Page 3 Advertisements Column 5

Auckland Star, Volume X, Issue 3082, 6 March 1880, Page 3

insurance. {% ROYAL INSURANCE COMPANY. ;- The following is from the columns o£ the " Australasian Insurance and Banking Record":— The accounts of the Royal Insurance Company, an institution honourably known and with world-wide engagement j. They cover the year's business to 31st December, 1878, the meeting approvinß them being held in Liverpool on Ist August last. The increase in' the life funds during the year Is £113,105, but the life profits ara only dealt with at the quinquennium, which does not expire until 31st December noxt, when it ii anticipated a favourable bonus will, as usual, be awarded the asaured. In the present statement, it is only the funds of the flre depart ment which are brought into the profit end loss aooount. The low percentage of losses during the year in that branch has enabled the ducc tors to continue In the course pnrsued for irany years past, ot adding to the company s strength by still iutther increasing tbo general reseries in preference to distributing the bulk or the profits amongst the shareholders. The profit arising from the operations of the lire branch during the year amounts to £170,863. anoV with the interest on flra funds added, to £21G,G00 out ot which a dividend has been declared of £1 per share againi-t 18s per share the year previous. The dividend absorbs £96,515, and leaves tue flre fund stronger by £150,030. Writing of the balance-sheet and report, the .Rei-teiw (London), Gth August, says :-"During 1878 the flre premiums were.£775,871, a3 against £788,053 in 1877, but with this important difference, that the losses in 1878 were only 492 per cent., whilst in 1877 they were Si' 2 per cent. of the premiums. The result is a most fortnnate state of things for tlfe shareholders. It is evident that the position of the flre policy-holders has been enormonsJy strengthened. The necessity of the re-insurance fund has not perceptibly increased, certainly not sinca 1877, whilst the cash reserves held exclusively for fire losses and exclusive of capital have increased from £1,000,000 to £1,300,000. Jf we add the paid-up capital and the balance ot profit arid loss, we have a total sum of £1,650,000 held as security for fire losses and available for payment thereof. . These figures are pregnant with meaning to those who seek for eecunty under Boyal lire policies in all quarters of the globe, and who arc willing to pay a fair and reasonable! price for them. It must b i a source of great pride to tha management to be able to point out such results to the shareholders, after carrying Buch enormous sums to reserve. A dividend of £3o 6s 8d per cent., after adding £15i>,90D to fire reserves, is satisfactory to bi>th proprietors and policy-holders. The wise policy of piling up reserves is bearing its fruit in the case of the Royal, and young fire offices should note the fact aud the lesions conveyed thereby, His one single office offora more security; than all the non-tariff offlo. s put together, with a few of the tariff ones thiown in. it has been built up by steady adherence to the principles established by tlio experience of Hie under writers for two centuries, any deviation from which must be attended witli disattor, The putlio wont security first, and economy in premium Kcond. As long as companies like the Eoyal exist, the sufferers bj tha failure of insolventflre offices are entitled to no sympathy, whether at home or abroad." The total assets of the Royal amount to £1,276,174. and the detail of the manner in which the funds are invested conveys a sense of high security. As showicg the operation of the accumulation of reserves (partly forced on the company by legislation in the United Staves of America where it does a large business), we observe that at the meeting a shareholder pointed out that to pay the dividend ot £9C,0D0 there was provided iBBO,OOO from interest on investments, and only £16,001) out of current flre profits, the rest being added to tbe existing large reserves. In the Australian colonies and New Zealand the Royal has long held a leading position, and the abi.it/ of its Melbourne representative, Mr. Charles Salter, is universally recognized. BEPORTd AND BALANCE SHEETS. Theannual meeting of proprietors was held on Ist August* in Liverpool. Mr. Ralpli Brockle ton, chairman of the directore, presided, and there was a good attendance of shareholders. The following is the directors' report :4The directors have the pleasure of report ng thorcsultsof the operations in the yeari]B7B, us follows:—Fire dep.rtment.—The fire premiums for the period amounted to £775,t71 lls lid, and the losses to £381,562 3s Id. After the deduction of agents' commission and a'-l management expenses, the met profit, including in'erest on flre fund, and current balances amounted to £191.928 93 Bd. i • : ' Lite department.