INSURANCE COMPANY.

Waikato Times, Volume 112, Issue 18777, 27 October 1932, Page 8

INSURANCE COMPANY.

GOOD YEAR EXPERIENCED. " FORTUNE HAS BEEN KIND.” (By Telegraph.—Special to Times.) AUCKLAND, Thursday. At the annual meeting of the South British Insurance Company to-day, the acting-chairman of directors, Mr. W. R. Wilson, said the reduced premiums in the underwriting account are principally due to the same causes that accounted for last year’s fall—namely, a reduction of values, decreased trade, and the smaller totals paid in wages. An additional factor is the widespread laying up of motor vehicles, with a considerable effeot upon the premium revenue from what has become a very important class of business. The losses are less by close on £IOO,OOO in this respect. It has been a year in which fortune has been kind, besides which a sense of carefulness has been awakened by the necessity for economy. Easier times had rendered this sense dormant, and its revival is making itself felt in all sorts of ways, including the preservation of property from loss by fire. There is a moderate reduction of expenses. After having made provision for increased income tax and restoring for this year the company’s usual contribution to the European staff provident fund, the reserve for unexpired risks is the same as last year, and the balance carried to the profit and loss account is £60,255. The income from interest and rents Is down by £4,745, and members may be agreeably surprised that the reduction is not greater. The sum of £40,000 has been written off properties in view of lower rents, not unfortunately, accompanied by a commensurate reduction of rates and taxes. The dividend recommended, Is 4d per share, is the same as that of last year, and with a similar Interim dividend paid in April will make a distribution for the year of slightly more than the income from interest and rents. The financial strength of the company to-day reflects the principle adopted 40 years ago of limiting dividends to income from investments, but for the sake of the small sum involved it was not considered necessary to reduce the dividend rale for this 'half-year.