INSURANCE COMPETITION.

Auckland Star, Volume LVIII, Issue 211, 7 September 1927, Page 4

INSURANCE COMPETITION.

IS IT FAIR.

LOCAL ENTERPRISE HANDICAPPED.

.(By Telegraph— Special to "Star."), DUNEDIN, this day. At the annual meeting of the Standard Insurance Company, Mr. W. F. Edmond, chairman of directors, in moving the adoption of the annual report, said: "It may safely be suggested that there is evidence "t trade recover}-, and that the economic outlook after the trying times through which we have been passing is at the moment more hopeful. i T l 6 ,]!T isdoln °f the Government shibboleth: Support your own institutions/ in an intensive policy of 'trade within the Krnpire, is generally acknowledged, but nom their attitude towards local institutions it is evident that our politicians do not subscribe to their own policy. The subject of concern to us at the present time is the attitude of the Government in allowing Lloyd's underwriting institution to establish itself in the Dominion and compete with insurance companies, but under more favourable conditions. The Standard and other duly incorporated New Zealand' companies contribute annually to the Treasury substantial sums in taxation and other fees, and their surplus funds are available for the development of the country, whereas 'Lloyd's,' from its peculiar constitution, is exempt from New Zealand taxation and license fees, and its surplus funds leave the country, I think you will agree with me that in being compelled to meet competition from abroad under such adverse conditions, local enterprise is subjected to manifest and serious injustice.

"The net profit for the year, including a balance of £17.849, carried forward, from last year, is £52,820. From thie the interim dividend was paid in March last amounting to £12,500, leaving available a balance which the directors have dealt with in the following manner: Placed to reserve fund, £ 10,000, and recommended that the balance l>e appropriated as follows:—To pay a dividend for the half-year ended June 30, 1927, at the rate of 1/3 per share, absorbing £12,500, and to carry forward to next year £17,820. The staff provident fund is now well established, and, in keeping with our former practice, the directors have again subsidised members contributions thereto to the extent of 10 per cent of their salaries."