NEW ZEALAND INSURANCE COMPANY.

Dominion, Volume 1, Issue 120, 13 February 1908, Page 8

NEW ZEALAND INSURANCE COMPANY.

■ ...» THE ANNUAL MEETING. CHAIRMAN'S SPEECH. PROBABLE INCREASE IN THE TARIFF. (by telegraph—mess association.') Auckland, February 12. Tho_ annual meeting of tho shareholders of the New Zealand Insuranco Company was hold this afternoon. In moving tho adoption of the annual report, the Chairman (the Hon. S. Tliorne George) saidThe business of tho Company is increasing in a most satisfactory manner, and wo havo again a rccord to place before shareholders in premium income, which amounts to tho largo sum of £616,416, being an increase on tho previous year of £51,268, which shows that wo are still making steady progress in the insurance world. Our . interest and-rents amount to £26,342, giving a return 0f'3.84 per cent., which is a decreaso from last: year, but this is partly accounted for -by tlio fact that some securities we're realised in order, to mbet our liabilities caused

by tho calamity at San Francisco, and theso . gave an amount in cash considerably over the values at which they stood in our books. Tho result is that wo are now carrying a larger proportion: of gilt-edged securities, which consequently means a low rate of interest, no less than £147j612 of theso securities bearing interest at. 3} per cent, and under. As regards tho...'San Francisco disaster, shareholders will be pleased to know that our estimate of £285)694: for theso losses has been ample, and ilow that thoy havo been virtually

all sottled, : there is a small surplus from this amount iri :, 6ur favour. And now as to tho debit sido of tho account. Our expenses are £144,765. This is an increase on the previous year, but- as our business expands wo must also oxpecti tb see an increase in our expenses. Our losses during the year amount to £40C,577, .arid full provision has been made for all known -and unadjusted' losses. The loss Aratio'to; premium income is 65.96 per cent., and:t our 1 surplus on . underwriting amoun's to £65,073, being equal to 10.56 per cent. o.'i our -net premium income, which result shareholders will no doubt consider satisfactory.' After allowing for tho interim dividei'd'paid:;last August, tho available balance you have to deal with amounts to £81,674; from, which your directors recommend the • following appropriation:—£2s,ooo to lie transferred to the reserve fund, which will -then i amount to £155,000, and £35,000 to the .reinsurance fund, which will then stand at £235,000. these two funds amounting t'j tlio substantial figure of .£390,000. Your directors feel assured that tho policy of - building aip-the. reserves will meet with tho of shareholders, and -that the question'i of ■ . increased dividend'' should stand over, in the meanwhile. Tho • balanco of '■■>£21,674 is carried forward to the.new account, out of which your directors recommend the payment of a dividend at the , rate of 2s. per share, amounting to and making 10 per cent! for tho year. \Aii amended Fire Brigades Act was passed during the last session of Parliament, and existing fire brigades and others now being formed Avill'-shortly bo operating under the .Act.This will mean considerable extra expense to thei Company, ono, that is sure to grow as new-'Fire Boards .are formed from time to time, .and;as the insuranco companies generally have' not found that underwriting in the Dominion during tile last few years has been profitable, and ns they are not philanthropic!institutions, it will bo necessary, in order-'to meet this new tax, that tho tariff must bo raised, and a probable return to something nearer tlio rates of 1904 will be. needful/, so that underwriters may obtain a fair return; for the risks thoy are undertaking. ■" Mr. W. Winstone moved, and Mr. S. J. Alexander seconded, tlio re-election of Messrs. A. M. Myers, R. C. Carr, and C. V. Houghton to the - directorate, the motion '.being unanimously .adopted. . <

(BY, TELEGRAPH —SPECIAL CORRESPONDENT.) Auckland, February 12/ : In 'tho. course of his speech at the meeting of tho New Zealand Insurance! Company today, the Chairman said:—"lt has become necessary - to ' make further accommodation' for our increasing business, : andi a new building is to bo erected in Brisbane, at air estimated cost of £20,000. The officcs at present occupied will be; sold;, At Sydney we liavo purchased an addition to our present building, which is to be at onco altered to, enablo us to carry .on our accident branch in tho same premises;; In Wellington a'new building is being erected in ferro-concrcte, at . a cost of £12,000, to replace our former offices, which were in tho largo conflagration of October,. 1906. Theso buildings and alterations are'absolutely necessary to enable us to carry on in a satisfactory" manner our largo and increasing business;"