RECORD PREMIUM YEAR.

New Zealand Herald, Volume LXIV, Issue 19779, 28 October 1927, Page 14

RECORD PREMIUM YEAR.

SOUTH BRITISH INSURANCE. EMPIRE-WIDE OPERATIONS. VALUE TO THE DOMINION. A year of record premium income was reviewed at the annual meeting of the South British Insurance Company, Ltd., yesterday. Mr. E. R. N. Russell, chairtaan of directors, presided. In moving the adoption of the annual report and balance-sheet (published in the He&ald on October 19), Mr. Russell directed attention to the fact that for the first time in the history of the company the premiums had exceeded £1,000,000. "This increase and a great proportion of these premiums," he said, "are not from this Dominion, nor is more than a small portion of the moderate surplus appearing in the underwriting account. The greater part of the company's business comes from beyond these shores. The funds for investment and for dividends thus made available are of real service to this country. Deposit of Security Funds. "This company and the other local offices have largo assets in the Dominion," Mr. Russell continued.

"Insurance companies other than local companies are required by law to deposit funds as security for the protection of policy holders. Parliament in its wisdom —a wisdom which has the approval of common sense—has fixed these deposits, and the total is about £1,000,000. A private person, acting as agent for private individuals abroad, may effect insurances to an unlimited amount by depositing not one penny. If the deposit required from companies with many millions of capital and reserves be just and necessary, how much more so is it from any individual or individuals who publish no accounts, or show any assets specially applicable to meet losses in this Dominion. Surely an anomaly of this character will soon be rectified.'' Expenses had been slightly reduced, and after providing the usual reserve for unexpired risks the balance at credit of the underwriting account was £83,385. Of this sum carried to profit and loss account, £75,000 had been passed to reserve fund, £SOO to sinking funds of leaseholds, and the remainder carried forward. Interest and rents had yielded £120,780 and the directors now recommended the payment of a dividend of Is 2d a share, making, with the interim dividend in April, a distribution of 2s 3d a share for the year.

From time to time, as reserves had been accumulated, transfers to capital account had been made, and the directors had decided to call up the amount unpaid on all shares. Accordingly a call had been made. To meet this call the directors recommended the payment of a bonus of 5s a share. This would have the effect of removing any objection to shares being retained in deceased estates on the score of the liability on them, however remote the reserves might make such a contingency. Carrying New Zealand's Name. The result exhibited in the accounts at this, the fifty-fifth annual meeting of the company, could not but give satisfaction, said Mr. Russell. The Queen Street premises where the meeting was being held, or its predecessor, had been the home of the company during practically the whole of its existence, and from it the business of the concern had spread practically over the whole of the British Empire, carrying the name of New Zealand from one side of the world to the other, with, it was believed, credit to the young Dominion. To Great Britain, Egypt, India, China and the East, South Africa, Tasmania, the South Sea Islands, and California, its business extended and in nearly all those countries it was carried on in the company's own freehold premises. In London and Auckland the company was still a leaseholder, but the approaching termination of the 50 years' lease of the Queen Street premises had been provided against by the purchase of the old site of Messrs. L. D. Nathan's premises, and plans had been prepared for the election of a handsome building which should be a creditable addition to the architectural amenities of the city—a building to stand for solidarity, stability, permanency, and architectural distinction. rhe architects were Messrs. Grierson, Aimer and Draifin, and the builders the I-letcher Construction Company. "In such hands," said Mr. Russell, " we feel suie that in, the specified 15 months we snail enter our now offices." Guardian Trust's Work.

In its staff the company hail been well served, and through the medium of the provident fund they had a stake in the company beyond that of employment. The fact that the company's fortunes were theirs created a personal incentive ever leading to better things. The board's decision to distribute among them a bonus, he felt sure, would meet with the hearty endorsement of the shareholders. Thanks were expressed to local directors and agents of the company. « Mr. Russell, speaking of the Guardian Trust, said the personal attention of the directors was devoted no less to its interests than to those of the South British. The business was growing and the best references came from those for whom the trust had acted.

The motion for the adoption of the annual report and balance-sheet was seconded by Mr. J. 11. Upton and carried.

The company, said Mr. Edward Anderson, possessed a very real asset, in the personal services of the directors. On Mr. Anderson's motion a vote of thanks was accorded the chairman of directors, other members of the board, the general manager, Mr P. H Upton, staff and agents of the company. Mr. Russell acknowledged the tribute on behalf of the directorate. Mr. P. 11. Upton, doing likewise for the staff, said the watchword of the company was " equity." It had successfully pursued, the policy of"*' playing the game" with the insuring public, meeting all legitimate claims promptly and without a quibble.

Messrs. A. B. Roberton and V. J. Larner, retiring directors, were rc-elected, and Messrs. J, A Duncan and N. A. Duthie were re-appointed auditors.