NEW ZEALAND INSURANCE COMPANY.

Dominion, Volume 2, Issue 429, 11 February 1909, Page 10

NEW ZEALAND INSURANCE COMPANY.

. MEETING OP SHAREHOLDERS., : ... I.UV TEI.EGB\ni—I'RESS ASSOCIATION.) ''■■':■' ' •.. Auckland, Peln-iiary 10..'■The general meeting of'sl.areholders o£ the New Zealand Insurance Co. was held this.afternoon. The chairman (the Hon. S: Thorrie George) presided, and there was a fair attendance. ■ . "'. ■': The chairman, in the course of his remarks,' said: "The ■ amount, of business for the year, has been, about'normal, tho premium income amounting to 'JC620.53-1. .which shows a slight. Increase on tho previoiif year Our interest'anil rents amount to .£26,875, giving a return of, 3.88, per cent., which is a shade lower than Inst: year, and is in a measure duo:to the expenditure on our new offices at Wellington ' not yielding any return, for.the year. It Should also be borne in mind that our San -Francisco.' property has.'only earned a very moderate return since, tho great conflagration. We are. now taking steps to'alter this by erecting a new -building-.thereon.''..'. I should here like 'to draw shareholders'- attention to the fact that ;onr investments amount to the sum of .£710,512, : which has been only once exceeded in the. history of the company, in 1905, the year before the. San Prancisco calamity, when they were .£829,202, less the purchase.', money due {o the New Zealand Accident'lnsurance Co., amounting to leaving net.£714,202,'50' that we have again; reached the. strong financial position we.held: at that date.- I would-also" point.-out"-.'that: in'' 1905 our: paid-up reserves, and undivided profits were -.£723,080, whilst at the present date they amount to £755,58'1, being the record in'.!the history of: the company. And now, turning to the debit side of ;.the account.- our expenses are £159,323, being a somewhat heavy increase on the pre:vious year. : To-a certain extent this is more, apparent than real, as it is partly accounted for by, a:'change, in our' system, and,.we nro now debiting certain accident. charges to expenses, which .were, formerly, debited to' premiums, and there are also the contributions to the various : firo boards .in ; the Dominion, ■which-is entirely a new item coming into.the account.•■ The ratio is '25.68 per. cent., which;/ however, is below our average! of-.- previous years.! Our losses duringithe year amount to £•109,357, which sum! includes : all known- and unadjusted losses; The loss ratio to premium income is G5.98 per. cent., as against 65.96 per cent, of the.previous year, and oursurplus on underwriting amounts to £51,'M4,- or 8.3-i';p«r cent, on our'net premium income;- 'After allowing' for .the interim .dividend, amounting to ,£15,000, paid' in August last, the available, balance'! Which you have now. to deal with amounts to. £70,293, from which your- directors recommend | the following appropriations:—£3o,ooo to the re-serve-fund, which.will then amount, to £185,000, and'£ls,ooo to thereinsurance fund,'which will then stand at. £250,000, the .two funds ' together amounting to the suin of £-135,000. Your. ,directors.aro-.still- carrying out what w'e/know to be your-wish", viz:,' the.-building up of sut stantial reserves. .'Wo .'also' recommend the ■transfer; of to .'the. investment fluctuation. account,, this being required for the- purpose of meeting, the' fall in the prices: of/bonds nud of debentures that are maturing now standing above par. /The balance of £23;993 is-available,• out of which your directors: recommend ;the payment of a dividend of 25.-per'share, amount-' mg to £15,000, being equal (with .the, interim dividend). tp\lo per cent.;-for' the year. ': . ..The chairman also referred to the.company's underwriting operations in the Dominion,, which ■had resulted in.a loss.-' His! remarks on this 'subject are given in another column.;,,' "--' \-\: ;' -.On tho motion of the H6h; l S..Thorne George,' .seconded by ,'Mr.Ulnrk,; -the 'annual report and balance-sheet wero adopted w'ithout discussion. . The Hon. Thorno George and Messrs. L. J. 'Bag-null; and .Charles Ithodes; were re-elected as .directors.; ■: ..■..-. .-,:.,;. ■;■"';:;';,'.,".'.. ',y".,~ ■„■ ';••, :■•:■ , .The.llgn.''Thorno;George,-in: thanking! the '■ shareholders','said he thought.a wonderful thing had been done by tlie-company in recovering its ; position so!'soon.after.the terrible, catastrophe at San Pranoisco, and he believed that the time was_ not far distant when the company, would ■be-in a better position that ever before. '."!'Messrs. 'J. P.' Buddie and A. J. Denniston were re-elected" auditors, at ■ a salary of £100 a yc?.r each/. ■■;■ ■■•■•■ j.' j ■'..;■' ; ;■'■•.- ;' yV! vote of thanks to tho directors, mannger, : and-staff concluded.the proceedings.,.: