N.Z. INSURANCE COMPANY.

Auckland Star, Volume LI, Issue 36, 11 February 1920, Page 7

N.Z. INSURANCE COMPANY.

ANNUAL MEETING. The annual meeting of tbe New Zealand Insurance Company was held this afternoon. Mr. H. Horton, chairman of directors, presided. Addressing the meeting, Mr. Horton said:—The report and balance sheet presented to-day contains very important alterations from that of last year. The subscribed capital of the company is still £1,500,000, but the number of share 9 has been changed from 150,000 of £10, to 1,500,000 of £1 each. The transfer of the sum of .-£ 150,000 from the reserve fund to capital in July has increased the paid up capital of the company from £000,000 to £750,000, -making the amount now paid up per share 10/. These alterations which were announced at our last annual meeting as the board's policy were carried out with your sanction and approval at special meetings in June and July of last 3-ear. The changes effected, the directors think, will be of benefit to the company, and already a wider distribution of shares has been effected the number of shareholders having increased from 1040 to 122S during the past twelve months. YEAR'S OPERATIONS. Coming now to figures of the past year's operations, I fee! sure you will be satisfied with the results. The underwriting surplus obtained from our operations throughout the world is £120,089, and this with the revenue of £80,168 from our interests and rents gives a total profit for the year of £200,258. The premium income shows a decrease of £123,800, but this is more than accounted for by the cessation of war business. Our losses are £044,953, being an increase of £721. Worked out in ratios these are 59.10 per cent., as against 53.02, but it was stated last year that we did not hope to maintain as low a rate as the 53 per cent. The expenses this year are 25.98 per cent., as against 31.9 per cent, last year, a reduction of 2.92 per cent. The revenue from interests and rents is £80,168, showing a net return of 4.1 per cent., I which is after deductions for taxation, and is an increase of £9580 over the total for 1018. Our assets now amount to £2,261,917. the increase for the year being £137.808. We have, during the year, increased our holdings in British, Commonwealth and . New Zealand war bonds by £29,401. and our investments in these now total the substantial amount of £087,860. The values in the balance-sheet of our securities have had the usual revision, and the figures given may be taken as fully represented by market prices. Your directors propose a dividend of 8d per share for tiie half-year, making with the interim dividend of od per share in August, a total distribution of 1/2 for the year. The allocation of our funds are so' clearly set out on the first page of our balancc-she>et that there is little that calls for further remarks. The reinsurance fund has been increased by £10,000 and now stands at a total of half a million pounds. £25,000 ia nsked for the Staff Provident Fund, and tlie reason for this I shall come to a little later. STAFF PROVIDENT FUND. During the year the Board has de-e-ided upon the details of a permanent staff provident fund, which came into j operation on January 1. Under this ! scheme tlie staff contributes 5 per cent. jof salaries und the Hoard agrees to contribute not less than an equal sum to the contributions of the staff. The capital sum accumulated, together with compound interest, will be payable to all the company's officers on retirement at 60, and equitable arrangements have been made to provide for those who, through illness or othe*r causes, have to retire at an earlier period. As this scheme will not adequately meet the cases of the present older oftic-ers, a special additional provision has had to be provided for them, which takes tlie shape of a pension at 00, based on tlie years o\ service in the Company at December 31, 1919. To meet this liability a substantial sum is required, and for this reason we arc asking this year for £25,000 as an instalment. The P.oard feels sure that this scheme will prove very acceptable to members of our staff, and will be to them a further evidence of the company's genuine interest in their welfare. MR. BUTTLES RETIREMENT. Reference was also made by the chairman to the retirement of Mt. James Buttle from the post of ge*neral majiager, •which he had well and ably filled for 16 years, and to the appointment of Mr. H. P. Kissling, one of their most experienced and energetic officers to succeed Mr. Buttle as general manager. Mr. Kissling had recently returned from a trip to England, America and Japan, where he had the benefit of seeing the operations of the 'branches in these countries, and had an opportunity of consultations witli many of tlie company's chief officers. They felt sure that no efforts would be lacking on his part to achieve a great success in the responsible position wli.oll he had been called upon to fill. •Mr. Horton expressed regret that death liad carried away, during the past year, one of their most brilliant officers, Mr. A. E. D'Arcv, manager of the Sydney branch. Mr. D'Arcy entered the service of th e New Zealand" Accident Insurance Company at Sydney in 1902, and .was taken over by the New Zealand Insurance Company at the time of the amalgamation in 1905. He was appointed manager of all departments in Svdncy on the retirement of Mr. J. A. Minnett, in July, 1914, and held that position until ■his death in June last. TRUSTEE DEPARTMENT. The Trustee Department, he concluded, is making good headway, i and the amount at credit of estates and trusts is £664,420 this year as against] £428,377. This shows an increase of 55 pir cent for the year, and I feel sure yeJu will be more than pleased with such k substan- ! tial gain in a comparatively nelw depart- ! ment. 1 The staff has done excellent Work during the year, and your thankt are due to them for the fine results shown. A bonus has been provided for in the accounts, and this I am sure (will meet with your approval. ' =j