NATIONAL INSURANCE COMPANY

Otago Daily Times, Issue 14683, 17 November 1909, Page 3

NATIONAL INSURANCE COMPANY

ANNUAL MEETING. Tho annual meeting of the National Insurance Coinpanv of New Zealand, held at the company's office yesterday, was attended bv about 30 shareholders. 'The chairman of directors (Mr J. M. Ritchie) presided, and in moving the adoption of -he report and balance sheet, an abstract of which has been published in our columns, said:—l am Wad to have the pleasure of meeting you again, r.nd especially with a balanco sheet of a fairly favourable character. This to some extent is an unexnected pleasure, as for a large part of the 12 months losses were heavy and prospects not bright. Although wo have come out fairly well all over, business in New Zealand has been, and continues to bo. bad, and there is every -eason to suppose that, as it has been for a year or two, money was lost last year throughout the Dominion. You have all probabiy noticed the results of file State Fire office, which has made a smart 'oss. 1 presume consolation for this is to be fennel iir the fact that outside companies md shareholders in local companies arc of small account compared with the mass of those who insure. But apart altogether from the unsoundness of carrying on airy public service at a loss, it is, I* think, always found that disease lurks in every business which year after year fails to earn adequate profits, and that in the end it manifests itself to tlie harm of all of thosa who for a time may apparently be gaining the advantage of tho cheap terms. In short, insmers. like everybody else, will in the end have to pay for inadequate premiums and persistent losses. You will see that we have charged to the year £3234 of special expenses incurred ;n the alteration of the company's constitution and in office alterations. In the first sum of JE2SSO is included a largo quantity of stationery still on hand, and sufficient >o serve us for some time. The second item. £654. has been spent at Auckland and Duncdin. Government taxation still goes up, and, added to the competition of .their Vivo Department, is coming to lie a 'heavy burden on out profits. All known losses are provided for fully, including the unfortunate Maori and Waratah. Our assets remain very much the .same as a year ago, and all investments are sound anil good. The balanco in the bank is a good deal larger, however, owiing to several loans being paid off in September, but these are partly re-lent aird partly in process of being so dealt with. Interest and rents have increased by £954, ard our premiums by about £6000, which is a satisfactory feature. This is partly due to tho newlystarted accident, department, which wo expect to have in operation at all points during the current year. We ought, properly speaking, to have increased our reserves for "cinsuranco, but it is iroady in excess of the 40 per cent, of premium income, which is recognised as .sufficient, and wo have left it until the increase of premium income becomes 'arjrcr. The underwriting profit for the year is about £13,000, alter paying the exceptional charges, which is satisfactory, all things considered. fjieaking generally, I may express tho confident oninioir that the position of .the company is sound and eminently satisfactory. Our business at all points is of a safe character, being mostly dircci, well in hand, and thoroughly known to a!! our officers, by whom we are also undoubtedly well served. Your directors have for long aimed at securing for you a continuously even dividend and a gradual tint constant strengthening of the company's resources, and I may say that they have succeeded in bringing matters to such a position as to give those results with as much certainty in the future as can be attained. I know of no better iincstment of tho kind, and I hor.c all shareholders may take .this view and have such a permanent interest in ilia company as will induce them to do all they can to increase our premium income. Dunn; ;hc year we eHlForeii a great loss in the vetv sudden and piemature death of our Adelaide manager, Mr .lonn Creswcll. Not only was '.Mr Ore-swell a most valuable officer', beiim one, of out-best managers, but he had a" most attractive personality for all t-hosa who knew him, and lie also held a more or less unique position in the South Australian community. He has left a widow and young children, and 1 am sure you will join with us in expressing -Vart/cjt sympathy with them in their sid bereavement.

Mr J. Arkle seconded tho motion, and approved of the action of the directors in being prepared for crentualities, for they .ie«er knew what might oomo upon them in the way of claims. The motion was oarried witlior-! fewsior "' - ■ — -

Messrs Alex. Burt, and John Moloney, who retired from the directorate by rotation, were re-elected. The former thanked Ills! shareholders for their renewed confidence. Messrs T. S. Graham and E. K. Smith were re-elected auditors at the same lenmneration as lonnerly.

lii slating that this concluded the business, the Chairman expressed for ihe approval of the directors' policy indicated. The strengthening of the resources of the company and maintaining them in a. more or less available position was of tho greatest importance. They might not need to reckon with'a dire catastrophe like that at. San Francisco-, but it was by no means beyond possibility that one or two of our large centres, like Wellington or Sydney, might, he visited by earthquakes and conflagrations which would strain their resources very seriously, and it was vital for t.liem that they should be able promptly to meet: such a misfortune. It was therefore difficult to set a limit to the amount of the funds which ought to be kept available by insurance companies. Their funds might .not be required for nmny years, and it might be thought that they grew to unnecessary proportions, but in one night all this might be changed. The directors were so impressed with this view that it could not be other than satisfactory for them to feel that they .had the sympathy and approval-of shareholders in the matter. The dividend of 9d per share, making a total distribution of Is 6d per share for the year, would be payable at the close of tho meeting.

On the motion of Mr G. Joachim a vote of thanks was unanimously passed to the directors for their services.