NATIONAL INSURANCE COMPANY,

Otago Witness, 5 December 1900, Page 9

NATIONAL INSURANCE COMPANY,

The twenty-seventh annual meeting of the National Fire and Marine Insurance Company of New Zealand was held at the company's offices in Rattray street on the 22nd inst. Mr J. M. Ritchie occupied the chair, and there were about 30 shareholders present. ANNUAL REPORT. The following report was submitted to the meeting: — The directors submit their report and balance sheet for the twenty-seventh year of the company's operations.

The fullest provision lias beep, made for all known and unadjusted lo3ses in the item of £15,989. i It. will be necessary to elect two directors, i Messrs E. Grlendining and Thomas W. Kenipthorne retire by rotation, and offer themselves ior re-election. ' 1 The retiring auditors are Messrs Thomas Callender and T. S. Graham, who oirer themselves for re-election. ! The Chairman said : The first business before us to-day is to submit the report and bal- ; ar.ce sheet for the year ended the 30th September last. This has been printed, and, I , presume, you will agree to its being taken as J read, since you have it in your hands. I have I only a few remarks to make about it, but I shall be happy to answer any questions afterwards. The main features of the accounts which are laid before you to-day, and which are distinctly favourable, are, first, the increase in the net premiums, which are fully :?7000 more than last year ; a small' increase of something over £500 in the interests and rents ; and a smaller proportionate amount of losses — though actually these are over £1200 more than last year. These enable us to pay the usual dividend of Is 3d per share, or 12£ per cent, for the year; to wipe off office furniture (£1000), which your directors thought was an item that had better disappear from our assets ; to put £10,000 to reserve, bringing that lip to £80,000 ; and to carry forward a few hundred pounds less than we carried from, the previous year. I need hardly dwell on any of these items except the increase to reserve, and about this I should like to say that the premium income having increased since 1895 by 25 per cent., the responsibilities of the company have grown correspondingly — indeed, I may say in a larger proportion, because we are almost compelled to carry larger individual risks in many cases — and so, although these may bring better profits in good times, we run ' the chance of biggei losses in unfavourable

years. Next, we have added nothing to out reserve fund for a number of years, and as we think it is of the highest importance for the stability of the company, and so for the best interests of shareholders, to have tha wherewithal, whether in a large reserve or substantial carry-forward, or both, to avert the risk of dividends being affected by a bad year, ;« are unanimous at the board that it is the proper thing to add to our reserve fund ; and I hope shareholders will be of the same mind. It is essential that the strength of such a company as ours should grow with the growth, of business 'and of risk carried. We seem to have got into a favourable cycle of late, and may only hope that it will continue ; but. after all, if you examine the figures, you will find that our underwriting profit is only about 12 psf cent. — that is, that ior every hundred pounds of premiums we take we have saved £12 for ourselves, — and this cannot be called extravagant, even if we could average as much always. There is nothing special to tell you about the various figures of the balance sheet. They vary under the different headings according to the different movements o£ funds. We have made a few additional investments on mortgage, but find it still difficult to lend to advantage ; but I can assure you 'with every confidence that so far as we can judge — and we are constantly scrutinising v your investments — they are quite safe and sound. You will notice that the ratio of charges is a trifle lower than last year, and I mention this to emphasise what I have said to you before: 1 that we have the organisation complete and efficient, capable of doing a much larger business than we are doing. lam pleased to think that shareholders may have had some hand in the satisfactory increase in our premium income to which I have called attention. If the 700 or 800 of those now on our register will exert themselves a little, they can help the prosperity of the company etill more, and I have no hesitation in saying that the National is a thoroughly sound institution, with an excellent staff, to whom the board are greatly indebted, and a satisfactory business in all the colonies, which is well worthy of the confidence and support of its shareholders and of the public generally. I shall be glad to answer any questions or make any explanations that shareholders may desire, and withthese few remarks, gentlemen, I beg to move the adoption of the report and financial statement as printed, which carries with ifc the resolution to pay a dividend for the halfyear of 9d per share, making for the whole year Is 3d per share. Mr G. L. Denniston seconded the motion, which jvvas carried unanimously. Mi Hallenstein, one of the lirectors, having resigned while absent on a European, tour, it was decided to reduce the number of directors to six. Messrs R. Glendining and T. W. Keinpthorne, the retiring directors, were unanimously re-elected.

Messrs Thorny Calender and T. S. Graham were reappointed auditors.

A hearty vote of thanks to the directors and staff brought the meeting to a closa.

A resident of Port Adelaide named Dennia Brotlerick was seized with a fit, and died, while attending the funeral of his wife.

A Cloth-bound Cookery Book, containing 180 original recipes for all kinds of savouries, invalid cookery and sweets, is sent free to all 1 who post their Lemco Extract jar wrapper to Liebig's Extract of Meat Co., Ltd., 9 Tern church Avenue, London.

The net revenue for the year amounts to , ..£111,356 16 7 After paying an interim dividend of £4901 17s 6d there is a surplus of 16,636 3 5 To which has to be added balance from last year . . . . 16,538 211 33,174' 6 4 The directors have added to re--ervo fund 10,000 0 0 £ 23,174 6 4 O.nd they now' recommend the payment of a further dividend of 9d per share the total distribution for the year Is 3d per share), which will absorb 7,352 16 3 Lnd to carry forward .. .. 15,821 10 1 £ 23,174 6 4