N.I.M.U. INSURANCE CO.

Wanganui Chronicle, Volume 79, Issue 222, 19 September 1936, Page 15

N.I.M.U. INSURANCE CO.

The eighth annual report of the N.I.M.U. Insurance Company, to be presented at the annual meeting on September 29, shows that the net premium income amounted to £83,67.’ 18s 2d, being an mt lease of £2601 3s 5d on the total ioi the pre/ ous year. Income from investments amounted to ‘£3649 3s Id, an advance of £7lB 17s 2d on the figures of 1935. A sum of £l3OO Ils 9d, being 50 per cent, of the amount of increase in the net premium income, has been placed to this reserve. The surplus for the year amounted to £764 18s 4d, wn.cn has been a located as follows —Fide’ity guarantee reserve, £150; profits tor distribution reserve, £6lB 18s 4d. T le accumulated funds, comprising accumulated surplus £29,899 13s 7d. and eserve for unexpired risks £44,338 19s Id, amount to £74.238 12s Bd, as against £72,938 0s lid for the previous year. The number of claims handled during the year was 5690, and the net amount paid, and payable, '.hereunder was £64 512 9s sd. The percentage of claims payments to net premium income, 72.7 per cent., is 14.7 per cent, higher than the figure for 1935 The ratio of working expenses to net premium income in 24.3 per cent., an increase of .6 per cent, as compared with the figure for 1935. The substantial reduction in premium rates in 1935 naturally re duced the company’s comprehensive income for the year under review. At the close of the financial year there were 1949 more holders of comprehensive policies than was the case at June 30, 1935, hut, despite this, the comprehensive income was less than the amount recorded for the previous year. The lower rates reduced the comprehensive income by approximately £12,000. The amount returned to members during the year under review was £6055 9s lOd. The distribution of profits reserve as at the end of the year amounted to £19.559 8s 6d. A considerable increase in the number of motorists nominating this company as their insurer under the Motor Vehicles Insurance (Third Party Risks) Act. 1928. has again to be recorded, almost 5000 additional nominations being received. The retiring directors are Mr. A. Grayson and Mr. W. A. O’Callaghan, who offer themselves .for re-election.. During the year under review an amount' of £4280 14s 3d was paid by way of income taxation. Up till the close of 1935, the company was not liable for income taxation upon ary surplus derived as a result of trading with its own members. By an amendment to the Income Tax Act which was passed in November. 1935, this position was altered, the company now having to pay income tax on the same basis as a company with snare capital.