INSURANCE BUSINESS.

New Zealand Herald, Volume LXIV, Issue 19808, 1 December 1927, Page 9

INSURANCE BUSINESS.

MERCANTILE AND GENERAL. YEAR'S OPERATIONS REVIEWED. The annual general meeting of the Mercantile and General Insurance Company was held in Wellington on Monday, Mr. James Mcintosh presiding. The following officers were elected for the ensuing year:— Directors, Messrs. Mcintosh (chairman), H. M. Haycock, A. J. Rigg, J. W. Davys, J. R. B&ird, W. J. Seatcr and A. EcclesJ general manager, Mr. F. Hurley; secretary, Mr. F. Chorlton. The annual report, which was adopted, stated that the figures for the first quarter of the current year indicated a continuation of pleasing improvement. Premiums showed an increase of £42100 over the corresponding quarter of last year and the expenditure was on a reasonable basis. Losses at 18 per cent, gave cause for great satisfaction. The Sydney branch continued to show very good results and other branches were also doing well. It was anticipated that the premium income in the current year would be £50,000. The company was prevented from transacting accident business until March, 1926, owing to a flaw .in the Companies Act. A. anticipated the inauguration of this department had materially improved the position of the company, gross premium income for the year being £12,018 14s 9d and gross losses only £2964 lis lOd. The company's investments showed thf; satisfactory averago yield of 5.55 per cent. After transferring £2843 4s lOd to reserve for unexpired risks there remained a net profit of £2042 9s Bd. which the directors recommended should be carried forward. The sum of £1461 15s, premium on shares reserve, and tho sum of £l6B, profit on sale of forfeited shares, had been transferred to reserve for unexpired risks which now stood at £8779 10s 6d. The chairman stated that the year under review had been in some ways a difficult one owing to the depression in trade and to the abnormal fire losses experienced by all companies throughout tho Dominion. It was interesting to note that firo losses in 1926 were £300.000 -in excess of the losses in 1925. This made business difficult and necessitated a very cautious policy to avoid undue losses The gross premium income for the year was £28,41.2 19s Id and the net premium £21,926 6s 3d The net premium for the year 1926 was £10.744. It was a matter of congratulation that for the first lime the trading operations had resulted in a net profit of £2042. It, could bo safely said that tho company had turned the corner and that the prospects were most encouraging. Consideration was being given to still further extending the company's activities.