SOUTH BRITISH INSURANCE COMPANY.

Auckland Star, Volume XXI, Issue 259, 1 November 1890, Page 3

SOUTH BRITISH INSURANCE COMPANY.

The ordinary general meeting of shareholders in the South British Eire and Marine Insurance Company was held at the Company's office on the Bth of October. There was a large number of shareholders present, and Captain Daldy, Chairman of directors, occupied the chair. In submitting to the shareholders the statement of accounts for tho year ending Zlsfc August; 1890, the directors regretted thattheresultof tboCompany's operations has been so unfavourable. The revenue from premium* and interest amounted to Is, and tho expenditure, including the balance brought forward on 31st August, 1889, to £297,989 Is 4d, leaving a debit balanco of £44,682 0s 4d at tho date of closing the accounts. This result i 3 caused entirely by hoavy losses sustained at two of the Company's branches, and by the cost of re-insuring the Company's business in the United States and elsowhero. Tho Board have withdrawn altogether from tho United States, and are now"arranging for withdrawal from other unprofitable fields. With the exceptions referred to, tiie business has been prosperous and satisfactory. In order to extinguish all past losses, and to provide for re-insuring outstanding risks at ; the branches now being closed, shareholders would be asked at special meetings, which will be called for the purpose, to agree to writing off £1 per share of the paid-up capital. This operation will, ib is confidently expected, place the Company at once on a dividend-paying footing, and will leave ample available funds for all purposes. The Chairman, in the course of his speech, said : I now wish to state that this is the last occasion upon which I shall appear before you as Chairman of directors, havingexpreesed my desire to the directors not to be ra-elected to that position by the Board. further, when my present term of office expires in October next year, I do nob intend to seek re-election. In moving the adoption ot the report and balance-sheet, I desire on behalf of the directors to express their deep regret that the year's operations have not resulted more favourably. The premium income shows a diminution as compared with last year, which is accounted for by the re-insurance of a certain portion of our Continental fire business and by the weeding out of proved undesirable fire business in England. This is an indication that the determination exDressed by us at our last meeting, to purge the business of overything of an undesirable character, has been carried out. Our withdrawal, too, from the United States etill further explains the decrease in revenue. At every point where the business has hitherto proved remunerative our revenue has been well maintained. The large debit of £44,000 to profit and loss includes the debit balance of £7,440 brought forward from last year ; ib also includes reinsurance payments of £12,500 cost of quitting the North American business, and about £4,000 cost of reinsuring

certain Continental fire business. These three amounts total £24,000, leaving a loss of £20,000 on the year's operations, properly speaking. Two of our branches brought in a loss on the year's transactions of £35,000, the San Francisco branch, ono of the two, being responsible for £23,000 of thab amount. Losses paid during the year in connection with tho Adelaide Company's purchase, and expenses in connection therewith, have been £10,300. but this practically closes that account. Notwithstanding the heavy debit balance which had to bo provided for, a reference to the balance-sheet will show that ab the date of closing our books our invested funds were only £3,700 less than at the same period last year. .This, I think, can be accepted as showing the good financial position of tho Company. As you are aware, economies at the Head Office have been exorcised within the past few month?, which have resulted in a saving of £2,000 per annum, and it is the directors' intention to effect further savings, if this is possible without impairing the efficiency of the service. A change in the general management of the Company has recently taken place; on the 31st July Mr Johnston rotited, and after careful deliberation the directors appointed as General Manager, the Company's Inspector, Mr James Kirker. Mr J. M. Shera moved thab Mr J. F. Clarke be elected auditor. Mr Goldie proposed Mr Jno. Waymouth, and Mr S. E. Ifughes proposed Mr A. Boardman. On a poll being taken, Mr Waymouth and Mr J, Friar Clarko were declared to be duly elected auditors of the Company. After the minutes of tho general meeting had been read and adopted, tho meeting resolved itself into an extraordinary general meeting and passed the following resolution :—" That the following article shall be added to and inserted in the Company's articles of association after Article 37, and shall bo entitled Article 37 a." "37 a: The Company may from time to cim.i by special resolution reduce its capital. Tho directors may, on any such special resolution being passed, apply to the proper Court and do all things necessary and expedient to obtain the efiecfc and confirmation thereof." This resolution was confirmed at a subsequent meeting.