INSURANCE YEAR

New Zealand Herald, Volume LXXI, Issue 21932, 16 October 1934, Page 5

INSURANCE YEAR

SOUTH BRITISH COMPANY LOW RATIO OF LOSSES RECORD UNDERWRITING PROFIT The accounts of the South British Insurance Company, Limited, for the year ended August 31, show a substantial increase in the underwriting surplus, which at £115,339 is £50,877 higher than in the previous year. This is the highest yet recorded and is accounted for by an increased premium income as well as by reductions in losses and expenses. The ratio of losses to premium income, 52 per cent, is the lowest sinco 1920. Ah announced in the Hkkald on October 12, the year's dividend is unchanged at 2s 8d a share. The transfer of £IOO,OOO to general reservo brings this fund to £1,000,000. The net premium income for the year amounted to £813,472, which, with interest and rents received and accrued after payment of income tax, £124,690, makes a total of £938,162. After making full provision for losses outstanding and for taxation, there is a surplus in the underwriting account of £115,339, making, with the £124,690 received from interest and rents, a total amount available of £240,029. Directorate Changes This amount has been dealt with as follows: —To reserve fund, £100,000; interim dividend of Is 4d a share paid in April, £68,776; a final dividend now recommended of Is 4d a share, making 2s Sd a share for the year, £68,776. This leaves £2477, to which is added the balance from August, 1933, less the dividend paid in October, 1933, £213,267, making to lie carried into the new accounts €215,744. The directors refer with regret to the death of Mr. A. B. Hobertoii and state that the vacancy on the board had been filled by the appointment of Mr. Kenneth B. Myers. Tho vacancy caused by the death of Mr. H. O. Nolan in the previous year had been filled by tho appointment of Mr. S. Austin Carr. Tho retiring directors, Mr. Myers and Mr. V. J. Lamer, arc available for re-election. Comparison of Results Following is a comparison of the company's results and appropriations for the past three years:— 1931-32 1932-33 1933-34 Prera. income ,£791,5118 £813,472 Expenses 274,089 295.57 L 275,104 Ratio p.c. .. 33.83 Losses .« 470,290 431.505' 422,909 Ratio p.c. .. f>S.4O 54.51 52.00 Risks reserve 450,000 450,000 450,000 Surpluß .. £(>0,255 £04,402 £115,339 lilt, and rent 132,908 122,925 124,090 Brought for'd 188,121 203,432 213,207 Totals .. £381,284 £390,819 £453,290 To reserve Sinking fund 300 Written-off prem. .. 40,000 40,000 Div. rato ■> 2« 8d 2s 8d 2a Sd Amount .. 137,552 137,552 137,552 Carried forward . £203.432 £213,207 £215,744 The paid capital- is unchanged at £1,031,640. The reserves, which include a new item, contingencies reserve, total £1,947,388, compared with £1,662,437 in the previous year. They are made up as follows: General reserve, £1,000,000; reserve for unexpired risks, £150,000; reserve for losses outstanding, £93,565; investment fluctuation fund, £263,823; contingencies reserve, £140,000. Against the increase in reserves, bills payable and sundry creditors at £58,946 show a reduction of £154,513. Total assets at £3,322,494 compare with £3,189,578. The company's premiums, loans on mortgage and investments are shown at £2,762,794, against £2,671,620. Guardian Trust Progress A statement of tho position of x the Guardian Trust and Executors Company of New Zealand, Limited, as at August 31, shows that the amount at credit of estates under administration (including the amount due to creditors of trust estates), was £8,678,721, and securities held as trustee for debenture-holders amounted to £3,840,205. The report states that new business for the year affected assets of a total value of £1,255,407. Realisations and estates and agencies closed accounted for £377,209, leaving a net increase of £878,198 in assets under administration. According to a return showing the growth of the company, assets under administration have increased from £10,650 to £12,518,926 during the past 20 years. GUARANTEE CORPORATION POSITION OF RESERVES [Bl r telegraph—OWN correspondent] WELLINGTON", Monday Tho annual mooting of shareholders of tho New Zealand Guarantee Coi--poration, Limited, was held to-day. In moving the adoption of'the report and balance-sheet the chairman, Mr. W. Thorpe, emphasised the fact that tho corporation's assets wero in a liquid state. Ho also pointed out that if the recommendations of tho board were carried, the general reserve account would be increased to £30,000, which, together with £3256 carried forward, would make tho total reserve equal to slightly more than 46 per cent of the capital of the corporation. Mr. W. Appleton, vice-chairman, in seconding the motion, endorsed tho remarks of tho chairman. All the recommendations of tho directors wero adopted. Messrs. S. Kirkcaldio and G. W. Magnus, the retiring directors, wero reelected unopposed. A final dividend of 2d a. share was paid to-day, making a total of 4d for tho year Details of the corporation's accounts wore published in tho Hkkald on October 3. PUKEKOHE PRODUCE NEW POTATO PRICES [from our own correspondent] PUKEKOHE, Monday Pukekohe now potatoes have now firmed in value, to-day's quotation of from 13s to 13s 6d per cwt., f.o.r. Pukekohe, showing an increase of 2s per cwt. on last Monday's figure The quantity of early potatoes this year has been much in excess of that of other years. Very heavy diggings before the- demand had set in forced the price back below its real value. With a more general demand now the price has moved back to what appears a firm enough value, and tho demand has further increased. A shortage of labour last week left the demand in excess of supplies, and had it not been for the rain to-day the quantity available would have been much larger than that of any day this season to date. There is now, however, every indication that a steady demand will hold right until Christmas. To-day's price compares more favourably with the corresponding quotation last season, for whereas last week prices were 7s per cwt. below, tho difference now is only 2s. Last week, consignments by rail from Pukekohe totalled 232 tons, an increase of 66 tons on last year. Locally-grown onions remain at from 0s to 0s 6d per owt., cauliflowers, 6s 6d per largo sack; cabbages, 6s per sack..