ANNUAL MEETINGS OF INSURANCE COMPANIES.

Timaru Herald, Volume XL, Issue 2947, 4 March 1884, Page 2

ANNUAL MEETINGS OF INSURANCE COMPANIES.

(Br lELEQItAPH.) Dtjnedin, March 3. The first annual meeting of shareholders m the Equitable Insurance Association was held this afternoon, Mr E. It. Oargill presiding. The balance to cnxlit as tho result of the year's transaction teas .£3390 133 2d. and the Directors recommended that a dividend of 8 per cent bo paid ont of this. Some differenco of opinion was maiifested as to the wisdom of this course, and Mr Campbell, after saying that mnny shareholders thought tho amount of the dividend shonld have gone to form a reserve fund, movod to that effect. Tho Chairman oxplainod that the Directors had woll considered tho matter. No doubt it was desirable to catry as much as possible to the Reserve Fund, still thero was a kind of mark pnt against companies which did not declare dividends. Aftor .some discussion Mr Campbell withdrew his proposal. Having read tho report;, the Chairman said he thought tho shareholders would consider tho roport a very satisfactory one. especially as it was tho result, of jnly a first year's working, during which perioc. of a new insurance company's oxistence tiers was always a great jealousy and depreciatory comment on tho part of rival companies. Their business had been carried on with cato and prudence, tho Company being fortunate m having for Directors men who were nctivoly ongaged m business pursnits m tovrn and country, and who therefore know what good business was. The result of tbo ;fer,r's transactions showed that their effort:) had met with a very great deal of success, anc. that they had been most assidnoiiH iv their duties. Tho report and balauco-sheet were adopted. The tenth arranU meeting of shareholders m the Standard Iraurance Company was also held this afternoon, Mr John Reid presiding. The profit and less account for the year showed a credit balance of .£4420, from which the Directors proposed the payment of a 7fc per vent dividend. A shareholder asked i;' any steps had been taken to arrange irita other companies as to reasonable rate of premiums ? The Chairman said thu Directors hai used their utmost endeavors to arrango a proper tariff , but without; success. There was very little prospect of a colonial tariff being brought about. In moving the adoption of tho report, tho Chairman said : — The result of tho year's business is certainly not as satisfactory ns wo could wish or such as we hope to Bhow" i . ; ' ■. •. future. However, as you will observe, thu profit and loss ficconnt shows a credit balance of .£-4420, from which your Directors propose to pay a dividend at the rate of Tk per cent per annum, and to carry forward tho balance (£1607 143 3d) to next year. The year 1333 has been rendered singularly conspicuous by tin numerous losses Trhieh have occurred, both fire and marine. InJeed insurance companies have certainly had to pass through a season of exceptional misfortune). It i-s a noteworthy fact that our fire losses have beon mainly oil warehouses and cwellitigs, risks which are generally known :is non-hazardous. In the marine department wo have been interested to oar fall limits on thre<; wssels which have never been heard of sinco thoy loft port. As the newspapers will have informed yon the collisions m the English Channel and other accidents to vessels engaged m the colonial trade have besn frequent, and from this source our losses have baea exceptionally heavy. Our premium incocao is upwards of JJSOOO m excess of last year, which I think is very satisfactory. This incomo has been obtained without widening the basis of the Company's operations, and m the face of much lower rates than were current last year. I took occasion, when irre had the pleasure of meoting you last year, to refer to the nature of tho severe competition then existing for business, and I regret to say that thi.4 sti.te of things still continues. Competition is no doubt a good thing m all businesses when conducted on sound principles, but the fierce, and I am warranted m calling it, reckless competition to which the business is subjected ju.it now has reduced the rates of premiums too low altogether. I am glad to note m some places there is an evident desira to bring this state of things to an end, and I sincerely hope that noxt year I may be able to inform you that thero is an improvement m thia respect. In accepting business we have followed the same lines as I have previously indicated, exercising the utmost caution m the selection of risks, with a view to seunro 8.9 safe a class of business as possible. I indicated last year that your Board had under consideration the question of again undertaking the insurance of hulls, and we are now accepting thia class of business, and ho.ye bean doing so for several months, confining our attention to first-class risks only, and so far we have reason to be satisfied with tho result. The report and balance-sheet were unanimously adopted, and the customary votes of thanks passed.