SELECTED ARTICLES.

Wellington Independent, Volume XVI, Issue 1615, 6 September 1861, Page 2

SELECTED ARTICLES.

THE NEW ZEALAND INSURANCE COMPANY.

[From the Independent, 16th August.] Perhaps there are not many in. this Province who are aware of the success ■which has attended the Auckland Association above named, and we think the present moment extremely favorable for calling attention to it. The Company has been sufficiently long in existence for the Directors to make two annual reports to the shareholders, both of which afford evidence of satisfactory progress. At a general meeting of the shareholders, held on the 29th July, it was resolved to increase the capital of the company to £250,000, by the issue of 1,500 new shares, preference of purchase being given to Auckland, and the southern provinces, to which the business of the company is about to be extended. By adopting this plan, the shareholders are making it really a New Zealand Institution, rendering it thereby still more secure, profitable, and beneficial. The capital of the Company was previously, we believe, £100,000, upon which, seven and a-half per cent or £7,500 have been paid up. By the course now determined upon, all the Provinces will possess a local interest in the Company, from which it is | almost palpable there will flow numerous benefits. First, there will be a greatly increased business — a business far larger in proportion than could have arisen if all the shares "were continued to be held in one Province, with proportionably increased profits; secondly, there will be a much greater security against loss, as the risks will be spread over such a largely increased surface, a point of the utmost importance to a business of this nature ; and thirdly, there will be numerous inspectors, directly interested in watching over the success of the Company, who will keep in check any inclination to act unfairly — a means of the most valuable kind to its prosperity.

Insurance is not like banking business ; the former may be transferred at the period when a premium is due, the latter presents greater difficulties in the way of joining a new institution. Several important advantages arise from having a Colonial Insurance Company, rather than the agencies of foreign companies. One is the facility of communicating with the Directors ; another the securing of the profit which arises from carrying on the kind of business needed for the country ; and "fire may add another, almost special to New Zealand but of the utmost consequence, that of knitting the several Provinces together by the best of means — social and economical institutions. With reference to the first, we would remark that very many buildings, especially in the country, remain uninsured because they do not come under any existing English classification ; buildings, for instance ; with play chimneys, which

areas safe as those erected with brick, < if entirely built of clay. Some- ' times when applications have been made : to have insurance effected on buildings of this description, promises have been given to apply to the home office 1 for instructions ; which promises have remained without yielding a result, either never having been fulfilled or they have not received attention at head quarters, so far as the Colony ia- aware. A difficulty was at one time thrown in the way of insuring houses having stoves, though they may be so arranged as to render them as safe as chimneys ; yet wooden steamboats with immense funnels are insured without hesitation, though the risk on first consideration would appear enormous. Now had we a Colonial Company the application would be made at once to the Directors, from whom a reply would be obtained immediately, and doubtless so far favorable as arranging for a premium to suit the particular risk, should it be supposed to have any speciality about it. With reference to the profit lost to the Colony, it should be kept in mind that there are three items of which a premium, or rate of insurance is composed; the amount necessary to cover the risk, the expenses of conducting the business, and the profit required for the shareholders of the Company with which the insurance may be effected. All these, all communities have to pay, and it is the last that is lost to the Colony. The expenses must be incurred whether the office be foreign or colonial, so likewise must ' the item to meet the losses which take place, but , it rests with the Colony whether it will | retain or part with the profit arising out 1 of that which is in principle a purely mutual undertaking. Thisitem amounts to some thousands, and if all insured as they ought to do, would amount to many more. We have known an agent to a Foreign Insurance Office, talk as if, when a fire took place and an insurance had been paid, a present had been made to the colony by some benevolent institution in England or elsewhere, while of course all that had taken, place was merely that a portion had been given to the sufferer of what many had contributed in the colony for their mutual safety. Every facility should be given to those intending to insure, and every inducement to insure should be offered. The former would be afforded, as we have endeavoured to show, by the facility of communicating direct wiih the head office of the Company. The latter might be attained by publishing on every occasion the sums paid parties who had suffered, calling 'attention at the same time to the probable inconvenience which would have arisen had they not possessed such a source through which to meet their losses, and by making the public better acquainted with the subject through the Press. The facility being afforded and the requisite knowledge possessed throughout the colony, we doubt not the numerous country settlers, who do not or cannot now insure would do so, when those disasters which often bring ruin on some, and great inconvenience on many, or on their Agents, on whom too frequently the necessity of providing funds for rebuilding would otherwise fall, would be met with by their appropriate remedy. If advantage was not taken of such suitable opportunity, there would be no claim on friends or on agents for assistance, after having neglected so palpable a duty as that of insuring. . Destruction by fire might take place in a i Province far beyond the means of any mere provincial office to meet, which would prove only an ordinary though severe loss to an institution having so j broad a basis as that afforded by the mutual action of the whole community represented by a New Zealand Insurance Office, such as the one before us is proposed to be. The great fire in New York in 1834 or 5 is a strong case in point. We therefore hail with pleasure the prospect of a speedy establishment of a New Zealand Insurance Office and Bank and we hope also soon to hear of a Loan and Trust Company, such as they have in Australia. The visit to the Southern provinces of Messrs. Williamson and Daldy to urge the first two matters, will, we cordially hope answer all the expectations which induced them to undertake it, and to help the bringing about of such a result, we publish with pleasure the last report of the Insurance Company which has been put into hands. BEPORT. The Directors, in presenting to the Shareholders ot the New Zealand Insurance Company this their, Becond Annual Report, derive much gratification 1 from, the satisfactory statement which they are enabled to lay before them, not only as regards past operations, throughout a year of considerable commercial depression, but also as respects the advancement of tho Company's interests for the future. The Directors would direct attention to the accounts which have been duly audited, and are now laid on tho table for the inspection of shareholders, from which it will be seen that the business of the Company has been steadily increasing throughout the past year. The total receipts from premiums have been £5782 17s. 7d , which includes the last quarter's return from Napier, which, was not received in time to include in the accounts now laid before you. Although tho losses have been heavy— viz., £2397 3s. 6d. from fire, and £1±65 7s, lOd. from marina, making a total of £386'} Us. 3d.— yet the balance of the yeai'fl operations in favour of the Company is highly encourag.'ng, amounting to £1652 19s, r 6d. Against this sum, the Directors hare to report two

