NEW ZEALAND INSURANCE COMPANY.

New Zealand Mail, Issue 387, 12 July 1879, Page 20

NEW ZEALAND INSURANCE COMPANY.

(PER PRESS AGENCY.) Auckland, Wednesday.

The half-yearly meeting of the New Zealand Insurance Company was held this afternoon. The report stated that, after deducting the sums paid for reinsurance of surplus risks, the incomes from premiums amounts to £94,819 ; interest, rents, and transfer fees, to £II,BOO. The losses, paid and outstanding, amount to £97,383, and after payment of, and providing for losses, commissions, and general expenses, the accounts show a balance of £11,523. The directors are enabled out of interest accrued on investments, to declare a dividend of 10 per cent, per annum, which leaves £1523 to be carried forward to the profit and loss new account. During the past halfyear, the report adds, business has been greatly depressed, and the losses also exceptionally heavy ; nor can the company expect much better results whilst the present excessive competition for business and the reduction in the rates continue.

The Chairman, in moving the adoption of the report, said the chairman on tl.e last occasion stated that we had the competition of twenty rival companies, all keenly competing for business, and striving to obtain it by offering the bait of lower rates, and further stated that even then low rates would iu all probability not be maintained, and that we would in self defence be compelled to grant our supporters as favorable terms as they could obtain elsewhere. I need not now go

into the history of insurance companies in Auckland since the statement was made, as it is a matter of notoriety, and however anxious your directors have been to secure a fair share of business, they have not considered it for your interest to follow suit in accepting of premiums at so low a rate as some companies have been taking risks for. During the last half vear the amount of premiums has not only suffered very materially from the cause named, but also from the great and general depression of business, and consequent depression in the amount of exports from tho mother country, seriously affecting the profits of the marine business concurrent with decreased premiums. Wo have been passing through one of these periods of exceptional losnes which occur at intervals, and which sweep away all profits for the time being. We have suffered from severe casualties in both lire and marine risks, notably the latter. For example the Schiehallion from this port homeward bound, the Northam and Loch Lunart outward bound, and of our colonial risks the Taupo, Kate Waters, Keonge, Blanche, and others, all of which any company would only too gladly have inscribed in their books. Dunedin, Christchurch, Greymouth, Greytown, and Gisborne have been conspicuous for fires, and but for our precautions in freely reinsuring many of our heavy lines in single policies, would have been much heavier losses. I need hardly call your attention to the fact of the Government having offered a reward of £SOO on conviction of any incendiary, or to the inference to be drawn therefrom, as it is only too patent that in depressed times insurance companies have to cover the " moral hazard" a.s well as ordinary risks. You will note by the figures in the balance-sheet the heavy demands we have had to pay and make provision for, and it must be a source of congratulation to the shareholders that these demands have been met without touching in any way on the reserve fund, though absorbing the premiums. The report was adopted. The dividend warrants will be payable tomorrow (10th inst.), and at branches and agencies on the receipt of advice. The profit and loss account is as follows : Dr.: To dividend for the half-year ending November 30th, £15,000 ; commissions, salaries, and other expenses, £25,411 ; fire and marine losses, £69,729; appropriation for unpaid losses, £27,654 ; balance, £ll,s23—total, £149,318. Cr.: Balance from last half-year, £19,383; appropriation last half-year, £23,415 ; fire and marine premiums (less re-insurance), £94,819 ; interests, rents, and transfer fees, £ll,BO0 — total, £149,318.