NATIONAL FIRE AND MARINE INSURANCE COMPANY.

Otago Daily Times, Issue 11277, 22 November 1898, Page 7

NATIONAL FIRE AND MARINE INSURANCE COMPANY.

Tho annual meeting of thu National Tiro nnd Marine Insurance Company was held in the company's head office on tho -17th inst. Mr J. M. Ritehio (chairman ot directors) presided, and some 30 shareholders were preient. ANNUAL BEFOHT. The report and balanco sheet wore taken as read, tho report being as follows: — The directors submit their report and balance Bheet for the twenty-fifth year of the company's operations. The net revenue for the year amounts to £100,988 8 5 ifter paying an interim divi- . dend of £1901 17s Gd there is a surplns of ;. .'. .. 3 019 11 G lo which has to W' added balance from last year .. 14,610 15 -i £17,630 6^lo They now recommend tho payment of a further dividend of 9d per share (making the. total distribution for the, year 19 3d per share), which will absorb . . £ 7,352 16 3 'And to carry forward .. .. 10,277 10 7 - £17,630 6 10 The fullest provision has been made for all blown and unadjusted losses in tho item of iBB2S. The losses for the year, both in fire and marine, have been exceptionally heavy, beginning with the conflagration in Melbourne, and continuing, with several first-class steamers on which tho company held laTge policies. It will be necessary to elect two directors. Messrs J: M. Ritchie and Keith Ramsay retire .by rotation, and offer themselves for reelection, i The rotmne; auditors are Messrs T. Callender and A. G. Fcnwick, of whom Mr Calleuder only offers himself for re-election. The Chairman, in moving tho adoption of the report and balance sheet, said:— In making a few remarks about our accounts for the year I shall begin by calling attention to what all of you, I dare say, have not failed lo notice ere this—viz., the unusually heavy losses we have suffered. They are over £12,000 more than last year, which js moro than enough to upset our profits considerably. The Melbourne conflagration, in which some three-quarters of a million were swept away in a few hours; two fires in Auckland, which destroyed £100,000; besides a much-larger number of small fires in New Zealand than usual; have made the past year a disastrous one for insurance oompanies. In marine, too, such losses as the P. and O. steamer China-and the Mataura. came under the same category as the exceptional fires I have already named. All of them are what may be called special misfortunes. So far as we are concerned, we have had a certain amount of good luck in our disasters; and, "what with that and a good, sound business, I think we may fairly congratulate ourselves that at the end of the year we find ourselves with a loss of about £1000 on our underwriting. Wo have, as usual, made ample provision for unpaid, losses, and whatever may be in front of us we have at least nothing behind us left unprovided lor. With this result of our business proper, it is necessary to point out now how we have got our dividend. This comes from our rents arid interests, which amount' to £8990, and to an inroad on the amount ".which we carried forward in profit and losis account at tho end of last year. Last year this amounted to £14,610, while this year it is reduced ■to £10,277, and the difference, £4333, lessthe increase of reinsurance reserve, £924, .or £3409, added to out interest and rents, gives us the £12,000 odd required to pay our dividend at Is 3d per fahare, or 12^ per cent., as against 15 per cent, last year; and I am sure you will agree with me that the result is fairly satisfactory. It may be said that we ought not to encroach upon our funds lo pay a dividend; but I would remind you that our largo " carry forward " has been intended always lo be used for this purpose in tho caso of a " pinch," and, further, the board feel that -they can fairly look upon our last year's experiences in losses as exceptional. Wo cannot fairly count upon conflagrations and disasters as normal occurrences, and sp we have thought it to be prudent, and consistent with tho very conservative policy of the National, to break the fores of these misfortunes in the way we have done, and 60 .preserve, as far as we can, an approach to equilibrium in our dividends. Turning to the balance sheet, I may point out 'that loans on mortgage are reduced by £19,214, and money on deposit by -£11,500, while tho bank balance is larger by £20,828 and remittances to'London larger by £7000. This position is caused by a recent repayment oi a loan and the prospect of an early reinvestment of a considerable sum, while the romiLiandei lo .London are merely an accident arising from'the-necessities of money being placed there to meet losses. Tho difference between the above figures is the amount by which our funds have been lessened by the payment of dividend—viz., £3409. . It is but right that I should say that everything points to a further reduction in interest, as the rate is lower arid • the difficulty- of investment greater than over. I look upon this as very unfortunate,, as I should liko to see the greater part of our dividend provided from this source, instead of depending on the fluctuating results of underwriting. Our securities continue quite satisfactory. AVe have in hand several hundied pounds surplus from previous " writing-down," tho results having turned put better than our estimates, but we have not taken that into profits, preferring to let it remain as a stand-by for the future. I am very pleased to call your attention to the increase in premium income, which is about £5500 in excess of last year's. There is no special reason for this that we know of other than the eood connection possessed by tho National and, I should be glad to think, the efforts of shareholders in bringing busi ness to their company. I would urge all of them again, as I have done before, to continue this moist effective,' as woll as, I should think,'most natural method of improving the value of their property. The' effect of this increase is to make us add to the reinsurance reserve, as I mentioned above. There does not seem' to have been any advance made in the Government projeoi of State insurance. It is a very Unsettling and disquieting thing for. such property as ours that such legislation should be threatened year after year, and it does not seem to me to agree at all with Mr Seddon's shrewdness'in matters of pounds, shillings, and pence, seeing that the companies' contribute 66 largely lo his revenue.. Our own"contribution is £2220, no inconsiderable part of our total working expenses. However, all I can say_ is: that if the National- ib in the.'-future driven to wind

