INSURANCE MERGER.

Thames Star, Volume LVII, Issue 14727, 4 August 1921, Page 5

INSURANCE MERGER.

A : COMPLETE PARTNERSHIP

TWO COMPANIES AFFECTED.

(Press Association.) • AUCKLAND, .August 4.

Two of the -greatest commercial institutions of New Zealand, the South British and the New ZealandInsurance Companies, both of which, originated in Auckland, have arranged a partnership.

A circular, issued to the shareholders, explains that the conclusion arrived at was that a complete partnership would materially further the interests of both companies. - Already they are partners in the Eastern States of America.

■ The history of the two companies shows that tiie underwriting profits of the one have been just about equal to those of the other. i The only differences are that the New Zealand Company has a large return from investments and has ari uncalled liability on shares of .£500,000 greater than that of the South British Company. These differences can be adjusted by the South British Company making an' issue to shareholders of 500,000 contributing shares of £l each, and calling up such sum, estimated to; be about 6s 8d per share, as would bring the one company,, on >an equality wit. the other.

The advantages of such a partnership are co-ordination of direction and management, the pooling of-ex-perience in world-wide fields of oper.tion, the focussing of financial strength, and generally the greater security alike to shareholders and clients.