FARM INSURANCE YEAR

Press, 2 September 1977, Page 16

FARM INSURANCE YEAR

The Farmers’ Mutual Insurance Association had a net operating surplus of §393,229 in the year to the end of March and the chairman, Mr T. G. McNab, told the annual general meeting that the directors had recommended that 5320.000 of that should be set aside for rebating to policy holders. Premium income increased by $404,189, or 23.6 per cent, to $2,117,975. At the same time earned premium income rose by $313,995 or 21.9 per cent.

An extra $118,739 was provided to maintain the unexpired risks reserve at 40 per cent of retained premiums and this reserve then stood at $745,324.

Net claims paid and

outstanding also increased by $74,516 to $605,743, said Mr McNab, but this had been more than offset by the increase in earned premiums. This result was in marked contrast to the position in the previous year when heavy claims were lodged after the August storm, which had damaged the property of many members.

General expenses, commission and taxation had also increased by $120,102, but the ratio to earned premiums had been reduced by 1.9 per cent.

At the same time the net underwriting surplus at $287,245 showed a substantial improvement and represented a profit of 16.5 per cent on earned premiums.