ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1943

Appendix to the Journals of the House of Representatives, 1944 Session I, H-06a

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1944 NEW ZEALAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1943

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, 1944. I have the honour to submit the forty-third annual report of the Government Accident Insurance Office for the year ended 31st December, 1943, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly : — 1941. 1942. 1943. Income— , ££££££ Premiums from all classes of accident insurance 268,775 232,241 384,035 Interest .. .. .. .. 19,771 22,364 22,588 Profit on realization of securities .. .... 18 288,546 254,623 406,623 Outgo— Bonus and sums accrued under profit-sharing schemes .. .. .. .. 6,920 3,746 590 Claims.. .. .. .. .. 134,208 122,826 193,816 Working-expenses (exclusive of income-tax) . . 42,442 38,172 43,656 Carried to reserve for unearned premiums .. 3,826 .. 72,813 Income-tax .. .. .. ..65,087 68,930 54,597 National and social security tax .. .. 12,784 13,797 10,720 Loss on realization of securities .. .. 2,146 —267,413 247,471 376,192 Surplus, apportioned as follows : — Bonus Reserve .. .. .. .. .. .. 30,000 Reserve Fund .. .. ..21,133 7,152 431 21,133 7,152 30,431 Total .. .. .. 288,546 254,623 406,623 Reserves and funds as at 31st December .. 579,925 587,077 690,321 Ratio of claims (all classes of business) to premium Per Cent. Per Cent. Per Cent, income.. .. .. .. .. 49-93 52-89 50-47 Ratio of working-expenses (exclusive of incometax) to premium income .. .. ..15-79 16-43 11-37 Ratio of underwriting surplus to premium income 5-66 0-21 6-18 1. The premium income of £384,035 is by far the largest in the history of the Office, and is over £151,000 greater than for 1942. Every important section of accident business shows an increase, but the greatest increase was recorded under the heading of " Workers' Compensation Insurance," due largely to special insurances effected as a consequence of allied war activities within the Dominion. In 1925, when the Accident Branch was combined with the State Fire Office, the premium income was £49,966.

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2. After making full provision for outstanding claims, the loss ratio for the year (50-47 per cent.) is less than for 1942, and the working-expense ratio (11-37 per cent.) is the lowest since the Office was established, and probably constitutes a record in connection with general accident-insurance business in New Zealand. , 3. The results for 1943 have warranted the Board in giving favourable consideration to the declaration of a bonus to policyholders during 1944 in accordance with the provisions of section 6 of the Government Accident Insurance Amendment Act, 1924. Accordingly £30,000 of the surplus for the year has been carried to a Bonus Reserve for distribution. The Office continues to carry the increased liabilities under both the 1936 and the 1943 Amendments to the Workers' Compensation Act without increasing premium rates. 4. On retiring from the position of General Manager, which I have held since this Branch was combined with the State Fire Office in 1925, I desire to express my appreciation of the consistent loyalty and keen efficiency of the staff. As a Government Office the Accident Branch is called upon to investigate and advise regarding accident-insurance questions which hardly come under the notice of private insurance companies, and on occasions the Office is also called upon to devise means of extending insurance protection in cases where the risk has been regarded as uninsurable. That the Office has not unsuccessfully served the people of the Dominion in these and every other aspect of accident insurance, including low cost of premiums, is shown by the great support it receives from all sections of the community and the leading position it has attained in a severely competitive insurance field. • J. H. Jerram, General Manager.

Revenue Account of the Accident Branch of the State Fire Insurance Office for the Year ended 31st December, 1943 £ s. d. £ s. d. Premiums after deduction of reinsurances .. 384,035 8 0 Bonus and sums accrued under profit-sharing £ s. d. schemes .. .. .. .. . ■ 590 0 2 Interest (including interest on Re- Claims 193,815 17 1 serve Fund investments) ..22,588 2 (i Income-tax .. .. .. .. 41,546 010 j_, es3 £ National and social security tax .. .. 7,89b 8 Z Income-tax .. 13,051 Commission 8,222 10 9 National and social . Salaries .. ■■„•.•- " ..'■ 25 ' sii 15 " security tax 2 824 Contribution to Public Service Superannuation 1 —'- 15,875 0 0 Fund 232 5 0 6,713 2 (i Expenses of management .. .. .. 9,678 8 0 Further appropriation to reserve for unearned premiums.. .. .. .. .. 72,813 5 9 360,317 16 9 Appropriation to Bonus Reserve.. .. .. 30,000 0 0 Amount of Accident Funds, 31st December, 1943 430 13 9 £390,748 10 6 £390,748 10 6 Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1943 Liabilities £ s. d. Assets £ 8. d. Accident Funds, as per Revenue Account .. 430 13 9 Government securities .. .. .. 405,968 0 0 Outstanding accident claims .. .. .. 154,062 0 0 Local-authority securities .. .. .. 162,576 211 Government taxes .. .. .. .. 147,534 9 0 Rural Advances bonds .. .. .. 4,725 0 0 Commission .. .. •- •• 937 H ° Fixed deposits and at short call .. .. 97,620 0 0 Premium and other deposits .. .. .. 1,893 17 10 Interest accrued but not due .. .. .. 5,409 10 1 Sundry creditors .. .. •• •• 11,066 511 Agents'balances .. .. .. .. 70,843 1 6 Reinsurance premiums due .. .. .. 707 13 0 Sundry debtors, including Mo tor-vehicles Officers' Fidelity Fund .. .. •■ 500 0 0 Insurance (Third-party Risks) Act pool .. 204,208 6 3 Reserve for unearned premiums .. .. 207,200 14 0 Cash in hand on current account .. .. 55,172 7 8 Bonus Reserve .. ■• •■ 30,000 0 0 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 325,189 3 11 £1,006,522 8 5 £1,006,522 8 5 31st May 1941. 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.— Cyril G. Collins, Controller and Auditor-General.

Approximate Cost of Paper. —Preparation, not given ; printing (1,853 copies), £4.

Authority: E. V. Paul, Government Printer, Wellington. —1944.

Price 3i.]

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