SOUTH BRITISH INSURANCE COMPANY.

Press, Volume LXIII, Issue 12932, 11 October 1907, Page 9

SOUTH BRITISH INSURANCE COMPANY.

ANNUAL MEETING. (i'RES3 ASSOCIATION TEI.EGK.UIS.) AUCKLAND, October 10. At tho annual meeting of tho South British Insurance Company, tho Chairman eai<l tho year cjioncil satisfactorily, but iTurins tho second half tho bad cycle throughout Australasia, nffeotcil tlis> year's results. While firo and marine business -went so indifferently, the accident <lop«rtnKMit justified ite creation. Tho eipericttco of tho leading firo insurance companies of tho world in tho last twelvo months tended to F.how how important it was aliko to th© , public and shareholders tlrit reserve fundi* should be largo enough to meet any emergency. It wouUl bo the jioMcy of tho directors to augment tho' tcetrve on eviry possible occasidi'. He regretted tlwit tho lire business was still in aji unsatisfactory condition, lieiug quite insuilicient to cover losses and expenses, mid leoving no imirgin for conflngrutions, m<l tho contributions imposed on the- com ponies lor tho upkeep of Firo Brigades would cost them something liko ten per cent, of their revenue in Firo Board Districts. In tho Auckland Firo District tho Company's contributions would amount to bj per cent, on revenue, a inoet oppressive charge. Ho expressed the hopo that it would bo possible to eecuro such improvements in fire rates as would give companies not only some margin over losses' and expenses, but reasonable provision for conflagration contingencies. Tho Chnirmnn went on to say:—On this occasion we find ourselves in tho position, alter making the necessary addition of £5000 to the reinsurance fund, of being able to add £20,000 to the reserve fund. Analysing tho figures in our balance-sheet, as is our custom, I would draw your attention to the fact that our net revenuo from premiums is £13,6 I JB more than, for tho previous year. The revenuo from interest and rents also shows an increase of £2328. Losses unfortunately show an increase of £32,211. and in this connection I may any that full provision for every known loss in each of the three departments of the company's business has been made. Under the heading of losses paid and outstanding, tho loss ratio is 65.W1 per cent., against 58.20 per cent, for the previous year. Expenses show an mereiise of LG,7OG, tho ratio being 27.0G per cent., ngainst 2G.G.'J per cent. The underwriting gain for the yenr was G. 91 per cent., against 15.11 per cent. Tho directors recommend the payment of n dividend for the. second half-venr at the rate of 3s per share, which with the interim dividend of 3s paid in April last, will make a total distribution for the year of 6a per share. After payment of tho dividend the amount carried forward To next year will be £19.108 or 7d. It will be noticed that the total eswts of the company now reach the handsome sum of £633.089, against £G00,467 at the end of last year. There has not been much change in our investments. Landed property has increased by £3418, and stocks and debentures by £1-5,370. while fiseel deposits nro less by £13,500. Tho other investments remain much as they were previously. From timo to time shareholders hnvo suggested to your directors the advisability of making the company limited in liability. There is no doubt whatever that trustoee and some other investors do not look with favour on an investment in a company in connection with which th© liability of shareholdei-3 is unlimited, and that a limited company is likely to attract investors from a wider field "than tin unlimited company. Finding, therefore, that tho majority of the leading companies or the world are either limited or hnvo recently taken steps to become limited, the directors submit certain -proposals having for their object the turninc ot this company into a limited liability company.

The report and balance-sheet were adopted.

Mr Thomas Allen moved that a cordial vote of thanks bo given to the chairman, tho directors, general manager, and officers of the company for their services during the p:ist year. All insurance companies, lie said, had their fluctuations, and when dividends were paid out of interest and rents, it showed that the company was in a very prosperous condition. The shareholders had reason to congratulate themselves and those at the head of affairs on tho position in which they found themselves, espttiallv v.s the company, starting with a clean sheet fire years ago, had now a reserve fund of £200,000. Mr James, in seconding the motion, remarked that it was through the care, energy, and foresight of the directors and manager that they were in tho position they occupied to-day. Tho motion was unanimously adopted. The retiring directors—Messrs It. A. Carr and John Batger—were re-elected. The motion to convert tho company from an unlimited to a limited liability company was carried.