(From Our Own Correspondent.) AUCKLAND, October 11.

Otago Witness, Issue 2744, 17 October 1906, Page 24

(From Our Own Correspondent.) AUCKLAND, October 11.

The balance sheet of the South British Insurance Company, presented and adopted to-day, was of more than, ordinary inieresi; in insurance eirelca owing ie the magnitude of the operation* which it disclosed. In a summary made by the Evening Star H is shown that last year there was an increase of £21,612 m the net revenu** from premiums — an amount which exceeds by £8485 the total premium rewnue of the State Fire Insurance Department m 1905. Tho interest derived from investments (£27,220) exceeded by -61895 tho revenue from the same source .n the or^oeding . year, and is sufficient to pay the whole I of the company's handeome dividend cf 5s 6d por share. Out of its net revenue fcom premiums (£319.433) tho company paid away in lo a £<?» £186,102, representing a ratio of 58.26 per cent., which is lower than in the preceding year; and after the payment of all expenses there remained an underwriting gain of 15.11 par cent. . as against 12.06 per cent for tho year ended August 31. 1905. After adding, £10,000 to the reinsurance- fund, there wa* » clear surplus of £64.833 from

the year's operations. This, together with" the net balance of £30.805 remaining after the payment of the 1905 dividends, gave a , sum of .£95.635 for appropriation. The directors propose to strengthen the reserve I fund by an addition of £40,-800, and, after - paying the dividend, will carry forward £25,406 to the new account. An examination of the company's^ assets reveala a : position of remarkable financial strength.^ Its paid-up capital, reserves,, and undivided '* profits represent a total of £514,119; and the invested funds, as shown on the balance f sheet, are represented by securities of the most unimpeachable and easily realisable character. The magnitude of the business may be illustrated by a comparison with the largest of the Australian fire and marine insurance companies. The net premium incomes of the three chief offices in the ' Commonwealth for the year ended September. 1905. wero . Colonial Mutual (Melbourne), £134,748; United (Sydney). ' £88,609; Victoria, £83,536. The net premium income of the South British Com- - pany last year was £319,433, thus exceeding the combined revenues from fire and " marine business of these important Aust ralian companies. That its affairs are managed economically is shown by an \ expense ratio of 26.63 per cent. The aver- * age of 16 Australasian offices in 1905 was 30.77 per cent., and of the New Zealand Government office 40 per cent, of a total j premium revenue of £13,127. During the past year the South British Company has ; successfully entered the field of accident ■ insurance, and has succeeded reducing the- rato previously charged by- the Government 'Accident Insurance Department; by 25 per cent, and upwards.