Company News N.Z. INSURANCE

Press, Volume XCVII, Issue 28669, 20 August 1958, Page 17

Company News N.Z. INSURANCE

North American Field “Unprofitable” (New Zealand Press Association) AUCKLAND, August 19. Steps the New Zealand Insurance Company, Ltd., had taken to limit its United States business to the" Pacific Coast had been justified, said the chairman, Mr R. D. Horton, at the annual meeting of the company today. This precaution had softened the impact of another disastrous trading year experienced by underwriters in the United States, he said. Underwriters’ over-all results there again showed heavy losses and the company’s own operations had been unprofitable in both the United States and Canada. It might be a few years yet before those fields again return the company a profit. In the meantime a policy of limitation and careful selection would, it was hoped, enable the company to keep losses and expenses under reasonable control until rates were revised to a level that would show a reasonable expectation of a profitable enterprise. Nearly all British offices operating in North America were reporting Quite serious underwriting losses. In many cases American losses had been serious enough to cancel out the total underwriting profits of a worldwide business. Lower Revenue

Net revenue from fire, marine and accident premiums for the year was £6,575,979, a reduction of some £285,000. This reduction was solely the result of the limits imposed on United States writings as operations in most territories showed a progressive advance with a resulting increase in income. It was a common experience of companies doing a general business that the percentage of income in the fire department had been overtaken by that from accident because of the overincreasing use of motor vehicles. Their own general experience in the fire department was satisfactory, apart from North America and the serious bush fires in New South Wales. Mr Horton said that the company’s experience in New Zealand of aviation topdressing risks had not been good. It seemed that an increase in the rates now ruling would be fffie only answer to the problem. The accident department again showed an increase in premium writings mainly because of increased rates. The motor-car department was the only section giving cause for concern, in spite of the efforts of managers to write as selectively as possible, Mr Horton said.

STANDARD YEAR

Net profit of the Standard Insurance Company for the year ended on June 30 rose by £15,450 to £86,688. With £46,151 carried forward from the previous year, and £45,833 (£41,667 last year) provided for dividends, £25.000 transferred to reserve and £lO,OOO to exchange and investment reserve, the balance carried forward will be £25,006. The proposed final dividend amounts to 6d a share. Net underwriting revenue lor the year amounted to £1,118,743 (£1.022,906). Losses and Fire Brigade levies totalled £667,692 (£632,355) and provision for unpaid and unadjusted losses at the end of the year amounted to £319,513 (£296,205).

CHEESE FACTORY REPORTS

Barry’s Bay Output Increases The Barry’s Bay Co-operative Dairy Factory Company, Limitedmanufactured 336 tons of cheese during the year ended June 30, 1958, compared with 305 tons for the previous year, according to the directors’ report, which will be presented at the annual general meeting of the company at the factory on Monday, August 25, at 7.30 p.m. Of the total turnover . of approximately 337 tons, 329 tons were exported .and 8 tons sold on the local market.

The estimated amount available for payment to suppliers for butterfat (all grades) is 36.275 d per lb butterfat at factory door. The directors recommend that of the amount available for payout, £903 18s 9d be carried forward and that an estimated season average payout of 35.972 d per lb to suppliers be made. Last year the estimated payout was 36.995 d per lb and the actual payout was 36.995 d per lb. Messrs D. Vogan and K. Stewart are retiring from the board of directors by rotation and are eligible toy re-election.

Takainatua Costs Rise

A decrease of 11 tons in the year’s output of cheese manufactured by the Takamatua Co-oper-ative Cheese Factory Company, Limited, to June 30, 1958, is noted in the directors’ report which will be presented at the annual general meeting of the company to be held at the Social Hall, Takamatua, on Monday, August 25, at 7.30 p.m.. The total output was 77 tons compared with 88 tons in the previous season. Of the totAl "turnover of approximately 78 tons, 74 tons were exported and 4 tons sold on the local market. Cost of manufacture from receiving door to f.o.b. rose from 12.865 d per lb butterfat last year to 13.721 d per lb. The estimated average payout for butterfat (all grades) is 34.805 d per lb butterfat and of the amount available for payout the directors recommend that £ 102 3s 6d be carried forward leaving an estimated average payout for the season to suppliers of 34.952 d per lb. Last year the estimated season average payout was 37.003 d per lb butterfat and the actual payout 37.003 d per lb. Jacquard Textiles.—The balance date is changed from October 1 to June 19, commencing 1958.—(P.A.) N.Z. Express.—Declared dividend of 15 per cent, is ex. div. September 6.—(P.A-) War maid Bros. Indust. (N.Z.) —Declared dividend is ex. div. August 26. —(P.A.) Wellington Invest.—Recommended dividend of 3 per cent (5j per cent, for year).—(P-A_)