—During the year new proposals were accepted for £171,850, .of which £136,800 had been completed, and the corresponding annual premiums obtained to the closing of the accounts were £13.837 10s 6d. The proposals declined during the period amounted to £76,718. The total income from premiums after deducting reassurances, amounted to £216,514 5a Id; and the interet t received from investments, exclusive! of that o-i the annuity funds, was £90,218, 8s lid. The claims during the year were: —By death —Sums aß3urcd, £133,231 los 9d; bonus additions thereon, £14,867 12s 3d. By matured pjlioiea (Including children's endowments)— Sums assared, £49115s 9d; bonus additions thereon, £824 15s; total, £153,841 8s Sd. In the Annuity branch the purchase monoy received for new annuities,' together with the premiums on contingent annuities, amounted to £17,802 93 7d, and the interest to £7,626 83 9.1. Thirty annuitants have died during the year, the annual payments to whom amounted to £2,711 15s 2d. After payment of all claims, annuities, bonuses in cash, and expenses of every description, a balanc? of £143,101 19s 4d has been added to the life funds, making the total accumulations of the life and annuity branches of the company £2,389,907 3a lid. The quinquennial investigation of the life business will be made at the close of the present year, preparatory to the declaration of a bonus to the assuied at the annual meeting in 1880., The method adopted at the investigation of 1870 and 1875 for securing perfect accuracy in the calculations will again be followed, and a separate valuation of the liabilities will accordingly be . obtained from an independent actuary, in addition to the valuation by tho ofUcera of the company. The low rate of interest obtainable, for lirst-class investments during the four years now expired has had an appreciable effect upon the profits of the life business, and tho department has suffered to some extent through the long-continued mercantile depression, but the mortality has continued to be below the expectation, and the life funds have been increased during the period by £536,596. It is now satisfactory to intimate thatareviewof the business Binco the last valuation leads to the anticipation that the balance of profit to be announced at tho next meeting will be satisfactory alike te the shareholders and the assured. Profit and Loss.—The amount at the credit of the profit and loss account, after payment of the dividend and income-tax for the year 1877, w s £69,622 4s 3d. To whloh have been added , Fire profit for tho year. £194,928 9a 8d; interest, £51,671 17s Id; making the balance now, £316,222 11s. Of whioh amount thera has been carried to reserve fund £50,000, and to fire fund £100.000. Dividend and Bonus.—ln addition to tbe interim dividend of 6s per share paid in February last, tho directors now recommeDd a payment of 6s further dividend and 83 by way of bonue, making together 20i per share, free of incometax, and absorbing £96,815, atier meeting which there remains a Da'ance at the cred;t of the account of £69,707 11s. Funds.—After providing for payment of the dividend and bonus, the funds of the company willßtand as follows: Capital paid-up, £289,515; flre fand. £500,000; reserve fund, £800,000; balance of profit and lobb, £69,707 11s; lite funds, £2,389,907 33 lid; total, £4,049,159 113 lid. REVENUE ACCOUNT For the Year ending 31st Deeember,lß7B. ' LIFE ASSURANCE ACCOUNT. & ' s. d. Fund at beginning of year .. 2,068,712 3 9 "Premiums, less re-assurances .. 246,511 5 1 Interest 90,218 8 11 £2,105,504 17 9 Claims £153,841 8 9 Surrenders 18,779 5 1 Bonuses in cash .. .. .. 1 F. 422 0 11 Commission — 10,740 10 6 Expenses .. .. .. 13,052 13 10 Fund at end of year .. ..2,208,668 18 8 £2,405,504 17 9 ANNUITY ACCOUNT. Fund at beginning of year .. £178,060 010 Consideration for annuities granted 17,802 9 7 Interest .. M .... 7,626 8 9 £203,488 19 2 Annuities £21,658 6 3 Commission .. .. .. 302 12 8 Expenses .. .. .. 28!) 15 0 Fund at end of year .. .. 181,238 5 3 £203,488 19 2 FIRE ACCOUNT. Fund at beginning of year .. £100,000 0 0 Net premiums .. .. .. 775,871 14 11 Interest 21,001 15 3 Transferred from profit and loss account .. .. .. 100,000 0 0 £1,299,936 10 2 Losses by fire .. .. .. 381,562 3 1 Commission .. .. .. 106,837 19 11 Expenses ..* .. .. 116,007 17 6 Profit realised, transferred to profit and loss account .. 194,928 9 S Fund at end of year .. .. 500,000 0 0 £1,299,936 10 2 PROFIT AND LOSS ACCOUNT. Balance of last year's account .. £158,559 5 0 Interest 51,671 17 1 Profit realised on fire account .. 194,928 9 8 £405,159 11 9, Dividends and bonuses .. .. £86,863 10 0 Income tax .. .. .. 2,073 10 9 Transferred to reserve fund .. 00.000 0 0 Transferred to fire fund.. .. 100,000 0 0 Balance ~ 166,222 11 0 £105,159 11 9 BALANCE SHEET ON 31st DECEMBER, 1878. LIABILITIES. Shareholders'capital .. .. £289,515 0 0 Reserve fund 800,000 0 0 Life assurance fund .. .. 2,205,(W8 18 8 Annuity fund 181,238 5 3 Fire fund 500,000 0 0 Profit and loss (subject to shareholders'dividend) .. .. 166,222 11 0 Perpetual insuranco account .. 1,011 19 5 Claims not paid 45,015 19 1 Annuities not claimed .. .. 107 3 1 Outstanding flre losses .. .. 51,396 13 ( Unclaimed dividends .. .. 2,737 3 4 Outstanding accounts .. .. 4,092 13 II Bills payablo 23,075 8 1 £1,276,174 14 10 ASSETS. Mortgages (United Kingdom) .. *N 8.182 1 j> Loans on policies .. •• 120.J80 6 8 Investments— . . • • \ „ British Government securities 123,012 11 3 Foreign and Colonial securities 31,529 7 7 United States securities .. 407,872 1 i Railway debentures .. .. 22,930 0 0 Do. guarantee and preference stocks 1,153,466 9 10 Other British securities .. 357,337 1 2 Freehold buildings .. .. 202,485 14 1 Leasehold buildings .. .. 8,827 5 0 Loans on policies with personal security • ... .. .. 920 0 0 Loans to various towns .. .. 338,739 16 1 Loans on securities .. .. 521,910 7 7 Agents'balances.. .. .. 08,585 0 3 Outstanding premiums .. .. 7,371 511 Outstanding interest .. .. 17,515 15 6 Cash in baiflc, etc. .. .. 93,510 1 9 £1,276,474 14 10