Slight Profit Dip For Nat. Ins.

Press, Volume CVII, Issue 31540, 30 November 1967, Page 18

Slight Profit Dip For Nat. Ins.

Higher premium Income helped the National Insurance Company of New Zealand, Ltd, return an underwriting profit of $357,777 for the 11 months to August 31.

This compares with an uTk derwriting profit of $367,056 for the 12 months to September 30, 1966. Investment income in the latest period was $289,671 which with the underwriting income gave the company a net profit of $647,488 compared with $674,982 for the previous 12 months. The directors have recommended a final dividend of 9 per cent making 13 per cent for the 11 months. This compares with the previous dividend of 12 J per cent. Total dividend requirement for the period is $260,000 ($250,000) while $375,000 is to be transferred to reserve. Current profits of $12,448 have been retained which brings total profits retained to $287,158. In the latest period pre-

mium income at $8,540,391 showed an improvement on the $8,403,982 earned in the previous year but the payments on losses rose from $5,172,276 to $5,366,690. To a certain extent this was offset by general expenses, including taxation, which were held at $2,449,924 compared with $2,621,650 in the previous 12 months period. In his review the chairman (Mr J. M. Ritchie) said the down-turn in the economy in New Zealand would probably in the short term cause some reduction in the normal rate of premium income growth, but the effect of this could well be offset to some extent by the more responsible atttude which these more difficult conditions so often generated toward both claims and costs.

“In Australia there is a more confident outlook notwithstanding the severe drought conditions in many areas and this should influence the rate of the expansion of the economy in the months ahead,” the chairman said.

The company was geared to take advantage of the increased business which should be offering to improve growth rate along sound lines.