NATIONAL INSURANCE COMPANY.—ANNUAL MEETING.

New Zealand Herald, Volume XX, Issue 6863, 15 November 1883, Page 5

NATIONAL INSURANCE COMPANY.—ANNUAL MEETING.

[BY TELEGKAI'H.— PItESS ASSOCIATION.] Dunedik, Wednesday, Tiie tenth annual meeting of shareholders' in the National Insurance Company was held to-day. Mr. J. M. Ritchie, Chairman of directors, presided. The report and balance, sheet were adopted. The figures shown.in these have already beeu telegraphed. The three retiviug directors, flon. K. Oliver, Mcssrj. A. Burt and J. M. Jiitchio were reelected. Votes of thanks, &c, to the officers were passed. The Chairman, in moving the adoption of the report, said :—-1 regret that, in meeting you upon this, the tenth anniversary of the birth of your company, your directors cannot congratulate you on a successful year's work. From the accounts, you will see that the underwriting for the year shows a loss of about £11,000, and but for the handsomoiucouie from our investments, which suffices for the usual, dividend, it is open to question how far we should be justified in distributing these. Happily the amount of this, and our ample reserves, relieve all doubts on the point. You will obserre that our premium iticouie has increased over 15 per cent, from last year, which must be regarded as ao far satisfactory, considering the great caution which has been exercised, and the continued shrinkage of rates in various parts of our lield. Oa the other hand, our losses are unusually heavy, the percentage being, in. fire 64 per cent., and marine S4 per cent., against; 75 per cent, aud 66 per cent. in 18S2, and 71 per cent, and 50 per cent, in ISSI respectively. Our expenses show an improvement, being 21.73 per emit, against 22 per cent, in ISS2, and 27 per ceut. in ISSI.. but this has but little appreciable effect in neutralising the sweeping evil oE our abnormal losses, and the fact remains that, after taking all but £300,000 off the net premiums durinutbe past two years, we are out of pocket £7000, after paying our losses and expenses and recovering' our unearned premiums. Turning, for a moment to the balance-sheet, you will see' tliac after the withdrawal of £14,364 to profit and loss account the reserve fund is increased by some £13,000, which is caUßed by the payment on account o£ new shares. The £28,000 unpaid and not due will come in at the various due dates, when your reserve will stand at the respectable total of £137,003. Mr. Ritchie wout on to explain' the apparent causes of this state oE things,, referring to the commercial deprei&ion, reck-, less competition, and numerous marine losses between the colonies and Britain. He said the business had never boon conducted with greater caution. Ha went on to mention that the company was cultivating new fields and spreading its organisation, Mr. Jack, the general manager, being absent in Eng-' land, was returning by Japan, China, and India. He then prooeeded : "So much I have said in the attempt to explain our past misfortune and justify hopes for the future. Let me now for a moment call your attentiou to certain points which may fairly cause you pride, as well as give courage. Look first at our progress for the past two years. Oar premium income has" grown from £52,000 to £160,000. We have paid in losses about £570.000, and in dividends £100,000, and with that our funds have risen from £50,000 to £230,000. Our reserves have the satisfactory proportion to our premium of £100 to every £1170 of in-' come, which, though considerably below the average of Euglish companies, yet exceeds that of our New Zealand neighbours. The respectable amount of our accumulated funds is of immense advantage to us in entering upon foreign fields, where this consideration alone has weight. Lastly, don't forgot the method of balancing our accouuts,' which I belierc to be the biggest feathor ia our caps of all. Gentlemen, while I have been laying bare to you the full extent of our losses by underwriting, and calling your attentiou to the figures of our balance • sheet. I have taken no account of a lien of £53,715, wheh is called in your balancesheet "reserve to insure current risks." bub which might be described as unearned premiums, as explained two years ago. This' ia arrived at in the following way : All thn fire premiums for periods over twelve months, 40 per cent, of the same for lees, periods than twelve months, the proportion uuexpired of maritime rialtF, and the total of other unexpired marine risks—a full estimate for the purpose according to the beet authorities, ifew, gentlemen, there is no other Austraiasiau company which balances its accounts in this way,- and while for this rcasou we may be justified iu a little boasting, yet to my mind the plan is nothing but what is fair and just, and that upon which every merchant makes his annual or half-yearly balance. This amount simply shows Hie premium which properly belongs to the next year, aud we might as well transfer loesss made this year into next year's accounts, aud take credit for such a sum as earned profit. As you know, gentlemen, there are five other purely New, Zealand companies. By their last reports these five companies exhibit total reeerves amounting to £332,500, but if they balance as we do and, ae iu my opinion they ought to do, this sum would ba reduced to £134,557, aud tho effect upon the figures of .certain of, them is much moro aUrtling than when thus stated in the gross. Any of you can work', them out for yourselves. How I'do not. make this statement for the purpose of disparaging our neighbours, but because I think it deserves emphasis for the sake o£ both them and ourselves. The Chairman concluded with some remarks about the un-' wisdom of too flattering statements 1 of results. . ~ i