NEW ZEALAND INSURANCE COMPANY.

Press, Volume XXIII, Issue 2940, 22 January 1875, Page 2

NEW ZEALAND INSURANCE COMPANY.

TWEHTY-EIOHTH HALF-YEARLY KEPOBT. [Taken from the " New Zealand Herald," January 14th, 1875.] The half-yearly general meeting of shareholders of the New Zealand Insurance Com pan j was held on Wednesday, when the twenty-eighth report was read and adopted, without a dissentient voice. The financial statement shewed that the business of the company, after paj ing all claims and making every provision tor losses and averages, leaves a balance to»the credit of profit amounting to £38,035. Out Of this balance the directors declared a dividend of 20 per cent per annum. In accordance with resolulutions passed at an extraordinary general meeting, held on the 9th September last, the nominal capital of the company was increased from .£250.000 to one million by tii" creation of one hundred thousand new shares of £10 each. Fifty thousand of these shares were offered to the public at £A 108 each, payable at stated intervals during the next eighteen months. The proposal uot l>ei..g responded to as anticipated, the old shareholders gladly availed themselves ot the opportunity permitted them of faking up the balance of unallotted shares. The company now consists of close upon three hundred members. The premiums received for the last half-year amounted to £63,216; for the present half-year, £55,548. This difference is due to the circumstance th-at the present half-year terminated at all the company s branches on the 30th October, and in Auckland on the 3oth November. Between this latter period and the termination of the. year, there would be a very large increase of premiums accruing through insurance effected upon wool and general freights. .Large reserves have, by the consent of shareholders and directors, been allowed to accumulate, and are mad<- instantly available to meet any large risks which, in the nature of all insurance companies doing an extensive business, may be 1 looked Jor. There has been, for instance, a heavy loss—between nine and ten Thousand—by the des- [ tructiori oi the ship Cospatrick, &o. Thecompany, however, now starts afresh, and to meet the above losses the old shareholders have handed over the I premiums received from Ist November to l st December, with three months , premiums held at the London Agency, amounting to about £12,000 in all, which the old shareholders might in all equity have claimed for themselves, but which they have handed over to the new proprietary. This sum will cover all losses sustained through the burning of the Cospatrick. and half of that by the Kingsbridge. Iv the above statement we witness the large, long continued, and unbroken success of a company which has gradually increased its capital to one milliou sterling, and which yesterday, after allowing for all losses, paying workingrxpenses. and leaving a very large reserve, permittfd the directors to declare the very handsome dividend of 20 per cent, per annum. Such a success under such able management, as it certainly has beei>, will perhaps not find a parallel in any other colonial company engaged in the same class of business. Originally formed by a few local men possessing thorough businesH qualifications, which gave assurance of the success of the enterprise, the company has made a steady progress since its commencement until the present hour. Aβ indicating the extent of its transactions, we may mention that, independent of the head oflur placed in this city, the New Zealand Insurance Company has no less than eighty-two branches and agencies. These extend throughout the two Islands of this colony to Victoria, New South Wales, £outh Australia, New Caledonia. Honolulu, London, and Olae-gow. There is no doubt but that the success of the company is due is a great - measure to the care and attention which bae been given by the directors and by the able management; at the head Mr G. P. I'ierce. general manager, whose long , and very valuable services are alike appreciated by the directors, the shareholders, and that portion of the public having business relations with the chief office. The twenty-eighth half yearly meeting of the above company took place on Wednesday afterncon, at their offices. Insurance buildings. Queen street. The Hon James Williamson, chairman of directors, presided. The manager, G. P. I'ierce, Esq, read the minutes of the last extraordinary general meeting, which was duly confirmed; also, the half-yearly report and statement of accounts, as follow:— T- enty-eierhtb Keport of the Directors of the New Zealand Insurance Company, for the nslf-year ending November 30th. 1874, presented at the general meeting of shareholders, held at the company's offices New Zealand Insurance buildings, on Wednesday, January 13th. 1875: — The directors are again able to lay before the shareholders the accounts of the company, showing a satisfactory result of its transactions for the haltjear ended November 30th, 1874. The accounts now presented prove that the company contiuues to make steady progress, and commands a fair, and, as is believed, a deserved share of public confidence, while the increasing activity of its various bi anches and agencies promise still greater results in the future, and will fully justify theefforts of the friends of the company to advance its interests amongst their own connections. The business of the company, after paying all claims and making provision for lossee and averages, has resulted in a balance to the credit of profit amounting to £38,935 13s sd. Out of this balance your directors now declare a dividend of 20 per cent per annum, which will amount to £10,000. The dividend will be payable at the head office on and after the 14th inst, aud at the branches and agencies on receipt of advice. In accordance with the resolutions passed at the extraordinary general meeting held on the 9th September last, the nominal capital of the company was increased from £250,000 to .£1,000.000 by the creation of 100,000 new shares of £10 each. Of these shares 50,000 were offered to the public at £1 10s each, payable at stated intervals during the next eighteen i months. The proposal, however, did not meet with the immediate response anticipated, and the share* ! holders gladly availed themselves of the opportui nity of taking up the balance of the unallotted shares, It is satisfactory, however, to report that the shares of the company are much more widely distributed, and that it now consists of nearly 300 member*. The Hon James Williamson and G. B. Owen, Esq. are the retiring directors, and being eligible for re-election offer themselves accordingly For the board of directors. James Williamson, Chairman. Statement or accounts. PfIOFIT AMD LOSS. Dr. £ s d To dividend paid last half-year ... 5,000 0 0 Fire and marine losses 41,177 4 2 Commissions, salaries, and other expenses 12,112 8 5 Appropriation for unpaid losses... 11,588 0 0 Balance ... 38,935 18 5 £108.813 11 0 I Or. £ s <j By balance from last half-year ... 26,179 17 2 Appropria ion for unpaid losses last half-year 19,511 0 0 Fire aud marine premiums ... 55,548 14 5 Interest, rent, transfer fees, &c ... 7,573 10 5 £108,813 11 0 BALANCE-SHEET. Dr- £ s d To capital 100.000 0 0 Reserrefund 35,000 0 0 Ke-insurance i und 40,000 0 0 Appropriation for unpaid losses... 11,588 0 0 Branches credit ' 134 16 10 Suspense account 7,33119 2 Dividends unpaid 122 0 0 Balance ... 38.935 18 5 £233,012 14 5 „ . Cγ- £ a d By investments 213,448 5 2 Fire and marine premiums due ... 1.215 11 0 Interest and rents 1,305 18 10 Bills receivable 100 0 0 * nrniture, fire engines, &c 720 16 4 £ ra £ che ;? owin £ i 1 ' 285 is io Cash in bank and in hand 4,932 i 3 £233,012 14 5 m lnt. an f,h rs have exam "»ed the books and acS? "»™vS for the half-year ended November 30th, 15 7 4, and have to report that the taTflSi? now presented to the shareholders and t f « r + and exhibits a true correct statement of the affaire of the comGEOHGE FhaSEß,} ViSsx W. s. Ladkie, i Ai(fißtorß - Auckland, Jan. 12, 1575. The Chairman said it was his pleasing duty to move the adoption of the report-one whTch ought to give satisfaction to the shareholders. The com pany bs4 now entered ou the third stage of itehUtory. Originally formed on a much SnaJlers -ale its ateadv progress convinced the shareholder'that they barf taken a step in the right direction, in attempting to keep in circulation in the colony the large snmof monewpresentedbyfireinsnranc/pre- ?"?*% *v eaarefcofaera. desirous of wideningtbe basitof offered, at that time, additional stockiobotb islands of the colony, bat there was no dieporttion manifested, save la Auckland. teinves£ Shareholder* then, as now, took «p the stock. The new shares lately issued had notbeen so generally taken up•Uβ the directors bad anticipated- and a«