claims in abeyance, whioh will not probably exceed. £330; The total amount at risk is £ 202 ,708; fire insurances being £178,828, and marine £23,880. The reserve fund amounts to £2,681 lOb. 6d., and the Directors propose to appropriate this years balance as follows;—

The dividend will bo payable on and after the Ist July. 4 ■ \ It is with satisfaction your Directors would call attention to the establishment^ of the Sydney agency for Marine Insurance, which, since its commencement in February last, has insured upwards. oi £\ 0,000 worth of merchandize shipped to this port, anA when the Company's operations are extended to the South, your Directors believe that this will become a very adjunct to the Marine Branch. For several reasons your Directors nave not yet established Agencies in the other provinces of New Zealand. They are now taking active I measures to extend the operations of the Company J to the South, and also to Melbourne ; and they l trust before many months have elapsed these Agencies will be in active operation . By the mail which has just left for England, the Directors have appointed Messrs. Bowley & Bristow, 25, Laurence Pountney Lane, the Company's agents in London ; arid" from the recomniendationa they have received as to the ability and willingness of those gentlemen to carry out the Directors' wishes, they anticipate a fair share of BUpport. The nogotiations have been arranged by Messrs. David and W. K. Graham, who have given the matter much time and consideration. The Director* who retire by lot in accordance with clause liv. of the deed of settlement, are Messrs. Henderson, A. Buckland, and Owen, who have given duo notice of their willingness to serve again if elected. A vacancy occurs by the resignation of William Bucklaud, Esq., the only candidate to fill the office being James Williamson, Esq., and your directors will gladly welcome back to their asaistance one who has taken so lively an interest in the success of the institution from its commencement. Your Directors, in conclusion, would embrace this opportunity strongly to impress upon their fellow-colonists the great importan&e of rendering every possible support to this local institution, anp they fael assured that no stronger incentive will be needed than a thorough conviction of the many advantages to bo derived from the retention in this country of only a moiety of the large amount annually paid to the English Insurance Offices; and they earnestly invite the hearty co-opevation of the Shareholders in endeavouring to promote the interests of the Company by eveiy effort in their power, as by so doing they not only contribute to their own advantage, but also to the true progress or the Colony with which they are indw vidualiy identified. Thomas Hendebsos, Chairman. May 31st, 1861. Profit and Loss.— 3lst Mat, 1861.

Dr. £ s. d. To amount carried to Reserve fund 26SL 10 6 Dividend of 10 per cent, to Bhare- ■ holders 454 10 0 Commission paid on £ a. d. Fire Insurance ' 52 30 0 ■ Ditto" ditto Marine do 43 6 S 95 16 3 Fire~lnsuran.ce losses 2397 8 5 Marino " " 1405 710 3862 11 3 Expenses 455 11 2 Balance forward '. IM2 19 0 ,£9282 18 8 CV. Balance of last account 31 66 0 6 Fire Insurance prem. 31LA 14 0 Marine " " 2275 I<> 4 5390 9 10 Interest 076 0 4 Stock Transfer fees 8 0 9^82 18 8 By balance brought forward £1652 19 6 Balance Sheet. Dr. £ b. d. To commission due agents 1 0 9 Balance due late Secretary 18 3 11 Capital Stock * 4845 0 0 Reserve Fund 2(581 10 6 - Profit and Loss IG&2 19 6 14 8 CV. By investments 7840 0 0 Furniture 117 13 II Premiums due on Fire £ a. d. 'Insurance 35 15 (J Ditto ditto Marine do. 53 0 0 88 Ift 6 : Interest arrears 80 0 0 Cash in oriental and Union Banks 1381 2 5 ,« in hand- 101 2 10 £8198 14 8 E. & O. E. Qeo. P. Pierce, Manager. Wm. Fraser, Secretary. I Examined, and found correct, Biehard Hidings, ") Ai; . Thos. O. Law, } Auclltols - COMPARATXVE STATEMENT OP FlllE AND BIABINB Insurances, 1800-61. Fire. 1801. 1860. £ s. d. £ a, d. Amount of prom.. 3127 5 6... 2,702 3 1 Sum insured .... 259,078 0 0... 166,245 0 0 Liabilities 178,838 0 0...154.825 0 0 Losses 2.-J97 3 5.. 515 11 7 Marine. 1861. 1860. £ a. d. £ a. a. Amount of prem... 2,535 6 1.. 1,117 1G 3 Sum, insured ....104,087 11 5.. 41,743 2 3 Liabilities 23,880 0 0.. 11,852 0 0 Losses 1,465 7 10 0 0 0

To dividend at 10 per cent £484 10 0 To interest on reserve fund, as par deed of settlement 268 3 0 Balance carried to increase of reaervefund 900 6 6 £1,652 19 6