ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1945

Appendix to the Journals of the House of Representatives, 1946 Session I, H-06a

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1946 NEW ZEALAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1945

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, 1946. I have the honour to submit the forty-fifth annual report of the Government Accident Insurance Office for the year ended 31st December, 1945, together with, the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly : Income 1943. 1944. 1945 Premiums from all classes of accident £ ' £ £ ' £ £ £ insurance .. .. .. .. 384,035 298,250 335,690 Interest .. .. .. .. 22,588 25,427 26,502 Profit on realization of securities .. .. 432 1,825 Transferred from reserve for unearned premiums .. .. .. .. .. 25,000 406,623 349,109 364,017 Outgo— Bonus and sums accrued under profitsharing schemes .. .. .. 590 467 14,791 Claims .. .. .. .. 193,816 202,552 238,459 Working-expenses (exclusive of income-tax) 43,656 51,808- 61,346 Carried to reserve for unearned premiums 72,813 Income-tax .. .. .. .. 54,597 69,174 16,758 National and social security tax.. .. 10,720 14,977 2,920 376,192 338,978 334,274 Surplus, apportioned as follows : Bonus Reserve .. .. .. 30,000 10,000 10,000 Reserve Fund .. .. .. 431 131 19,743 30,431 10,131 29,743 Total .. .. 406,623 349,109 364,017 Reserves and funds as at 31st December .. 690,321. 675,452 705,195 Ratio of claims (all classes of business) to Per Cent. Per Cent. Per Cent. premium income .. .. .. 50-47 67-91 71-04 Ratio of working-expenses (exclusive of income-tax) to premium income.. .. 11-37 17-37 18'27 Ratio of underwriting surplus to premium income .. .. .. .. 6-18 0-72 5-77

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It is pleasing to note that the premium income, which is derived from all classes of accident insurance, shows an increase of £37,440 over that of the previous year. This result must be considered quite satisfactory. After full provision for outstanding claims has been made, the claims ratio for the year (71-04) shows an increase of 3-13 over the previous year. This is mainly accounted for by the fact that claims from insurances under the Motor-vehicles Insurance (Thirdparty Risks) Act, 1928, were considerably higher than in 1944. Commencing on the Ist January, 1945, the Office allowed its policyholders a rebate of 12\ per cent, on all renewal premiums. The staff, who are not yet back to full strength, have again passed through a difficult year in a capable manner, and I desire to express my appreciation of their keenness, efficiency, and co-operation. R. H. Newbold, General Manager.

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Revenue Account of the Accident Branch of the State Fire Insurance Office for the Year ended 31st December, 1945 £ s. (I. £ s. d. Premiums after deduction of reinsurances .. .. 335,689 13 1 Bonus and sums accrued under profit-sharing schemes .. 14,791 0 7 Interest (including interest on Reserve £ s. d. Claims .. .. ..... .. .. 238, 459 4 1 Fund investments) .. .. 26,502 1 10 Income-tax on underwriting account .. .. .. 1,445 14 3 Less tax on interest— £ National and social security tax on underwriting account 269 10 0 Income-tax .. .. 15,312 Commission .. .. .. .. ■ .. 10,621 11 3 National and social security Salaries .. .. .. .. .. 39,100 4 0 tax .. .. 2,650 Contribution to Public Service Superannuation Fund .. 305 16 0 17,962 0 0 Expenses of management .. .. .. .. 11,318 11 11 8,540 1 10 Profit on realization of securities .. .. .. 1,824 19 6 316,311 12 1 Appropriation to Bonus Reserve .. .. .. 10,000 0 0 Amount of Accident Funds, 31st December, 1945 .. 19,743 2 4 £346,054 14 5 £346,054 14 5

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Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1945 Liabilities Assets £ s. d. £ s. d. Accident Funds, as per Revenue Account .. .. 19,743 2 4 Government securities .. .. .. .. 518,852 0 0 Outstanding accident claims .. .. .. 239,755 0 0 Local-authority securities .. .. .. .. 130,393 0 4 Government taxes .. .. .. .. .. 114,377 4 3 Rural Advances bonds .. .. .. .. 4,725 0 0 Commission .. .. .. .. .. 1,218 0 0 Fixed deposits and at short call .. .. .. 50,000 0 0 Premium and other deposits .. .. .. 1,850 11 0 Interest accrued but not due .. .. .. 5,520 0 o Sundry creditors .. .. .. .. .. 16,117 18 6 Agents'balances .. .. .. .. .. 5,524 9 9 Reinsurance premiums due .. .. .. .. 265 10 1 Sundry debtors, including Motor-vehicles Insurance Officers' Fidelity Fund .. .. .. .. 500 0 0 (Third-party Risks) Act pool .. .. .. 229,743 6 3 Reserve for unearned premiums .. .. .. 182,200 14 0 Cash in hand on current account .. .. .. 134,021 5 7 Bonus Reserve .. .. .. .. .. 50,000 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 .. 325,751 1 9 £1,078,779 1 11 £1,078,779 1 11 R.. H. Newbold, General Manager. 31st May, 1946. T. L. Seator, 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.— J. P. Rutherford, Controller and Auditor-General.

By Authority: E. Y. Paul, Government Printer, Wellington.— 1946.

Approximate Cost of Paper.—Preparation, not given ; printing (1,818 copies), £7

Price 3d.

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