NATIONAL FIRE AND MARINE INSURANCE COMPANY.

Otago Daily Times, Issue 13136, 21 November 1904, Page 3 (Supplement)

NATIONAL FIRE AND MARINE INSURANCE COMPANY.

ANNUAL MEETING OF SHARE- - HOLDERS. The thirty-first annual general meeting of shareholders in tho National Fire and Marino Insurance Company of Now Zealand < was held in tho company's offices, Rattray 'Streot, on Thursday afternoon. There wero about 40 shareholders prcsont, and Mr Keith llamsay, vice-chairman of directors, pre< sided, in the absence of Mr J. M. Ritchie, chairman, who is at present on his way x to tho colony after a visit to tho Horn# Country. Tho directors' report stated: Tho directors submit their report and b»l« ance sheot for the thirty-first year of the company's operations: — The net revenue for the year amounts, to ..£126,049 3 1

Alter paying an interim dividend 1 , of 17500 there is a surplus of £10,314 9 11' To which has to be added balance * from last year .. .. .. .. 15,71511 8 ;; ;; ;; jm6,MO I J The directors have added to reserve fund » 20,000 0 0 ;; £26,6<» 1 % - And they now recommend the payment of a further dividend i>f liirfepence per share (making . tlie total distribution for the year Is Gd per share), which will absorb- , v ..£ 7,300 OS And to carry forward 19,160 1 7 £26,GG0 1 51 It will he ■necessary to elect two directors. Messrs J. if. Ritchie, and Keith Ramsay retire by.rotation,.and offer themselves for re-elec-tion • The .retiring auditors are Messrs T. S. Graham and E. R. Smith, who offer themselves fot're-election. Tho Chairman, in moving the adoption of' the "report and balance sheet, said: Gentlemen, —Wo will as usual, I suppose, take the report and balance sheet, which have lieim in your l,amU for as read. No doubt the result of the year's work came is a pleasant surprise to shsjeholders, who cannot have failed to notice the numerous and heavy losses by fire in New Zeaiand since February last; but fortunately 'we have two strings to our bow, and tho maxiuo branch of our business did! very well last year. Besides which, as has been frequently pointed out to you at pre-' viom meetings, the larger part of the company's income is drawn from outside the colony—a fact that shareholders in our own and the other local companies cannot ha too thankful for. There is not much to say aliont the figures, which disclose a solid' position. Loans on mortgage are £30,634, and debentures £4690 more than last year, while money on deposit has decreased £10,125—a change due to the better rate of interest obtainable now;—and our return from investment.; shows tho gratifying increase of £1332 over that of the previous year. Wo are hopbful that the time is not far, distant when iho company, will to able to'pay tho present dividend from this item alone. We propose to carry forward at this timo £19,160, and, barring extremely bad luck in cur underwriting business, whioU wo may have, but do not by any means anticipate, tho present dividend seems assured to shareholders for a good many years to come. This view of our position would appear to be held by tho investing public, os since the issue of tho balance shbbt the company's stock has hardened by more than the amount of dividend your directors reepmmend should- bo paid. Tho net premium income has increased £3445. This is not so large an advance as we would like, but still it is a step forward, and under existing conditions something to.' be thankful for. Tho National Insurance Company has a.largo and influential body of-charc'holdcrs, to tho groat majority of whom we are indebted for a constant loyal support, but there are somo who, in their own interests and in thoso of tho company generally, might materially help us if they had a mind to" May I again respectfully remind them of this obligation? Tlie directors are glad to have been able to add to the strength of tho reserve fund l by an addition of £20,000. This fund now amounts to vHO.OOO, and wo are gratified by the many, appreciative messages wo have received from shareholders and others throughout the colony on our ability to make this necessary provision from the profits of last year, I am sure that you til thoroughly endorse cur poiicy, which ia .amply justified by the example and experieaee of the best insur- / ance companies' in the -world. Every time there is a conflagration of magnitude—and there have been several this year in othor countries, running into millions of pounds each—many weak companies drop out, while those who have provided, as far as possible, for every contingency grow stronger than ever. Xfc should ncrfc do forgotten tliac wo also are liablo to conflagratious. With these reraarks I have, pleasure in moving tho adoptiwi of tho report and balance sheet.—(Applause.) ' Mr G. L. Dennisiwa said he had very . great pleasure in seconding the motion for tho adoption of th-> report and balance , sheet. 110 thought lie expressed the feelings of tho shareholders, not only of those who were present, but also of those .who were abseut, when he said that both the shareholders and ths management had to bo very heartily congratulated on the result of tho year's work. They all knew that there was a certain amount of ehanco, or of luck, attending ihe conduct of an insurance business, and no amount of good management could i:i:.vcnt a bad year from happening sometime?. At the same time it would lie ungenerous of tho shareholders if they withheld from tho management their very heartiest approbation of the careful work of tho year, ss evidenced 'by tho increased business aiif.'. the small proportion of losses. Ho saw by tho balanco sheet that tho losses for tire year amounted to only some 46 per rent, of the premiums—a proportion which, he understood, all insur- '■ ance. companies regarded as a small proportion. Tho shareholders, lie believed, appreciated the action of the management in deciding'to'carry to tho reserve fund such a largo sum t? £20,000. Companies of the kind ought to 1« strengthened as far as possible, becsase, as tho chairman had said, one neve? knew when a sevoro strain might be placed upon their funds. For himself he hoiwi', to see tho reservo fund added to from year to year, and he considered tho divided it was proposed to pay was an ample, return to tho shareholders.— (Applause.) The motion was carried unanimously. , ,J "v Mr John Mill moved tho re-eleotion ot Messrs J. M. Ritchie and IC. Ramsay a? • directors of the company. He was sure thpt evey one of the slmrcholdcrs was satisfied that, in the ham!.- of the present, board, all their interests wi re well and carefully conserved. At tho same time there wero somo shareholders who thought that the directors might have given a higher dividend this year, instead of laying -up a reserve fund that their children and their children's children would get tho advantage of. They considered that the' directors might have given 6d, or at least 3d, a share in the way of extra dividend. He knew that the directors felt somewhat scared of tho Government Insurance Department, but ho could assure- thorn that they need ; not fear that the Government would.interfere with tho business of the National, or any other insurance company in New Zea- : land. The Government rates would not I be one halfpenny below thoso of the companics, for the reason that if they woro a loss would result. When tho Government started its accident insurance branch it was agreeable to join with the other two companies in that lira*, and tho-samo thing, he was certain, would occur when the Government undertook fire insurance of * accepted marine risks. For those reasons ho thought the directors need not be afraid of the Government "bogey." At anyrate the suggestion ho had been requested to bring forward was thnt the dividend should ' have been higher this year, and ho would leave the matter in tho hand of tho directors, recognising that they know_ best how to deal with tho company's affairs in tha interests of the shareholders. Ho wonld add that the shareholders all»felt deeply indebted tp Mr Ritckio and Mr Ramsay for the interest they had taken in the welfare of the oompany.—(Applause,) Mr J. Arkle seconded the motion, which was carried unanimously, amid applause. The Chairman returned thanks for tho re-election of Mr Ritchie and himself. They would continue to do their best with the - affairs of the oompany in the interests of the shareholders. On the motion of Mr J. R. Sinolair Messrs T. S. Graham wd.E. R. Smith were re-elected auditors.