H.—6

Accumulated Funds.— -The funds at close of 1918 amounted to £214,019 18s. 2d., and for 1917 £182,645 2s. 5d., showing the very substantial increase of £31,374 15s. 9d The following summary of the first and second septennial periods in the life of the Office gives a clear and concise indication of the relative progress and success of the two periods : — First Seven Second Seven Years. Years. £ £ Total net income .. .. .. ..209,095 535,122 Total net losses .. .. .. .. .. 109.320 187,744 Total profits .. .. .. .. .. 12,437 160,551* " Averages per annum :- Net income .. .. .. .. ..29,871 76,446 Net losses.. .. .. .. .. .. 1.5,617 26,821 Profits .. .. .. .. .. .. 1,777 22,936* Ratio of working-expenses to premiums (per cent.) .. 33-20 27-29f Ratio of losses to premiums (per cent.) .. .. 53-19 ■ 37-35 War-risk and Marine Insurance. It may be here stated that the Office during the war period administered the War Risk Insurance Act, 1914, and also acted for the imperial War Risks Office. War-risk insurances, mostly in small amounts, to a total of £] ,436,445 were, effected on behalf of shippers, at rates considerably below those, at which cover could have been obtained locally, and the operations of the State Fire Office no doubt also exercised a restraining influence on the rates charged by the private insurance offices to shippers who did not directly avail themselves of this Office's activities. The premiums under the New Zealand war-risk scheme amounted «to £1,199 7s. 9d., and there were no losses. Both the premiums received on behalf of the Imperial War Risks Office and those received in connection with the local scheme were lodged direct to the credit of the Public Account ; therefore none of the figures appear in the State Fire accounts. In addition to operating the war-risk insurance schemes, the Office during the period of the war also acted in an advisory capacity regarding marine insurance ; and on behalf of the Board of Trade, the Imperial Supplies Department, and the Munitions and Supplies Department effected marine insurances on the best available terms to a total of £1,284,167 on wheat, scheelite, foodstuffs, and military supplies of every description. C. .R. C. RobiesOiN, General Manager. Revenue Account of the Statu Fire Insurance Office for the Year ended 31st December, 1918. £ s. d. £ s. d. Premiums after deduction of reinsurances 1)0,077 711 Losses by lire (after deduction of reinsurOther receipts—lnterest, commission, and ances) .. .. .. .. 29,871 13 4 rent .. .. .. .. 0,381 II 5 Appropriated to reserve for unearned premiums (in addition to £34,128 10s. lOd. already reserved) .. .. .. 1,902 8 4 Investments Fluctuation Reserve, Fund . . 1,000 0 0 Government taxes .. .. .. 13,792140 Commission .. .. .. 7,010 13 9 Salaries .. . . . . . . 8,889 10 10 War bonus to staff on salaries under £315 055 0 1 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. 1,818 18 5 Expenses of management— £ s. d. Travelling-expenses .. 859 17 0 Printing, stationery, and advertising .. ~ 1,181 11 5 Rent, .. .. 1,157 2 0 Exchange .. . . 24 4 0 Postages, telegrams, cablegrams, and sundry charges .. .. 1,565 10 0 Office buildings and equipment written off .. 651 7 3 5,439 12 8 Amount of fire-insurance funds at end of year .. .. .. .. 28,472 7 5 £99,458 19 4 £99,458 19 4 3rd March, 1919. C. R. C. Robikson, General Manager. Examined and found correct. —R. J. Collins, Controller and Auditor-General.

* After deducting £27,710 income-tax. f Exclusive of income-tax.

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