Nat. Ins. U.K. loss

Press, 9 November 1984, Page 16

Nat. Ins. U.K. loss

PA Dunedin The National Insurance Company, Ltd, suffered a net loss of $4.9M in its London reinsurance agency, according to its annual report. In March, the company stated that it had lost “more than $1 million” on the operation of the agency, in which it had a 35 per cent stake, and the interim result at the end of April estimated cost of running off liabilities at S4M. Despite that, the consolidated net profit for the 12 months to July 30 was

$10,530,000 — more than double the $5,006,000 in the previous 10 month period (shorter due to a change in balance date). Commenting on the London position, the managing director, Mr J. S. Hodgkinson, said the company had now withdrawn from, or reduced, most of its overseas inward connections and expected considerably improved results in the current year. “The net loss of $4,900,000 arising from our London reinsurance agency, most of

which we brought to account in our half-yearly report, was a heavy and unexpected blow to our results for the year. We felt it proper to bear the whole of the anticipated loss now rather than carry some of the loss forward.” During the year National also sold its 10 "per cent holdings in San Francisco Reinsurance and RMCA Re-insur-ance of Singapore. Both Mr Hodgkinson and the chairman, Mr C.D. Baker, said the current year should see an improvement.