NATIONAL INSURANCE COMPANY.

Otago Witness, Issue 3584, 21 November 1922, Page 44

NATIONAL INSURANCE COMPANY.

The annual general meeting of the National Itiaiiranco Company of New Zea land (Ltd.) was held in the company’s office, Rattray street, on the 16th November. Mr John Moloney, chairman of directors, pre sided. The other directors present were the Hon. AY. Downie Stewart, Messrs Tlios. Glendining, F. W. Mitchell, ancl G. R. Ritchie, and thero were about. 30 shareholders in the room. r l he Chairman, in moving the adoption of tho report and balance sheet, said: Gentlemen, within the past week I regret to say that we have lost through death Mr Joynt, our late Christchurch manager, who served tile company conscientiously and successfully for 38 years. Our business here to-day is somewhat of a stereotyped character, as the figures in the balance sheet for the year ended September 30 last differ so little from those of the previous year that it is almost unnecessary to compare them in detail. Our net premium income of £203.253 16s lOd is lower by £11,249 16s Bd, the whole of this shrinkage being in the marine section, and is caused by the reduced quantities and values of goods carried overseas. In the printed reports of many of the large Home insurance companies it is stated that there never has been a more difficult and anxious time for marine underwriters than that through which we aro passing. Unsettled claims (years old), ordinary losses, and charges have eaten up premium incomes for tho past year, and also made unprecedented demands on the reserve funds of a great manv of the British companies; but. although this unusual attack has been made on their resources, their strength has not been affected, for the prudent management of tho past in regard to tho building up of strong reserves has enabled them to meet all claims and to continue to give insurance protection of the fullest kind to the marine commerce of the world. Our conservative policy during the war period has placed us in the eomfortable position that we hold to-day. Unsettled losses, for fire, marine, and accident claims amount to only £l6,662—the sum that appears in the balance sheet as an appropriation for losses unpaid. Interest and rents show a gross increase of £2519 17s sd. but a reduction in income tax of £827 on our investments in war loans brings the net increase up to £3346 17s sd. and makes (ho rate of interest earned equal to £5 4s 7d per cent. On the debit side of the profit and loss account losses £92.731 17s lOd. charges £68,428 4s sd. and Government (axes £17,566 8s B<l, totalling £178.726 10s lid. aro less by £625 14s 8d than (ho sum of these items for the preceding year. After providing for tho usual dividend and bonus, and adding £20,000 to (he reserve fund, we carry forward £30,397 18s 4d. Those who do not follow closely the varying courses of commercial affairs may be unaware of the difficulties that have for some time past, and do still, attend the management of all classes of business, but especially that of insurance, so that shareholders in this company should consider themselves fortunate in having such a satisfactory situation presented to them as our accounts show for the past year. At our next annual general meeting, which will be held in the jubilee year of the company, shareholders will be asked to sanction the transfer of a portion of the reserve fund to the credit of the capital account. —(Applause.)

Mr Peter Barr, who seconded the motion, said he had made a comparison between the balance sheet presented to shareholders that day and the balance sheet of twelve months ago. As a result, he felt that, although there had liecn a reduction in the net revenue of £7900 the directors were to be congratulated on the outcome of the years operations. There was a reduction in the net premium income of £11.250, almost entirely in the marine branch. The reason for that was apparent to those who know of the reductions that had .taken place m connection with imports and marine traffic. As against that, the company had increased its interest and rents, and on the other side of tho profit and loss account the losses showed the very slight increase of £573. Ho noticed in the Otago Daily Times recently that insurance compani&s generally had been suffering in the last two years. Fire business in particular had not been profitable. One large companv. with a premium income of not loss than seven millions from fire business showed an underwriting nrofit in that department of only £45.0C0. Their company, therefore, had no reason to complain of the small reduction it bad suffered. As evidencing the cave with which the business was being managed, he mentioned that last year the bad debts of the company amounted to only £9B. and this year to £69. It was satisfactory that the directors had decided to add £2O 000 to reserve, although the fund alrcadv stood at £310.000. There were many eases, however, of losses by fire, in some instances running into millions, and, remembering such eases, it was well to strengthen the company’s finance by adding to the reserve fund.—(Applause.) The motion was carried unanimously. Mr J. Mill proposed the re-election as directors of Mr Thomas Glendining and Mr F. AY. Mitchell. Shareholders would admit that both gentlemen were in a position to render valuable service to the company. He expressed iiis delight at seeing at the meeting the lion. Air Downie Stewart, whoso father had been a tower of strength to the company.—f Applause.) Mr I’. L. Ritchie seconded (ho motion, which was agreed to. Air Glendining and Mr Mitchell thanked the meeting for their re-election to the board. Messrs E. R. Smith and A\ T . T. Alonkman were re-elected auditors at ibe same remuneration as last year. On the invitation of the chairman, the Hon. Mr Downie Stewart addressed the meeting briefly. On the motion of Mr P. Barr, a heartyvote of thanks was accorded to the directors, the general manager (Mr -I. Mallard, and the staff. Mr G. R. Ritchie acknowledged the vote on behalf of the directors, and Mr Mallard on behalf of tile- staff.