Importance Of N.Z. In Insurance World

Northern Advocate, 28 October 1948, Page 7

Importance Of N.Z. In Insurance World

AUCKLAND, Thu. (fP.A.)—‘“There is reason to feel proud of the recognised and growing importance of New Zealand companies in the insurance world,” said Mr K. B. Myers, chairman of directors of the South British Insurance Co., Ltd., at the annual meeting today. The companies’ operations had a beneficial effect on the trade and economy of the Dominion, he said. Their overseas activities helped to cover the gap in the Dominion’s trading facilities.

Over 80 per cent of the premium income earned by the South British Company was derived from its operations abroad, much of it in hard currency countries. The name of British insurance stood unimpaired by the upheaval of international events.

Close Dominion relationship was maintained with the leading United Kingdom companies which, in the past year or so, had sent senior executive officers on visits to the Dominion.

VOLUME WELL UP The volume of business handled by the South British Company in the latest year exceeded the previous year by 25 per cent, notwithstanding the application of the new exchange rate. Loss payments rose nearly 2 per cent above the 1947 ratio, reflecting the upward trend in British companies’ global operations. The only unusual losses had arisen through the widespread hail damage to New South Wales crops, fire lossej in the South Island of New Zealand and the destructive fires in Government commodity dumps in Britain. The high accident claims were attributable particularly to the motorcar section while there had also been numerous burglary claims.

MARINE CLAIMS Marine underwriting claims had been continuous throughout the year with numerous losses of steamers due to bad weather in various parts of the world. There had been losses under the marine war risk policies and insuring cargoes to Palestine. Theft and pillaging claims had lessened but were still above normal. The tendency to under-insurance and rising claims costs was general. Recovery in Malaya had been retarded by outbreaks of violence, but necessary measures were under way to eradicate this menace to the life of that country.