ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1939.

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

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1940. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1939.

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

State Fire Insurance Office, Wellington, 29th March, 1940. I have the honour to submit the thirty-ninth annual report of the Government Accident Insurance Office for the year ended 31st December, 1939, together with the Eevenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly :— 1937. 1938. 1939. Income— £ £ £ £ £ £ Premiums from all classes of accident insurance 147,719 202,279 261,123 Interest .. .. .. .. 15,837 18,082 20^198 Profit on realization of securities .. .. 132 486 163,688 — 220,847 281,321 Outgo— Free-year bonus on personal accident policies 269 327 367 Claims .. .. .. .. .. 99,502 140,806 167,672 Working-expenses (exclusive of income-tax) .. 30,118 32,994 42,164 Carried to reserve for unearned premiums .. 17,035 31,649 25,053 Income-tax .. .. .. .. 5,417 6,066 19*576 152,341 211,842 254,832 Surplus, apportioned as follows : — Investment Fluctuation Reserve .. .. .. 9,000 10 000 Reinsurance Reserve . . .. .. 10,000 . . 16 000 Reserve Fund .. .. .. 1,347 5 '489 11,347 9,005 26,489 Total .. .. .. 163,688 220,84-7 281,321 Reserves and funds as at 31st December .. 432,080 472,734 524,275 Ratio of claims (all classes of business) to premium Per Cent. Per Cent. Per Cent. income.. .. .. .. .. 67-36 69-61 64-21 Ratio of working-expenses (exclusive of incometax) to premium income .. .. .. 20-39 16-31 16-15 Ratio of underwriting surplus to premium income 0-54 *1-73 2-41 * Deficit. 1. In each year since 1937 the total premium income and the increase in business over the previous year have constituted records. Premiums totalling £261,123 for the year 1939 represent an increase in public support of £58,844 over the figures for 1938. The great and increasing volume of business given to the Office is satisfactory evidence of recognition of the sole purpose of the Office— viz., service to the public and the Dominion. 2. After providing for all known liabilities, there is an underwriting profit of 2-41 per cent., against a loss of 1-73 per cent, in the previous year. The results, therefore, must be considered as highly satisfactory, particularly when it is remembered that the Office charges rates and offers conditions of insurance which generally are more favourable to policyholders than can be obtained elsewhere. In this connection it is also to be noted that the Office carries a very large percentage of nominations under the Motor-vehicles Insurance (Third-party Risks) Act, 1928, wjiich class of risk has for some years, past proved unprofitable.

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3. During the year the Office undertook the duty of assessing and settling claims in connection with Government motor-vehicles which do not carry insurance beyond that provided under the Motor-vehicles Insurance (Third-party Risks) Act, 1928. This places a considerable amount of extra work and responsibility on the officers of the Department. 4. I have once again to record, with appreciation, the excellent services of a competent staff, without whose co-operation the above results could not have been achieved. J. H. Jerram, General Manager.

Revenue Account of the Accident Branch op the State Fire Insurance Office for the Year ended 31st December, 1939. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 261,122 16 0 Free-year bonus on personal-accident policies .. 367 711 Interest .. .. .. .. .. 20,198 10 8 Claims .. .. .. .. .. 167,672 4 2 Income-tax.. .. .. .. .. 19,576 610 Commission .. .. .. .. 10,716 2 6 Salaries .. .. .. .. .. 21,410 4 0 Contribution to Public Service Superannuation Fund .. .. .. .. .. 200 16 0 Expenses of management .. .. .. 9,837 2 6 Further appropriation to reserve for unearned premiums .. .. .. .. 25,052 8 3 254 832 12 2 Further appropriation to Reinsurance Reserve .. 16,000 0 0 Further appropriation to Investment Fluctuation Reserve .. .. .. .. .. 10,000 0 0 Amount of accident fundß, 31st December, 1939.. 488 14 6 £281,321 6 8 £281,321 6 8 Balance-sheet op the Accident Branch of the State Fire Insurance Office as on the 31st December, 1939. Liabilities. £ s. d. Assets. £ s. d. Accident funds, as per Revenue Account .. 488 14 6 Government securities .. .. .. 212,515 0 0 Outstanding accident claims .. .. .. 113,730 0 0 Local-authority securities .. .. .. 209,888 17 11 Government taxes .. .. .. .. 25,776610 Rural Advances bonds .. .. .. 4,725 0 0 Commission .. .. .. .. 1, 994 9 1 Property under agreement for sale and purchase 3,980 0 0 Premiums and other deposits .. .. .. 948 9 6 Fixed deposits and at short call .. .. 97,620 0 0 Sundry creditors .. .. .. .. 277 6 1 Interest accrued but not due .. .. .. 4,335 22 Reinsurance premiums due .. .. .. 1,294 15 3 Agents'balances .. .. .. .. 9,291 3 0 Officers' Fidelity Fund .. .. .. 500 0 0 Sundry debtors, including Motor-vehicles InsurReserve for unearned premiums .. .. 130,561 8 0 ance (Third-party Risks) Act poo! .. .. 87,462 5 7 Investment Fluctuation Reserve .. .. 60,000 0 0 Cash in hand on current account .. . . 38,479 5 7 Reinsurance Reserve .. .. .. 56,000 0 0 Bad Debts Reserve .. .. .. .. 1,000 0 0 Reserve Fund constituted under section 6 of the Government Accident Insurance Amendment Act, 1924 .. .. .. .. 275,725 5 0 £668,296 14 3 £668,296 14 3 J. H. Jerram, General Manager. 6th Jane, 1940. L. 11. 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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