FACTS FOR INVESTORS.

Auckland Star, Volume LX, Issue 257, 30 October 1929, Page 4

FACTS FOR INVESTORS.

INSURANCE IN AUSTRALIA. COMPANIES HAVE BAD YEAR. (From Our Own Correspondent.) SYDNEY, October 25. Insurance companies in New South Wales experienced a bad year, according to figures issued fog the twelve mouths eroding June 30, 1929, by the Government Statistician this week. Property worth £625,270,000 was insured against fire in the State, and premiums paid reached £2,359,386. Losses accounted for £1,615,967, however, which amount was 61.15 per cent of premium income, as compared with 55.19 per cent in 1927-23. Net premiums from all classes of insurances, including fire risks were £6,225,240, and net losses during 1928-29 were £3,806,962. Commission paid reached £539,355, and management expenses ran into £1,384,479, bringing the total expenses up to £6,030,826.

Principal increases in recent years were in respect of employers' liability or workers' compensation and motor car insurance, compared with 1924 figures, the 1928-29 totals provide a striking example of the growth of insurance in New South Wales. In 1924 employers' liability premiums were £521,780, and car insurance premiums £400,354. In the twelve months ending June 30, 1929, these figures had increased to, respectively, £1,624,350, and £1,142,392. AUSTRALIAN INTEREST RATES. THE UPWARD" TREND. Mail advices from Australia continue to record dullness in stocks and a consequent increase in the interest rates demanded by investors. The average return for all Commonwealth loans maturing up to and including 1933 (but excluding the 6 per cent issue maturing in March, 1930)_ was £5 7/5 per cent at the beginning of September, £5 13/9 per cent on 3rd inst., £5 11/10 per cent on 10th inst., and £5 13/10 per cent on October 17. BROKEN HILL SOUTH. GREATLY INCREASED PROFITS. Broken Hill South for the twelve months to June 30 last earned the very satisfactory net profit of £358,259, compared with £208,362 for last year, and £320,818 for 1926-27. The gross mining profit was £361,762, or £153,334 greater than last year, while the revenue from investments amounted to £115,148, compared with £101,633 in 1927-28, and £82,749 for 1925-27. The working costs per ton of crucle ores have been further reduced to 37/7.2 per ton, compared with 38/0.5 for 1927-28, and 40/10.6 for the year before that. The profit for the year is 44% per. cent on capital, or almost 9/ per share, compared with 26 per cent (5/2 per share) for last year. Crude ore treated for the year under review was 318,700 tons, compared with 336,280 for 1927-28, and 311,500 for the year previous to that. The present dividend of 1/6 per share per quarter takes only a trifle more than two-thirds of the profit earned, so that subject to any marked fall in the price of lead the company should have little difficulty in maintaining the present distribution.