H.—6

1907. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE: ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1906.

Presented to both Houses of the General Assembly pursuant to the provisions of the Act relating to Government Fire Insurance.

In compliance with statutory provisions, I have the honour to submit the following report for the year ended 31st December, 1906. The year 1906 is the second financial year of the State Eire Insurance Office, and I am pleased to be able to point out the continued strong support of the public as shown by the fact that the net income for 1906 amounts to £20,962 Bs., in comparison with £13,127 lis. 9d. for 1905. Early in 1906 the insurance companies abandoned all their " higher rates," and from thence forward the rates of premium of the State Fire Insurance Office and the private insurance companies have been alike. I may here say that in my opinion the difference between the rates which now prevail and those which prevailed just prior to the advent of the State Fire Insurance Office represents say £200,000 per annum. Though the prevailing rates of premium presumably are highly satisfactory to the insuring public in view of the fact that they are very much below what they were prior to the advent of the State Fire Insurance Office, nevertheless experience has shown that they are lower than they should be, and this fact has been very much impressed upon the private insurance companies whose competition has failed to make the State Fire Insurance Office lose heavily, as they anticipated, although necessarily their action reduced its profit results by some £12,000. The Revenue Account and balance-sheet attached hereto show that after writing off £634 55., one-quarter of the preliminary expenses, there remains a credit to Profit and Loss Account of £699 10s. 4d., and this result in my opinion is as satisfactory as could be expected in the circumstances. J. W. Bbindley, General Manager.

Revenue Account op the State Fibe Insueance Office foe the Year ended 31st Decembee, 1906. £ [*. d. £ * d Amount of Fire Insurance funds at the Losses by fire (after deduction of reinsurbeginning of the year .. .. 481 10 2 ances) .. .. .. .. 10 312 1 4 Premiums after deduction of reinsurances 20,962 8 0 Appropriated to reserve for unearned pre Other receipts— miums .. .. .. .. 12 1 Interest .. .. .. .. 28 18 9 Interest on oapital guaranteed by the Government .. .. .. 72 10 0 Commissions .. .. .. .. 1 422 12 2 Salaries .. .. .. ~ 5 2 Expenses of management— £ s. d. Travelling-expenses .. 331 6 3 Printing, stationery, and advertising ".. 460 0 3 Rent .. .. 480 9 4 Exchange .. .. 10 7 9 Postage and telegrams, cablegrams, and sundry charges .. 757 5 5 Furniture written off 72 11 10 „ ~ . 2,112 0 10 Preliminary expenses written off .. 634 5 0 Amount of Fire Insurance funds at end of ye" .. 699 10 4 £21,472 16 11 £21,478 16~U J. W. Brindley, 29th June, 1907. General Manager. Examined and found correct. J. K. Warbubton, Controller and Auditor-General.