SOUTH BRITISH INSURANCE COMPANY.
At yesterday’s meeting at Auckland, Mr Goldie, M.H.R., instituted a comparison between the position of this and other local companies during the past five years. In 18S5 the South British had a reserve fund and undivided profits amounting to LIOI,OOO. To-day, taking the losses of last year into account, their reserve and undivided profits stood at £75,524, so that they had lost over L 25,476 of their reserve fund and underwriters’ profits during the last five years. Now, if all other companies working on the same lines as the South British had to do the same kind of thing, they could have understood that blame should be laid outside —to what the directors attributed to the force of circumstances. But that was not so. The Union Insurance Company in 1885 had a reserve fund of L 60,285, and to-day their reserve fund was £74,087 ; so that while the South British had lost L 25.476 of their reserve fund, the Union had added to their reserve 1,13,797. If they took the New Zealand Insurance Company, it was found that in 1885 their reserve fund amounted to L 232,565, and now they had a reserve fund of £245,372; so that during the same period that the South British had reduced its reserve fund, tho New Zealand Company bad been adding to the reserve. The National, which he understood had joined with the South British in this foreign policy, had simply made the same mistake. The reserve fund of the National, which, as he had said, had joined with the South British in what he thought was the very wild policy of taking the world as their market—the reserve fund of the National in 1885 was £195,000, and now it was £181,953, so that they lost something like £13,047 working on the same lines as the South British. The Union, on the contrary, had built up this reserve of theirs on a very much smaller business than the South British had been doing, for the Union during the last five years had, on a premium income of £515,059, made a fair profit of £25,631, including profits for the year, which closed in September last, of £II,BOB. The New Zealand Company during the same period—viz., the last five years—had an income amounting to £1,127,060, and they had nu.de a clear profit of £87,300. The South British during the same period had taken £1,254,000 or about £127,900 more in premiums than the New Zealand Company, and had made an absolute loss of £48,204. A committee was appointed to investigate and report on the affairs of the company.
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SOUTH BRITISH INSURANCE COMPANY., Evening Star, Issue 8034, 10 October 1889
SOUTH BRITISH INSURANCE COMPANY. Evening Star, Issue 8034, 10 October 1889
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