NEW ZEALAND INSURANCE COMPANY.

Otago Daily Times, Issue 13206, 13 February 1905, Page 3 (Supplement)

NEW ZEALAND INSURANCE COMPANY.

AUCKLAND, February 8, The annual meeting of the Now Zealand Insuranoo Company , was held this afternoon, the Hon. S. Thorno Georgo presiding in the absence of tho chairman.

Tho. directors in their report for the year ended November 30 stated:— The crcdit balance, after payment of tlio interim. dividend of £15,000 in Only last, is ±'81,519, out of which the directors recommend placing £40,000 to reserves, and that, after paying a dividend at the rate of 3s per share, absorbing £15,000, the balanco of £2G,519 be carried forward to the new account. The paid up capital reserves and undivided profits now amount to £601,519.

Mr George, in moving the adoption of tho report ami balance sheet, said they could congratulate themselves, notwithstanding the great number of largo conflagrations that had occurred during tho period under consideration, in many of which they wore interested, and tiio result of their year's work, although not quite equal to 1903, had been very satisfactory. The net premium income amounted lo £420,310, or £19,600 moro than last year, and was a record in tho. company's operations. The interest and rent account also showed an increase of £1057. Shareholders might consider that tho rato of interest for investments was somewhat low—namely 3.92 per cent.,—but the directors were strongly in favour of a policy of keeping tho company's assets in a fairly liquid form and invested in giltedged security, from which, it naturally followed, f hey could not expect a high rate interest. Even at this rate the interest and rents amounted to 12i per cent, on the paid-up capital, and (he directors wore looking forward to tho time when the revenue from this source ivoul.a he sufficient to pay tho dividend. The Chairman wont on to siy that sinoo their last annual meeting tho Government State Firo Insurance Department had commenced business. Shareholders could rest assured that the developments in this connection were being closely watohed by their directors, who would not allow their colonial business—the result of half a century's operations—to be filched from them.

Mr ,T. Callnan seconded tho mofion. He said shareholders had every reason .to be gratified at tho results of the company's operations during the year. The extension policy was likely to prove.a very wise one, especially in view of tho interference by tho Government of Now Zealand in entering into competition with the legitimate functions of private enterprise .of the citizens and taxpayers of tho colony.—(" Hear, hear.") Tho Government at the present, time was receiving 5 per cent, upon tho whole of the net profits made by insuranoo companies, and one would have thought that that would have bcOn considered sufficient without the Stato interfering in the business itself.—(" Hoar, hoar." Tlio fact that tho company was receiving nearly 4 per cent, on tho whole of its accumulated assets was also proof of its financial stability.

The Chairman, in reply to Mr Callnan's remarks, said that, so far as State firo insurance was concerned, they had to be very careful what they did. As ho had already said, tho directors wero watching matters, most carefully. As they wero aware, ho did not believe in Stato firo insurance "in tho slightest. Ho had made a vigorous, fight against tho passing of tho act, but he was fighting pretty well singlebanded. There was' an idea amongst members that Stato firo insurance would mean a reduction in premiums, they forgetting at the same time that they would be running' the risk of a very heavy loss to tlio country and of tho taxpavers having to put their hands in their pockets to pay -for it. They could depend upon it that tho matter would bo carefully watched, as the directors did not intend to allow- their colonial business, which it. had taken them 50 years to build up. to be taken awav from them without a big fight to maintain it. ■ The motion was carried unanimously. Messrs Thomas Buddie and A. 51. Myers, the retiring directors, were re-elected. ' _ Mr C. H. Bennett, referring to Stato fire insurance, said it should not be overlooked that, even if the insurance business was a profitable one, he doubted whether it would be under Government management. Eight months of the profit of tlio State Department would be going out of the country to tlio people with whom the Government had arranged for its reinsurances. •

Mr J. M. Mennie referred to the /fact that the' company held £75,000 worth of New Zealand: Government debentures. The Government was thus repaid,-actually using the oompsn j ! s ndbpey % enter- into cofftpe-

titiou against it. The company was also paying the Govornmont a substantial tax,, and it seemed to. him that tho position was altogether a very one-sided one.