WAR PERIOD

Evening Post, Volume CXXXII, Issue 31, 5 August 1941, Page 8

WAR PERIOD

N. 2. INSURANCE CO.

THE OVERSEAS POSITION

(P.A.)

AUCKLAND, This Day.

"The demands upon the company arising from the war have affected our operations in many respects, but it is gratifying to record that while the company has suffered it has also benefited to the extent that the accounts now submitted show a very satisfactory profit,", said the chairman, Mr. F. A. Hellaby, moving the adoption of the report and balance-sheet at the 82nd annual meeting of the New Zealand Insurance Company, Limited, today.

Many factors not under the control of the company had contributed to the result, he said. One was that today goods and-property had become more valuable. Stocks in many cases were irreplaceable. Everywhere there tended to be a scarcity. For these reasons, doubtless, extra care was exercised, with a consequent reduction in claims. The company's fortunes had not suffered during the year at any point, and the .major part of the net profits earned during the year had come from many countries beyond New Zealand in which the company operated. Threefourths of the company's business was derived from overseas branches.

What the future might be in some fields it was impossible to forecast, but the company's organisation should ■suffice to meet any contingencies which could reasonably be foreseen.

"In view of the recent events in Indo-China and the action of the Japanese in freezing British credits, shareholders will be anxious to know what effect this action may have on the company's interests," said Mr. Hellaby. "We opened agencies in Japan 58 years ago and built up a large account. In recent years, however, owing to the growth of Japanese national companies our direct business with the Japanese people has steadily declined and the account is not now very large. Our assets in Japan consist mainly of Japanese bonds and fixed deposits, and these will be frozen for the period during which the present state of affairs continues. It is assumed that our operations will continue subject to the above restriction."