Phoenix Assurance Company Ltd.

NZ Truth, Issue 579, 22 July 1916, Page 4

Phoenix Assurance Company Ltd.

Result of 134 Years' Bu»lr>«99. When one ha.n 10 d<?nl with tho affair* of (i company which can point to nr> lonjf a Hfollrne In bui»ln««»»«, « very unuHiml suite at nffain* may b«* cxpvi-tcd, Th<t tSrst qurstfon that nn*.>n i« n»turu!. how It becutno pottKibltf to till «v tfrcat a span m Ui«

Empire development? Looking back into the early history of this great company, the fact that it was m business at the time of the great South Sea Bubble, gives some idea of tho strenuous times it has faced and weathered. Well, the outcome of reflection must be that no matter what the times were, this company was fortunate m being able to meet all the demands that were made upon it. At every point m its development the company had the technical equipment which guided it on to the position which is now made clear m the figures presented to its shareholders at the general meeting held m April last. A year ago when reviewing the accounts then presented, "Cambist" stated that the next balance-sheet would provide very interesting reading. That prediction is completely fulfilled by the results. Turning to the report of the directors, the net premiums m the Fire Department amount to £1,456,853, and are greater by say £28,000. This shows progress m business, and pbssibly some higher rates. The net losses out of this enormous Income was only 6017 per cent, a very low rate of loss indeed. Nevertheless, the losses totalled £739,---030, ■which was £61,000 less than tho year previous. The expenses rate was only 89.1 per cent., Just a point higher. That little point, viz., .1 per cent, represents £11,700, and the total of the expenses .In this department was m money £669,920. It will be noticed that when MILLIONS ARE DEALT WITH, a very small point one way or the other makes a vast difference with the results. On the whole tho company has gathered into its great profit and loss account a matter of £75,000 more for this year. The not premiums In the Marine DePaftroem are greater by £340,890, at £L0d3,614. In one glance can be seen the vast increase that underwriters have scooped up. With marine tonnage depleted by IS per cent, owing to the pirate warfare, the story of increased cover is brought home to those who do business m ships. Of course, the losses have been heavy, £ 671,061, as against £464,742 m the previous year. The largo Increase, say £207.000, tells us that no matter how carefully risks are handled, the war hazard was a factor that no one could fully cover. Still, there is much to the good \lef t for the shareholders. Their profits totalled £127,168 for the year, as against only £ 60,044 the year before. In other words, the profits were more than doubled. The Accident Insurance Department did an increased business this year, for the net premiums were £ 6,000 more at £103,482. The profit from this branch was £11,641, practically the same as last year. The vast increase of workers does not seem to have brought much profit' to the accident branch of the business, so possibly the wages bill paid m tho "Old Dart" is just as hungry as ever. How they do starve the workers there! The Life Department has Just Had the quinquennial valuation made. Tha position shown is very satisfactory to the insurers, and the funds held amount to £10,823,067. The most interesting feature about the valuation made is that £195,019 bad to be written off the market values of the stocks and debentures to bring them into line with current prices. Considering tho large amount of funds held m this branch of the business, the amount is very much smaller than was anticipated The reason ia plain enough when one runs the eye over the list. The company has very little money Invested m purely Stock Exchange securities. British Consols or other fluctuating, assets. The total writings oft for all the branches is £269,019, £74,000 being for the departments outside the life insurance funds. Nothing better caa assure the company's customers of the stability of the institution than the wonderfully .safe and liquid class of ita assets. There is practically NO WEAR AND TEAR ABOUT THEM. They are solid and good, and the best that long tlmo experience dictates. No doubt the lessons of Waterloo have not been forgotten, and the company has all these facts recorded m its ancient tomes. Tho shareholders draw the nice fat dividend of £40 per cent, but it Is not put In that blunt fashion m tho report It is recorded that the "dlwy" Is 8s per share. Tho shareholders have a liability of £2,787,795, which 1b a very comforting fact for nervous insurers, especially when the other comforting foature. of £16,873,952 If revealed as tho funds of the company at balance data. All of theso funds should certainly bo sutl)olen( for tho dolly and hourly risks which beset humanity.