H— 6.

1933. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1932.

Presented to both Houses of the General Assembly pursuant to the Provisions of the State Fire Insurance Act, 1908.

State Fire Insurance Office, Wellington, Ist September, 1933. I have the honour to submit the twenty-eighth annual report of the State Fire Insurance Office for the year ended 31st December, 1932, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years :— 1930. 1931. 1932. Income — £ £ £ Premiums .. .. .. .. .. .. 221,909 216,007 208,493 Other receipts, less land-tax and bad debts .. .. 49,508 49,496 46,749 Profit on realization of investments .. .. .. 794 Outgo— Bonus rebate to policyholders .. .. .. .. 27,001 26,187 25,294 Claims.. .. .. .. .. .. .. 90,001 112,932 70,444 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. .. .. .. 52,624 50,479 47,967 Fire Board contributions.. .. .. .. .. 8,027 7,927 7,835 Income-tax .. .. .. .. .. .. 21,153 26,152 28,201 Cash stolen or burnt, Hawke's Bay earthquake .. .. .. 26 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. .. 40-56 52-28 33-79 Ratio of working-expenses (exclusive of income-tax and Fire Board contributions) to premium income .. .. 23-71 23-38 23-01 Ratio of Fire Board contributions to premium income .. 3-62 3-67 3-76 Ratio of income-tax to premium income .. .. .. 9-53 12-11 13-52 £ £ £ Carried to reserve for unearned premiums .. .. .. 1,567 .. 15,482 Surplus, apportioned as follows : — Payment to Treasury under section 5, Finance Act, 1931 (No. 2) .. 2,612 3,484 Bad Debts Reserve .. .. .. .. .. .. 500 1,000 Written off Office premises .. .. .. .. 5,000 10,000 38,400 Investment Fluctuation Reserve Fund .. .. .. 6,000 7,000 15,000 Reserve Fund .. .. .. .. .. .. 45,336 21,687 2,134 Reinsurance Reserve Fund .. .. .. .. 15,000 Bonus Rebate Reserve .. .. .. .. .. 500 Total .. .. .. .. .. £71,836 £41,799 £60,018 Reserves and funds at 31st December .. .. .. .. £889,494 £918,682 £952,299 1. The fall in premium income during the year was accompanied by a more than proportionate fall in claims, with the result that the underwriting was more profitable than for the past seven years. Some of the improvement in the hazard is accounted for probably by economic conditions, but a most helpful factor is the recently instituted system of inquiries into all suspicious fires by the Police Department working in co-operation with the Inspector of Fire Brigades and Insurance representatives. 2. Administrative expenses, always very much lower than the average for all offices, have been reduced slightly, despite lower income. Income-tax (£28,210) constitutes a record, and is also a much larger sum than published records show as having been paid by any other fire-insurance office in any one year during the last ten years. In addition, the Office contributed £3,484 to the Treasury under section 5 of the Finance Act, 1931.