(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.
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Bibliographic details
Otago Witness, Issue 2744, 17 October 1906, Page 24
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457(From Our Own Correspondent.) AUCKLAND, October 11. Otago Witness, Issue 2744, 17 October 1906, Page 24
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