ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1947

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

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1948 NEW ZEALAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1947

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

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

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State Fire Insurance Office, Wellington, 30th March, 1948. I have the honour to submit the forty-seventh annual report of the Government Accident Insurance Office for the year ended 31st December, 1947, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly : Income— 1945. 1940. 1947. Premiums from all classes of accident £ £ £ £ £ £. insurance .. .. .. .. 335,690 341,304 420,028 Interest ... .. .. .. 26,502 26,636 26,824 Profit on realization of securities .. .. 1,825 .. 1,002 364,017 r; 367,940 447,854 Outgo — Bonus and sums accrued under profitsharing schemes .. .. .. 14,791 18,672 24,623 Claims .. .. .. .. 238,459 212,914 292,304 Working-expenses (exclusive of income-tax) 61,346 70,918 81,905 ■Carried to reserve for unearned premiums .. .. 27,813 Income-tax .. .. .. .. 16,758 28,763 7,186 .National and social security tax .. .. 2,920 4,823 1,082 334,274 336,090 434,913 Surplus, apportioned as follows : Reinsurance Reserve .. .. .. .. .. 10,000 Bonus Reserve .. .. .. 10,000 10,000 Reserve Fund .. .. .. 19,743 21,850 2,941 29,743 31,850 12,941 Total .. .. 364,017 367,940 447,854 Reserves and funds as at 31st December .. 705,195 737,045 777,800 Ratio of claims (all classes of business) to Per Cent. Per Cent. Per Cent. premium income .. .. .. 71-04 62-38 69-59 Ratio of working - expenses (exclusive of income-tax) to premium income .. 18-27 20-78 19-5 Ratio of underwriting surplus to premium income .. .. .. .. 5-77 5-12 1-57* * Deficit. The premium income of £420,028 is the largest in the history of the Office and is £35,993 greater than for 1943, the previous best year. Compared with 1946, an increase of 7-21 per cent, in the claim ratio is shown. This is mainly on account of motor-car business, the loss rate for which continues to grow and is now on a high level. A reduction of 1-28 per cent, in the ratio of working-expenses to premium income has been effected. I desire to record once again the excellent service rendered by the executive officers and staff during a period of acute staff shortage and rapidly increasing business. R. H. Newbold, General Manager.

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Revenue Account op the Accident Branch of the State Fire Insurance Office for the Year ended 31st December, 194? £s. d. _£S. d Premiums after deduction of reinsurances .. .. 420,028 7 11 Bonus and sums accrued under profit-sharing schemes .. 24,623 9 2 Interest (including interest on Reserve £ s. d. Claims .. .. .. .. .. ••• 292,303 15 10 Fund investments) .. .. 26,823 17 3 Commission .. .. .. .. .. 16,250 11 7 Less tax on interest— £ s. d. Salaries .. .. .. .. .. .. 49,857 14 0 Income-tax.. .. 7,185 14 2 Contribution to Public Service Superannuation Fund .. 341 6 0 Social security tax .. 1,081 18 5 Expenses of management .. .. .. .. 15,454 19 11 8,267 12 7 Further appropriation to Reserve for Unearned Premiums 27,813 10 0 18,556 4 8 Profit on realization of securities .. .. .. 1,002 1 5 426, 645 6 6 Appropriation to Reinsurance Reserve .. .. 10,000 0 0 Amount of Accident Funds, 31st December, 1947 .. 2,941 7 6 £439,586 14 0 £439,586 14 0

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Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1947 Liabilities £ s. d. Assets £ s. d. Accident Funds, as per Revenue Account .. .. 2,941 7 6 Government securities .. .. .. .. 669,290 0 0 Outstanding accident claims .. .. .. 265,324 0 0 Local-authority securities.. .. .. .. 105,080 8 9 Government taxes .. .. .. 45,176127 Fixed deposits and at short call .. .. .. 50,000 0 0 Commission .. .. .. .. .. 2,495 0 0 Interest accrued but not due .. .. .. 7,607 0 0 Premium and other deposits .. .. .. 4,975 1 3 Agents' balances .. .. .. .. 22,217 5 11 Sundry creditors .. .. .. .. 2,930 9 7 Sundry debtors, including Motor-vehicles Insurance Reinsurance premiums due .. .. .. 524 7 4 (Third-party Risks) Act pool .. .. .. 207,329 12 0 Officers' Fidelity Fund .. .. .. .. 500 0 0 Cash in hand on current account .. .. .. 37,700 15 1 Reserve for unearned premiums .. .. .. 210,01440 Bonus Reserve .. .. .. .. .. 60,000 0 0 Investment Fluctuation Reserve .. .. .. 70,000 0 0 Reinsurance Reserve .. .. .. .. 66,000 0 0 Bad Debts Reserve .. .. . . ~ 1,000 0 0 Reserve Fund constituted under section 6 of the Government Accident Insurance Amendment Act, 1924 .. 367,343 19 6 £1,099,225 1 9 £1,099,225 1 9 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 (1,368 copies), £lO.

By Authority: E. V, Paul, Government Printer, Wellington.— 1948, Price 3d.]

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