availed themselves of the opportunity of taking up i tbe balance of the unallotted Bhares. Their action in so doing would no doubt result to their personal advantage, as it had done on a past occasion. He congratulated the shareholders on the steady increase of the company's business, notwithstanding the creation of new companies and increased com petition. The past half-year's business did not appear so well, when contrasted with the preceding half-year, but when compared with the corresponding period of 1873 it revealed an increase of over £11.000. Still, the figures were satisfactory, as the busiest and most prosperous season of the year— the wool season— had yet to come There were large reserves accumulated, available to meet-the heavy losses which, iv the nature of things, would now and then occur in a large and extensive business. The company had been made as safe and sound in its operations as commercial skill and prudence could make it. He would not enlarge upon that subject lurther than to say that the company was now placed on a much wider basis thaTi formerly, though not to the extent the directors could h«v. -wished. He had grreat pleasure in moving the adoption of the report. Mr G. B. Owen seconded the motion, which was carried unanimously. Mr G. 8. Kisslirig moved—"That the retiring directors, the Hon. James Williamson and Mr G B. Owen, be re-elected." Mr J. B. Russell seconded the motion, which was duly carried. The Chairman returned thanks for the vote of confidence which had been manifested towards himself and Mr Owen. In the future, as in the past, they would give their best energies to the promotion of the interests of the company. Mr J. B. Russell moved a vote of thanks to the directors and officers of the institution, to whose labors the shareholders were so largely indebted ior the success of the company's operations. He thought the employees should prosper with the growth and prosperity of the company, and would suggest to the directors the desirability of giving a bonus to the salaries of the staff as an incentive to increased diligence and activity. The chairman said the directors would no doubt consider the suggestions made. He might, by way of explanation, state that there were prizes In the service of the company. The directors had adopted the principle, at the branch offices, of giving small salaries with a percentage on the net profits. These appointments were filled up through the head office, and whenev r a young man had rendered good service entitling him to p. omotion, the directors were not forgetful of the fact. Mr Robertson seconded the motion, which was carried unanimously. Mr C J. Stone returned thanks on behalf of the directors. In doing so he desired to make a few remarks on the future prospects of the company. There had been a heavy loss made by the destruction of the Coepatrick by fire; but su<„ los-es (as the chairman had already stated) they must reasonably anticipate in the transaction of a large business. The company now started afresh, carrying to ne-w|accou!itpiemiumß amounting to about £12.000, which the old sliareholdi-ra mij;ht have justly claimed, but which they handed over to the new proprietary. That sum -would cover the entire loss by ihe Cospatrick, and half of that by the Kingsbrid.-e. The shareholders had now a good staff of officers and a prosperous business. Hitherto the company had only paid a dividend of 10 per cent, for reasons which must be apparent t" all. The management had to practise prudence, and acquire the necessary experience and knowledge. It was necessary to build up reserve funds for any emergency which might arise. There was no necessity now for such extreme caution. He did not wish to be misunderstood. The directors had no intention of entering upon risky business; but it was now thought desirable that instead of accumulating lurther reserves the shareholders should reap the benefit of increased dividends. Mr G. P. Pierce (ma' ager) briefly returned thanks on behalf of the officers. | The meeting then terminated.