THE SOUTH BRITISH.

New Zealand Herald, Volume XLIII, Issue 13306, 12 October 1906, Page 4

THE SOUTH BRITISH.

The balance-sheet of the South British Insurance Company, which was presented yesterday to the annual meeting of shareholders, testifies to the exceptionally able management of this great Auckland institution. The Northern metropolis has made insurance one of its great commercial enterprises, which have brought to it both fame and profit. In the insurance business these results are always found together, for it is one which cannot be increased to magnitude by any company excepting by prompt payment of losses and unquestionable financial soundness. The progress of the South British is too well known to need exposition. During recent ears and under its present management this progress has been remarkable, but has been so sustained that there is every reason to anticipate its continuance. Last year's business shows a net premium increase over that of the previous year of over £21,000. The total net premium revenue for the past year was £319,433, an amount which was received through that laudable Auckland energy which has made our local insurance concerns the recognised rivals of the great British companies throughout a great part of the world. In New Zealand itself, it is well to note, the report of the South British directors shows that " business has been unsatisfactory." This is due altogether to unfair State competition, and proves that had it not been for the oversea business this unjustifiable State interference would have been disastrous to our own local concerns. As is very, aptly pointed out in the report, the conflagrations at San Francisco and Valparaiso " bring into special prominence the folly of those among the public who are in the habit of thinking that insurance companies should be satisfied with a bare margin of profit, and who grudge the additions made from time to time to their reserve funds, forgetting all the while that, the ample strength of these funds is the best guarantee to the insuring public for the prompt payment of losses in the event of such serious conflagration taking place." The action of the Government, had it not been for the extensive field over which companies like the South British operate, would have resulted in the paralysis of reserve, funds and in the destruction of this security against the conflagration risk which is an inseparable feature of the modern insurance business. As things are, however, the South British has been able during the past year to add £40,000 to its reserve fund, making £260,000 held against any future contingency. Comment upon the financial strength thus assured would be superfluous. All who are able to appreciate what such forethought, means to the insuring public will congratulate the management upon its businesslike attitude towards future possibilities. In fact, the entire balance-sheet testifies to the shrewdness and intelligence with which the South British is managed, the increased profits upon the year's work being manifestly due to this. Total, losses, on fire, marine and accident business, stand at 58.26 per cent, as against the 60.44 per cent, of the preceding year i expenses stand at 26.63 per cent, as against a previous 27.05 per cent, ; underwriting shows a gain of 15.11 per cent, as against the 12.06 per cent, of 1905. It will be seen from this that the balance of . nearly £65,000, which is left in the company's profit and loss account after £10,000 has been added to the reinsurance fund, is due not merely to increased business but to able administration in every direction. This capable management makes of peculiar interest the renewal by the company of fire insurance business in London. There can be no doubt that it will be conducted upon safe lines and Ave may hope to see a representative insurance institution from our distent colony and comparatively small city win honourable and profitable place in the United Kingdom itself. When we consider the value to the colony of the capital which such great concerns bring to it from other lands, of the openings they afford to our colonial youth, and of the high reputation which reflects credit from them to all things New Zealand, we must regret the attack made upon the insurance business by the Government.