THE STANDARD INSURANCE COMPANY.

Otago Witness, Issue 1241, 11 September 1875, Page 17

THE STANDARD INSURANCE COMPANY.

A general meeting of the shareholders of the Standard Fire and Marine Insurance Company was held at the Athenaeum on the 6th inst., to consider the third half-yearly repoit and balance-sheet of the Company. The Chairman of Directors (Mr G. IT. Eeid) presided, and there were about 30 shareholders present.

■ The half-yearly report (which was published in our issue of the 30fch ult.) was taken as read. The Chairman remarked that they had not a more largely-attended meeting ; no doubt because the report, copies of which had been posted to the shareholders, gave them cause to be satisfied with the position of the Company. He had only to say, as Chairman of the Company for the last half-year, that he had great pleasure in coming before the shareholders on this occasion, and in being in a position to present so favourable a report. The report spoke for itself. They would see by the figures laid before them in the report that the operations of the Company during the eighteen months in which it had been in existence had resulted in adding to the f vmds of the Company an amount very nearly equal to the paid-up capital. The figures showed that during the halfyear last ended (the half-year to June 30th), the net premiums amounted to L 23,713, and the losses and working expenses to L 11,869, leaving a net balance or L 11.844. These amounts were exclusive of the sums received in interest on capital invested. The amount to the credit of the profit and. loss account was L 23.018 Is 9d, to which there was a sum to be added of LBOO, accruing for interest on money lent, and which interest was not included in the balance-sheer. They had, as he had said, a sum of L 23,018 Is 9d to the credit of the profit and loss account. This sum was for the eighteen months the Company had been in existence. The report, he thought, might be considered a most excellent one, inasmuch as no other company, whether insurance, banking, or any other, had shown in so short a time such profitable results. The Company had made very close upon 100 per cent, on its paidup capital during' its eighteen months' operations. It was not, perhaps, a very advisable course, and it was not a very pleasing one, to institute comparisons, so he would merely say that the Standard Company had done better than any other company, notwithstanding the disadvantages under which it had laboured during the first year of its existence. It had done so much better — he would not go into comparisons and say how much, but it had done very much better than any other. Now, with reference to the disposal of the profits, they would see what had been recommended in the report. The Direc.

