COMMERCIAL.

Poverty Bay Herald, Volume VII, Issue 1079, 27 July 1880, Page 2

COMMERCIAL.

:. TOfION- EIREjAN3> MARINE * ' ' IpIjM^CECOMP^NY. -, ,

Third Report and Balance Sheet of ;the Union Fire and Marine. Insurance, Company of New Zealand, for twelve months ending^Eay 31, 1880. Yotjr, Directors have again the pleasure of presenting the Annual Report, and Balance Sheet of the Company. Notwithstanding increased competition, reduced rates of premium, and, in the earlier part of the year, unprecedented!? heavy losses, the result shown will, they •believe, prove satisfactory to the ShareHolders. It will be seen from the Balance Sheet that after providing for all losses and' expenditure, and after setting aside £2, 900 as v an Appropriation for unadjusted losses, there remains an available balance of £18,058 16s Id. This balance the Directors recommend be dealt with as follows : — . , To payment of a Dividend, afc the rate of 10 per cent £7,500 0 0 „ Reserve Fund (which will then stand at £25,000) .. .. 5,000 0 0 Leaving a balance to be carried forward next year of .. .. 5,558 16 1 £18,053 16 1 It will be .noted that the Premium Income of the Company: is still progressing, notwithstanding that the Directors have declined a very large, amount of business rather than accept it.. at rates deemed by them to be unremunerative. They propose to con--tinue their present conservative policy, feeling convinced that it is the course best calculated to enable them to present . from time to time reports showing satisfactory results like the present. The . Dividend, if sanctioned by the Shareholders, will be payable at the Head Office immediately after the meeting, and at the Branches on receipt of advice. . ' ■'■■ :••-■! J; T. Peacock, Chairman. PROFIT & LOSS. ACCOUNT, V-,. .;.,::, .-•.■ : .;: ,'..... May 31st, iBBO. . £ b. d. ' £. 's. d. ToFire arid Marine Losses 31,765 18 9 Less proportion of amt. appropriated last year • < for unadjusted losses 2,000 0 0. ■ . : ,i . . ■ -V.--. .- • . " ■ : 20,705 18 9 „ Fire & Marine Re-in-surances, Discounts, & • ■ •: Return Premiums • . . 35,861 3 3 Less proportion of amt. . appropriated last year, for reinsurances unpaid 3,000 0 0 — — — — •^— - 32,861 3 3 „ Stationery .... 577 5 5 „ Agents' Commission, Expenses of Management, and Sundry Charges . . . v • • 17,658 5 5 „ Amonnt written off Premises & .Furniture Account.. .'. .. ' 545 14 7 „ Appropriation for unadjusted losses .. 2,900 0 0 „• Balance.. .. ■V. 18,00116 1 ■■"• ■ £102,367 3 6 £ 8. d. By Balance from 31st May, 1579 ' (after payment of Dividend & Appropriatiou t<> Reserve Fund 5,124 17 10 By Fire and Marine rpremiums . . 91,182 19 8 :,. Interest Account; 7,019 8 6 „ Transfer fees ';}.. .. .. 39 17 6 ;• . ■!». ' £102,367 36; i v v ' ';.. ■■ - BALANCE SHEET. ..,,.. , LIABILITIES. I & s. d. Capital Account, 100,000 Shares, at 15s. paid up 75,000 0 - 0 Reserve Fund 20,000 0 0 Unclaimed Dividends 117 2 0 Calls in Advance Account . . . . 63 15 0 Appropriation for Unadjusted Losses 2,900 0 0 Balance to Profit and Loss . . . . 18,058 16 1 £116,139 13 7 ASSETS. £ s. d. Mortgages. 56,423 10 0 Deposits bearing Interest . . - ■ 33*500 0 0 Premises Account .. -- •• 6,731 3 o Furniture Account ■ 1,350 0 0 Calls Unpaid 27 10 0 Amounts owing to the Company at . 'Head Office and Branches .. .. 8,284 12 4 Cash in Bank and on hand at Head Office and Branches .-• •• 9,822 18 3 . . ' .; ' £116,139 13 7 We have examined the above Balance Sheet and Profit -and Loss Acconnt, together with the Vouchers. Accounts, the Books of the Company, and Securities, and hereby certify ' that, the above is a correct statement of the affairs ol .the Company. ' .. F. E. WRIGHT ; Unditors A. M. OLLIVIER \ Audltors ' June 29, 1880. The Chairman spoke as follows : — Gentlemen,— ln moving the adoption of the third annual report and balance

