STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1942

Appendix to the Journals of the House of Representatives, 1943 Session I, H-06

1

1943 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1942

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

State Fire Insurance Office, Wellington, 30th March, 1943. I have the honour to submit the thirty-eighth annual report of the State Fire Insurance Office, for the year ended 31st December, 1942, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years:— 1940. 1941. 1942. Income — ££££££ Premiums .. .. .. .. 218,253 222,458 222,081 Other receipts, less land-tax .. .. 50,258 47,237 58,638 —268,511 269.695 280,719 Outgo— Bonus rebate to policyholders .. .. 41,922 45,587 44,124 Claims.. .. .. .. .. 31,617 28,896 34,234 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. 58,542 56,128 58,232 Fire Board contributions.. .. .. 12,124 13,977 15,618 Income-tax .. .. .. .. 66,564 70.476 75,270 National and social security tax .. .. 19,783 15,276 16,214 Loss on realization of securities .. . . . . 246 Carried to reserve for unearned premiums .. 4,880 2,102 235,432 232,688 —243,692 Surplus, apportioned as follows :— Written off Office premises .. .. 23,000 21,000 20,000 Reserve Fund .. . .. .. .. 16,007 17,027 Bonus Rebate Reserve .. .. .. 10,079 .. .. Reinsurance Reserve .. .. .... Investments Fluctuation Reserve .. .... 33,079 37,007 37,027 Total .. .. .. 268,511 269,695 280,719 Reserves and funds at 31st December .. 1,206,134 1,224,244 1,241,271 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. 14-49 12-99 15-41 Ratio of working-expenses (exclusive of incometax and Fire Board contributions) to premium income .. .. .. .. 26-82 25-23 26'22 Ratio of Fire Board contributions to premium income .. .. .. .. 5-55 6-28 7-03 Ratio of income-tax and National and Social Security tax to total income 32-16 31-8 32 • 59 The essential work of the Office has been maintained under difficult staff conditions. Out of the pre-war male staff of 171 fire and accident officers, only 71 now remain. With the loss of so many highly trained and experienced officers, coupled with transport restrictions, all work of an active competitive character has been severely curtailed, and the maintenance of premium income on the same level as for the previous year may be regarded as satisfactory under the circumstances. The following war measures are administered by the Office :— (1) Marine Insurance (War Risks) Emergency Regulations 1942 : (2) Detention Allowances for Captured Seamen's Fund. In addition, the General Manager, as Deputy Chairman of the War Damage Commission, and the Secretarjr, as Secretary to the War Damage Commission, devote part-time service to the administration of the War Damage Act, 1941. I again wish to express thanks to the Managers and staff, both fire and accident, for their helpful co-operation under unavoidably difficult conditions. J. H. Jerram, General Manager.

H.—6

Revenue Account of the State Fire Insurance Office for the Year ended 31st December, 1942 £ s. d. £ a. d. Premiums after deduotion of reinsurances .. 222,081 0 8 Bonus rebate to policyholders .. .. 44,123 16 9 Other receipts— £ s. d. Losses by fire and earthquake (after deduotion of Interest, commission, and rent 60,820 19 10 reinsurances) .. .. .. .. 34,233 15 1 Less land and income tax Income-tax .. .. .. .. 43,845 10 8 £33,608, and national and National and social security tax .. .. 9,400 12 4 sooial security tax £6,813 40,421 0 0 Commission .. .. .. .. 9,826 13 10 20,399 19 10 Salaries .. .. .. .. .. 28,699 15 2 Contribution to Public Service Superannuation Fund .. .. .. .. .. 450 10 10 Contribution to Fire Boards under the Fire Brigades Act, 1908 .. .. .. 15,617 19 8 Expenses of management— £ s. d. Travelling-expenses .. .. 1,424 7 3 Printing, stationery, and advertising .. .. .. 1,284 7 9 Rent .. .. .. 3,575 9 7 Exchange .. .. .. 55 9 1 Postages, telegrams, cablegrams, and sundry charges .. 5,114 6 4 11,454 0 0 Offioe equipment .. .. .. .. 2,309 0 0 Office premises: Depreciation .. .. 5,492 4 0 205,453 18 4 Office premises : Written off .. .. .. 20,000 0 0 Amount of fire-insurance funds at end of year .. 17,027 22 £242,481 0 6 £242,481 0 6 Balance-sheet of the State Fire Insurance Office on the 31st December, 1942 Liabilities £ £ s. d. Assets £ s. d. Capital authorized by the State Fire Government securities .. .. .. 765,357 12 0 Insurance Act, 1908 .. .. 100,000 Local-authority securities .. .. .. 226,564 8 7 Less not raised .. .. .. 100,000 Rural Advances bonds .. .. .. 14,175 0 0 Nil Fixed deposits and at short call .. .. 110,000 0 0 Bad Debts Reserve .. .. .. .. 1,500 0 0 Land and buildings .. .. .. .. 226,125 5 2 Reserve Fund .. .. .. .. 763,936 4 3 Outstanding premiums .. .. .. 18,422 19 2 Investments Fluctuation Reserve Fund .. 85,000 0 0 Interest accrued but not due .. .. .. 10,333 1 1 Reserve for unearned premiums .. .. 111,229 4 2 Rent accrued or due .. .. .. 15,432 8 0 Bonus Rebate Reserve .. .. .. 122,578 17 0 Cash in Reserve Bank of New Reinsurance Reserve Fund .. .. .. 140,000 0 0 Zealand at Wellington, or in £ s. d. Premium and other deposits .. .. .. 3,703 12 7 transit to Wellington .. 156,682 17 6 Outstanding fire and earthquake losses .. 8,091 0 0 Imprest Account balances : Head Government taxes .. .. .. .. 166,483 18 9 Office and branches .. 4,009 11 4 Sundry creditors .. .. .. .. 109,063 9 2 160,692 810 Other amounts owing by the Office— £ s. d. Reinsurance premiums due .. 14,516 2 7 Commission .. .. 2,259 8 8 Printing, stationery, and advertising .. .. 27 5 10 Postages and sundry charges .. 1,686 17 8 18,489 14 9 Fire-insurance funds, as per Revenue Account .. 17,027 22 £1,547,103 2 10 £1,547,103 2 10 J. H. Jerram, General Manager. R. H. Newbold, Deputy General Manager. 24th May, 1943. 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.

Approximate Cost of Paper.—Preparation, not given ; printing (1,778 copies), £5.

Authority: E. V. Paul, Government Printer, Wellington.—l 943

Price 3d.~\

2