STATE FIRE OFFICE.

Dominion, Volume 4, Issue 1191, 28 July 1911, Page 2

STATE FIRE OFFICE.

* I E ANNUAL REPORT. ) ) ' BEST YEAR YET EXPERIENCED, i ' • The report of the General Manager (Mr. , C. R. "C.'"Robieson) upon the operations ' of the State Fire Insurance Department during the year ended December 31, 1010,was presented to Parliament yesterday. The manager states that; "The year under review has proved to bo by far the most successful yet experienced by the office. The net premium income amounted to .£40,551 15s. 2d., as against .£33,281 14s. 7d. for tho previous year, showing the very substantial increase ot «£72~0 fls. 7d„ ropre- . sonting the largest expansion of business in any ono year 6ince 100 G. "The profits for the year, after appropriating to reserve JC2908 Os. 3d. for unearned premiums, amounted to ,£8487 13s. Tho year commenced with a debit balancn of .£1441 -9s. Gd.,' which has been converted into a credit balance of .£7046 3s. Cd.' Tho greatest prolit made in any previous year was .£2608 13s. 7d„ realised in 1909. "Tho net losses for the yoar amounted to ,£18,913 ISs. 4d., as aeainst .£18,534 12s. for the previous year, the ratio of losses to premium incomo being 46.64 for' 1910, ' and 55.69 for 1909. Tho losses for 1910 may bo regarded as being not below tho average to bo expected. Tho oflice wa3 fortunate in not being involved in any largo block conflagrations, and losses in bush fires were not. of a serious nature. "Tho ratio of working expenses was 28.3 per cent, as against 30.5 per cent, ior 1009 and 38 per cent, for 1908. Tho reduction of 2.2 per cent, represents a_ saving of nearly «£9OO on tho business of 1910 as compared with 1909. I think it may now bo safely 'said that the working exponses of tho State Fire Olhco are lower than those of any similar business carried on in this Dominion. Included m these expenses is an amount of <£"29 18s. Id., ropresneting contributions to fire boards. These contributions in sorao districts aro a very heavy charge on the premium income, absorbing as they do irom -.73 to 20 02 per cent., and averaging 71 per con . of' tho total premium income lrom all live board districts. "Tho investments of the office are now <£°0 000, as compared with ,£IO,OOO for 1909, and' tho reservo for "nenrncd premiuuis £16 "0 lis. Id., as against £lo>ol- ws. 10d.' for the previous year. "Tho exceptionally good results of tho past year's operations cannot bo looked upon as furnishing evidence, that isting rates aro such as to msuic a ieasonable margin of prolit over a series of veal's Less favourable years aro faii'l.v certain to occur. The rates on some of tho more hazardous classes of risks aro, ill "'-Ao'sum 7 IS#' *I'™ ff The office has therefore, since fts inception, been entirely self-suppM'tlllS, 11 oX it reasonably beyond the pesvi f/n? in future, having to call upon. for'additionall funds { 1 1 ton during the past few years. To facihi \ (L building up of such a reserve, I recommend an amendment of Clause 42 of tho Stato Fire Insurance Act, providing for tho distribution of profits. • "In view of tho very heavy reduction oi rites—ranging >U> 'o 33 l-3rd per cent on the gr atcr portion of tho fire premiums or the Dominion—which eventuated when ho State ollico was established, tho nrosont position o{ the office can u °j-» think, be regarded as other than satisfactory."