PREMIUM INCOME DECLINE.

Press, Volume LXVII, Issue 20381, 30 October 1931, Page 12

PREMIUM INCOME DECLINE.

The 1.13 companies undertaking Are, marine, and accident insurance business in New South "Wales experienced a heavy decline in premium income during the year ended June 30th. With almost every class of insurance showing a falling-ofr, the net premiums totalled £4,789,032, a decline of £1,249~842 compared with the previous year. Of the principal classes fire premiums dropped to £2,186,459 from £2,876,444, marine to £295,887 from £426,548, personal accident to £132,501 from £173,990, employers' liability and workers' compensation to £1,014,104 from £1,556,019, and motor-car and motor-cycle to £779,158 from £1,109,520. Adding other revenue, chiefly from interest and rents, to premiums, total revenue for 1930-1931 is £5,144,120, ■ compared with £6,393,281 in 1929-1930. Total expenditure for the year at £4,591,431 has fallen from £5,518,395. The amount available for distribution is £552,689, against £874,886 in 1929-1930. Losses show a substantial reduction, and represent 55.14 per cent, of premium income, or slightly lower than tho ratio of 55.15 per cent, in 1929-1930. Expenses in getting business by way of commission and agents' charges make a favourable showing, being 12.97 per cent, of premiums, against 18.10 per cent, the previous year, but othor management expenses increased to 27.76 per cent, from 23.14 per cent. The total amount of fire risk on which premiums were charged is estimated at £584,820,551.