STATE FIRE INSURANCE.

North Otago Times, Volume CV, Issue 13934, 17 July 1917, Page 8

STATE FIRE INSURANCE.

BONUS FOR POLICY-HOLDERS. In his report for the year ended December 31 last, the general manager of the State Fire Insurance Office (Mr C. R. C. Robieson) states that the net profits amount to £35,607, exclusive of £2f|77 put to unearned premium reserve, and £IOOO placed in investments fluctutiou' reserve. The profits exceed thosp of any previous year by £IO,OOO. Income 'shows an increase of £0395. The working expense ratio is increased by 0.2 per cent., due solely, as the report explains, to heavier .writing down of office equipment values. The loss ratio of the year was 2H.22 per cent., which the general manager regards as "quite abnormally" low. He adds: " It would appear from our loss ratio for the past two years that the war has had a marked influence on the destruction of property by lire. 1. . trust that this influence may bo permament."

The total "cover" issued by the office during, the year amounted to £19,000,000. Assets (£IG6,BSO) have increased by £40,40;' during the year. Investments, including £IIO,OOO on fixed deposits, total £126,780, but to that has to be added £25,000 invested in the New Zealand war loan. The office has set aside £SOOO out of last year's profits for the purpose of granting a bonus to policy-holders on premiums paid. The assessment is deferred for the present, on account of 50 per cent, of the trained staff of the office being on active service, ami the remainder unable to fully cope with the business. .

Accumulated profits amount to £l2l,Md this year, as compared with £86,217 last year; net increase, £52,094 -an increase of' £6295; losses, £21,897 —a decrease of £557!), or, roughly, 10 per cent. The capital of the undertaking is £IOO,OOO, but it has not been raised, The office lias been in exist; once for twelve years, Dividing this period into two, ! it is shown that during the first half the working expenses ratio was 34,9 per cent,, and the ratio of loss 51,8, In the latter'half the expense ratio was reduced to 27,.1 por <;ent, ami .the losses likewise cut down to 42,1 por cent, these being per annum averages,