INSURANCE LOSSES.

Auckland Star, Volume XXX, Issue 6, 9 January 1899, Page 4

INSURANCE LOSSES.

The heavy losses by fire, recorded in the recent balance-sheets of nearly

all the Australasian insurance companies, have been fully shared by the New Zealand Insurance Company. From the report and balance-sheet

which we publish in another column to-day it will be seen that even aft,er taking- to credit £17.249, derived from

its investments, the Company lost £ 15.541 on its year's operations. Fortunately for the shareholders, the accumulations of previous years enable the directors to pay tne reduced, but still substantial, dividend of 2/ per share, but in order to do this the direc-

tors have been obliged to draw upon

the reserve fund to the extent of £3.1,000. Of course, a heavy loss of this kind will naturally suggest to the Board the necessity for looking carefully through their business for weak spots, and they will act wisely in applying the pruning knife unsparingly to all bad or doubtful business, even at a sacrifice of revenue. The fact, however, that other companies operating in the same, fields have suffered severely, and tliat very heavy losses have been incurred as in The case of the great Melbourne fire, upon what would generally be regarded as Tbe safest of risks, obviates the inference

that the unfavourable results from The year's transactions are attributable to

any special circumstances connected with the Company's business. At the same time, an organisation so widespread demands the mest watchful and firm control on the part of the directors, and no doubt the Board will carefully analyse and scrutinise the sources of these losses with a view to ascertaining whether the premiums are adequate and all the branches are conducted upon safe lines. How wide is the ground covered by this Company, which originated in Auckland, and is managed from here, may be estimated from the fact that the Company's Inspector of Branches has been occupied for 2 years in making a complete examination of the business. Aucklanders naturally feel an interest and pride in the fortunes of this great commercial enterprise, to which our city has given birth 1 and although they may regret that the Company has been less fortunate this year than usual in its operations, it is gratifying to know that such exceptional losses can be easily met, and a dividend of ten per cent, be paid without placing any strain upon the Company's large re-

sources