. The reduction in premium income shown since 1931 continues, due mainly to adjustment of amounts insured to a lower level in accordance with present-day values. Competition also is extremely keen for the small amount of new business which is available, and in seeking its share, the Office suffers a disability in that many lending institutions and mortgagees, other than Government Departments, to an increasing degree make it a practice to compel the insurances of borrowers to be placed with insurance companies for which they act as agents. Where the business is free, the claim which the Office has on the support of the public by reason of its service receives excellent recognition. 2. As from Ist September, 1933, the Board decided to grant an additional rebate of 12f per cent, on dwellings situated in areas where there is adequate fire protection, and an additional 7|- per cent, on dwellings and farm risks situated in other areas. These percentages bring the current State Fire rebate up to 25 per cent, and 20 per cent, respectively. The cost for twelve months of this further concession to State Fire policyholders is estimated at £19,000 approximately, and as the companies follow similarly in regard to their policyholders, the total saving to the public will not be less than £100,000. J. H. Jebram, General Manager.

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Revenue Account of the State Fiee Insurance Office fob the Yeae ended 31st Decembee, 1933. £ s. d. i £s. d. Premiums after deduction of reinsurances .. 201,351 03 I Bonus rebate to policyholders .. .■. 30,060 1 4 Other receipts £ s. d. ' Losses by fire and earthquake (after deduction of Interest, commission, and rent 43,286 12 0 | reinsurances) 49,004 14 4 Less land-tax .. .. 380 9 2 Income-tax 33,911 11 7 42,906 2 10 i Commission .. .. .. ■■ 9,320 16 0 1 Salaries .. .. ... .. •■ 25,315 1 5 Contribution to Public Service Superannuation Fund .. .. .. .• • • 525 15 9 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. .. 7,967 19 1 Expenses of management — £s. d. Travelling-expenses .. .. 2,997 15 2 Printing, stationery, and advertising 1,483 14 0 Rent 1,697 4 10 Exchange .. .. .. 45 10 5 Postages, telegrams, cablegrams, and sundry charges .. 6,645 18 3 12,870 2 8 Office equipment .. .. .. .. 721 13 10 • Office premises: Depreciation .. .. 2,586 11 0 172,284 7 0 Payment to New Zealand Treasury under section 5, Finance Act, 1931 (No. 2) .. .. .. 3,484 11 0 Investments Fluctuation Reserve Fund .. 15,000 0 0 Bonus Rebate Reserve .. .. .. 20,000 0 0 Office premises—Written off .. .. 29,700 0 0 Amount of fire-insurance funds at end of year .. 3,788 5 1 £2447257 3 1 £244,257 3 1 Balance-sheet of the State Fire Insurance Office on the 31st Decembee, 1933. Liabilities. £ e. d. Assets. £s. d. Capital authorized by the State Fire £ Government securities 436,392 16 2 Insurance Act, 1908 .. ..100,000 Local-authority securities 151,751 2 7 Less not raised .. •• 100,000 Rural Advances bonds .. .. .. 14,175 0 0 Ml. Fixed deposits and at short call .. .. 280,000 0 0 Bad Debts Reserve 1,500 0 0 Land and buildings 124,680 9 6 Reserve Fund 713,552 10 11 Outstanding premiums 10,159 3 7 Investments Fluctuation Reserve Fund .. 59,000 0 0 Interest accrued but not due .. .. 9,415 8 6 Reserve for unearned premiums .. .. 104,246 911 Rent accrued or due 1,913 2 4 Bonus Rebate Reserve 49,000 0 0 Rent overdue . 134 15 4 Reinsurance Reserve Fund .. .. .. 60,000 0 0 Cash in Bank of New Zealand at Premium and other deposits .. .. 1,047 3 9 Wellington, or in transit to £s d Outstanding fire and earthquake losses .. 3,130 0 0 Wellington .. .. 31,187 8 9 Government taxes 43,91111 7 Imprest Account balances : Head Sundry creditors 6,815 4 9 Office and branches.. .. 703 12 2 Other amounts owing by the Office— £ s. d. dl,8»l Oil Reinsurance premiums due .. 10,647 7 9 Commission.. .. •• 1,515 12 3 Printing, stationery, and advertising 16 0 10 Postages and sundry charges .. 2,342 12 1 Fire-insurance funds, as per Revenue Account.. 3, 788 5 1 £1,060,512 18 11 £1,060,512 18 11 J. H. Jerram, General Manager. 23rd May 1934. L. H. Osborn, Deputy General Manager. Ī 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.

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