tors had very closely considered the position of the Company — its rapidly increasing business, and its comparatively small capital for working that rapidly increasing business. It was plainly evident to the Directors that they could not go on with the original capital, because their business was not at a standstill ; it was rapidly increasing, it was increasing day by flay and month by month, and, with their present capital, they could not go on without making a call on the shareholders for more money. It was deemed desirable that portion of the profits should be capitalised, and that the balance of the profits should be reserved, the latter being as good as capital. This course of capitalising and reserving the profits obviated the great expense and trouble of paying dividends, and then having to make a call. He was sure that every shareholder who understood the matter would quite agree that the Directors had done wisely in taking this course of capitalising portion of the profits and leaving the rest to reserve fund, and a reserve fund every good insurance office should have. He did not know there was anything more he could say, except ; that the Company was going on extending its business. He might mention that they were now in negotiation with a gentleman in Queensland for opening an agency there, and were also arranging for opening in various other parts of Australia. As regarded the branches already opened, the business had rapidly extended. The Company still adhered to the policy of doing a quiet, steady, and safe business, not going in for large premiums, but sticking to the policy with which they started : "Safety" had been the watch-word of the Company. He should only like to say that he attributed, as he had done when he had the pleasure of standing in his present position before the shareholders previously, the steady and permanent succe&s of the Company to the excellent officers they had, and especially to their manager— he attributed a great amount of the success of the Company to the steady perseverance and excellent tact of their manager. The manager had selected officers in everyplace, who had been exceedingly careful, and the excellent result of the management of the Dunedin branch was essentially ;due to him. ' With regard to the officers' of the .Company in every place where they had any, there was, with an exception or so, every reason to be highly pleased, and much caution had been taken in making a selection. , Mr Smgo moved the adoption of the report. When they took into consideration some of the circumstances — circumstances which were adverse to some extent, under which the Company was initiated — they had every reason to feel gratified at the amount of business done, at the way in which it had been done, and at the results as shown in the half-yearly balancesheet. He thought the thanks of the meeting were due to the gentlemen who had so well conducted the business of the Company. He was quite sure that all the shareholders would acknowledge that great honour was due to the Directors, manager, and officers generally for the tact, zeal, and energy displayed, which enabled them to produce so excellent a state of affairs as that shown in the report. There was one matter to which he would briefly refer. He had heard it very frequently said that the Standard was a very unfortunate Company. At one time this was said, but the remark did not correctly apply, at least to the last six months. He had heard it said that the Company had been making serious losses, and he had heard it reasoned from that that the Company was desirous of pushing business and of taking hazardous risks. He thought this report disproved anything of the sort. The Chairman would not instifaite comparisons between the several Companies, but he (Mr Sligo) had examined the several reports, and_ would do so. Mr Sligo then made the following statement : — The Ne a- Zealand Company's balance sheet ending May, 1875, frfves— Premiums, £78,332 ; losses, £47,437difference, £30 895. The South British Company's shee.t, ending- April, 1875, gives— Premiums, £45,220; losses, £24 635difference, £20,555. The National Company's sheet, ending March, 1875 gives— Premiums, £35,808; losses, £13,954; difference, The Standard Company's sheet, ending June, 1875, gives— Premiums, £23,713 ; losses, £7035 ; difference. £16,878. ■ ' The losses are thus— in proportion to the business •lone— ever 60 per cent, lor the New Zealand, over 64 per cent, /or the South British, neurly 39 per cent, for the National, and nearly 30 per cent, for the Standard Comparing: the total saving effected in proportion to the total business done, gives a result of an even more satisfactory character, thus : — New Zealand Company— Premiums .. .. £78,332 Losses and Charges . . 61,392 Balance . . £10,940 South British CompanyPremiums .. .. £45,220 Losses and Charges .. 36,088 Balance . . £9,134 National CompanyPremiums .. .. £35,808 Losses and Charges .. 23,993 Balance .. £11,815 Standard CompanyPremiums .. .. £23,713 Losses and Charges .. 11,869 Balance .. £11,844 Doing a business of less than one third of the New Zealand, the Standard had saved within about LSOOO of that Company. Doing little more than one-half of the South British, they have saved L 2700 more than that Company. Doing about two-thirds of the National, they have saved some L3omore than that Company. In conclusion, he said he agreed with the way in which the Directors had proposed to dispose of the prefits. Mr J. M. Krownt seconded the adoption of the report and balance-sheet, which was Carried unanimously. Mr D. It. Hay asked if the loss on the Kaikorai tannery was included in the report ? The Chaibman replied that, so far as the standard office was concerned, all had been reinsured. The Standard's loss was very trifling, and the Company in which it had been re-in-sured was not satisfied about the matter. . Mr Hay believed the Standard Company was incurring some odium in the matter, and that was why he wanted an explanation. The Chairman said the matter was now in the hands of a Court of Law, and therefore it would not be fitting for him to make any explanation. The Chairman then expressed Mb satisfaction at the unanimity shown by the shareholders as to the recommendation of the Directors to capitalise and reserve profits. He hoped they would, at the end of the present six months, be able to declare an excellent dividend and yet have a large reserve fund. Mr Baker moved a vote of thanks to the Chairman, Directors, and officers of the Company. Mr Hat seconded. Carried by acclamation. This concluded the business of the meeting.

The Government has decided that, in future, the Hospital shall continue under the management of the Provincial Surgeon, Dr Hulme, but that there shall be associated with him Drs Fergnsson, Hocken, and Brewa as. Hospital physicians and surgeons.