STATE FIRE INSURANCE.

Otago Daily Times, Issue 21103, 13 August 1930, Page 4

STATE FIRE INSURANCE.

Res err oa and funds at December 31 .. £744,271 £821.090 Briefly summarised, the figures show a satisfactory advance in both preinium income and other receipts (th'e latter after payment of land-tax for the first time), with smaller losses, and a record surplus. Public confidence in the office is well maintained, and the results indicate that the -business underwritten is, on the' whole, of an excellent class. Claims for the year were abnormally low, and the office is fortunate in being again able to show better results than most of the insurance companies. Concern, however, must be expressed at the occurrence of so many fires for which no adequate cause can be assigned. No doubt obscure physical conditions are t responsible for some, but, as losses occur with 'the greatest frequency in districts where financial depression is most severely ■ felt, it is impossible to avoid the conclusion that many fires, if not actually procured, are at least not undesired. Public attention has repeatedly been directed to the seriousness of the problem of fire waste, and it is hoped that practical steps will be taken in the near future to deal with what is a most important national question. ACCIDENT BRANCH. The annual report of the Government Accident Insurance Office for the year ended December 31, 1929, together with the revenue account and balance sheet Sives the following comparative gures:—

It will be noticed from the above figures that a greater increase in premium income was secured than in the previous year, and that the expense ratio was reduced to 22.56 per cent., the lowest recorded in the history of the office. In view of the general depreciation in securities, the, investment fluctuation reserve has been increased by £3OOO. Without this transfer the surplus for the year would have been slightly larger than for 1928.

ANNUAL REPORT. The annual report of the State Fire Insurance Office gives the following comparative figures: — 1928 1929 Income— £ £ Premiums .. 211,634 217,990 Other receipts, less landtax 40,459 41,003 Outgo— ’ Bonus rebate to pollerholders .. 26,421 27,208 Claims 81,583 75,316 Ratio of claims to P.c. P.c. premium Income 38.55 34.55 £' £ Working expenses (exclusive .of Income-tax and Fire Board Contrlbutlons) 49,804 52,194 Fire Board contributions T.283 7,709 Income-tax 9,789 15,746 Ratio of working expenses (exclusive of income tax and Fire Board contributions) P.c. P.p. to ' premium income Ratio of Fire Board contributions to pre23.54 23.94 mlum income .. .. Ratio of Income tax to 3.44 3.54 'premium income .. 4.03 7.22 fi £ Carried to reserve for unearned premiums .. Surplus, apportioned as follows— 1,609 2,542 Reinsurance Reserve Fund 10,000 10,000 Bonus Rebate Reserve 1,000 1,000 Written off office premises Investment Fluctuation 3,000 4,000 Reserve Fund .. .. — . 6,000 ' Reserve Fund 61,600 57,276 Total : £75,600 £78,276

1023 1929 Income— Premiums from nil £ £ classes of accident Insurance 71,731 81,353 Interest 12,368 13,342 Outgo— Claims Batlo of claims to pre43,307 P.c. 49,853 P.C. mlum Income .. .. 61.07 61.28 £ £ FfOe-year bonus on personal accident policies 146 166 Working expenses (ezclu-' sire of income tax) 16,432 18,340 Batlo of working expenses P.0, P.O. < exclusive of Income tax) to premium in4 come ' 22.08 £ 22.55 fl Income tax 3,204 3,939 ■ Carried to reserve for unearned premiums 2,776 4,330 P.C. P.c. Batlo of underwriting surplus i to premium income •.. •. .... 11.88 10.65 Carried * to Investment £ • £ Fluctuation Reserve — 3,000 Surplus Reserves and funds as at 17,592 15,066 . December 31 s. .. 240,909 268,306