INSURANCE PURCHASE

Grey River Argus, 19 May 1938, Page 3

INSURANCE PURCHASE

NEW ZEALAND CONTROL LONDON, April 23. Acquisition of the controlling interest in the United Scottish Insurance Company by the New Zealand Insurance Company has been announced in London. While the registered offices of the Scottish concern will remain in Aberdeen the head office has been transferred to 37-39 Lime Street, London, where the English branch of the New Zealand Insurance Company has its offices. The United Scottish Insurance Company will transact all classes of nonmarine business, except life insurance, as a tariff company. Its policies will be guaranteed by the New Zealand Insurance Company. Its chief business at present is in Scotland, while a certain amount is done in India.

It was stated in London to-day that acquirement of control of the company was chiefly a matter of expediency in the conduct of accident and motor business. Clients coming to the United Kingdom from New Zealand frequently wanted the London office of the New Zealand Insurance Company to transact business of these kinds for them and it would now be in a position to do so. It is not proposed to operate in New Zealand. The present authorised capital of the company is £250,000, in shares of 5s each. Issued capital is £200,000 in 800,000 shares of 5s each, on which 2s 6d is paid. Called-up capital is therefore £lOO,OOO. Of the 800,000

issued shares, 600,000 are now owned remainder is in the hands of the public.

The capital was cut from £250,000 to £50,000 on December 29,1937. Paidup capital was reduced from £lOO,OOO to £25,000. This was done by cancelling 50.Q00 unissued shares and by writing 7s 6d off the paid-up amount and 15s off the nominal amount of each issued £1 share on which 10s was paid up. Capital was then restored to £250,000 by 800,000 shares of 5s each.