NATIONAL FIRE AND MARINE INSURANCE COMPANY.

Otago Witness, Issue 2541, 26 November 1902, Page 12

NATIONAL FIRE AND MARINE INSURANCE COMPANY.

The annual meeting of the National Fire and Marine Insurance Company of New Zealand was held at the company's offices, Rattray street, on the 18fch inst. Mr J. M. Ritchie (chairman) presided, and there were some 25 shareholders present. The following annual report was submitted by the directors : — The directors submit their report and balance sheet for the twenty-ninth year of the company's operations. The net revenue for the year amounts to £119,781 10s 6d; proceeds of 3925 unallotted shares sold, JE3991 4a 3d— £123,772 14s 9d; proceeds of shares added to capital £1962 10s, do reserve fund £2028 14s 3d— £3991 4s 3d— £119,781 10s 6d; after paying an interim dividend of £5000 there is a surplus of £15,436 3s 9d, to which has to be added balance from last year £15,159 10s 6d— £30,595 14s 3d; the directors have added to reserve fund, £7971 5s 9d — £22,62 i 8s 6d; and they now recommend the payment of a' further dividend of 9d per share, making the total distribution for the year Is 3d per share, which will absord £7500, and to carry forward £15,124 8s 6d— £22,624 8s 6d. The fullest provision has been made for all known and unadjusted losses in the item of £12,449. It will be necessary to elect two directors, Messrs Alexander Burt and John Moloney retire by rotation, and o££er themselves for re-election. The retiring auditors are Messrs T. S. Graham and E. R. Smith, who offer themselves for re-election.

The Chairman, in moving the adoption of the twenty-ninth annual report and balance sheet, spoke as follows: — Assuming that it will be agreeable to 3*ou to take the report and balance sheet as read, I have now the pleasant duty, gentlemen, of moving the adoption of theeo, and of congratulating you upon a fairly good year of work and results. It was almost more than we could have looked for to have a third year of reasonable success, but sometimes success comes in cycles, as tho reverse generally does too. There is not the same increase in premium income this year as last, which I regret, but the loese-s are less by about £8000. Expenses have increased by nearly £2000, which is partly due to commissions on the increased premium income, but more to an inevitable inoreo&e of staff and pay to that staff to meet the increased competition which seems to get keener every year. The fact is, we have to work harder every year for our profits, and this means a more costly staff. Interest and rents show an increase of nearly £500, and you will observe that we -pay four-fifths of our dividend out of these. We have been able this year to increase our reserve for current risks to nearly 50 per cent, of our premium income. We have been anxious to do this for some time, as this percentage is recognised by all the best authorities at Home as the safe standard, and it is enforced by law in America, i am sure, therefore, that you will share our satisfaction in being able to place this most necessary and important account on a proper footing. It is also a 'satisfaction that our capital and reserve fund are now rounded off at £100,000 each, which has been accomplished partly by the sale of shares, which have not been issued till now, and partly by the transfer of £7971 5s 9d from profits to reserve fund. This item is less than we were able to put to reserve last yeai\ but, nevertheless, is a fair addition to. that fund. The assets of the company are, as usual, sound, and fully represent the face value. We have no bad or doubtful loans on mortgage, and our debentures are all safe and sound. Freehold property is reduced from last year by £8200. which is due chiefly to the sale of a freehold in Wellington, upon which we got a fair profit. We found that it wus unsuited for building upon, otherwise we should probably have put up offices there for our own use. We still find difficulty in investing our funds, and are compelled to rest satisfied with lower rates of interest, especially as we make it our first care to get thoroughly safe investments. The outstanding accounts at branches are £5000 less han last year, which is a change in the right direction. These comprise all the points. I think, which call for particular remark, but I shall be glad to answer ony questions which you desire to put. I can confidently assure you that the National Insurance Company was never in a better position than it is to-day, and it only remains for you all to bring as much business to it as >ou can, and to influence all your friends to do the same. Before silting down I would like to express the regret of the board at the death of our respected auditor, -Mr Thomas Callender, which has taken place since oui lnst meeting, and I am sure ycu will join v. ith us in offering our sympathy to his family in fckeu: bereavement, i ha\c .iuw to move

the adoption of the report and balance sheet, and the payment of a dividend for the half-year of 9d per share; and if you pass this I may add that the dividend warrants are ready for shareholders downstairs at the close of this meeting. — (Applause.) Mr J. Arkle, in seconding the motion, said he thought he could congratulate his brother shareholders on such a very satisfactory state of affairs as shown in ihe balance sheet, which indicated careful and able management on the part of manager and directors. He would like to call attention to the £48,000 mentioned by the chairman — that very large sum (nearly equal to one-half of the premiums) having been set aside as unearned. He thought the company could take credit to themselves as being the first to introduce that very sound principle of bookkeeping.

The motion for the adoption of the report and balance sheet was carried unanimously.

On the motion of Mr W. Barron, seconded by Mr H. North, Messrs A. Burt and J. Moloney were re-elected directors, the mover expressing satisfaction that such gentlemen were available.

Messrs T. S. Graham and E. R. Smith wore re-elcoted auditors.

Mr J. C Cameron moved that a hearty vote of thanks be accorded to the directors and staff for their very successful conduct of the company's business during the last 12 months, and the motion was carried unanimously. The Chairman, replying on behalf of the directors and staff, said he had more reason than ever to say that they were greatly indebted to their staff.

Mr Moloney returned thanks on behalf of himself and Mr Burt for election as directors, and tho meeting closed with a vote of thanks to the chairman.