SOUTH BRITISH INSURANCE COMPANY.

New Zealand Herald, Volume XI, Issue 4045, 29 October 1874, Page 9 (Supplement)

SOUTH BRITISH INSURANCE COMPANY.

The fourth, half-yearly meeting of the shareholders of tha South British Insurance Company was held in the company's office, Queen-street, at 2 p.m. on Oct. 12. Abont thirty shareholders were present. Wv C. Daldy, Esq., Chairman of Directors, presided. The advertisement convening the meeting having been read, the manager read the report and balance-sheet, which were "as follows:—

The directors in placingbcfore the shareholders their fourth half-yearly report and balance-sheet, are glad to be able again to state that the business of the companv continues steadily to increase. The receipts on premium account for the half-year have been £37,949 S3 sd, exceeding those of the preceding six months by £0,350 19a 6d. The losses amount to £21,095 183 3d, and iijp sum of £5,049 5s Cd has been paid for re-insurances The investments are £66,853. and the interest and dividends therefrom for the halfyear £*2,925 13s 3d. The funds of the company are invested in Bank and Gas stock, freehold property, and on mortgage securities in various provinces of the colony. The balance <:o credit of profit and loss on closing the books was £17,77S 15s, of which the directors have carried £5,000 to the reserve fund, faking it £25,000. Out of the remaining balance Of £12,778 15s, the direct r.-s recommend a dividend for the last half-year at the rate of 10 per cent, per annum, which will absorb £2,100 7s od. The course anoptnl by the sharonoidecs of not drawing a dividend uatil the company had been two years in existence, with the view of commencing the formation of a reserve fund at the earliest possible period, has been fully appreciated by the public, and the same prudential feeling has led your directors to advise that • the dividend they now recommend—the first paid by the company—should be only for the lait half-year The directors cordially acknowledge both the otTorts . of the shareholders and the officer?* of the company to extend its business, and also tho increased confidence of the public in the institution as s>hcwn by tho premiums for the second yet»r of its exigence, amounting to £09,0-41, being rather more than double those of the first year, which were £34,032. It is the duty of this meeting to elect two directors in the place of the Hen. Henry Chamberlin and Joseph Howard. Esq., >?ho retire according to the articles of association, and who are eligible and offer themselves for re-election. For the .Board of Directors. "\V. C. Daldy, Chairman. A. Boarj)\iax, Manager. BALANCK-SUEET. Dr. £ S. (L £ s. d. To Capital Account— 37,000 shares at x2O 750,0C0 0 0 Paid-up, £1 2s Od per share 42.157 10 0 To uncalled capital .. 707,512 10 0 To unpaid losses 1,000 0 0 To llesi rve Fund 25,000 0 0 To profit and loss (new account) .. 12,77$ 15 0 £81,500 5 0 . Cr. £ s. d. By investments 60,553 O 9 By cash i" Union Bankof Australia 5.155 7 0 By balances at agencies .. .. C,954 9 8 By sundry accounts owing 1. .. 1,513 8 7 By office furniture, fixtures, stationery, & c 1,059 19 0 £81,506 5 0 PUOFIT AND LOSS ACCOUNT. m „ r - , , £ s. d. To fire and marine losses .. .. 21,093 18 3 To reinsurances 5 C To commission, salaries, rent, advertising, printing, and general expenses . 5,529 13 g To transfer to reserve fund .. .. 5/-00 0 0 To balance 12,778 15 0 £49,447 12 5 Cr. £ a. (L By balance from last half-year ~ 7,522 3 3 By premiums received 37,949 8 6 By interest, dividends, &c. .. .. 2,935 13 3 "iiy transfer fees .. 45 7 6 By enhanced value of investments .. 695 0 0 £49,447 12 5 Balance down .. .. .. £12,77S 15 0 We have examined the above balance-sheet and profit and los 3 account, together with tho vouchers and accounts, and have inspected the securities held by the company, and we are of apinion thnt the balance-sheet contains all tho particulars required by the Articles of Association; that it is correct, and exhibits a full and true statement of the company's affair*.

John- JJatoer, ) . T. 1,l it;ii "Wuite, | 3 " Auckland, Oc:ober3, 1374.

The Chairman said : Gentlemen, in rising to propose the adoption of the report and balance-sheet, I may say that your directors do not meet you this half-year with any extraordinary good fortune. The losses have been heavy, but the income has been heavy too, and I may state that comparatively the balance in hand this half-year is over even the ordinary average of insurance business, and with this I think we must think ourselves very well satislied. There are one or two poiuts in the report to which I wish to draw your attention. In the second paragraph you will find that the sum of £5040 5s Ud has been paid for re-insurances. 1 want you to take thisas evidence of care on the part of the directors. We have paid away a3 large a sum as tliis rather than take extreme risks. They did not consider it judicious on behalf of the shareholders to hold any extraordinary amount of risk. Our losses, though large, have in their various items been very small. I think it must be very satisfactory to the shareholders of this company to see that its revenue—its receipts for jiremiums amount this year to the sum of £69,000; that its assets upon paid-up capital (£37,500) now amount to more than i-8,000 within two years. We could not look for greater success than this, X think : and looking forward to the future, I believe we have every prospect of increasing the business very considerably. Our Loudon agency may only be said now to be in full operation, and our colonial friends have only just had an opportunity of giving instructions for their insurances. Therefore, we look for a very large increase in this direction, and there are many others in which we expect a similar result. Xou will observe the directors have placed £5,000 to the reserve fund. I think this is the back-bone of our business. You have commenced at the earliest possible time to put money in reserve rather than have it administered in dividends. With regard to the dividend, your directors have recommended 5 per cent, for the half-year. They, like all the rest, get plenty of advice gratis. They have had advice to give 10 per cent., and also advice to give none, and they have taken the medium course, because they believe the time ha 3 arrived when without trenching on the business —I mean its receipts from premiums—but simply dealing -with the interest on capital and sinking fund invested, that they are able to do this without any difficulty. We trust you will coincide with this, that there should be a dividend. The last paragraph speaks of the retirement of tv, - o gentlemen, the Hon. Henry Chamberlm and Joseph Howard, Esq. These two gentlemen have always worked with strong accord with t the directors. They were promoters of this institution, aud retire simply in accordance with the articles of association—they were balloted out, as the two to retire. With these few remarks, gentlemen, I have much pleasure in moving tho adoption of the report and balance-shec-t now read to you.

.Mr. Buchanan seconded the motion, and on jbeing put to the meeting it 'was carried unanimously. A vote of thanks was awarded to the direotors and officers of the Company. Mr. Toxics proposed that the retiring directors be re-elected. He would ask them to give efFect to their vote of thanks by reappointing the retiring directors. Mr. Cosgrave seconded the motion. The motion to re-elect the retiring directors was carried without a dissentieut vote.