National Insurance expects another record year
Records come almost routinely to the National Insurance Co., Ltd, these days, but not content with having iscored four in a row it sees the possibility of another improved result this year. Writing in the annual reIport for the year to August ■3l, the chairman (Mr J. P. ; Cook) says an improved underwriting profit is expected, after last year’s setback, and investment returns (have again improved. | “Our logical area of expansion is Australia but, i given the current difficult (Underwriting conditions, we | must await the right time and opportunity,” says Mr I Cook. ■ It was investment income j ■ which carried the day ini 1979, overcoming a drop of; $575,000 in underwriting profit, permitting a 3.5 c in-| crease in the annual divi-| dend to 17c a share and a one-for-10 bonus issue of ■ ordinary shares. Four cents I ‘of the dividend will be tax-
free, which can continue paying for at least two mare years. The dividend is covered 2.4 times. Mr Cook commenting on the underwriting profit, says that the competition is fierce, and the $171,000 surplus on gross insurance turnover of $71.7M represents only a quarter of 1 per cent “a minute amount when one considers the time involved and the effort devoted to the operation.” In New Zealand, for instance, net underwriting premiums rose 14 per cent, but th" surplus was lower. There was a larger than usual number of total losses, including those caused by the Otago-Southland floods. Sixty per cent of premiums come from Australia, but the profit there was well down, although, the feeling is that National Insurance fared better than most in the field. Business in Fiji grew strongly, with an increase in
net premiums of 35 per cent, and a further increase budgeted for this year. The company is to sell 24 per cent of its capital to Fijian residents, and appoint four local businessmen to the board. The National Pacifc Insurance Co., managed on behalf of the Western Samoan Government, is profitable, and making sound progress in the South Pacific. In Papua New Guinea, the company has bought CIC Insurance from the Co-oper-ative Insurance Company, Melbourne, and takes over command on January 1. Of the total net profit of S6.OM more than 75 per cent was derived outside New Zealand, against 70 per cent last year. Currency rates did not help: Wellington’s new policy of mini devaluations was not implemented until near balance-date. However. National Insurance should benefit from more valuable foreign currencies at next balance-date. Shareholders’ funds increased 16.3 per cent to $30,190,000. Group assets increased 8 per cent to $110,871,000. The net profit represents a return of 20 per cent of shareholders’ funds. I
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Press, 5 December 1979, Page 28
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451National Insurance expects another record year Press, 5 December 1979, Page 28
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