STANDAND INSURANCE COMPANY.

Evening Star, Issue 12061, 4 March 1907, Page 4

STANDAND INSURANCE COMPANY.

The thirty-third annual meeting of the Standard Fire and Marine Insurance Company was held in tho Board Room, Agricultural Buildings, this afternoon, when there were a dozen shareholders present. The Hon. T. Fergus, who presided, in moving the adoption of the report and holance-oheet, said : Before proceeding with tho business, X have to apologise for the absence of our chairman, Mr John Reid, who, I am sorry to say, through indisposition, is unable to be with us to-day. We iniss his familiar figure, but I trust that hd will soon bo in his wonted health again, and that we will see him at our next annual meeting in his old place, which ho fills with so much credit. I have now to call your attention to the balance-sheet which the Board have the pleasure to put before you. You will note that the income for the year, including the balance brought forward,, totals £107,292 14s sd, and the expenditure £87,604 5s Bd, leaving a balance of £19,688 8s Bd. Our premium income for the year is rather more than la* year, the increase amounting to about £4,000. The profit on underwriting was £5,014, which is a small .return for the business,- but, of course, we must expect lean years as well as fat ones, and unavoidable circumstances have contributed to keep down our gains. I may tell you in this connection that no part of our profit has been derived from the Mow Zealand section of our fire business —that has resulted in an actual loss, and there is no doubt that the year’s fire business in the colony has loft a considerable shortage to all the companies. Turning now to tbo assets side of tho balance-

sheet, you will find that the investments have seemingly decreased by £1,200. This is of the amount which the company have out at mortgage, but you will also observe that the deposits have risen from £45,332 to £56,732, or by £11,400. I may mention that included in the deposits bearing interest are debentures-which the company hold in municipal and other kindred securities, but your directors propose in future to specify the debentures held separately from the deposits bearing interest. On the profit and loss side our fire and marine losses amounted to £33,223 6s, as against £29,398 18s 8d in the preceding year, and our reinsurances, discounts, and return premiums were about £2,000 in excess of what they were in 1006. The sums I have alluded to represent practically the gist of the company's business, and it is pleasing for me to be able to state that,-after a careful investigation and revision of the investments by a committee of the Board, we are unanimously of opinion that all are absolutely safe and liquid. It speaks well for the management that again there are no arrears for interest on loans. It is further pleasing to see that the interest on our investments has been steadily rising, and this year amounts to £6,529, as against £6,083 for the preceding year. Irrespective altogether of the earning capacity of the company from their fire and marine business, the returns from investments would provide a dividend of 7£ per cent, on the paid-up capital—surely a matter of satisfaction, and tends to show tho healthy state of our institution. Pursuing the policy of safety which has been characteristic of this company for so many years, your directors have added £5,000 to the reserve fund, bringing this up to £50,000. We have also a reinsurance reserve of £25,000, or a total at. reserve equal to the paid-up capital. Your directors believe that it is sound policy, whenever possible, to strengthen the reserves, and this they are determined to continue. We paid the interim dividend, and after providing for all likely contingencies, now recommend that a dividend at the rate of 71 per cent., with a bonus of 2£ per cent., be now paid, making 10 per cent, for the year, and to carry forward £7,188. I cannot conclude without referring in tho highest terms to tho manner in which the work of the company hah been performed during the year. I must compliment our general manager on hia forethought and prudence. Our district managers, agents, and staff have worked well in our best interests, and to all these we are indebted for the sound position in which wc are to-day. Messrs , John Mill and William Edmond retire from the Board, but arc eligible and offer themselves for re-eleC-tion. Our auditor, Mr J. G. Patterson, also retires, but is open for re-election. I have now pleasure in formally moving the adoption of the report and balancesheet. and will be happy to answer any shareholder who may wish for further information. The Hon. J. B. Callan, in seconding the motion, joined with tho chairman in regretting tho ,absence of Mr John Keid. One point which was a matter of regret was that underwriting in Hew Zealand for- this year had not been a success, but, ns the chairman luid said, they had to take tho loan years with the fat ones. This year, ho understood, had been a peculiarly unfortunate one in regard to fires in New Zealand. In connection with that it was an important tiling, and ho agreed with tho directors, that tho reserve fund should be increased. It was a wise policy. It was satisfactory to sco that tho investemnts were good ones. The motion was carried. , Tho retiring directors, Messrs John Mill and W P. Edmond, wore re-elected on tl» motion of Mr J. B. North, seconded by,Mr J Mitchell. The retiring auditor, Mr J. G. Paltoison, was reappointed at the same fee as before, on the motionfof Mr P. Barr, seconded hv Hr North. ' Mr A. Sligo moved a hearty vote of thanks to the directors and the general manager ( Mr T. R. Fisher). Mr Gallon occondod tho motion, which wap carried. Mr Fergus, in returning thanks, said that he forgot to mention that they had another of their directors (Mr A. 0. Begg) absent that day. Ho was pleased to hear, however, from the North that Mr Begg’s health was improving and expected to be soon hack among them. Mr Fisher returned thanks on behalf of himself and 1 the staff.