COMMERCIAL South British Profit Rises 21.4p.c.

Press, Volume CVIII, Issue 31841, 20 November 1968, Page 23

COMMERCIAL South British Profit Rises 21.4p.c.

(Neto Zealand Press Association)

AUCKLAND, November 19.

The group profit of the South British Insurance Company, I >td. Auckland, rose $725,345, or 21.4 per cent, to $4,109,396, in the year to August 31 as a result of expanded investment income and a sharp improvement in underwriting surplus.

The chairman (Mr K. B. Myers) says in his review that the last year was successful and eventful and premiums written, underwriting surplus, investment income and profit all advanced to record levels.

As well, the company enfered the field of life assurance. Total premium income expanded by §4.214.109 or 11-4 per cent, to 541.065.906, compared with an increase of 7.7 per cent last year.

I Group underwriting surplus at 51.761.947, shows an increase of $294,180 or 20 per cent, and represents 4.7 per cent of earned premiums as against 4.1 per cent a year ago. The earning rate on average shareholders’ funds is up from 10.4 to 11.1 per cent while the rate on capital is up from 23.3 to 28.2 per cent. Investment income improved by 8501,061, or 21.7 per cent, to $2,815,190 compared with a rise of only 3.1 per cent in 1967. The result is after providing $69,896 more at $467,741 for depreciation. Dividend Cover As announced, the dividend I has been increased from 141 per cent to 171 per cent, and] absorbs $509,215 more at] $2,546,080. This is covered 1.6 times by profit. Investments at $59,626,665! are up $11,478,522 and Mr I Myers says that after de-| valuation adjustment of book] values, market values of investments at balance-date ex-] ceeded book values by more! than $3.5m. Shareholders’ funds are up] $7,532,113 at $40,952,941 with

the main change occurring ir exchange and investment anc consolidation reserves whirl are up $5,968,797 1i $13,273,740, largely because ol devaluation. Ordinary capital is steadj at $14,549,029.