H.—6a

1930. NEW ZF A LAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1929.

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

State Fire Insurance Office, Wellington, 24th June, 1930. I have the honour to submit the twenty-ninth annual report of the Government Accident Insurance Office for the year ended 31st. December, 1929, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the progress made : — 1927. 1928. 1929. Income — £ £ £ Premiums from all classes of accident insurance .. .. 65,560 71,731 81,353 Interest .. .. .. .. .. .. 10,895 12,368 13,342 Outgo — Claims.. .. .. .. .. .. .. 38,972 43,807 49,853 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. .. 59-44 61-07 61-28 £ £ £ Free-year bonus on personal accident policies .. .. 154 145 166 Working-expenses (exclusive of income-tax) .. .. 15,394 16,482 18,340 Ratio of working-expenses (exclusive of income-tax) to premium Per Cent. Per Cent. Per Cent, income .. .. .. .. .. .. 23-49 22-98 22-55 £ £ £ Income-tax .. .. .. .. .. .. 2,430 3,294 3,939 Carried to reserve for unearned premiums .. .. .. 3,248 2,776 4,330 Per Cent. Per Cent. Per Cent. Ratio of underwriting surplus to premium income .. . . 11-88 11-88 10-65 £ £ £ Carried to Investment Fluctuation Reserve .. .. .. .. 3,000 Surplus .. 16,255 17,592 15,066 Reserves and funds as at 31st December .. .. .. 225,539 245,909 268,306 It will be noticed from the above figures that a greater increase in premium income was secured than in the previous year, and that the expense ratio was reduced to 22-55 per cent., the lowest recorded in the history of the Office. In view of the general depreciation in securities, the Investment Fluctuation Reserve has been increased by £3,000. Without this transfer the surplus for the year would have been slightly larger than for 1928. Workers' Compensation Insurance. —Employers with a record of claims above the average for their class are finding it increasingly difficult to secure a continuance of insurance cover with insurance companies, and during the year the State Accident Office has been called upon to assist a number of such employers who otherwise would have been unprotected. The effect of this has been to raise the Department's loss ratio on its compensation business to an average of 73-35 per cent., which is above the claim average (71 per cent.) on which premiums are based.