NATIONAL INSURANCE COMPANY.

Otago Witness, Issue 3117, 10 December 1913, Page 6

NATIONAL INSURANCE COMPANY.

ANNUAL MEETING. Tho annual meeting of shareholders in the National Insurance Company was held in tho company’s office on November 19. Mr T. W. Krmpthorne (chairman of directors) presided, and there were between 20 and 30 shareholders present. In their annual report, the directors stated that the net revenue lor tho year had amounted to £172,722 11s scl. After paying an interim dividend of £IO,OOO there was a surplus of £40,209 Is Id, to which bad to be added a balance from last year of £29,699 17s lid. From this sum tho directors had substractcd an amount of £25,000, which they had added to the reserve fimd, leaving the surplus at £44,908 19s. The directors recommended the payment of a further dividend of is and a bonus of 6d per share, making a total distribution of 2s 6d per share lor tho year, and absorbing an amount of £15,000. It was also recommended that a contribution of £lO-00 should be made to tho officers’ superannuation and provident fund, and tho sum of £23.908 19s carried forward.

In moving the adoption of the report and balance sheet, the Chairman stated that before referring to the figures in the balance sheet and the recommendations in the report, his first duty vies to refer with deep regret to the impressive loss the company bad sustained through the death of its highly-esteemed late chairman (Mr J. M. Ritchie) since its last meeting. Mr Ritchie was a shareholder in tho company since its formation in 1873. and held tho position of chairman for 32 years, from 1831 till the time of his death. The present members of the board so long associated with Mr Ritchie had felt his loss very much, knowing that they had lost a presiding comrade of special abijity and fitness for the position, and his memory would bo retained by thorn with highest regard. Referring to the report and balance sheet, he bad no doubt that after examination shareholders would have the same opinion as the directors: that they had had another fortunate year. The net revenue amounted to £172,722 11s 6d; the losses were slightly heavier, £66.345 0s 6d, as against £63,081 8s 6d in 1912, an increase of £3263 12s; the premiums for the year 1913 are £151.454 4s 3d, which _ for 1912 amounted to £141,307 13s sd, showing an increase of £10,146 iCs lOd; the loss ratio was 43.81 per cent., and charges 35.11 per cent., in each case a shade lower than last year; the investments amounted to £452,720. Liabilities: Called capital unchanged, £IOO,OOO. The reserve fund had been increased by £25,000, making its total £275,000. Shareholders would bo pleased to learn tlixit tho directors had been able to strengthen this important section of tho company’s power. Ho had previously pointed out that it could not be estimated what tho limit of an insurance company’s reserve should be. The company might, with good fortune, cs.cape abnormal losses, but, on the other hand, a huge conflagration might in 24 hours severely tax its reserve. An insurance company, to give confidence to the insuring public, had to have a largo authorised and subscribed capital, but there was wisdom in keeping tho called capital down to the lowest efficient limit, so as to bo able to pay attractive dividends thereon to shareholders, and never, if possible, to fail in building up the reserve account, for such addition enhanced tho value of tho shares quite as much as, or possibly more than, tho amount of dividends that were received; and, beyond that, if tho reserve was largo it might prove sufficient to cover an abnormal loss without being forced to the unpleasant necessity of making a call on tho shareholders. The reserve required to reinsure current risks amounted to £53,000, as against £50,000 in 1912; sundry creditors at branches and agencies, £4099 19s 9d, which at last year’s balance had stood at £3275 18s 3d ; appropriations for losses unpaid amounted to £13,337, ns compared with tho year 1912 of £14,144. Assets: Loans on mortgage. £309,620 8s lOd, being £25,624 13s over last year—-£283,995 15s lOd. On account of tho market price of land being so much higher than in past years, extraordinary care had been taken in respect to valuations; but they were able to say that the securities they held against advances made, they believed, tho position absolutely safe. Freehold properties stood as follows: £9300; debentures £96.300, which in 1912 had amounted to £107.300; money on deposit at short call £37,000, against £33,000. The other assets called for no special comment. beyond saying that tho total assets amounted to £505,345 18s 9d, which in tho 1912 balance had stood as £477,117 16s 2d, showing the present increased balance as £28.228 2s 7d. Commission, salaries, and other expenses were increased by £2859 9s 9d; Government taxes, £5492 15s lid in 1912, were increased by £438 10s 2d, and now reached £5931 6s Id —about 4 per

pany. which was an item beyond thencontrol. Interest and rente amounted ■to £21,263, an increase of £ll9B over the previous year, and gave a rate of £4 13s lid per cent., and in this they would recognise that borrowers from the company got their advances at the lowest market rates. Last year £SOOO was voted to the superannuation and provident fund, and also £IOOO to pay for the first year’s entrance fee; £SOO for the staff, with an equal contribution of £SOO from the company. In future the staff and company would contribute equally to the fund. The head office hud strongly advised all members under the ago of 55 years to join, and had given full information as to contributions and pensions receivable under the terms of the deed of agreement established on October 1, 1912. Ho sincerely hoped that all eligible members of the staff would take advantage of the opportunity of becoming members, and w : as quite sure the arrangement would be mutually advantageous to them and the company. All new accepted applicants who joined the service under the age of, 35 years had to become members. Their best thanks were duo to the general manager, branch managers, and the staff under their guidance for the excellent result of the year's work, and in recognition of its appreciation the board had voted a bonus of 6 per cent, to all members of the staff below the rank of branch managers on the salaries they are receiving. Mr J. Arkle seconded the motion, and, in doing so, said the state of the company would bo a source of great pleasure to all the shareholders in the country. He paid <• very high tribute to the directorate, and commended the action of the directors in strengthening the position of the company Ho also referred in appreciatory terms to work of the staff during the year. The motion was carried without further discussion.

Mr J. Alill, m proposing the re-election of the retiring directors (Messrs R. Glendining and T. W. Kompthorne), spoke feelingly of tho groat loss the company had sustained by the death of their late chairman, Air J. M. Ritchie. He also referred to the large amount (£5931 6s Id) paid for taxation, which seemed out of all proportion, and was a great handicap to the company.

Tho retiring directors, Messrs R. Glendining and T. AV. Kompthorne, were re elected, as wore also tho retiring auditors, Messrs T. S. Graham and E. R. Smith. Votes of thanks to tho directors, the staff, and tho chairman closed tho meeting.