STANDARD INSURANCE COMPANY.

Lyttelton Times, Volume LIX, Issue 6869, 6 March 1883, Page 5

STANDARD INSURANCE COMPANY.

£P£B Pbbsb Association.] DUNBDIN, Maboh 6. At the annual meeting of the Standard Insurance Company to-day, the Chairman, Mr John Beid, in moving the adoption of the report and balance-sheet, after referring to the change by which annual instead of halfyearly meetings were held, said : The report and balanes-sheet now submitted to you prenent a clear and concise statement of the accounts of the Company for the ninth year of their operations. Speaking for myself and co-Directors, it is*extremely gratifying to us, in the face of existing competition, to be in a position to present to you so favourable a balance-sheet. As our report states, we propose to pay a dividend at the rate of 7£ per cent per annum, to further strengthen oar reserve fund by £2500, which will then stand at £15,000, and to carry forward £4030 IBs Id. Without detaining yon long, I would refer to two or three items in the balance • sheet. Our premium incom* exceeds that of the previous i year by upwards of £ISOO. This indieate* a considerable increase of business, and is very gratifying, particularly j when we take into account the great voduc- 1 tion which has taken plaoe in rates of pre- j mium, both in Australia and New Zealand, and the fact that the basis of the Company's operations has not been extended during the year, and is the strongest possible evidence of the confidence reposed in us by the insuring public. The competition to which I have alluded, and with which we have to contend, it of the most demoralising character, and only those connected with the business can realise the extent of it, the principle or rather should I not say the want of principle, which guides certain of our competitors, being apparently to secure premiums at all hazards. In many oases we have been obliged to allow the business to past us rather than accept rates, which, we believe, can leave no reasonable prospect of profit. Had this not been so, the increase in our premium income would hare been still larger. In time this state of things must work its own cure. In the meantime we direct our efforts to secure a safe business in preference to a large volume of premiums with ditproportioneterisk. Our interest from investments shows a slight improvement on last year, and has provided sufficient f uuds to pay the proposed dividend and the interim dividend, which was paid in September last. All profit on underwriting is therefore retained to increase the reserves of the Company, the strengthening of which is a matter of the first importance, not only as providing a fund equal to the re-insuring of our risks or to meet an emergency, but also to enable us to extend our operations. As our reserves increase so will our interest from inveitments, t and we hope by-and-bye from this source to i be in a position to pay larger dividends. You will observe that we have written off £SOO from premises, office furniture, and stationery accounts, and have also made provision for outstanding and unadjusted lotses. Your Directors have had under consideration the question of again undertaking the insurance of hulls. You will remember that some time ago, owing to circumstances to whioh I need not now refer, it was decided to discontinue this olais of business, but your Directors have found that the absolute refusal to take hull risks has been detrimental to our business. Many of oar clients are shipowners, or otherwise interested in the insurance of hulls, audit not unfrequently happens that business, which would come to us did we take suoh risks, has gone with the hall business to other Companies. We have not determined to resume this basineis, but the question bei»g under consideration, I think it proper to refer to it. Should we resolve upon resuming this class of business, a very conservative line of policy will be adopted in connection there, with. Mr Beid concluded by expressing appreciation of the efforts of the General Manege? and officers. , Mr tt. Stout seconded the motion, which was carried. The customary votes of thanks to the Directors and officers were pasted.