N.Z. INSURANCE

Ashburton Guardian, Volume 70, Issue 256, 16 August 1950, Page 7

N.Z. INSURANCE

COMMERCIAL

HARDENING OF MOTOR-VEHICLE RATES PREDICTED (P.A.) AUCKLAND, August 15. A general hardening in insurance rates for comprehensive cover for motor-vehicles was forecast to-day by Mr Charles I. Nathan, chairman of the New Zealand Insurance Company, Ltd., at the annual meeting. He said the world-wide experience of all companies engaged in this class of business was unsatisfactory. “This is indicative of larger problems relating to motor transport and the inadequacy of parking facilities and the dangers of road congestion, with which every country is faced,” he said. “Repairs almost everywhere cost far more than previously.” In fire insurance the loss ratio had been markedly higher than the average for the last five years, but to compensate for this, and the highest percentage yet recorded in marine losses to income, there was the unusual feature 'that accident losses were relatively low. The total losse», while high, did not to any great extent affect the final results for the year. . While charges generally were expanding, insurance rates had remained stationary for years and in some places had declined to a point where it was difficult to show profitable returns. It was to be hoped that in the near future there would be some relief in taxation and Government costs, A record underwriting surplus and the second highest underwriting in the company’s history were reported by Mr Nathan, in his review of the accounts for the year ended May 31. The chairman said that 'the high percentage of the company’s overseas business made it necessary to maintain substantial reserves to provide for eventualities. The general reserve now equalled the authorised subscribed and issued capital of £1,500,000. The increase of £264,000 in the underwriting revenue was supplied from the fire department, the main section of the company’s business, said Mr Nathan. Marine premiums declined slightly because of the general reduction of rates throughout the world and a period of poorer returns might be experienced from this section. Premium income from accident policies was adversely affected by the loss of workers’ Compensation business in New Zealand. Losses at £2,562,710 were nearly £220,000 higher than in the previous year. Expenses, including increasingly heavy charges for taxation, again rose during the year. This year the company’s total taxes in countries where, it operated were much higher than they have ever been and reflected increasing Government costs which were such a drain on industry. STOCK SALE KEEN SALE OF STORES The sale of store sheep at the stock sale at the Ashburton yards yesterday was keen. 358 station ewes (to Romney and Romney dialfbred rams) selling from 53s to 625; 80 soundmouth halfbred ewes (to Romney rams) fetched 625; 82 sound-mouth hialfbred ewes (Southdown and Southdown-Border cross rams) sold at 64s 3d; 126 wether hoggets at 555, and 66 wether hoggets at 645. STOCKS AND SHARES The following transactions were re corded on the Christchurch Stock Exchange yesterday:— Sales on ’Change—Colonial Sugar (rights), £27 15s; Woolworths (Syd., rights), 13s 6d; Woolworths' (N.Z.), 255’(3). Sales reported; Electrolytic Zinc (pref.),-74s 6d; Gadsdens (pref.), 23s 3d.