ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1942

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

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1943 NEW ZEALAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1942

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

State Fire Insurance Office, Wellington, 30th March, 1943. I have the honour to submit the forty-second annual report of the Government Accident Insurance Office for the year ended 31st December, 1942, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly :— 1940. 1941. 1942. Income — £ £ £ £ £ £ Premiums from all classes of accident insurance 259,399 268,775 232,241 Interest .. .. .. .. 20,557 19,771 22,364 Profit on realization of securities .. .... .. 18 279,956 288,546 254,623 Outgo — Bonus and sums accrued under profit-sharing schemes .. .. .. .. 4,000 6,920 3,746 Claims .. .. .. .. .. 138,000 134,208 122,826 Working-expenses (exclusive of income-tax) .. 42,185 42,442 38,172 Carried to reserve for unearned premiums .. .. 3, 826 Income-tax .. .. .. .. 52,018 65,087 68,930 National and social security tax .. .. 13,063 12,784 13,797 Loss on realization of securities .. .. .. 2,146 249,266 267,413 247,471 Surplus, apportioned as follows Investment Fluctuation Reserve .. .. 10,000 Reserve Fund 20,690 21,133 7,152 30,690 21,133 7,152 Total .. .. .. 279,956 288,546 254,623 Reserves and funds as at 31st December .. 554,966 579,925 587,077 Ratio of claims (all classes of business) to premium Per Cent. Per Cent. Per Cent. income .. .. .. .. 53 • 2 49-93 52-89 Ratio of working-expenses (exclusive of incometax) to premium income .. .. .. 16-26 15-79 16-43 Ratio of underwriting surplus to premium income 9-68 5-66 -21 The reduction in premium income is due entirely to the fall in premiums derived from motorvehicles insurance. Owing to an alteration in the registration date, the income for 1941 covered thirteen months' premiums under the Motor-vehicles Insurance (Third-party Risks) Act, 1928, whereas the income for 1942 from the same source is for a normal period of twelve months. Also, due to war conditions there has been a lessened demand for motor-vehicle cover, and in addition greatlyreduced premiums have been charged both for comprehensive and third-party insurances. The comments made in the Fire Branch annual report as regards staffing difficulties and extra duties arising out of the administration of war measures apply with equal force to the Accident Branch, and I once again desire to thank all officers for their helpful co-operation under unavoidably difficult conditions. J. H. Jerram, General Manager.

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Revenue Account of the Accident Branch op the State Fire Insurance Office for the Year ended 31st December, 1942 £ s. d. £ s - d - Premiums after deduction of reinsurances .. 232,240 16 2 Bonus and sums accrued under profit-sharing £ s d. schemes .. .. •• •• •• d »' 4 ° 1 ® . oo QfiQ 1 q Claims .. .. •• •• 122,826 8 0 In terest_ .. •• £ -• 22,363 18 9 Cme-tax'" " 56,008 10 1 Income-tax .. 12,921 National and social security tax .. .. 11.000 14 8 National and social Commtssion 22 100 10 0 Recuritv tax .. 2,796 Salaries .. .. . . •• •• 1U u 15 717 0 0 Contribution to Public Service Superannuation —1 6,646 18 9 Fund 215 10 0 Profit on realization of securities .. .. 17 18 4 Expenses of management 8,044 lb d 231,753 14 8 Amount of Accident Funds, 31st December, 1942 7,151 18 7 £238,905 13 3 £238,905 13 3 Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1942 Liabilities £ s. d. Assets £ s. d. Accident Funds, as per Revenue Account .. 7,15118 7 Government securities 337,406 0 0 Outstanding accident claims 111,802 0 0 Local-authority securities 181,253 8 7 Government taxes 148,978 18 9 Rural Advances bonds .. .. 4,725 0 0 .. •• 970 11 4 Fixed deposits and at short call .. •• 97,b20 0 0 Premiums and other deposits 1,478 15 8 Interest accrued but not due 4,959 1 5 Snndrv creditors .. •• •• 11,756 16 3 Agents'balances .. .. .. •• 8,055 I^lo Reinsurance premiums due 621 8 8 Sundry debtors including Motor-veh.cles Officers' Fidelity Fund 500 0 0 Insurance (Third-party Risks) Act pool .. 181,604 8 6 Reserve for unearned premiums .. .. 134,387 8 3 Cash m hand on current account .. .. 47,061 11 6 Investment Fluctuation Reserve .. •• 70,000 0 0 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 318,037 5 4 £862,685 2 10 £862,685 2 10 24th May, 1943. J - H - JeRRAm, General Manager R. H. Newbold, 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.

Approximate Cost oj Paper.—Preparation, not given ; printing (1,778 copies), £4 15s.

By Authority: E. V. Paul, Government Printer, Wellington. —1943. Price 3d. ]

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