NEW ZEALAND INSURANCE COMPANY.

New Zealand Herald, Volume XLIII, Issue 13226, 11 July 1906, Page 2 (Supplement)

NEW ZEALAND INSURANCE COMPANY.

. . — ■■»»— '• — . PROPOSED ISSUE OF NEW SHARES. LIABILITY TO BE LIMITED. Thk directors of the New Zealand Insur- : ance Company, alter reviewing the position in . connection with the San Francisco disaster,' have decided to recommend that the paid-up capital be increased ' from £250,000 to £300,000 by trie issue of 25,000 new shares paid; up to £2. These shares will be issued to shareholders at £1 premium, on the basis of one new share for every five at present held. It is proposed to call up £1 of the new issue oil application, £1 on , allotment, and the balance of £1 on December 1 next. Under the proposed new scheme it. is anticipated that the company, after paying its losses in San ' Francisco, which are estimated at present not to exceed £300,000, will have available funds of paid-up capital and reserves of about £600,000. - It must be a matter for congratulation; riot only to the shareholders, but to the general public, to know that the strong position of the company has enabled euch a large appropriation to be made for the San Francisco losses without in any way straining, the resources of the company. . It is anticipated that, with reasonable good fortune m the future, the. reserves will be ; re-established at a rapid rate, and the company made more prosperous than ever._ With regard to these losses, the company is acting in accord with the leading British companies, and only paying actual legal liabilities in accordance with policy condi- ■ tions. _ . : ;" ..; ./ The directors will recommend an interim-' dividend for the half-year of 2s per share, equivalent to a rate of 10 per cent, per annum. In addition to the above, the di* rectors will also recommend to shareholders that the company be converted into alimited liability one, 'with a- subscribed capital of £1,500,000, of which £300,000 is paid up, leaving £1,200,000 uncalled. These proposals will be submitted to a meeting of shareholders of the company, convened for the 24th inst.