STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1939.

Appendix to the Journals of the House of Representatives, 1940 Session I, H-06

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1940. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1939.

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

State Fire Insurance Office, Wellington, 29th March, 1940. I have the honour to submit the thirty-fifth annual report of the State Fire Insurance Office, for the year ended 31st December, 1939, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years : — 1937. 1938. 1939. Income — ££££££ Premiums .. .. .. .. 175,726 193,501 205,539 Other receipts, less land-tax .. .. 47,724 46,099 50,743 223,450 239,600 256,, 282 Outgo — Bonus rebate to policyholders .. .. 33,379 37.747 37,201 Claims.. .. .. .. .. 34,795 30,839 39,443 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. 53,781 58,657 58,232 Fire Board contributions.. .. .. 9,602 10,492 11,365 Income-tax .. .. .. .. 35,454 32,288 51,273 167,011 170,023 197,514 Carried to reserve for unearned premiums .... Surplus, apportioned as follows : — Written off Office premises .. .. 26,000 23,000 28,000 Reserve Fund .. .. .. .. 439 577 768 Bonus Rebate Reserve .. .. .... Reinsurance Reserve .. . . .. 30,000 30,000 20,000 Investments Fluctuation Reserve .. .. .. 16,000 10,000 ■—— 56,439 69,577 58,768 Total .. .. .. 223,450 239,600 256,282 Reserves and funds at 31st December .. 1,113,830 1,160,407 1,191,175 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. 19-8 15-94 19-19 Ratio of working-expenses (exclusive of incometax and Fire Board contributions) to premium income .. .. .. .. 30-61 30-32 28-33 Ratio of Fire Board contributions to premium income .. .. .. .. 5-46 5-42 5-53 Ratio of income-tax to premium income .. 20-18 16-68 24-95 1. The figures speak for themselves, and indicate that the operations of the Office during 1939 were highly successful. Despite some enforced relaxation of normal competitive activity since the outbreak of war due to shortage of trained staff, the increase in new business has continued to be very satisfactory. 2. The graduated system of bonuses to policyholders who have been insured with the Office for one year and over was continued during the year, with further substantial benefit to our insured. Since the bonus system was adopted in 1923, the total sum rebated to insured is £551,375. This, of course, is in addition to reductions in rates instituted and brought about by the Office, to which reference has been made in previous reports. 3. The Office has but one objective—viz., service to its policyholders and to the Dominion—and each year brings increasing practical recognition by the public of the national value of its work in the highly competitive field of fire and accident insurance. 4. I desire to record once again the excellent service rendered by the executive officers and the staff generally. J. H. Jerkam, General Manager.

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Revenue Account op the State Fire Insurance Office for the Year ended 31st December, 1939. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 205,539 10 5 Bonus rebate to policyholders .. .. 37,200 13 5 Other receipts— £ s. d. Losses by fire and earthquake (after deduction of Interest, commission, and rent 52,934 811 reinsurances) .. .. .. .. 39,443 7 6 Less land-tax .. .. 2,191 14 2 Income-tax.. .. • • • • • ■ 51,273 110 50,742 14 9 Commission .. .. .. .. 10,663 5 6 Salaries .. .. .. .. .. 31,798 11 11 Contributions to Public Service Superannuation Fund .. .. .. .. .. 404 14 6 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. .. 11,364 12 4 Expenses of management— £ s. d. Travelling-expenses .. .. 2,088 17 0 Printing, stationery, and advertising 1,311 17 11 Rent .. .. .. 1,470 2 0 Exchange .. .. .. 50 3 5 Postages, telegrams, cablegrams, and sundrv charges.. 3,434 7 0 8,355 7 4 Office equipment .. .. .. .. 3,129 7 7 Office premises: Depreciation .. .. 3,880 17 2 197,513 19 1 Investments Fluctuation Reserve .. .. 10,000 0 0 Reinsurance Reserve .. .. .. 20,000 0 0 Office premises : Written off .. .. .. 28,000 0 0 Amount of fire-insurance funds at end of year .. 768 6 1 £256,282 5 2 £256,282 5 2 Balance-sheet of the State Fire Insurance Office on the 31st December, 1939. Liabilities. Assets. £ s. d • Capital authorized by the State Fire £ £ s. d. Government securities .. .. .. 642,189 12 0 Insurance Act, 1908 .. .. 100,000 Local-authority securities .. .. .. 257,879 15 2 Less not raised .. .. .. 100,000 Rural Advances bonds .. .. .. 14,175 0 0 — Nil. Fixed deposits and at short call .. .. 130,000 0 0 Bad Debts Reserve .. .. .. .. 1,500 0 0 Land and buildings .. .. .. .. 165,573 19 11 Reserve Fund .. .. .. •• 747,160 10 3 Outstanding premiums .. .. .. 10,891 13 3 Investments Fluctuation Reserve Fund .. 85,000 0 0 Interest accrued but not due .. .. .. 10,482 310 Reserve for unearned premiums .. .. 104,246 911 Rent accrued or due.. .. .. .. 4,190 15 2 Bonus Rebate Reserve .. .. .. 112,500 0 0 Rent overdue .. .. .. .. 138 0 0 Reinsurance Reserve Fund .. .. .. 140,000 0 0 Cash in Reserve Bank of New Premium and other deposits .. .. .. 1,059 11 9 Zealand at Wellington, or in £ s. d. Outstanding fire and earthquake losses.. .. 4,459 0 0 transit to Wellington .. 96,376 18 9 Government taxes .. .. .. •• 83,848 16 10 Imprest Account balances: Head Sundrv creditors .. .. .. •• 35,684 0 5 Office and Branches .. .. 1,344 19 9 Other amounts owing by the Office- £ s d. 97,721 18 6 Reinsurance premiums due 12,268 3 8 Commission .. •• 2,174 14 0 Printing, stationery, and advertising .. .. •• 38 12 10 Postages and sundry charges 2,534 12 1 17,016 2 7 Fire-insurance funds, as per Revenue Account .. 768 6 1 17 10 £1,333,242 17 10 J. H. Jerram, General Manager. 6th June, 19-10. L. H. Osborn, Deputy General Manager. 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. —C. G. Collins, Controller and Auditor-General.

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