STATE FIRE INSURANCE.

Otago Witness, Issue 3881, 31 July 1928, Page 17

STATE FIRE INSURANCE.

THE YEAR’S OPERATIONS.

WELLINGTON, July 27. The annual report of the State Fire Insurance Office states that the depression felt during the year reduced the amount of new business available, but public support for the State Fire Office was well maintained, and the figures at the end of the year show an increase of over £lO,OOO in premium income on a lower average rate over the whole of the business than for 1926, a reduced working expense ratio, and an underwriting profit of 5.06 .per cent. After maintaining a rebate to policyholders of 12J per cent., the bonus rebate was fixed for 1927 by the board at the same rate as for the previous year, and in the aggregate absorbed a larger sum than in any previous year. The cost of rebates from 1923 to 1927 inclusive have been £10,996, £22,005, £17,405, £24,496, and £25,765, a total of £100,667. Mr J. H. Jerram, the general manager, states that the service by the declaration of State fire rebates has not been limited to State fire policyholders in practice. The rebates set a standard for all offices, and the Government Statistician estimates that up to the end of 1926 the system had saved the public no less than £931,724 at the end of 1927. Therefore, the total saving had greatly exceeded £1,000,000. The claims for 1927 were substantially above those of the previous year, both in the amount of actual losses incurred and in ratio to premium income.

While the actual pauses of the majority of the fires remain obscure, it would seem that the economic position as an indirect cause is very much more important than is generally suspected. Exclusive of taxes and fire board levies, the ratio to premium income for 1927 was 24.23 per cent, as against 25.35 per cent, for 1926, and is well below the Dominion average for all insurance offices. Taxes and fire board absorbed 9.08 per cent, as against’ 10.31 per cent, for 1926.