N.Z. INSURANCE CO.

Star (Christchurch), Volume XLIV, Issue 522, 3 August 1932, Page 12

N.Z. INSURANCE CO.

(Special to the “ Star.”) AUCKLAND, August 2. “ The widespread nature of our business and interests has enabled your directors to place before you a statement of the affairs of the company which cannot fail to meet with your approval.” This was the keynote of the address delivered to-day to the shareholders in the New Zealand Insurance Company by Sir Alfred Bankart, chairman of directors. It was the seventy-third annual meeting of the company, and, as already announced, the directors had decided, despite lessened earnings, to recommend payment of a final dividend at the usual rate of Is per share for the half-year. Discussing the general position, the chairman stated that the company had shared the experience of all other underwriters in the matter of premium income, which had fallen by £94.907 to £1,050,350. The result of the underwriting fully justified the policy of the executive in refraining from acceptance of any business of an unduly hazardous nature. The low and uncertain values of all commodities and of buildings had called for steady reductions in the amounts of cover granted. Fortunately, the year under Review had not suffered from untoward underwriting events, and losses had fallen from £740,244 to £670,713. This was in line with the reduced income, the ratio of losses to income this year being 64.64 per cent, as against 63.86 per cent in the preceding year. Expenses amounted to £349,331, being £4IOB less than last year. The fall in income, however, increased the ratio of expenses from 30.86 per cent recorded last year to 33.26 per cent. Investments had caused the board considerable anxiety. The Commissioner of Taxes had advised that he did not intend to treat as income the capitalisation of 4s per share in 1930. Sir Alfred Bankart and Messrs Oliver Nicholson and Charles Rhodes were re-elected directors.