Bond Corporation to sell insurance interests

Press, Volume CXV, Issue 34031, 20 December 1975, Page 19

Bond Corporation to sell insurance interests

(New Zealand Press Association—Copyright) PERTH. Bond Coroporation Holdings, Ltd, plans to float its Shield Life Insurance, Ltd, subsidiary to the public early next yeai- and is negotiating the sale of its other insurance company. Underwriting and Insurance. Ltd to a group of Melbourne doctors, the chairman (Mr A. Bond) saitl at the annual meeting.

He could not say tooi much about the sale of Underwriting and Insurance! because he understood that! the doctors would issue ai prospectus early in, the new I year to raise funds for the! purchase. However, a con-j tract for the sale had been; entered into. The directors of Bond Cor-1 poration said in the annual! report that to offset the liquidity problems of the! group, assets would be sold. Shield Life was acquired from Australian Guarantee Corporation, Ltd, in 1972. Last year it had total preimium income of sAust 1.7 m and the balance of its revenue account rose from $4,580,615 to $4,707,644. Underwriting and Insurance had a total premium (income of sl.3m for the year, and the balance of its

revenue account improved! from $12.1m to $12.4m. Mr Bond was optimistic! about the outlook for Bond' Corporation, but he toldi shareholders not to expect) the sB.9m loss incurred in; 1974-75 to be corrected in! [one year. Lenders had continued to [support the group, and Mr Bond said that he expected a [substantial improvement in I profitability. He described the group’s 43 per cent interest in Robe River, Ltd, as a sound investment, and it was pleasing to see that the share) market also shared this) opinion, Mr Bond said. The group expected to)

gain a cash-flow in 1976 from sale of land at Taylors Lakes, 19 km north-west of Melbourne. The sale of the first stage of 238 lots would begin in February, and it was expected that the lots would sell for $16,000 to $20,000 each. A total of 400 blocks would be released in the second stage, and there

would be a total of 8000; blocks in the development, i Sales of land at Yanchep! Sun City were about 60 per cent higher than a year ago. However, with rising costs, there were problems in supplying enough land for sale. Asked about the next payment of $2. Im due on February 5 on the company’s Robe River shares, Mr Bond said that the group was in a better position now than a year ago to meet the payment. However, if needed, there (was a provision in the agreement for a six months extension for payment, he said.