COLONIAL MUTUAL

Evening Post, Volume CXII, Issue 151, 23 December 1926, Page 6

COLONIAL MUTUAL

COMPANY'S ANNUAL MEETING

NEGOTIATIONS WITH BRITISH

CONCERN.

Reference was made by the chairman (Mr. James H. Riley) at the annual meeting of the Colonial Mutual Fire Insurance Co., Ltd., held recently in Melbourne, to negotiations which' had been proceeding witha British company which desires to obtain a controlling interest in the Colonial .Mutual Company. Mr. Riley said that, although negotiations had been carried on for some time, they were not sufficiently advanced to enable the directors to submit any definite proposal to the shareholders. •

In presenting the annual report ,of the company, the chairman said that, although the result of the company's operations for the year ended 30th September, 1926, were not as successful as iv the previous year, it was considered that the busines stransacted was very satisfactory. The company, in common with others, had suffered losses as a result of the bush fires which had occurred in Victoria in February, but in view of the extent of the damage it was considered that tho claims had been moderate. It was gratifying to the directors, and, he hoped, to the shareholders, that the company was in such a sound condition as was disclosed by the balance-sheet. It would be observed that .the item, officers' superannuation'and provident fund, £13,000, had heen. eliminated, as the fund had been inaugurated at the end" of last year, and was now in full operation.

The balance-sheet showed that the premium income amounted to £523,991, which was a substantial increase on that of last year. The amount obtained from interest,, fees, etc., was £26,----545. The profit and loss account showed that reinsurances and returns amounted to £187,330, and losses (paid and outstanding) to £163,20't. Provision had been made for commission and charges, and, deducting the amount of interim dividend paid in May last, the amount for distribution was £43,----807, of which sum the directors-had decided to place £10,000 to the reserve fund, making a totalof £132,500, and £10,000 to reinsurance reserve fund, making a total of £70,000. It was decided to pay shareholders a dividend at the rate of 5 per cent, for the halfyear, amounting to £15,000, and a bonus of 6d a share, amounting to £7500, leaving £1306 to1 be carried forward. . .

The retiring director, Mr. A. S. Dennis, was re-elected. Messrs. Thomas Brentnall and S. £ Warnock were reappointed auditors.