THE SOUTH BRITISH INSURANCE COMPANY.

Press, Volume XXI, Issue 2341, 3 February 1873, Page 2

THE SOUTH BRITISH INSURANCE COMPANY.

The " Southern Cross" of the 18th contains the following remarks on the position of this company:—A circular has been issued by the South Pritish Insurance Company showing its position at the end of December last, when it had been four months in existence. It appears that the business of the company is constantly increasing, as might naturally be expected from its large number of shareholders scattered throughout the colony. The premiums received for the first four months amount to £9,000; losses incurred £2,099 lis lid ; funds invested, £19,289. The interest on ihe investments, at seven per cent., would produce within some £500 or £600 of a dividend of 10 per cent, on the present paid-np capital. The circular, therefore, justly states that the South British has met with a very encouraging amount of success; and this is doubtless to be attributed, to a consideroble extent, to the fact that it has 721 shareholders distributed throughout New Zealand. There are—in Auckland province, 145 shareholders; Wellington and. Wangaoui, 225 ; Canterbury, 175 ; Otago, 140 ; and Nelson, 36. The largest number of shares are held in the province of Anckland, the largest number of shareholders are in ihe province of Wellington. The document to which we are referring points to the importance of this large and widely scattered body of shareholders in guaranteeing a constantly increasing business, and in conjunction with unlimited liability, in affording the most ample security to the insured. This question of security to the insured is seldom thought of by insurers, but yet it is of vital importance to them as the disasters at Chicago and Boston fully prove. Unless an insurer has tbe fullest certainty that he will be paid losses he has insured against, he gives his premium for a doubtful contingency ; he may or be may not be really insured, in fact. Tlie first provision in an insurance coinpanv, as regards security, is the unlimited* liability of its slum-holders, for every insurance "effect* J in it. Limited liab'ltty in an insurance company means a limit to ihe prospect of an insurer being paid for loss**. This limit is the amount cf unpaid capital -en each share, aud the accumulated funds of the compauy. If the shares are fully paid up, the shareholders are no longer liable for losses, only auy funds they may have in hand, if they divide their profits ; pretty clcselv,- to which there may be strong temptation, 'then the security to the in- ! sored is affected thereby. The South British has the unlimited liability of 72i shareholders, dwelling in different purts of the colony, and consisting of men of property, as the great and broad basis of tbe security it offers to the insured. Reflecting men think of these thiugs, and act accordingly ; the unreflecting do not think much about them, and trust that in their case tbe matter will be all tight. We published a paragraph a few dans ago, showing that the Boston fire liad. proved thtt ioaurerg were uot aVway.

insured, even when they had paid their premiums. We are glad the South British—an institution originated m Auckland—but wisely made as widely colonial as possible, bids fair to be a success, and is clearly largely patronised by the public. We look forward to tM'time when the new local institution will be another proof of the ability of Auckland to originate and manage such companies, and of the colony at large to support them in a proper and lib -ral manner.