INSURANCE YEAR

Wanganui Chronicle, Volume 80, Issue 243, 14 October 1938, Page 11

INSURANCE YEAR

SOUTH BRITISH COMPANY RECORD PREMIUM INCOME Gross revenue of the South British Insurance Company, Limited, for the year ended August 31 established a record well in advance of that cl previous years. Net premium income from fire, marine and accident business at £1,342,535 was £160,926 higher than the previous best figure recorded in 1936-37, and £290,693 more than the earlier peak in 1929. Interest and rents yielded £5506 more al £147,261, making the gross revenue £1,489,796, against £1,323,364 a year ago. The higher premium income was again accompanied by a less favourable loss experience, claims rising by £139,849 to £843,977. The ratio of losses to premium income also registered a further pronounced increase, and at 62.86 is the highest since 1930-31, when it reached 66.88 percent. of a premium income of £847,718. Lower Expenses Ratio An increase of £22,816 in expense^ 1 brought this item to £316,394, but the ratio to premium income was reduced to 23.57 per cent, from 24.85 per cent, in 1937. The underwriting surplus for the year fell by £3739 to £102,164. Thi surplus was obtained after making full provision for losses outstanding and for taxation. Adding the surplus to the income from interest and rents, the total available is £249,425. The directors have transferred £lOO.000 to various reserves, distributed follows: To reserve fund, £6640; to investment fluctuation fund, £23,360; lo contingencies reserve, £70,000. After these appropriations, a balance oi £149,425 remains. The interim dividend of Sid a share was paid in April, absorbing £73,074 10s, and the directors now recommend a final dividend at the same rate. This will absoro u further £73,074 10s, and the sum of £3276 remaining will be added to the floating balance, increasing it to £231,001. The retiring directors are Messrs. P. H. Upton and S. Austin Carr, who arc available for