RECORD INCOME

Auckland Star, Volume LXXV, Issue 180, 1 August 1944, Page 3

RECORD INCOME

N.Z. INSURANCE CO. YEAR'S PROFIT OF £38G,695 Another record in premium income received is disclosed in the accounts of the New Zealand Insurance Company for the year ended May 31. The total is £2,522,086, an advance of £109,903 over last year. Losses amounted to £1,247,031, a reduction of £91,776 on 1943, and making the ratio of losses to premium income 49.40 per cent, the lowest for many years. Expenses, including: directors' fees (£6501), taxes and appropriations and payments to fire, marine and accident associations total £926,199, against £622,039 in the 1943 accounts, and the ratio of expenses to premium income has risen from 25.78 last year to 36.72, chiefly due to higher taxation. The surplus on underwriting account was £220,355, a decrease of £64,981, and the net income from interest, rents, etc., was £166,340, a rise of £14,220. Total earnings are, therefore, £386,695, a decrease of £50,762.

The following shows tho steady rise In premium, income over the past ten. years: 1935. £1,050,792; 1936, £1,096,570; 1937, £1,185,636; 1938, £1,359,993; 1939, £1,405,787; 1940, £1,763,659; 1941, £1,948.595; 1942, £2,079,840; 1943, £2,412,182; 1944, £2,522,086. There is £626,221 available. The directors have transferred £200,000 to investment, fluctuation, exchange and contingencies reserve, while the interim dividend absorbed £75,000. As already announced, they propose a final dividend of 1/6 a share, making 2/6 a share, or 12>/ 2 per cent, unchanged, for the year. The final dividend takes £112,500. leaving £238,721 to be carried forward against £239,526 brought in. The annual meeting will be held on August 8, at which the retiring directors, Messrs. J. T. Martin and C. I. Nathan, will be nominated for re-election. Results for three years are:— 1942 1943 1944 Premium income .... 2,079,840 2,412,183 2,522,086 Expenses 647,966 622,039 926,199 Ratio P.C 31.10 . 25.79 36.72 Losses 1,140,947 1,338.807 1,247.031 Ratio P.C 54.86 55.50 49.44 TO risks res. 65,500 166,000 128,500 Surplus 225,427 285,336 220,355 Int. and rents 136,572 152,121 166,340 Brought forward ... 237,507 239,569 239,526 Total available .... 599,507 677,026 626,221 To reserve 50,000 150,000 — To inv. flue., etc. . 65,000 100,000 200,000 To war cont 57.438 — — Div. rate p.c 12V2 12V2 12V* Amount 187,500 187,500 187,500 Carried forward ... 239,569 239,526 238,721 Balance-sheet items, with comparisons for last year, are:— Liabilities 1943 1944 Paid capital 1,500,000 Same General reserve 1,000,000 Same Unex. Risks res 1,211,500 1,340,000 Contin. and inves. res 655,810 883,054 War reserve 100,000 IdO.OOO Unadjusted losses 669,617 766,206 Creditors and taxes 464.546 651,986 Balance 352,026 351,221 Assets Shares 539,487 482,689 Shares in subsidiary 116,923 116,937 Premises and props 596,151 620,818 Bonds and debs 3,777,046 4,409,809 Mortgages 5,219 2,331 Fixed deposits 160,179 156,912 Accra, int. and rents .... 69,142 76,898 Branch bal., debtors 257,346 304,147 Cash 432,004 421,924 Total assets 5,953,498 6.592,408 The statement of the trustee branch of the company shows further expansion. As at May 31 the amount at credit of estates, etc., was £7,666,199, balances at credit of clients, £497,146, and securities held as trustees for debentureholders, £1,520,208. Total assets administered were £9,683,555, compared with £9,158,623 last year.