up by this, shareholders can reckon upon a ,-' thoroughly satisfactory realisation of their assets, .so far as can foe judged by the most careful-sorutiny on: the>part of their.hdard and management. Before closing, I_ wish to refer in a word to' the further misfortune which was added during the past year to ' our others—of grave misconduct in the service of the company, by which certain of our I funds wero misappropriated and, what is al- , most worsei confidence in officers unpleasantly shaken by the wrong-doing of those who \ filled a position .of trust without previous ' suspicion) The amount lest in such a case | is of comparatively ema.ll importance com- | pared with the effect produced by tho mis- I demeanour. I have now to move the adop- j tion of the report and balance sheet, and the declaration of a dividend of 9d per share, making Is 3d per share for the year.—(Applause.) Mr-J. Mitchell seconded the motion for tho adoption of the report, and remarked that the chairman had well and fully slated everything he wished to know, and he was sure that, the shareholders were all satisfied that everything had been done that' could-;-have been done. Considering what they had passed through, a dividend of Is 3d per share was •very handsome. The motion was carried unanimously. t THEDIBECTORATE. Tho Chairman moved that the number of dire'jtore be reduced to seven. As all were - aware, during tho last half-year they had had tho misfortune to lose one of their directors— a gentleman who had been a director from the vjry inception of. tho, company,—the Hon. Mr Lariiach, and it became necessary cither '~0 ele'et another in his place or to pass tho ' resolution which ho now proposed. • The ■ board had come to the conclusion that thcra were sufficient directors as at present constituted. The business of the company was very easily- carried on, and there was never any difficulty in gettinga quontm. The fact of , their being lessoned in number to a small extent would be a saving to the company. "What ho asked them to do was provided for under their rules. * Mr T. W. Kempthorne seconded the motion, which was unanimously agreed to. On the motion of Mr H. North, seconded by Mr C. Haynes, the retiring directors (Messrs J. M. Ritchie and Keith Eamsay) were re-elected. •' AUDITORS. I On the motion of Mr H. North, seconded ' ■ by Mr George Esther, Mr T. Callender and Mr T. S. Graham were elected auditors for the ensuing year. COIiI'LIMKNTAJIT. Mr J. C. Cameron desired to propose a hearty vote of thanks to the directors and staff.. Considering the luck of other insurance companies in the world he thought the shareholders of the National ought to congratulate themselves upon their loss having been so small. He believed tho present divi--dend'was the result of the skill on the part of the management and the staff, and that this should bo acknowledged by the shareholders. _ Dr Hislop seconded the motion, whioh was adopted unanimously. The Chairman, in returning- thanks, said tiat considering what they had passed through

during the last 12 months he was. extremely satisfied with the result arrived at at the end of the year. They, had had this year greater proof than for some time past of the excellence of the business and recuperative power of the National. If they had only kept clear of extraordinary- disasters they would have bo, en in a splendid position, and they had no reason to fear for the future.

The proceedings then terminated.