NZI 9 months down 7 p.c.

Press, 10 February 1988, Page 37

NZI 9 months down 7 p.c.

PA Wellington Insurance and banking group, NZI Corp, has announced a profit for the nine months ended December 31, 1987, of $104.3 million, only 7 per cent below the same period last year despite the sharemarket crash. The report fulfills an undertaking to shareholders to report quarterly made last August, the directors said. Revenue totalled $1.66 billion compared with $1.48 billion for the nine months ended December, 1986, and $2.01 billion for the year ended March 31, 1987. Pre-tax operating earnings were $105,262,000 against $138,856,000 for the previous corresponding period and $179,159,000 for the last financial year. Tax took $10,127,000 against $27,583,000 and $22,751,000 leaving operating after tax at $95,135,000 against $111,273,000 for the previous nine months and $156,408,000 for the previous year. Minority interests took $632,000 in the current period, added $75,000 in the previous nine months, and took $726,000 last year. The share of associated companies retained earnings was $9,815,000 against $1,303,000 and $7,256,000 leaving consolidated net earnings at $104,318,000 for the nine months compared with $112,651,000 for the previous period and $162,938,000 for

the previous year. There were no extraordinary items in either the current nine month period or the previous nine months, but an extraordinary loss of $2,125,000 was reported for the last full year. The December quarter provided the first indication of the effects of the October crash and the subsequent continuation of the fall in sharemarkets on NZl’s results, chairman, Mr Norman Johnston, said. “This result is at least S4SM after tax below the figure that would have been achieved in the absence of recent abnormal events,” he said. General insurance underwriting results were good despite increasing reserves for potential future claims, he added. “Indeed, the operating ratios underlying these results are now the best they have been for many years, and provide us with considerable confidence for the future.” Life insurance sales had a good quarter, but NZI continues to adopt a conservative approach in writing all equities down to market value with the shareholders’ share of that being reflected in their earnings “All known loan losses have been written off or provided for and the bank has deliberately moved to a very liquid position.” .