N.I.M.U. INSURANCE

Taranaki Daily News, 12 September 1934, Page 12

N.I.M.U. INSURANCE

LAST YEAR’S RESULTS. The directors of the N.I.M.U. Mutual Insurance Company, in their sixth annual report, state that the net premium income for the year ended June 30, 1934, amounted to £74,944 19s 5d,. being an advance of £9,777 0s 4d on the previous year’s total Income from investments amounted to £2,751 Ils 2d, being an increase of £52 16s 7d on the figures for 1933. The advance in net premium income, which is £6,923 8s 7d higher than the previous record of 1932, is noteworthy. . Owing to the increase in net premium income, a further sum of £3,461 14s 3d has been placed to reserve for unexpired risks. The surplus for the year amounted to £19,888 3s Id, and has been allocated as follows:—Profits for distribution reserve. £15,000; fidelity guarantee reserve, £150; accumulated funds, £4,738 3s Id. The accumulated funds, being accumulated surplus £26,308 3s 2d, and reserve for unexpired risks £37,472 9s Bd, amount to £63,780 12s lOd, as against £55,580 15s 6d for the previous year.

The number of claims handled during the year was 2,795, the net amount paid, and payable, thereunder, being £35,771 5s Bd. The percentage of claims payments to net premium income, 47.7 per ■ -cent., shows a decrease of 15.9 per cent , on last year’s figures. The ratio of work- ' ing costs to net premium income was 24.5 per cent., a decrease of 2 per cent, as compared with 1933. The ratio for the year under review is the lowest since the inception of the company., A sum of £20,000 has been set aside to be distributed to members. This amount is comprised of £15,000 from this year’s surplus, plus the amount of £5,000 which was set aside in the 1933 accounts to establish premium reduction reserve. The underwriting for the financial year under review was so successful that it was not necessary to call upon this re- ' serve to make good any deficiency; hence, this amount has been transferred to the special profits for distribution reserve. From September 1, 1934, each comprehensive policy-holder will, upon renewal, receive a rebate equal to 10 per cent, of the premium paid by him for the preceding year. It is expected that the company will be in a position to continue this special rebate, and it is not unlikely that, given favourable experience, it will be possible for members to participate to an even greater extent. The retiring directors, Mr. A. J. Curtis and Dr. J. H. Graham Robertson, offer themselves for re-election. The report expresses appreciation of the services of Mr. Ivon V. Wilson, general manager since 1928, who resigned his position during the year. The directors’ report concludes as follows:—“Recently some newspaper publicity has been given to a criticism by the local Chamber of Commerce of fnutual insurance companies. This criticism, which apparently questions the stability of some mutual concerns, cannot justifiably be levelled at your own company. An examination of the appended balance-sheet will show conclusively that the N.I.M.U. Mutual ! Insurance Company has sufficient assets i to comply more .than fully with the most stringent legislative requirements relative to non-mutual insurance companies. The board invites any inquiry from members, or others, in relation to the I financial stability of the company,"