RECORD PREMIUM INCOME

Dominion, Volume 32, Issue 260, 1 August 1939, Page 11

RECORD PREMIUM INCOME

New Zealand Insurance Company

.Dominion Special Service.

AUCKLAND, July 31.

A record premium income is again shown in the accounts of the New Zealand Insurance Co., Ltd., for its eightieth year, ended May 31. . , The net revenue from fire, marine and accident premiums was £1,405,787, or £45,794 higher than the previous reford figure of £1,359,993 established in 193j--38. A further increase occurred in losses, which, at £910,489, also attained the highest level since the war. The ratio of 64.77 per cent, maintains the rising tendency of recent years and is the highest since 1922, Expenses were £14,295 greater, commissions and management expenses rising by £13,522 to £324,106, and the taxes and appropriations group by £763 to £53,525. The expenses ratio, however, because of higher premium income, showed only a slight increase to 26.87 per cent., from 26.71 per cent, in the previous year. The year's surplus at £94,666 is £8862 above that of the previous year, and the most satisfactory figure since 1936. Interest and rents provided £2143 more at £137,012. A final dividend of 1/- a share is recommended by the directors, making the year’s distribution unchanged at 2/- a share, equal to 10 per cent. The directors’ report shows that the surplus on the year’s operations, after making full provision foi all ascertained losses, taxation and other appropriations, is £94,666. With the net income from interest and rents £137,012, this makes a total profit of £231,678, compared with £220,673 in the previous year. With £195,214 brought in, there is £426,892 available. The interim dividend of 1/- a share in February took £75,000, and £50,000 was transferred to the reserve fund and a further £lOOO to the reserve for taxation. The -proposed final dividend will require £75,000, leaving £216,892 to be carried forward. The balancing total is £3,898,184, an increase of £115,767.

A note appended states that approximately three-fourths of the company’s income ibeing derived from countries beyond New Zealand, a like proportion of assets is held outside the Dominion. Assets totalling £1,461,425 sterling have not been converted into New Zealand currency. Assets in Australia are taken at par with New Zealand.