NEW ZEALAND INSURANCE COMPANY.

Globe, Volume XXII, Issue 1839, 15 January 1880, Page 3

NEW ZEALAND INSURANCE COMPANY.

£By Tbebsbaph.] AUCKLAND, "January 14.

The New Zealand Insurance Company's thirty-eighth half-yearly meeting of shareholders was held this afternoon, Mr James Williamson in the chair.

Mr G. P. Pierce, manager, read the half yearly report.

The Chairman in moving the adoption of the report said—Gentlemen, at last meeting a hope was expressed that the half-year j ust ended would prove more profit able than the one which preceded it j but I regret to say that hope has not been realised. On the contrary, our losses have been exceptionally severe. I must, however, state that theße have not resulted from acceptance of doubtful risks. On the contrary, the losses have been on first-class policies. In addition to these exceptionally heavy losses, we have of course suffered from the greatly reduced rates of premiums, brought about by competition amongst rival establishments, unprecedented in the history of insurance companies in these oolonieg, and moreover, we have been passing through period of great depression, which has mos materially affected our marine insurances. With the revival of trade which has now set in, and the increase of our imports and exports, we may reasonably look to more extended business in this direction. Your directors have to report that the company has withdrawn from country business in the State of California, which has proved to be of an unprofitable character. They have also taken precautions to carefully scrutinize all the company's risks, to guard against cverinsuranoe, whioh is the result of a low rate of premium ; and further all heavy block risks have been avoided, and a careful redistribution been effected, and I am warranted in stating that the class of business secured is of a most satisfactory description. It ia not a pleasing duty which devolves on me on the present occasion, having to announce that your directors cannot recommend a higher dividend for the last half-year than after the rate of 5 per cent, per annum. At the date of closing the books on the 30th November, the Knowsley Hall, from London to Lyttelton, had not been posted as a missing ship, but your directors deemed it prudent to provide for a moiety of the sum the company has upon that vessel as one of our readjusted losses. I have pleasure in stating that, up to the present date, our losses for the current half-year are much below the average, and if the remainder of the term runs out with similar immunity, your directors anticipate being able to meet you on the termination of the current halfyear with a more encouraging report and balance-sheet than that which I now beg to propose for adoption. The report and balance -sheet were adopted nem. con. Messrs Russell, Campbell, and Buddie, the retiring directors, were re-elected, and Messrs Fraser and Laurie re-elected auditors. A vote of thanks was accorded to the directors and officers of the company.

Mr 0. J. Stone thanked the shareholders for the vote, saying that the motto o£ the company had always been safety in the first instance and profit afterwards, and this motto would be kept in view. There was always an ebb and flood in speculation, caused by the establishment of bogus companies, when even the most legitimate investments were sold at a loss. In such times also insuranoe losses were always greatest. He was glad to see the revival in trade, and the prospects improving in the company's business. The chairman also acknowledged the vote, which he valued more highly under present circumstances. He referred to the fact that fourteen years ago the company was unable to pay a dividend. The directors had always been apposed to the payment of dividends out of reserve fund.

The manager, Mr Pierce, also returned thanks on behalf of himself and the staff, and in doing so referred to the anxiety which they had experienced during the present competition, and the necessity of preventing their agents from following the example of other agents in running after risky business.