THE STANDARD INSURANCE COMPANY.

Otago Daily Times, Issue 12602, 4 March 1903, Page 4

THE STANDARD INSURANCE COMPANY.

It is, as Mi John Reicl said in his speech from the chair at the annual meeting of the Standard Insurance Company, not always the good fortune of a corporation that is engaged in the business of underwriting to be able to present a favourable balance sheet. There is, therefore, the lpore reason why the shareholders of the Standard Company should be congratulated upon the success which has, not only last year, but also for some years past, attended its operations. But from the very nature of their business they cannot anticipate that the company will continue long to.enjoy such a comparative immunity from heavy losses as it has lately had. The strengthening of its reserves ■ is, on that account, a step which will commend itself to every prudent person who holds the company's scrip. In the past two years the shareholders have, upon the recommendation of the directors, authorised the addition of £5000 to tjie general reserve and of £5000 to the reinsurance reserve,' bringing the totals of these funds to £30,000 and £20,000 respectively. Tho strengthening of tho reserves a (Fords a substantial safeguard to the interest of shareholders, and it will have the effect as well, Mr ll'eid. pointed out, of giving confidence. to the company's increasing connections. The Standard Company lias also been enablod out of its profits last year to lay aside' £2000 as provision for the depreciation of its securities. Its investments appear in the meanwhile to be well made, and an average return of 4.30 per cent, upon them—as compared with 4,19 ju the previous year—must, at

i- the prevailing prices of money, lie s deemed decidedly satisfactory. Upon all !-. heads, indeed, the company mado diss ! tincfc progress during the past year. If LI j we eliminate in each case the balances •, I that were carried forward, we find thai; ejthe income for 1902 was £102,492, as o against £95,557 in 1901—an increase of .' £G!)ba. This increased revenue was ob- _; tained at the cost of an increased exj penditure of £2010, so that the net credit a balance was £-1925 greater last year than a it was in 1901, when it totalled £11,014. a The whole of this extra profit was de> 1: voted to the reserves, a dividend of 7£ j per cent, with a bonus of 2-j per cent, t 1 being declared, as in "the previous year. 0 • The premium income showed, Mr Ileid explained, jan increase of £do3o over . that earned by the company in the prek vious year. On the other hand, there a was a reduction in the amount of the i losses. In 1901 these totalled £33,016 . j and absorbed 58.04 per cent, of the Ij , premium income, but last year they _! amounted to £30,560, or only 51.57 of e j the sum collected in premiums. From a this comparative statement of the results of the operations of the company for the g two past years it will be seen that there was every justification for the feeling of e gratification which was manifested by j shareholders at the annual meeting. v