WORK IN CHINA.

Auckland Star, Volume LXIX, Issue 254, 27 October 1938, Page 13

WORK IN CHINA.

INCOME FALLS AWAY. orknations continued. "Although the war in China still drag's on, our branch at Shanghai has not suffered the complete eclipse that we had almost ex|>ected," said Mr. W. 1!. Wilson, chairman, at the annual meeting of the South British Insurance Company, Limited, to-day. '•Fire income has fallen off very considerably, partly owing to the suspension of operations in the interior, but there has been surprising activity in marine business. The staff is still maintained at full strength, and we trust that before long this branch will blossom again as in the past. Business in Japan has progressed with satisfactory results. "The branch established in Talestine 18 months ago is developing satisfactorily. Business has exceeded expectations. and losses have been moderate. As with all new branches, the cx[>cnseß are rather a heavy tax at present.

"Palestine continues in a very disturbed state, and rioting seems to be on the increase. For months past, small marauding bands have terrorised the Arab countryside as well as the Jewish settlements. Recent reports would indicate that matters are taking a more serious turn, and that the scattered disturbances are developing into an organised rebellion. The satisfactory settlement of these troubles undoubtedly presents a most difficult problem.

"The strength of this company lies in the widely-spread nature of its operations," continued Mr. Wilson. "By this we are in some measure protected against purely local trade depressions. With the idea of still further extending, the board has for eome time had Canada under consideration as a possible field. The difficulty lay in the expense likely to be incurred in establishing a business with no foundation to build u]x>n. In a (settled country such as Canada, well supplied with insurance companies under expert management, it would have been a slow process for a company like our own. with no local influence, to gather an income sufficient to cover expenses.

"A way out of our difficulty lias been found in an arrangement concluded some months ago with the Union Insurance Society of Canton, a very (substantial and well-managed organi-ation, which has !>ecn established in Canada for a number of Tears. Under this arrangement the two companies will operate in that Dominion under joint management, with mutual relief in the matter of expenses. Business has already commenced, and we trust that in due course Canada will make useful contributions to the company's profits."