A NEW INSURANCE COMPANY.

Hawke's Bay Tribune, Volume XII, Issue 287, 18 November 1922, Page 2

A NEW INSURANCE COMPANY.

OWJNED AND CONTROLLED IN DOMINION.

The attention of investors is drawn to an announcement in another column relating to the prospectus oi The Mercantile and General insurance Company. Ltd. This company lias been registered in Wellington, with an authorised capital of £1,250,000, divided into 1,250,000 shares of £1 each. Applications are now invited from the public for 200,000 shares, 2/ being payable on application. 2/ on allotment, and the balance in calls of not less than 2/. It is expected that not more than 6/ will be called up on each share As showing the faith of the promoters in the scheme, there lias already been subscribed by these and friends, £27,050 worth of shares.

It is claimed that there is ample room for another insurance Company in this Dominion, and in proof z ot this the directors statti that the figures relating to insurance business indicate that handsome profits can be made if a cautious and economical policy is pursued. In 1920 the total premiums received in New Zealand in respect of fire and accident business aggregated approximately £1,485,000, the total ciainjs amounting to roughly £502,000. It is claimed that these figures indicate that there is ample room for a live and well-conducted company. There are four large New Zealandowned and managed insurance companies now operating in the Dominon. and recent balance-sheets show that each of these companies has done exceedingly well. The premium income from the four institutions amounted to £2,445,664. The losses and expenses incurred ran into £2,281,424, leaving an under-writing profit of £164,240. Adding interest and rents to this figure, the year’s total resulted m a net profit of £380,642. Of the above amount £280,833 w'as paid in dividends, £104,925 was added to reserve funds, and the balance of £44,884 was carried forward. The dividends paid on the average amounted to 121 per cent. The directors, who are all active and successful business men. point out that further issues of capital will probably be at a premium and investors are urged to make early application for shares. Applications may be lodged at any branch of the Natioiml Bank of New Zealand, Ltd.; at the registered office of the company, 32 Grey street Wellington; at any of its branch offices; or at any of the brokers named. Prospectus will be posted to any inquirer.