NATIONAL INSURANCE COMPANY.

Evening Star, Issue 10782, 17 November 1898, Page 2

NATIONAL INSURANCE COMPANY.

The twenty-fifth annual meeting of the sharehohleis of the National Fire and Marine Insurance Company was held in the company’s office, Rattray street, this afternoon. The chairman of directors (Mr J. M, Ritchie) presided, anil there were thirty shareholders present. ANNUAL REPORT. The report (which has already been published) and the balance-sheet were taken as read. 'I he Chairman said: In making a few ren arks about our accounts for the year I shall begin by orbing attention to what all of you, I daresay, have not failed to notice ere this—viz,, the unusually heavy -osses we have suffered. They are over £12,000 more than last ye* l- , which is more than enough to upset our profits considerably. The Melbourne conflagration, in which some three-quarters of a million were swept away in a few hours ; two fires in Auckland, which destroyed £100,000; be-ides a much larger number of small fires in New Zealand than usual, have made the past year a disastrous one for insurance companies. In marine, too, such losses as the P. and O. steamer China and the Mataura came under the same category as >he exceptional fires I have already named. All of them are what may he 'called special misfortunes. So far as we are concerned we have had a certain amount of good luck in our disasters; and, what with that and a pood, sound business, I think we may fairly caugratulate ourselves that at the end of the year we find ourselves with a loss of about £I,OOO on cm- underwriting. We have, as usual, made ample provision for unpaid losses, and whatever may be in front of us we have, at least, nothing behind us left unprovided for. With this result of our business proper, it is necessary to point out now how we have got our dividend. This comes from our rents and interest, which amount to £8.990, end to an inroad on the amount which we carried forward in profit and loss account at the end of last year. Last year this amounted to £14,610, while this year it is reduced to £10,277, and tbe difference, £4.335, less the increase of reinsurance reserve, £924, or £3,409, added to our interest and rents, gives us the £12,000 odd required to pay our dividend of Is 5d psr share, or 12j percent., as against 15 per cent, list year; and lamsv.re you will agree with me that the result in fairly satisfactory. It may be said thaf ve ought not to encroach upon our funds to pay a dividend; but I would remind you that our large ‘‘carry forward ” has been intended always to be used for this purpose in the case of a “pinch,” and, further, the Board feel that they can fairly look upon our last year’s experiences in losses as exceptional. We cannot fairly count upon conflagrations and disasters as normal occurrences, and so we have thought it to be prudent, and consistent with tbe very conservative policy of the National, to break the farce of these misfortunes in the way we have done, and so preserve, as far as we can, an approach to equilibrium in our dividends. Turning to the balance-sheet, I may point out that loans on mortgage are reduced by £19,214, and money in deposit by £11,500, while the bank balance is larger by £20,828 and remittances to London by £7,000. This position is caused by a recent repayment of a loan and the prospect of an early reinvestment of a considerable sum, while the remittances to London are merely an accident arising from the necessities of money being placed there to meet losses. The difference between the above figures is the amount by which' our funds have been lessened by the payment of dividend—viz., £3,4C8. It is but right that I should say that everything points to a further reduction in interest, as the rate is lower and the difficulty of investment greater than ever. I look upon tin i as very unfortunate, as I should like- t > see the greater part pf our dividend provided from this source, instead of depending on the fluctuating resqltq of underwriting- Our securities continue quiie satisfactory. We l ave several hundred pound* surplus on hand from previous “writing down,” the results having turned out better than ouy estimates, hut we have not taken that into profits, preferring tq let it regain as a stand-by for the future. I am very pleased to pall yony attention to the increase in premium income, which is about £5,500 in excess of last year ! s. There is no special reason for this that rye knory of other than i he good connection possessed by the National and, I should be glad to think, the efforts of shareholders in bringing business to their company. I would urge all of them again, as I have done before, te continue this most effective, as well as, I should think, most natural method of Improving the value of their property. The effect of this increase is to make ub add to the reinsurance reserve, as I mentioned above. Thpfa does not seem tp haye been apy advance made in the Government project of State insurance, ft is a very unsettling and disquieting thing for such property as ours that such legislation should be threatened year after year, and it does not seem to me to agree at all with Mr beddon’s shrewdness ip matters of pounds, shillings, and pence, see ng that the companies contribute so largely ta his terem/# Our own contribution is £2,220, tq inconsiderable part of our total working expenses. However, all I can say is: that if the NationalTs fti the future driven to wind up by tMs, shareholders can reckon upon a thoroughly satisfactory realisation of their assets, so far as cau be judged by the most careful scrutiny on the part of their Board and management. Before ql6eing I wish to refer in a word to the farther misfortune which was added during the past year to our others—of grave misconduct in the service of the company, by which certain of our funds were misappropriated and, what is almoiji worse, confidence in officers unpleasantly shaken by tbe wrong-doing of those who filled a position of hast without previous suspicion. The

amount tart In such a case is of small importance compared with the effect produced by the misdemeanor, I have now to move the adoption of the report and balance-sheet, and the declaration of a dividend ot 9d pet share, making Is 3d per share for the year. Mr JOHN Mitchkll seconded the motion. The chairman, he said, had very fully stated everything he wished to know, and lie was sure that the shareholders were all satisfied that everything had been done that could have been done. Considering what they had passed through, a dividend of la 3d per share was very handsome. The motion was carried unanimously. tjik mnfcrroiuTß.

The Chairman moved that the number of directors he reduced to seven. Aa all were aware, during the last half-year they had had the misfortune to lose one of their directors—a gentleman who had been a director from the very inception of the company—the Hon. Mr Larnach," and it became necessary either to elect another in his place or to pass the resolution which he now proposed. The Board had come to the conclusion that there were sufficient directors as at present constituted. The business of the company was very easily carried on, and there never any difficulty in getting a quorum. The fact of their being lessened in number to a small extent would be a saving to the company. What he asked them to do was provided for under their Mr T. W. Kkmi'THOßne seconded the motion, which was unanimously agreed to. On the motion of Mr U. North, seconded byMr C. Haynks the retiring directors (Messrs J. M. Ritchie and Keith Kaunay) were re-elected. auditors. Mr Thomas Callender ami Mr T. S. Graham were elected auditors for the ensuing year. C'OMPLIM ENTAKV. Mr J. C Cameron, jam, moved tint a vote of thanks be accorded to the directors and staff. Considering the luck of the mlirr insurance companies in the world, they had reason to congratulate themselves on their losrcs being so small; and that their dividend was so satisfactory was, he thought, greatly owing to the zeal and carefulness of the staff. —(Applause.) Dr Hislop seconded the motion. In returning thanks, the Chairman said that, considering what they hail passed through during the last twelve mouths, he was extremely satisfied with the result arrived at at the end of the year. They bad had this year greater proof than for some time past of the excellence of the busine-s and recuperative pow;r of the National. Ho was satisfied that if they could keep clear of extraordinary disasters they would have no reason to fear for the future. The proceedings then terminated.