SOUTH BRITISH CO.

Auckland Star, Volume LV, Issue 252, 23 October 1924, Page 5

SOUTH BRITISH CO.

MANY FIRES IN DWELLINGS.

DIVIDEND OF 3LOJL A SHABS, _r

YEAS "SHOWS B*ETTBR BUSINESS.

"The premium incomo -shows a slight increase, largely as the result of our operations abroad, and this modest increase, in contrast with the diminishing revenue since 1921, and notwithstanding the care with which business has to be selected in these difficult times, may perhaps be welcomed an an indication, that there is really some Tevival of trade," said the chairman of ilirectors of the South British Company ! (Mr. E. R. N. Russell) this morning at . the annual meeting, in moving the adop- ! tion of the report and balance-sheet, particulars of which have already been published.' "The percentage of losses," continued Mr. Russell, "is approximately the same as that of the previous year, viz., 55.0 per cent against 56.7 per cent. The period covered by these accounts has been, apart from the terrible disaster in Japan,' comparatively free from conflagrations of individual magnitude', but a feature of -the year was the unusual number of fires affecting private dwellings, generally regarded as the cream of the business. This was' the experience not only in New Zealand but also in Australia and (South Africa. The amount of risk in each case was not large, but in the aggregate claims from this source constitute a very substantial proportion of the total. In marine the year also has. been marked by a large number of losses on first class-risks. Claims for pilfered cargo, on the other hand, which were a very serious item of loss during the past few years, have been lighter, and we may hope tliat the steps taken in different parts of the world to abate this evil are having Borne effect.

"Tho same amount as for last year has been .reserved for unexpired risks, the provision for that year being considerably in excess of 50 per cent of premium . income, leaving an underwriting profit of £81,770, or 9.3 per cent of the premium income. In the profit and'loss account the income from interest and rents reached £103,112, an increase of £7SOI on the amount earned the previous year. This is chiefly the result of'the growth of the company's assets. iWith the addition of the amount brought forward from last year and the balance of the underwriting account, the total on the credit side of the profit and loss account is £302,878. .'On the other' side, dividends have absorbed £94,567, and £425 has been written to sinking fund on leaseholds as usual. £75,000 has been transferred to reserve fund, the balance carried to the balance-sheet being £192,SSG.

"The board recommend the payment of a dividend of ]/- per share, which, with the interim dividend paid in April, would make the distribution for the year 1/11 per share, leaving £141,304 lo be carried forward.

"The results for the year may, I think, be considered, satisfactory. At our last annual meeting the difficult conditions under which our business waa conducted. were stressed. Most of these difficulties are still with us, competition has not become less keen, and tbe unsettled state of some of the foreign fields -in which the company operates restricts the ordinary flow of commerce. In the far east, Japan is going through a period of reconstruction after the disaster of last year, and business there is conducted under difficulties. The disturbances to commerce owing to the civil war in China is naturally affecting our business, and we can only hope for an early cessation of hostilities.

"Notwithstanding the enormous increase in taxation, administration and other charges, it is interesting to note that insurance is one of the few commodities which, speaking generally, have not increased in cost since pre-war times.

"The general manager (Mr. P. H. Upton) has spent a part of the year in London, which, as you are aware, is the financial centre at which all the operations of our foreign business are settled, and we anticipate much advantage from his visit. We hoped to ccc him here to-day, but it was necessary for him to -return by way of U.S.A., where he now is.

"It is a pleasure to have, this opportunity of expressing our appreciation of the efforts of the staff, to whose energy and capacity , the results attained in these difficult times are in a great measure due. "I would again claim your interest in the facilities afforded by our trustee department, which continues to expand. The assets in the care of the Guardian Trust Company now exceed two millions, While the value of the trusts controlled in the capacity of trustees for debenture'bolders etc., approximates to an additional three millions." "Father of the Company." The report and balance-sheet were adopted, after which Messrs. J. PL Upton and V. J. Lamer, the two retiring directors, were re-elected, and Messrs. J. A. Duncan and. N. A. Duthie were reappointed auditors.

In moving the re-election of Mr. Upton, Mr. T. H. Barstow said Mr. Upton was practically the father of the company, aud the excellent service he had rendered the company was the principal factor in its proud position to-day. Professor A. P. W. Thomas, in seconding, said he had known Mr. Upton in connection with the company for thirty years, during which time he had done splendid work. The shareholders had always had the warmest appreciation for what Mr. Upton had done. The history of the company had been one of continued prosperity, and for that they owed a great deal to the co-operation of Mr. Upton and the directors. Mr. Upton, looking rouud the room at the photographs of former directors who joined the Board with him many years ago, all of whom had now gone, said it was they who were responsible for the position of the company, and he mentioned specially Mr. T. Peacock and Mr. W. Wilson. "Mr. Upton admitted that one of the greatest pleasures of hn life had been his connection with the company, and he had found that the shareholders had always been most appreciative of what had been done. In the early days tho directors had tried to lay down sound principles, and tbey had never departed from them. Tbey had been perfectly honest with tho shareholders, and the shareholders had always given the directors their confidence. Mr. Lamer also thanked the shareholders. , A vote of thanks to the directors ana staff ivas moved by Mr. E. A» der *°"; and seconded by Mr. J. Peacock repbe being made by the chairman of *«« by fir. J. Morton, hectordeputy general manager 11 of Mr. PH. + Murray, late of Calcutta. <*»•