STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1948

Appendix to the Journals of the House of Representatives, 1949 Session I, H-06

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1949 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1948

Presented to Both Houses of the General Assembly Pursuant to the Provisions of the State Fire Insurance Act, 1908

By Authority: B. E. Owen, Government Printer, Wellington.—l 949.

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State Fire Insurance Office, Wellington, 30th April, 1949. I have the honour to submit the forty-fourth annual report of the State Fire Insurance Office, for the year ended 31st December, 1948, with the Revenue Account and Balancesheet. The following are the comparative figures for the last three years : 1946. 1947. 1948. Income — £ £ £ £ £ £ Premiums .. .. .. .. 228,429 262,658 300,195 Other receipts, less land-tax .. .. 124,889 83,504 73,067 . —3.53,318 346,162 —373,262 Outgo— Bonus rebate to policyholders .. .. 25,224 34,059 55,410 Claims .. .. •• •• 58,483 47,194 47,684 Working-expenses (exclusive of income-tax and Fire Board contributions) . . 70,847 74,616 • 93,493 Fire Board contributions .. .. 17,236 16,824 22,009 Income-tax .. .. .. .. 74,242 77,476 67 ,'595 National and social security tax .. 12,673 11,659 10,198 Carried to Reserve for Unearned Premiums 1,696 17,115 18,769 Office equipment (balance) .. .. .. 10,000 5,000 26 0,401 288,943 320,158 Surplus, apportioned as follows — Written off Office premises .. .. 20,000 20,000 20,000 Reserve Fund .. .. .. 72,917 37,219 33,104 92,917 57,219 53,104 353,318 346,162 373,262 Reserves and funds at 31st December .. 1,375,398 1,429,731 1,481,604 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. 25-6 17-97 15-88 Ratio of working-expenses (exclusive of income-tax and Fire Board contributions) to premium income .. .. .. 31-02 28-41 31-14 Ratio of Fire Board contributions.to premium income .. • • ■ • ■ ■ 7-55 6-40 7-33 Ratio of income-tax and national and social security tax to total income .. .. 24-6 25-75 20-84 The figures show that the Office has completed another highly satisfactory year, the increase of £37,537 in premium income being the highest attained in any one year since the inception of the Office. Higher administration costs have had the effect of increasing the working-expenses ratio by 2-73 per cent. The ratio of claims to premium income is less by 2-09 per cent., and the bonus rebate allowed to policyholders increased from £34,058 to £55,410. The growth in the volume of business transacted by the Office indicates the everincreasing support afforded it by the insuring public. I' desire to place on record my appreciation of the excellent service given by the staff and thank them for their co-operation and loyalty. R. H. Newbold, General Manager.

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Revenue Account op the State Fire Insurance Office for the Year Ended 31st December, 1948 £ s. d. 1 £ s. d Premiums after deduction of reinsurances .. .. 300,195 9 9 Bonus rebate to policyholders .. .. .. 55,410 2 6 Other receipts— Losses by fire and earthquake (after deduction of Interest, commission, rent, and £ s. d. reinsurances) .. .. . . .. .. 47,683 17 9 exchange .. .. .. 75,278 9 5 Income-tax on underwriting account .. .. 36,166 19 1 Less tax on interest, commission, Social security tax on underwriting account .. . . 5,467 15 9 rent, and exchange— Commission .. .. .. .. .. 19,871 18 10 Land and income £ s. d. Salaries . . . . . . . . . . . . 53,298 16 10 tax .. .. 33,639 17 2 Contribution to the Government Superannuation Fund .. 2,421 16 1 Social security tax 4,730 0 0 Contribution to Fire Boards under the Fire Brigades Act, ——— 38,369 17 2 1908 .. .. .. .. .. .. 22,009 10 0 36,908 12 3 Expenses of management— £ s. d. Travelling-expenses .. .. 2,150 7 5 Printing, stationery, and advertising 3,118 12 2 Rent . . . . .. . . 1479 2 6 Exchange . . .. .. 45 15 0 Postages, telegrams, cablegrams, and sundry charges .. . . 2,250 0 7 —— 9,043 17 8 Office equipment .. .. .. .. .. 10,534 3 2 Office premises : Depreciation . . . . . . 3,322 0 0 Reserve for unearned premiums . . .. .. 18,768 19 6 283,999 17 2 Office premises: Written off .. .. .. 20,000 0 0 Amount of fire-insurance funds at end of year . . 33,104 4 10 £337,104 2 0 £337,104 2 0

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Balance-sheet of the State Fire Insurance Office on the 31st December, 1948 Liabilities Assets Capital authorized by the State Fire £ s. d. £ s. d. £ s. d. Insurance Act, 1908 .. .. 100,000 0 0 Government securities .. .. .. .. 1,142,787 12 0 Less not raised .. .. 100,000 0 0 Local-authority securities .. .. .. 156,599 17 11 Nil Fixed deposits and at short call .. .. .. 150,000 0 0 Bad Debts Reserve .. .. .. .. 1,500 0 0 Land and buildings .. .. .. .. 97,196 8 11 Reserve Fund .. .. .. .. .. 949,323 9 5 Outstanding premiums .. .. .. .. 31,968 15 5 Investments Fluctuation Reserve Fund . . .. .85,000 0 0 Interest accrued but not due .. .. . . 15,456 0 0 Reserve for Unearned Premiums .. .. .. 150,097 14 11 Rent accrued or due .. .. .. .. 5,950 13 11 Bonus Rebate Reserve .. .. .. .. 122,578 17 0 Cash in Reserve Bank of New Zealand £ s. d. Reinsurance Reserve Fund .. .. .. 140,000 0 0 or in transit to Wellington .. 114,177 4 10 Premium and other deposits .. .. .. 4,563 0 10 j Imprest advances Head Office and Outstanding fire and earthquake losses .. .. 8,500 0 0 I branches .. .. .. 12,749 11 9 Government taxes .. .. .. .. 167,327 10 4 | 126,926 16 7 Sundry creditors .. .. . . . . 39,387 1 5 | Other amounts owing by the Office— £ s. d. Reinsurance premiums due . . 8,504 6 0 ! Commission .. .. .. 7,060 0 0 Printing, stationery, and advertising 1,332 0 0 Postages and sundry charges . . 8,608 0 0 2 5,504 6 0 Fire Insurance Funds .. .. .. .. 33,104 4 10 £1,726,886 4 9 £1,726,886 4 9 ' T j R. H. Newbold, General Manager. 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: R. E. Owen, Government Printer, "Wellington.— 1949. Fnce 3d.\

Approximate Cost of Paper.—Preparation, not given; printing (1,949 copies), £9.

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