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NEW ZEALAND INSURANCE COMPANY.

. ANNUM, MEETING. A.. . SUCCESSFUL YEAR. 'Tub annual meeting of tho New Zealand Insurance Company was held yesterday ' afternoon. Tho Hon. S. Thome George, M.L.0., occupied tho chair, and the other directors present were Messrs. A. M. Z Myers, L. J. Bagnall, *H. Horton, C. /Rhodes, M. A. Clark, B. C. Carr, and C. V* • Houghton.. An apology for absence " was received from Mr. T. Buddie. Be- -, tween SO and 40 "other shareholders attended. . THE CHAIRMAN'S ADDRESS. 1 ; : . In formally moving the adoption of the . report and balance-sheet, which was published in tho Hekaij) last Thursday, the Chairman said: \\ ' In submitting to you to-day the report and balance-sheet for the past year,'- wo ..,, have no doubt but that it will meet with , your approval. The business of the company is increasing in a most satisfactory manner, and we have again a record to place before you- in our premium income, which amounts to the large sum. of ' £616,416, being an increase on the previous .. year of £51,268, which shows? that we are still making steady progress in the insur--ance world. Our interest and tents amount to £26,342, giving a return of 3.84 per cent., which is a decrease from last :■: year; but this is partly accounted for by f; tho fact that some securities were realised , in order to meet our liabilities caused by the calamity at San' Francisco, and these ':■..'■'.■ gave an amount in cash considerably over the values at which they stood in our books. The result is that wo are now ;' carrying a larger proportion of gilt-edged securities, which consequently means a low ';- rate of interest,, no less than £147,612 of these securities bearing interest at 3£ per cent, and under. As regards the San Francisco disaster, shareholders will be pleased to know that our estimate of; £285,694 for these losses has been ample ; and now. that they have been virtually all , settled there is a small surplus from this >„,•' amount in our favour. ■•■''■

-And now as to the debit side of the account. Our expenses are £144,765? this is 'an increase oil the previous year; but, as our business expands, we must also expect to see an increase- in our expenses. Our losses during the year amount to £406,577; and full provision has been made for all known and unadjusted losses. orTho loss ratio to premium income is 65 96 per cent., and our' surplus on, ■underwriting amounts to £65,073, being equal to 10.66 per cent, on our net premium income, which result shareholders will no doubt consider satisfactory. After allowing for the interim dividend paid last August, the available balance you have to deal with amounts to £81,674, from which your directors recommend the following appropriations: —; £25,000 to be transferred to the reserve fund, which will tiffin amount to £155,000 j and £35,000 to the reinsurance lund, which will then stand at £235,000; these two funds amoiinting to the substantial figure of £390,000. Your directors feel assured, that the policy of building up the reserves will 'meet with the approval of shareholders, and that the question of increased dividend should stand over in the meanwhile. The balance of £21,674 is carried forward to the new account, out of ■which your directors recommend the payment of a dividend at the rate of 2s per j share,' amounting "to £15,000, and making 10 per cents for the year. ' ' V j During the past'year we have inaugu- ! rated a new system for the control of our Australian underwriting, and Mr. Edgar W. Walker, one of our most. experienced and successful officers, who has for a long period acted as manager of the Queensland branch, has now been appointed superinf tendent for the control of our business in the Commonwealth, and we feel assured that under his able management we may look for a large and profitable increase in our underwriting operations in the various

It has become necessary to make further accommodation for our increasing business, and a new building is to be erected in Brisbane at an estimated cost of £20,000; the offices at present occupied will be sold. At Sydney we have purchased an addition to our present building, which is to be at once altered to enable us to cany on our accident branch in the same premises. In Wellington a new building is being erected in'ferro-concrete, at a cost of £12,000, to replace our former offices, which were destroyed in the large conflagration of October, 1906. These buildings and alterations are absolutely necessary to enable us to carry on in a satisfactory manner our largo Slid increasing business.

