SOUTH BRITISH INSURANCE CO.

Dominion, Volume 4, Issue 947, 14 October 1910, Page 8

SOUTH BRITISH INSURANCE CO.

THE ANNUAL 'MEETING.. AMENDMENT OF THE LAW SUGGESTED. (By Telegrajh.—Press Association.) ' I Auckland, October 13. The annual meeting of the South. British. Insurance. Company took place to-day. Mr." Thomas Peacock (chairman of directors) presided, and, 'in moving the adoption of the report; and the statement of accounts (a summary, of which- has already been published),; said, inter alia:—'"l ha.ve, on behalf of ' the board to congratulate the shareholders, on. the ! excellent results of the. year's; operations. Premiums from the threo departments of our business amount to £33b,042i', 'i'liis is an increase of £26,105 over; the pronoun year. The' revenue, from rents and.A interest is £33)264, an' increase of. £2647. On the' debit side of • tho' revenue account, the'.lire, marine, and accident losses amount to £197,319. This gives'! a loss ratio : 0f58.63 per 1 oenU ?as-- against. 59.65 ■ per ;ceut.'last year. The item,'agents' commissions, salaries, and -other expense, £74,628, is less by £1728. The other items of expenses are much the < same as before, but the whole of these give an expense ratio of .28,17 per cent., as against 30.93 per cent.' the. previous year. The underwriting profit has been 13.20 per cent., as against 9.36 'per cent. "-The": amount. required to insure current* risks has. been increased by £10,000 in . consequence.'of T the' -increased' premiums received, and the balance carried to; profit and loss account is £67,663 3s. 5cL This, together with the account brought forward, - £39,528 15s. 7d., gives a total •of £107,191 19s.' On the debit side we have the fjvo half-yearly, dividends, leasehold, sinking funds, and depreciation on furniture. The only item specially calling for attention is the reserve fund. : The directors, in accordance with the power ■ vested .in them, have placed £30,000 "to that fund, bringing it up to; tho liajidsome sum of £340,000. In strengthening this fund they are confident of the hearty approval of shareholders. The balance carried to the balaaoe-sheet is £43,299,05. 'Id. " : .. . ;': "Oomliig now :to the: balance-sheet, you .will observe on -the credit side we have landed'property, :£222,599. This is .increased, by £14,114, being further ' expenditure :on the Melbourne property during the year. k This'property has now been completed and occupied, the main . portion by the company, and the remainder by the tenants of our .lessea. .It.'is admitted-by all who 1 have seenj the building, which' is cbntiguo.us to our- former office, that it is ;'a handsome arid creditable structure.. loans on. mortgage have increased by ,£21,620. It- may interest you to know that the re.turn from rents of our-various'.buildings and interest:-on other investments works out at 58 per cent. You will notice that our gross, assets, how amount to the- large sum of £703,860. -The directors have reiommended , a slight increase in the dividend from. Is. 6d. to Is. ■ 9d., per share for. the half-year,; . They feel, justified., in doing this from -the prosperous condition of our business, and the fact that the rents and interest: from .our investments have increased, so that we can still;adhere to the poliby - hitherto . pursued vby the board of making- our - dividends closely correspond to our earnings from that 6ource, and allowing/our underwriting profits tp. bo' applied towards the increase of our reserve funds. \Ab you - are - aware, our 1 business is distributed over a very wide.. area, and, speaking generally, each of the various countries',with'their- branches; with few-ex-ceptions, contributed its share to the good result of the year's' operations. It isi a; matter, for, .much regret, .however, that the fire business in-'New'Zealand has not yet .been placed -on a more, reasonable arid satisfactory; basis.' It is unnecessary, to again enlarge .upon .the cause) which oper-. .ates to, prevent such-.a,happy, consumma--tion.';: Thero is'another matter .-calling for !rome remark.;: .Shareholders': are - aware, that fire-brigade boards have.-.been formed under aij Act of Parliament,,, by: whichboards; are empowered to and do levy 'heavy; contributions,■.from : the' companies doing-fire insurance in . New Zealand, for -the support.of the fire brigades, but'soine firms in tho Dominion are adopting the system of-insuring'the whole of the risks of;'their- branch' house's, with parties In London who have no representation- in the Dominion. -, These : outside ..-underwriting bodies thus, escape all tho heavy charges which others-here lme to pay, while riving the'same- benefit from, the operation's Of the -brigade in protecting the- property thus: injured. It is evident that this is very unfair',- and, that steps should ,1» taken to have the-Ac't:ameni o d in such-a manner as to place fire underwriting bodies in and outVof ,: ; t-ho Dominion on', the'same foot-. ; j Mr. .Tames! iri'supporting'the motion, for the adoption of the report, •-referred with' pleasure ;to .•'■the' method a'douted by the company .'.of paying, dividends ■ from the amount invested. They , occupied -the premier and'nniciue position .of being the only company .to ,follbvr'ithis 'course. To his.mind,-. the,' most pleasing.' -feature of the balance-sheet was-'.th.o:\ placing of such a ■lartte amount to the reserve,fund. They could not have this fund too stable. The report'was adopted unanimously. '■ Messrs. ,T. H.'.'TTnton and<E. B. N. Jtussell were re-elected, directors, and Messrs. G. S. Kissling and W.- B. A.- Morrison' were roappointed. :auditora. ' A :■