sheet, I desire to offer a few remarks on; the doings of the |Company during the period since I last had the ' pleasure of addressing, you. The premiums, as you will see have increased, and though the amount of the;, increase has not been very large, still that is owing entirely to the action of the Directors, who made up their minds to accept business only .it rates-they consider payable. Cojfipatition has been very keen in New Zealand, and in some places there has been a perfect scramble for business. In this we have not joined: had we have done so, the balance sheet now. presented might have shown a loss instead of the present result. I will now touch upon the item under the head of re-insurance, and 1 do this more especially, as I understand some shareholders consider we have paid away top much for this purpose. The Directors have no reason to regret this expenditure, and without going into detail, when I tell you that in one instance we covered over £8000 on account of. a loss, shareholders will at once see there is a great deal of reason in this precaution. This leads on to the item of general expenses of management, which have been heavier than previously. „*lt is a subject the Directors have had/before them constantly, and every effort is made to keep them as low as possible without imparing efficiency. The t'dtal was considerably swelled by the lawsuit at Sydney with the 'gentleman r -w ho formally occupied the position of- the Company's agent there. The Directors, after 18 months' trial, finding the working in Sydney was very unsatisfactory, decided to establish a branch, and discontinue the agency. On this being communicated to the late agent, he commenced an action for £3000 damages. The result of the trial was that the jury awarded no special damages, but gave a verdict' for £235, in accordance with the Judge's direction. Although ('the^discontinuance of the agency cost a V?ery considerable sum for legal and other charges in addition to the above, .we think the change has been beneficialWe have now our own Manager, a^nd have also been fortunate enough -to secure tlie services of a gentleman holding' &■ leading position in mercantile circles -as. a local Director. Having the reduction .of expenses in view, the Directors have decided to close the branch ;officevin . Wellington, -and conduct the 'business/ there through an agency. 'After ! 'a'"' three years' -tO!at,- we find, that the amount .of business done does not* • justify the expenditure. The ' 'shareholders will see from 'the accounts that the assets of the Company show very satisfactory figures. There is one item upon which I may perhaps remark, and "that is the amount appear : 'ing as Deposits. The Directors propose to keep at all times such a sum of money at command as ijvill 'enable them, to meet any emergency, shouldone arise. Tbe amount, however, is at present somewhat, larger than they aon- I sider necessary, but this is caused by . the fact that "for some time past satisfactory securities have not offered, and a Dortipn of the deposit is at actual call awaiting an opportunity for investment. It will be remembered that last year I referred to the question of calls^. and then stated that possibly no more would be necessary, at all events for the preent. lam glad to say that the result of last year's business has confirmed the opinion then expressed. There is one matter- vupon;fwhich <I have been" qnes^ turned, and .that- is whether orriiotithe Company, would.declareij&feriwidi videndsin future. J r The Directors have .no power to pay such dividends, nor ' do : they propose at present to' ask for such, feeling that the Company, b6ing as 'yet in its infancy, "should until it acquires a position by large accumulated reserves, refrain from anticipating profits which might not be earned. In conclusion, I will refer to the recommendations contained in the report, "which are that £7500 be paid in dividends, that £5000 be carried to the reserve fund, and that the balance be carried forward. It mus.t .j?.e,gratifying to'-you to find that, notwithstanding a trying year, - the Directors have been able to augment the reserve : fund by a substantial amount and pay a satisfactory dividend. recomendatioris are approved, believe they will be, we shall, durh^Q^e two' year/^and nine months of our exisWnce^"TiaVe paid away in dividends,"' £13,725: placed to reserve, £25,000 ; and h'oM in hand, £5558 16s Id, a result which cannot be but considered highly satisfactory ; and whilst not desiring to draw comparasions, Tthink will show, favourably when compared with recent statements of similar institutions in this country. If any genteleman desires to ask questions upon;. any subject to which I have not alluded, I shall be only to glad to answer him. I beg to move the adoption of the report and balance- i sheet. Mr. Murray-Aynsley : Mr. Chairman •and gentlemen— l shall have very much pleasure in seconding the adoption of this report and balance-sheet: 1 think it is very satisfactory that after the disastrous season for marine risks which we have gone through, the Directors .of the Company should be able to come down to us with a report showing a profit of £18j000 for-. one year ; that w? can have .10 per cent, dividend; 1 tLnd'reserVe of £5000 added to the general fund, thus increasing the reserve for future years. I think we must all of us be very satisfied that the Company isun a prosperous and flourishing condition. The policy of the company in the matter fo the Marine re-insurances is one that is bound to be carried on if the Company intend to take, business, for they are bound to take larger risks than they can deal with, and must therefore -reinsure. With respect to the remarks made with reference to the late member of tbe Board, I say I can fully endorse them all, having worked with him'and known him for years. I now second the adoption of the report. . ....„.,,...,.. The report and balance-sheet were then adopted unanitnously.

Age says :— " The excitement jn connection with the sale.of the illustrated; newspapers containing engravings ftf -%3 Kelly business still continues unabated. , The ' Illustrated Australian Ne.w,s,' which is evidently the favorite, notwithstanding its being double the ordinary price, h'aE^had more than, thr,ee, times i,ts usual sale^'aiid it is with .difficulty,, that the demand.has been met. As indicating the height to whiclrthe Kelly fever rose, we may state that no less^thah eighteen tons weight of paper 'was printed on inthis office during the week."