INSURANCE YEAR

New Zealand Herald, Volume LXXII, Issue 22240, 15 October 1935, Page 5

INSURANCE YEAR

SOUTH BRITISH ACCOUNTS HIGHER PREMIUM INCOME UNDERWRITING PROFIT FALLS The accounts of the South British Insurance Company, Limited, for the year ended August 31 show a riso in net premium income of £82,225 to £895,697, the highest total since 15130. However, losses and expenses were higher and an increase- in the risks reserve was necessary, -resulting in a decline in the underwriting profit of £20,557 to £94,782. There was a further moderate improvement in the income from interests and rents. Interest and rents received nnd accrued, loss rates and taxes, amounted to £12(5,756, which, added to the premium income, makes a total of £1,022,453. After full provision has been made for losses outstanding and for taxation, there is a surplus of £04,782 in underwriting account. The total amount available is £221,538, after adding income from interests and rents.

Addition to Directorate This amount has been dealt with as follows: —Written off premises, £30.000; transfer to contingencies reserve, £50,000; interim dividend of Is 4d a share, £68,776; and a final dividend now recommended of Is 4d a share, making 2s 8d a share for the year, £68,776. This leaves £3986. which, with the balance brought forward, £215,744, makes a carry forward -of £219.730. The directors state that during the year Mr. P. H. Upton retired from tho position of general manager and accepted a seat on the board. Mr. James Morton was nppointed goneral manager. The retiring directors are Mr. S. Austin Carr and Mr. E. R. N. Russell, who are available for re-election. Comparison of Results

Following is a comparison of tho company's results for the past three years: — 1933 1931 1935 Prem. income £791.538 £813.472 £895.007 Expenses . . 295,571 275.104 277.974 Ratio p.c. . . 37.34 33.83 31.03 Losses ' .. 431,505 422.909 482.941 Ratio p.c. . . 54.51 52.00 53.92 Risks reserve 450,000 450,000 490.000 Surplua .. £04.402 £115.339 £94.782 Int. and rents 122,925 124.090 120,750 Brought for'd 203,432 213,207 215.744 Totals . . £390,819 £453.290 £437,282 To reserve . . Premises sc. 40,000 Conting. reß. Div., 2s 8d .. 137.552 137,552 137,552 Carried for'd £213,2G7 £215.744 £219.730 Movements in the chief balance-sheet items are as follows: — LIABILITIES £ £ Paid capitnl . . 1,031,040 Reserve fund .. . 1,000,000 Specific reserves 1.048,601 +101.214 Creditors, etc. 00.801 +1.918 P. and L. ac. 258.50G +3.956 ASSETS £ £ Premises 433.112 —28.794 Mortgage loans . . 80.227 +16.541 Shares in subsidiaries 282.270 +125 Othrr investments . 1,983.901 +34.850 Cash items, etc. . 572.830 +92.349 Debtors , . . . 71,200 -7,953 Total assets are £3,429,612, an increase of £107,118.

. THE GUARDIAN TRUST ' GROWTH IN 20 YEARS A statement of the position of the Guardian Trust and Executors Company of New Zealand, Limited, as at-Auc-ust 31, shows that the amount at credit of estates under administration, including amount due to creditors of trust estates, was £9,047,624, and securities held as trustee for debentureholders totalled £3,591,678. New business for the year affected assets totalling £1,045,637. The total value of assets now under tho administration and control of the company is £12,639,297. Twenty years ago the figure was only £10,650.