INSURANCE PROFITS

New Zealand Herald, Volume LXXIII, Issue 22578, 17 November 1936, Page 5

INSURANCE PROFITS

UNITED COMPANY'S YEAR NET SURPLUS HIGHER NO CHANGE IN DIVIDEND Operations of the United Insurance Company, Limited, Sydney, for the \ear ended September .'JO, were more lavourable than in the preceding year. The accounts show a, net surplus for the year of £ 18,329, compared with £.'55,509 in the previous year and £19,068 iu 1931. The dividend is being maintained at last year's higher rate of 8 per cent, as against 7 J per cent in I9;>1. With £7090 brought forward, there is £55, If!! available. The year's dividend requires £30,000. A sunt of £.">000 is added to reserve, making it £2-15,000, £5500 is placed to reserve for equalisation of dividends, bringing it to £IB,OOO, ami £ISOO to the contingent fund, leaving £7419 to be carried forward. Net premiums, interest and rents at £.•500,751 were £.'56,018 higher than those for the previous year, claims for losses were £25,919 more at £191,805, and administration expenses and taxation amounted to £120.620, an increase of only £340 on the. previous year. The principal balance-sheet movements are an increase of £10,650 in debtors to £50,.'550, and a reduction of £10,902 in cash items to £.'18,996. There is an increase of £12..'52)5 in investments. Paid capital is £150,000. LAND COMPANY'S RESULTS HEAVY FALL IN PROFITS QUEENSLAND DROUGHT LOSSES A profit of £10215 was earned by the New Zealand and Australian Land Company, Limited, London, for the ! year ended March 1)1. This compares with £32,860 in the previous year and I £197,1 15 in 19:51. With the balance brought forward, £9967, and after transferring £•'!().000 from the contingency fund, and paying a preference dividend requiring £.51,000. a balance of £9990 has been carried forward. No dividend has been declared on ordinary shares. Ordinary dividend was omitted in the previous year, following 4 per cent in 1931, the first distribution since 1931. Regular dividends have been paid on preference stock, transfers being made from contingency fund for this purpose. The company has sheep and cattle stations in New South Wales, Queensland and Western Australia, and also holdfe land in Otago. The directors in their report direct attention to the fact that heavy losses were made in Queensland because of the drought. LONDON STOCK MARKETS MORE SUBDUED TONE SILVER HAS MILD BOOM LONDON. Nov. 15 Last week's boom-like conditions produced a reaction early this week, 'lhe upward movement lost momentum except in one or two individual groups, such as tin shares, which have not yet discounted the gains from the increase in the quota. However, the growing activity of trade and the belief in further progress have generally maintained the strength of public securities which, in spite of the darker background of European politics, is still stimulated by Mr. Roosevelt's victory, which is expected further to advance American industries. Nevertheless, Mr. Roosevelt's subsequent references to the possible control of foreign buying of American securities have greatly surprised the City, as the imposition of restrictions of dealings by citizens in a friendly country is unprecedented in peace time. Financial commentators consider that Mr. Roosevelt aims at preventing a repetition of the boom catastrophe of 1929, and American authorities are possibly perturbed at the recent rapid appreciation of the dollar, which is mainly due to the influx of foreign funds for investment. The markets closed the week with a. somewhat subdued tone, partially owing to profit-taking. Industrials and gilt-edgeds were firm, and Dominions quietly steady. Tin closed at £212 a ton. Lead and spelter were active. Silver had a small boom during the week, and touched 22 15-1 Gel when Indian speculators became sellers. Several million ounces are reported to have changed hands, until brokers had difficulty in finding buyers. The price finally declined to 21d.

COMMONWEALTH LOAN LIMITATION OF THE AMOUNT NATIONAL BANK'S COMMENT The National Bank of Australasia, commenting i<i its latest circular on the terms of the forthcoming Commonwealth loan, states: "it is reported that several of the State Governments consider that a larger amount should bo raised, in order to avoid curtailment of existing programmes of public works, also that the rate of interest is somewhat. high. "Limitation of the amount, however, has not been made without careful consideration of all relevant factors, l't is much better to make a successful issue of moderate amount than to ask for more than the investing public will subscribe. "Other unfavourable results of excessive issues are that they force interest rates upward and limit the amount of funds available for the conduct and development of ordinary industry and trade. Interest rates have been finning for some time past, and the now offer is in lino with current market quotations." STOCK SALES VALUES AT WHAKATANE lIS Y TELECItAVII— OWN COR KKSI'ON DENT] WHAKATANE, Monday Palgct.v and Company, Limited, reports having held a-successful sain at Wlmkatane, when a largo yarding of cntt-lo came forward. Pics were penned in average numbers and prices showed a market advance on recent rates. Competition was spirited and the complete yarding changed hands under Iho hammer. Fat Jersey and HoistHn cows made XT. Ids to XT. :17s; medium fat cows, .CI IDs (id to XT. Is; light, killahle, X' 3 to £4 ss; store cows, X"_> 10s to X"_> l/is: others, Uss in l"_> 7s; yearling Jersey heifers, CI to CI •1s; Jersey hulls, XT. to £7; choico Jersey heifers, close to profit, .C'B to X)>; medium Jersey heifers, £(i to £7 fis; sound dairy cows,' CI to X 8 128 (id. I'igs: Porkers, to £'J Is; large stores, XI 1 'is to X"2 Is; slips to X'_> 7s; weaners, to Us (id. PRICES AT PAKARAKA [FItO.M OUK OWN cohhespondknt] WHANOAREI, Monday Palgct.v and Company, Limited, reports having had a successful sale, in conjunction with the New Zealand Loan and Mercantile Agency Company, Limited, at Pakaraka on Saturday, when the annual drafts of cattle and fat and forward wethers came forward from local breeders. There was ft large bench of buyers, and everything was sold under keen competition. Quotations:—Cattle: Two-year-old empty Polled Angus heifers, £~> to X 5 .'is; empty Hereford heifers, to £5; empty Shorthorn heifers, to XI l!is; two-vear-old Shorlhorn steers, .c:i 11s to XI Ills; mixed-coloured fat bullocks, XI) 1-ls to XlO 7s- run Shorlhorn cows and calves, to •»s- empty Hereford cow?, forward condition, XT> 15s to X(> 15s. Sheep: Good condition' four anil six-tooth wethers, '-'.'is 2d to "Is (id; smaller store condition fnur-tooth wethers, to 22s 10u; fat wethers, four-tooth, 20s Od to 2lis (id.