An amended Fire Brigades Act was passed during the last session of Parliament, and existing fire brigades, and others now being formed, will shortly be operating under the Act. This will mean a considerable extra expense to the companies—one that is sure to grow as new fire boards are formed from time to time; and, as the insurance companies generally have not found that underwriting in tie Dominion during the last • few years has been profitable, and as they are not philanthropic institutions, it will bo necessary, in order to meet this new tax, that the tariff must be raised, and i, probable return to something nearer the rates of 1904 will be needful, so that underwriters may obtain a fair return for the risks they are undertaking. Before concluding, I must refer to the loyal and hearty support that wc have received from our staff, whose efforts and energy have in no small degree contributed to our successful year's operations. Mr. L. J. Bagnall, deputy-chairman, seconded the motion, which was carried unanimously without discussion.

■ ELECTION OF DIRECTORS. On the motion of Mr. G. Winstone, the {retiring directors (Messrs. A. M. Myers, C. V. Houghton, and E. C. Can) were unanimously re-elected. Mr. Myers, in returning thanks for himself and Messrs. Houghton and Carr, remarked that it was unnecessary for him to say it was a very anxious time for all interested in insurance companies, but the directors felt the responsibility of their positions and would continue to devote the necessary time and attention to maintain the company in its present position as * the premier company in the Australasian volonies. (Applause.) THE AUDITORS. Mr. Shepherd moved that the auditors' fee should be increased from £100 per % annum each to £125. There was no se- , conder to the motion, and, on Mr. Alexander's motion, the remuneration was < again fixed at £100 each. Mr. J. M. Menpie proposed that Messrs. J, F Buddie . and A. J. Denniston should be jcappointed auditors, and the motion was carried unanimously.

VOTE OF. THANKS. . M.-. E. flobbs moved a hearty vote of ;; thanks to the directors, officers, and gerie- , raj staff, and agents of the company. ' 'He was glad to see the chairman had "referred in terms of appreciation to the ■-..:• manner in which the employees of the company had carried on -the business.

j Everyone had done his level best to bring | about the success the company ; had | achieved. Considering the various cirI cumstances that were arising in insurance matters the shareholders had reason to feel thankful to the members of the staff for their services. He was not so sure Auckland people should be made to pay the piper for Christen (Laughter.) He thought there should be a black leaf for such things, and he would be surprised if Auckland business had not paid well. ' ■ „:.:' '. Mr. Elliott seconded the motion, which was carried unanimously. The Chairman briefly returned thanks. With regard to Christchurch, it had been a profitable field until recently, but now the companies were' suffering through the fires there. It was the chance of war, and he did not think it would kill the New Zealand Company. (Laughter.) The general manager (Mr. J. Buttle) returned thanks on behalf of the staff for the shareholders' renewed expressions of appreciation. He asked Mr. Minnitt, general inspector for the company (who had recently returned from the East), to speak. COMPANY'S WORK ABROAD. Mr. Minnitt said he was very glad to be able to tell the meeting that he had found all members of the staffs in the various places he had visited working hard and doing their best. Being so far from headquarters it was difficult for the officers in other countries to get into close touch with the shareholders, and he was sure the expression of appreciation of shareholders would be valued in all the company's agencies. He had found at all places where the company was doing business that it was highly spoken of, and that was the result of the fair and liberal spirit in which the company had been administered. Added to that, the way in which the company stood up and paid its losses in so satisfactory a manner at the time of the San Francisco fire had earned for it a very high reputation in America, and no company was spoken of i better than the New Zealand Company. (Applause.) An important point was that through the extended operations of the | company and the people it sent abroad" the Dominion of New Zealand was advertised very freely as well as the company itself. (Applause.)

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/NZH19080213.2.100

Bibliographic details

New Zealand Herald, Volume XLV, Issue 13672, 13 February 1908, Page 7

Word Count
1,532

NEW ZEALAND INSURANCE COMPANY. New Zealand Herald, Volume XLV, Issue 13672, 13 February 1908, Page 7

NEW ZEALAND INSURANCE COMPANY. New Zealand Herald, Volume XLV, Issue 13672, 13 February 1908, Page 7