FIRE INSURANCE.

Dominion, Volume 2, Issue 440, 24 February 1909, Page 7

FIRE INSURANCE.

THE STATE OFFICE. RUMOUR DENIED BY THE PREMIER., It has been persistently rumoured in town that one of the leading", insurance companies has offered to take over, all the, business of. the Stafe 'Fire' Insurance Department. f. The matter-was mentioned to the Primo.Minister (Sir Joseph Ward) by a Dominion reporter last night. . "I don't think there is ; anything'in it,", said the Premier. "At all events, I have not heard of'any such offer, but even if it were made, it would not be entertained. We shall oontinue to carry on the Fire Insurance offioe in the' interests of the, country.- It is true that the Department has made a loss during the past year, but it does not by any means'follow that the business ought to be abandoned. Most of the fire insurance pompanics lost on their New Zealand business during the year." ... •. But do they not -make'that up ;by. profits in other countries?

" They certainly have any advantage over us in their business spread over a wider field, and also inasmuch as they, have an income from the investment of accumulated profits. The State Fire Insurance Department is as yet too young to have accumulated funds for investment,. but that will •come in .time. ' Fires have been very heavy; during the year,' and tho State Department has come in for its:sbare of the losses. !We cannot expect ©very year, to be a successful one, and this is the first year the Department has made a loss. , At the, same time, there is no use in shutting one's eyes to the facfc ,that tho Department has' done a. great deal of good indirectly insurers." ■ Is it likely that there will be a. rise in. the rates?: ' '-

, "I cannot' tell what steps wo may. decide to'take. 'Necessarily wo do not wa,nt to carry, on an unprofitable business." y

In reply to a further question, "the Premier said that; a new manager of the Department in succession to Mr. J. W. Brindley had not yet been appointed. , : • .