A.E.I. prepares to drop insurance

Press, 13 April 1978, Page 20

A.E.I. prepares to drop insurance

! NZPA Sydney The Australian Equitable Insurance Co, Ltd, a subsidi iary of the National Insu- ■ rance Co of New Zealand, j Ltd, since late 1976, incurred i an underwriting loss of $Au5t341,056 in the year to I August 1. Returns from the company’s investments, however, enabled it to produce a net > profit of $417,953 compared ! with $446,632 dollars in the , previous eight months. It is understood that [ A.E.l.’s insurance underi writing will be handed over : to the National Insurance by II June 1, and that the subsidiary will remain an invest- • iment company. ■) A.E.l.’s annual report re- : | leased by the Corporate ,! Affairs Commission, com-

' pares last year’s figures with the eight months following ! the takeover. The group performed bet- i ter in those eight months: than the whole of last year, : and it is thought that the winding-down of its insurance business was a major contributor to the poor re-! suit. Premium income was up > from $3.4M to $5.7M, but i ! claims paid and outstandings! rose from SI.9M to $4.4M, i leaving an underwriting loss,! compared with $159,444 . profit in the previous eight! months. The result was after tax of! $202,755 (previously $310,061) but before an extraordinary loss of $12,598 (nil) as an adjustment for the changed tax rate.