COMMERCIAL

Evening Star, Issue 19319, 4 August 1926, Page 9

COMMERCIAL

NEW ZEALAND INSURANCE CO. ANNUAL MEETING. [Per Uniteu Press Association.] AUCKLAND, August 3. The annual meeting of the shareholders of the New Zealand Insurance Company was held to-day. Sir James Gunson (chairman of directors) said that at the last annual meeting reference was made to the fact that the operations of the company’s Now York branch had not been profitable. _ As this unsatisfactory condition continued during the year under review, the directors decided, with the full concurrence of its partner in the lire business in New York (the South British Insurance Company, Ltd.) to discontinue' writing fire risks in the Eastern States of North America. Satisfactory arrangements were made, under whichthe company disposed of all the liabilities of the partnership, so far as direct writings wore concerned, as from midnight on December 31, 1925. The consequent cost of reinsurance had been liquidated in this year’s figures, which provision had the effect of absorbing more than the increase of premiums shown by many of the branches. While it was with great reluctance that the directors retired from the fire business in this field, they were satisfied there was no alternative course if continuing losses there were to be avoided. The company’s marine business in New York was being carried on. Sir James Gunson said the loss ratio, which last year was 56.27 per ednt., had risen to 59.47 per cent., apart from a reduction in the premium income which had a slight effect on the ratio. Fires had been general in all parts of the world, but particularly in Australia and New Zealand. The State of Victoria suffered from serious bush fires in February last, which caused extensive destruction of property, and, unfortunately, loss of life. In New Zealand fires had been very frequent, especially in dandlings in the country districts of the North Island, where the construction of _ buildings was not so effectively supervised as it was in the boroughs. Sir James Gunson. Mr C. V. Houghton, and Mr Oliver Nicholson were reelected directors.