Company News NEW ZEALAND INSURANCE

Press, Volume CII, Issue 30206, 10 August 1963, Page 16

Company News NEW ZEALAND INSURANCE

Profit Falls 14.9 p.c. (N.Z. Press Association) AUCKLAND. August 9 The consolidated net preflt of the New Zealand Insurance Company, Ltd., dropped by £151.736. or 14 9 per cant., to £ 866 005 in the year to May 31, following an 11.2 per cent rise in losses This was in spite of a 5.7 per cent, increase in earned premium income and a higher return fre-m investments.

Main causes of the decline were a very n-ticeable deterioration of mo*or vehicles business in New Zealand and unsatisfactory results in the United States. Earning rate on average

shareholders’ funds fell from 12 per cent, to 9.7 per cent The rate on capita] fell from 24.9 per cent, to 13.4 per cent following the 58-for-100 bonus issue. After addition of £412.692 (last year £315.743 > to the provision for unexpired risks earned premiums were £ 553.969 higher a t £10.331,721 Losses And Expenses

Losses rose by £776 593 to £7.678 630 and expenses £26.479 to £2413,388. leaving an underwriting profit of £239,703—a fall by 51 per cent. from last year's £488.806.

Losses to premium ratio increased from 70.6 per cent to 74.3 per cent, and expenses to premium ratio dropped from 23.6 per cent, to 22.5 per cent, as a result of lower taxation.

Investment income, after deduction of undisclosed taxation., increased £ 110.926 or 17.1 per cent., to £758 993 The net profit was struck after providing £13,559 more for depreciation at £132,691 The 10 per cent, dividend, announced earlier. takes £644.640 compared with £612.000 required for the 15 per cent, pay-out on lower capital last year.. New Business

The trust department achieved a record £5 862,403 new business. Total trust assets under admiiniistration rose from £40.382,469 to £46,786.811.

Shareholders' funds rose £383,292 to £9,116.414, including capital of £6.446.400 —an increase of £2.366,400 caused by the bonus issue. Provision for unexpired risks is £375.648 higher at £>>,767.093 and that for unadjusted losses £613,751 up at £4.321.825

Current liabilities are £866,625 lower at £1.850.926 Fixed assets are £175.717 down at £2.794.381, while investments rose £830,473 to £13,784,925. The market value of fixed assets is about £1.000,000 in excess of book values and that of investments £3,000.000.