SOUTH BRITISH INSURANCE COMPANY.

Otago Witness, Issue 2849, 21 October 1908, Page 10

SOUTH BRITISH INSUR ANCE COMPANY.

AUCKLAND, October 8. The annual meeting of shareholders in the South British Insurance Company was held to-day. Mr J. H. Upton (chairman of directors) presided. The Chairman, in moving the adoption of fofce report and balance eheet, eeucl : "I may say first of all that our operations illustrated somewhat strongly the vicissitudes to which insurance business is subject, and exhibit the tendency of it to run in cycles of good, indifferent, and bad periods — a fact well understood by those interested in fire, marine, and accident underwriting, — and it will, therefore, not be considered surprising that, following upon several years of continuous prosperity, we should have now to report for the year results legs favourable than for some preceeding years. Comparing the revenue account with that of the preceding year the net premium income is Ices by £15,511. to some extent this fulling off- is explained by lower rates prevailing in certain places in consequence of unreasonable and severe competition, and to trade depression in several countries which has adversely affected our marine ■business, but is owing laigely to our having given up an important section of business which we found to Be unprofitable. The income from interests and rents shows a j?mall increase of £115, and totals £29,663, which is practically equivalent %o our present dividend. The losses show a decrease of £17,899, the ratio being 63.10 per cent., as against 65.53 per cent, for the previous year. The expenses show an increase of £10,636, the ratio being 32.25 per cent, against 27.56 per cent. This increase is caused to come extent by the somewhat heavy expenses connected with turning the company into a limited liability concern, the expenses so involved being over £5000. The principle of the limitation of liability, however, secures so many advantages to investors that it will no doubt, notwithstanding the expanse, be admitted to liave been a judicious step. The compulsory payments under the fire brigades in NewZealand have formed an appreciable addition under the heading of additional expenses. In this Litter connection I might mention that our contributions under • the New Zealand act range from 6 per cent, to 19 per cent, of our fire income in tlie districts in which fire boards exist. These fire brigade charges are, therefore, a very serious charge iipon our business, and the time is not far distant when there must be a readjustment of rates to meet theee charges. The underwriting profit is £14,768, being 4.4 per cent, against 6.91 per cent, for the previous year. Adding the net balance brought forward from last year to the amount at the credit of the revenue account, the amount standing at the credit of profit and lose is £36,539. The directors have transferred £10,000 to the reserves fund, and ai'ter paying the interim dividend in April last, making provision for the sinking fund, for writing off office furniture, and for the appropriation to the staff superannuation funds, there is a balance left of £34,515, out of which the directors recommend the payment of a dividend at the rate of Is 6d per share, making the dividend for the year 3s per share, and leaving £19,515 to be 1

carried forward." After further explain-, ing the financial position, the Chairman said : "As an indication of the uneatis-. factory nature of the fire business in. New Zealand, I may mention that t^e lo£6ea paid by companies doing business in the Dominion have, in the Canterbury provincial district alone, amounted to the unprecedented sum of £356,000 for the year ended August 31 last— clore upon £1000 a day for one single district. The I fire losses were also severe throughout: | the rest of New Zealand, and I believe that lam not far out when -I estimate the trading loss this year to the whole of the companies on their Kew- Zealand business at anything from £200,000 upwards." ■"" The Chairman added there was a highly satisfactory result with the year's British business. This was all the more gratifying /in view of the fact that they were fighting against keen competition, had faced abnormal losses, and had, been harassed by oppressive legislation. The report was adopted, and Messrs J. Edson and W. R. Wilson were rei elected directors. > The Chairman, in returniag thanks on behalf of himself and the board of directors, remarked that they had had tacked upon them" legislation which was disastrous in the last degree so far as their business was concerned. Tn other industrial enterprises the feeling was just the Game. The profits brought into New Zealand through insurance companies were greater than from any other source, except the profits of the soil.