STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1947

Appendix to the Journals of the House of Representatives, 1948 Session I, H-06

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1948 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1947

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

By Authority: E. V. Paul, Government Printer, Wellington. —1948.

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State Fire Insurance Office, Wellington, 30tli March, 1948. I have the honour to submit the forty-third annual report of the State Fire Insurance Office, for the year ended 31st December, 1947, with the Revenue Account and Balancesheet. The following are the comparative figures for the last three years : 1945. 1946. 1947. Income— £ £ £ £ £ £ Premiums .. .. .. .. 203,494 228,429 262,658 Other receipts, less land-tax .. .. 63,693 124,889 83,504 267,187 353,318 346,162 OutgoBonus rebate to policyholders .. .. 20,398 25,224 34,059 Claims .. .. .. .. 36,900 58,483 47,194 Working-expenses (exclusive of income-tax and Fire Board contributions) .. 55,958 70,847 74,616 Fire Board contributions .. .. 16,418 17,236 16,824 Income-tax .. .. .. .. 72,746 74,242 77,476 National and social security tax .. 12,596 12,673 11,659 Carried to reserve for unearned premiums .. 1,696 17,115 Office equipment (balance) .. .. .. .. 10,000 215,016 260,401 288,943 Surplus, apportioned as follows : Written off Office premises .. .. 20,000 20,000 20,000 Reserve Fund .. .. .. 32,171 72,917 37,219 52,171 92,917 57,219 Total .. .. .. 267,187 353,318 346,162 Reserves and funds at 31st December .. 1,300,785 1,375,398 1,429,731 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. 18-13 25*6 17-97 Ratio of working-expenses (exclusive of income-tax and Fire Board contributions) to premium income .. .. .. 27-5 31-02 28-41 Ratio of Fire Board contributions to premium income .. .. .. .. 8-07 7-55 6-40 Ratio of income-tax and national and social security tax to total income .. .. 31-94 24-6 25-75 (1) The premium income of £262,658 is the largest recorded in the history of the Office, and shows an increase of £34,229 for the year. (2) As a result of the favourable loss experience the bonus rebate of 10 per cent, for wood risks and 15 per cent, for brick risks was increased to 20 per cent, off all renewal premiums as from Ist November, 1947, on both wood and brick risks. (3) Working-expenses at 28*41 per cent, show a reduction of 2-61 per cent., despite increasing administrative costs. (4) Shortage of experienced staff and limited transport facilities severely curtailed work of an active competitive nature, but service to policyholders and to the Dominion in giving attention to the rapidly increasing business was maintained notwithstanding these difficulties. (5) I desire to place on record appreciation of the executive officers and staff of the Office in achieving the excellent results recorded in the accounts. R. H. Newbold, General Manager.

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Revenue Account of the State Fire Insurance Office for the Year Ended 31st December, 1947 £ s. d. £ s. d. Premiums after deduction of reinsurances .. .. 262,657 10 10 Bonus rebate to policyholders .. .. .. 34,058 14 1 Other receipts— Losses by fire and earthquake (after deduction of Interest, commission, rent, and £ s. d. reinsurances) .. .. .. .. .. 47,194 4 10 exchange .. .. .. 84,887 19 5 Income-tax on underwriting account .. .. .. 40,158 0 0 Less tax on interest, commission, Social security tax on underwriting account .. .. 6,043 0 0 rent, and exchange— Commission .. .. .. .. .. 14,538 18 8 Land and income £ s. d. Salaries .. .. .. .. .. .. 46,859 6 0 tax.. .. 39,526 19 2 j Contribution to the Public Service Superannuation Fund 404 18 0 Social security tax 5,616 0 0 Contribution to Fire Boards under the Fire Brigades Act, 45,142 19 2 1908 .. .. .. .. .. .. 16,823 15 9 39,745 0 3 Expenses of management— £ s. d. Profit on realization of securities .. .. .. 825 0 0 Travelling-expenses .. .. 2,120 10 6 Printing, stationery, and advertising 1,068 14 3 Rent .. .. .. .. 1,364 16 7 Exchange .. .. .. 46 10 4 Postages, telegrams, cablegrams, and sundry charges .. .. 2,292 18 5 6,893 10 1 Office equipment .. .. .. .. .. 12,197 12 6 Office premises: Depreciation .. .. .. 3,722 0 0 Reserve for unearned premiums .. .. .. 17,114 10 2 246,008 10 1 Office premises : Written off . . .. .. 20,000 0 0 Amount of fire-insurance funds at end of year .. .. • 37,219 1 0 £303,227 11 1 £303,227 11 1

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Balance-sheet of the State Fire Insurance Office on the 31st December, 1947 Liabilities Assets Capital authorized by the State Fire Insurance £ £ s. d. £ s. d. Act, 1908 .. .. .. .. 100,000 Government securities .. .. ..1 043 771 12 0 Less not raised .. .. .. 100,000 Local-authority securities .. .. ' 180'467 0 8 Nil Fixed deposits and at short call .. .. .. 0 0 Bad Debts Reserve .. .. .. .. 1,500 0 0 Land and buildings .. .. .. 12o'si8 8 11 Reserve Fund .. .. .. .. .. 912,104 8 5 Outstanding premiums .. .. .. 1 7 Investments Fluctuation Reserve Fund .. .. 85,000 0 0 Interest accrued but not due .. .. '' 12'616 0 0 Reserve for unearned premiums .. .. .. 131,328 15 5 Rent accrued or due .. .. .. 12 279 0 2 Bonus Rebate Reserve .. .. .. .. 122,578 17 0 Cash in Reserve Bank of New Zealand Reinsurance Reserve Fund .. .. .. 140,000 0 0 at Wellington, or in transit to £ s. d. Premium and other deposits .. .. .. 4,283 3 10 Wellington .. .. .. 262,098 3 4' Outstanding fire and earthquake losses .. .. 50,617 0 0 Imprest Account balances: Head Government taxes .. .. .. .. 185,980 0 0 Office and branches .. .. 6,001 6 2 Sundry creditors .. .. .. .. 78,022 13 11 I 268,099 9 6 Other amounts owing by the Office— £ s. d. Reinsurance premiums due .. 54,661 13 3 Commission .. .. .. 13,546 0 0 Printing, stationery, and advertising 760 0 0 Postages and sundry charges .. 5,131 0 0 74,098 13 3 Fire-insurance Funds, as per Revenue Account .. 37,219 1 0 £1,822,732 12 10 £1,822,732 12 10 R. H. Newbold, General Manager. 31st May, 1948. 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.

Approximate Cost of Paper.—Preparation, not given ; printing (1,873 copies) 1 , £lO 10s.

By Authority: E, V, Paul, Government Printer, Wellington.— 1948,

Price 3<Z.]

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