NEW ZEALAND INSURANCE CO.

Auckland Star, Volume XXX, Issue 15, 19 January 1899, Page 8

NEW ZEALAND INSURANCE CO.

ANMJA-._ MEETING. The annual general meeting of shareholders in the New Zealand Insurance Company was held on Jan. 11 at the Company's office, Dr. J. Logan Campbell (chairman of directors) presided, and there was a good attendance of directors and shareholders. The following is the sixtieth report and balance-sheet of the above company. The Directors beg to submit to the shareholders the accounts of the company as at the 30th November, ls&S. £ s d The fire and marine premiums, after deducting returns and re-insurances,amount to £311,----340 15/4, being an excess on the previous year of 27,710 15 5 Owing, however, to widespread and exceptionally numerous losses, the debit on the year's transactions.alter making full provision tor all ascertained and estimated losses to 30rh November, amounts to 15,541 1 3 From which deduct balance brought lorwara from last year 2,733 19..2 £12,807 2 1 Add interim dividend paid in July last 10,000 0 0 £22,807 2 1 Under these exceptional circumstances, your -Directors - decided to transfer from Reserve Fund—set apart, among other objects, for equalisation of dividends—the sum of £;;-■ - 0..-0, leaving an available balance of 12,192 17 11 From which your Directors recommend the payment of a dividend for the second half of the past year of 2/ per share..lo,ooo 0 0 Balance carried forward to New Account 2,192 17 11 £12,192 17 11 Messrs A. H. Nathan and J. L. Wil son retire from the Board, as provided for by the Articles of Association, and are eligible for re-election.Messrs H. Giltillan, junr., and W. R. Holmes again offer their services as auditors. For the Board of Directors. j. logan cambbell: Chairman. STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 30th NOVEMBER, 189$. PROFIT AND LOSS. Dr. £ sd. £ a d To dividend for the half-year ended 30th Nov.,. 1897....10,000 0 0 Dividend for the half-year ended 31st May, 1898.... 10,000 0 0 20,000 0 0 Commissions, salaries, and other expenses 76,035 3 3 Government, taxes and payments to tire and marine associations 6,164 15 9 Fire and marine losses and appropriation for unpaid losses 261,931 16 1 Balance 12,192 17 11 £376,321 13 0 Cr. £ s d By balance at 30th Nov., 1897.. 12,733 19 2 Fire and marine premiums, less returns and re-insur-ances 311,340 15 4 Interest and rents 11,249 18 6 Transfer from Reserve Fund ..55,000 0 0 £376,324 13 0 BALANCE SHEET. Dr. £ s d £ s d To capital 200,000 0 0 Reserve Fund 90,000 0 0 Reinsurance Fund..llo,ooo 0 0 t 200,000 0 0 Investment Fluctuation Account — Amount last year... .1,986 IS 6 Add profit on realisation of sundry investments during current year 1,278 16 11 3,26515 5 Appropriation for unpaid losses 57.552 0 0 Sundry creditors 25.633 8 7 Balance 12,192 17 11 £498,974 1 11 Cr. By investments— ' Mortgages and shares 72,608 6 1 Company's freehold office premises and other properties..23o,2os 15 0 United States bonds 11,090 0 0 Cape of Good Hope Government securities 10,047 10 6 Transvaal Government bonds 5,725 15 6 Argentine Government securities.. 24,500 0 0 Debentures 11, 365 11 6 Loans at call, short periods, and fixed bank deposits 25,549 1 7 391,092 0 2 Auckland city leasehold 57,818 8 0 Less sinking fund already accrued — 28,759 3 3 29,059 4 9 £420,151 4 11 Accrued interest and rents 2,482 10 7 Branch and agency balances.. 53.058 13 8 Cash in banks and in hand, at head office and branches 23,251 12 9 £498,. 974 1 11 We have examined the books and accounts of the company for the year ended 30th November, 1898, and have to report that the balance-sheet now presented to the shareholders is a full and fair balance sheet, and exhibits a. true and correct view of the state of the company's affairs. H. GILFILLAN. jun., F.1.A.. N.Z., W. R. HOLMES, F.1.A., N.Z., Auditors. Auckland, January 7, 1899. THE CHAIRMAN'S ADDRESS. The chairman said: — The report and' balance-sheet which have been placed in your hands for perusal in anticipation of to-day's meeting- will no doubt have prepared you for an address from the chair not of that satisfactory character which, as a rule, it has been my pleasing duty to deliver. The directors hoped, when they last met you, that the exceptionally heavy losses which they had then to record would not have been repeated, but they regret that the report now before you shows the Company has again had to meet severe and quite unprecedented losses. The directors, however, think it right to inform shareholders that the heaviest losses have been made on first-class risks. It may interest you to know that your Company is not alone in this experience, as many kindred institutions have suffered severely, and ours is not a singular position in having to trench on reserve funds to pay a dividend. You are doubtless aware that provision is made for this in our Articles of Association, clause 108 enacting that reserves, amongst other objects, are 'for equalising dividends.' That being so, and considering the I strength of our reserves, your directors feel justified in recommending the payment of 2/ a share for the second half of the year, making 10 per cent, per annum. Your directors do not anticipate a continuance of the present cycle of bad times, but look forward to improved and more profitable business. Such a run of losses as the present has arisen in the history of r.lmost every insurance company, and in our large business we could hardly expect to, escape. Your directors, however, are well satisfied with the business of the Company generally, which shows a steady increase at almost every one of its branches. I would point out that although the item 'expenses' in the balance-sheet shows an increased amount, the percentage it bears to revenue is less than last year. Regarding our investments, you may recollect that last year shareholders

1 were told that these had just under- ! gone the periodical scrutiny of the I Board, and most of them had been re- ! valued by experts, with the result that they were then found to be still in excess of the value placed upon them in our books. You will notice that on one or two which have been realised during the year there has been a profit, which has not been brought into profit and loss, but add!ed to Investment Fluctuation Ac--1 count. Our Inspector of Branches. ilr J. C. Hanna, has just returned ' after a two years' inspection of our ' numerous and widespread agencies. | The Board have been in constant touch with him during his absence, and his able reports from time to time have been of great service to the Company.

The past year has been one of great anxiety to your directors and Executive, but they look forward with hope and confidence to the future and to the steady and continuous growth and prosperity of the Company, owing to its wide and valuable connection, not only in the colonies, but in almost every part of the world. The shareholders may rest assured that, as usual, every loss known to us up to the Ist December has been amply provided for. With these remarks I beg to move the adoption of the report and balance-sheet.

Mr A. G. Horton seconccd the adoption of thereport, which was agreed to without dissent.

Directors: Messrs A. H. Nathan and ,1. L. Wilson were re-elected directors unopposed. Messrs H. Giltillan and W. 11. Holmes were re-appointed auditors. Mr Wilson and Mr Nathan returned thanks for the confidence shown by re-electing them on the Board.

Thanks.—Mr H. N. Garland moved that a vote of thanks be tendered the directors and officers of the Company. Although results might not be satisfactory, still the directors and officers, he felt sure, had earned the thanks of shareholders all the same.

Mr A. Lovett seconded the motion, which was agreed to.

The chairman, in returning thanks on behalf of the directors, expressed the hope that when they met next year matters would be more prosperous.

Mr Hugh Craig, in responding for the staff, said they all felt very keenly the position of things for the past two years, but ,if loyalty, attention to business, and keen dhrcrimination would restore matters to the usual prosperous condition, the shareholders might depend the staff would do its utmost, and he had ever, hope and confidence they would next year present a far more creditable appearance than they unfortunately did at the present time. This closed the proceedings.