FIRE INSURANCE.

Opunake Times, Volume V, Issue 222, 20 October 1896, Page 2

FIRE INSURANCE.

In view of the Government proposal that the State should undertake fire insurance the balance-sheet of the South British Insurance Company, which was presented to the shareholders on last Wednesday, is interesting. The Fire aud Marine premiums received during the year amounted to L 223.476 19s 9d, and Che sum paid for losses totals £173,534 13s 8d ; agents’ commission, salaries and other expenses, £43,449 9s 8d ; advertising, printing and stationery, £3,473 18s 6J; contributions to underwriters Association aud fire brigade, £2,284 la lOd; Government licenses and rates and taxes, £2,343 Is fid; making a total cost for losses aud expenses of £225,085 Os 2d, showing a loss on the year’s transactions of £1609 Os sd. Notwithstanding this loss a dividend of 15 per cent has been paid, and our readers may naturally wonder how such a dividend could be paid in the face of a loss on their business for the year, but an explanation is easily found. The total amount of the dividend is £9,694 4s, and it was paid out of interest (due and accrued) £10,485 18s Bd, and profit made on sales of Government debentures £2,611 13s Bd. Those therefore, who insured with the South British last year cau console themselves that they got their insurances at a less rate than it actually cost the company, and we have no doubt other companies returns will show a similar state. It is very evident that holders of insurance shares are not fattening at the expense of insurers, although this was the reason assigned by the Government to set up another State Department with all its attendant placemen, bribery and corruption.