SOUTH BRITISH INSURANCE

Evening Post, Volume CVIII, Issue 102, 26 October 1929, Page 7

SOUTH BRITISH INSURANCE

(By Telegraph.)

(Special to "The Evening Post.")

AUCKLAND, 25th October

Mr. V. J. Lamer, chairman, South British Insurance Company, Ltd., informed shareholders to-day that, in face of. excessive fire losses in the Dominion itself the directors recommended an increased dividend for the year. Notwithstanding keen competition the company was fortunate in having been able, not merely to maintain its premium income, but to show a slight increase on last year's figures. However, the losses for the year under review were the highest in the company's history. Reduction in the year's general expenses was partly due to the absence; of New Zealand income tax, operations in the Dominion for the previous taxable year having resulted in a loss. If, as they believed, they were not alone in this unfavourable experience, the Taxation Department must be feeling the effect of diminished returns from insurance companies. In view of these circumstances, it could not be too widely understood that by far the greatest portion of the company's profits had always been derived from .countries beyond these shores. Although premium income increased by over £13,000, it had been necessary to provide only £2000 additional as a reserve for unexpired risks. With this addition the reserve stood at the .customary 50 per cent, of premium income.' Underwriting credit of £90,770, representing 8.6 per cent, of the premiums, could be regarded ns a very satisfactory. Return from investments £131,340, a substantial increase upon last year's figure, amounted to nearly half as much again as the underwriting surplus. Owing chiefly to further payments on the lew building the company's premises account had, increased £21,207. This increase would have been greater but for the sale if properly during tho year. Again, by reason of maturities, Government securities were less by £02,748. On the other hand, debentures, stocks, and shares had increased by £123,083. The company's _olding_ in this class of investment was very widely spread, and was confined to realisable, securities. On the liabilities side the alterations in the investment fluctuation fund and the sinking funds of leaseholds Were due to the disposal of the balance of tho lease of former premises in this city, which on realisation showed a surplus. The directors recommended payment of Is 4d a share as final dividend for tho year. This, with interim dividend of Is 3d, would total 2s 7d per share. Steadily-increasing business was being handled by the Guardian Trust. Whilst the real functions of this company were to administer its trust estates, which it had done with signal success, its connection was a valuable adjunct to this company's operations. Sir James Coates seconded the adoption of the report and balance-sheet, which was'carried without discussion. Sir George Elliot and Mr. W. R. Wilson were re-elected directors.