STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1929.

Appendix to the Journals of the House of Representatives, 1930 Session I, H-06

H, t

J 930. N E W ZEAL A N D

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1929.

Presented to both Houses of the General Assembly pursuant to the Provisions of the State Fire Insurance Act, 1908.

State Fire Insurance Office, Wellington, 24th June, 1930. I have the honour to submit the twenty-fifth annual report of the State Fire Insurance Office for the year ended 31st December, 1929, with the Revenue Account and Balance-sheet. The following comparative figures for the last three years show the progress made :— 1927. 1928. 1929. Income — £ £ £ Premiums .. .. .. .. .. .. 207,610 211,634 217,990 Other receipts, less land-tax .. .. .. .. 35,884 40,459 41,003 Outgo — Bonus rebate to policyholders .. .. .. .. 25,765 26,421 27,208 Claims .. .. .. .. .. .. 98,134 81,585 75,316 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income . . .. . . 47-27 38-55 34-55 Working-expenses (exclusive of income-tax and Fire Board £ £ £ contributions) .. .. .. .. .. 50,295 49,804 52,194 Fire Board contributions. . .. .. .. .. 6,903 7,283 7,709 Income-tax .. .. .. .. .. .. 11,957 9,789 15,746 Ratio of working-expenses (exclusive of income-tax and Fire Per Cent. Per Cent. Per Cent. Board contributions) to premium income . . . . 24-23 23-54 23-94 Ratio of Fire Board contributions to premium income . . 3-32 3-44 3-54 Ratio of income-tax to premium income .. . . . . 5-76 4-63 7-22 £ £ £ Carried to reserve for unearned premiums . . . . . . 4,055 1,609 2,542 Surplus, .apportioned as follows — £ £ £ Reinsurance Reserve Fund .. .. .. .. 5,000 10,000 10,000 Bonus Rebate Reserve .. . . . . . . . . 1,500 1,000 1,000 Written off office premises .. . . .. 4,000 3,000 4,000 Investment Fluctuation Reserve Fund .. .. .. .. .. 6,000 Reserve Fund .. .. .. .. .. .. 35,883 61,600 57,276 Total .. .. .. .. .. £46,383 £75,600 £78,276 Reserves and funds at 31st December .. .. .. .. £670,061 £744,271 £821,090 Briefly summarized, the figures show a satisfactory advance in both premium income and other receipts (the latter after payment of land-tax for the first time), with smaller losses, and a record surplus. Public confidence in the Office is well maintained, and the results indicate that the business underwritten is, on the whole, of an excellent class. Claims for the year were abnormally low, and the Office is fortunate in being again able to show better results than most of the insurance companies. Concern, however, must be expressed at the occurrence of so many fires for which no adequate cause can be assigned. No doubt obscure physical conditions are responsible for some, but, as losses occur with the greatest frequency in districts where financial depression is most severely felt, it is impossible to avoid the conclusion that many fires, if not actually procured, are at least not undesired. Public attention has repeatedly been directed to the seriousness of the problem of fire waste, and it is hoped that practical steps will be taken in the near future to deal with what is a most important national question. Bonus Rebate.—This was fixed for 1929 at the same rate as for the previous year —viz., I2J per cent. The cost of rebates to the Office up to the end of 1929 has been as follows :■ — £ Year ended 31st December, 1923 .. .. .. .. 10,996 1924 .. .. .. .. 22,005 1925 .. .. .. .. 17,405 1926 .. .. .. .. 24,496 1927 .. .. .. .. 25,765 1928 .. .. .. .. 26,421 1929 .. .. .. .. 27,208 £154,296 Income-tax. —For the year under review a larger sum (£15,746) was paid in income-tax than since 1923, and it may safely be said that the Office maintains its position as the largest fire-insurance incometax payer. For 1928 (the latest year for which comparative figures have been published) the State Office, with 13-51 per cent, of the total fire premium income, paid no less than 44 per cent, of the total income-tax collected from all fire-insurance offices. J. H. Jerkam, General Manager.

H.-6

2

Revenue Account of the State Fire Insurance Office for the Year ended 31st December, 1929. £ a. d. £ s. d. Premiums after deduction of reinsurances .. 217,990 18 8 Bonus rebate to policyholders .. .. 27,208 18 4 Other receipts —Interest, com- £ a. d. Losses by fire (after deduction of reinsurances) .. 75,316 13 1 mission, and rent .. 43,113 17 11 Appropriated to reserve for unearned premiums Less land-tax .. .. 2,110 0 2 (in addition to £84,653 14s. lOd. already reserved) 2,542 11 10 41,003 17 9 Income-tax .. .. .. .. 15,746 16 3 Commission .. .. .. .. 10,565 19 11 Salaries .. .. .. .. .. 27,781 12 6 Contribution to Public Service Superannuation Fund .. . . .. .. . • 479 14 4 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. .. .. 7,709 1 11 Expensea of Management— £ s. d. Travelling-expenses .. . . 1,826 11 3 Printing, stationery, and advertiaing .. .. .. 1,228 210 Rent .. .. .. 1,812 17 2 Exchange .. .. . . 42 5 1 Postages, telegrams, cablegrams, and sundry charges .. 3,358 18 8 8,268 15 0 Office equipment .. .. .. .. 1,784 11 11 Office premises—Depreciation .. .. 3,313 9 1 180,718 4 2 Investments Fluctuation Reserve Fund . . 6,000 0 0 Reinsurance Reserve Fund .. .. . . 10,000 0 0 Bonua Rebate Reserve .. .. . . 1,000 0 0 Office premises—Written off .. .. .. 4,000 0 0 Amount of fire-insurance funds at end of year .. 57,276 12 3 £258,994 16 5 £258,994 16 5 Balance-sheet of the State Fire Insurance Office as on the 31st December, 1929. Liabilities. I Assets. £ s. d. Capital authorized by the State Fire £ £ s. d. Government war-loan securities .. .. 148,146 7 0 Insurance Act, 1908 .. .. 100,000 Other Government securities .. .. 188,150 0 0 Less not raised .. .. .. 100,000 Local-authority securities .. .. .. 110,396 4 4 Nil. Rural Advances bonds .. .. .. 14,175 0 0 Reserve Fund .. .. .. .. 587,117 13 8 Rural Intermediate Credit bonds .. .. 20,000 0 0 Investments Fluctuation Reserve Fund .. 16,000 0 0 Fixed Deposits and at short call .. .. 110,000 0 0 Reserve for unearned premiums .. .. 87,196 6 8 Land and buildings .. .. .. 210,926 4 6 Bonus Rebate Reserve .. .. .. 28,500 0 0 Outstanding premiums .. .. .. 8,877 16 6 Reinsurance Reserve Fund .. .. .. 45,000 0 0 Interest accrued but not due .. .. 9,157 12 8 Premium and other deposits .. .. .. 1,271 3 5 Rent accrued or due .. .. .. 233 1 8 Outstanding fire losses .. .. .. 6,136 0 0 Rent overdue .. . . .. .. 174 16 9 Government taxes .. .. .. .. 15,836 511 Cash in Bank of New Zealand at £ s. d. Sundry creditors .. .. .. .. 6,313 810 Wellington, or in transit to Other amounts owing by the Office — £ s. d. Wellington .. .. .. 41,704 10 9 Reinsurance premiums due .. 8,704 17 0 Imprest Account Commission.. .. .. 1,606 19 10 balances — £ s. d. Rent .. .. .. 29 3 4 Head Office .. 87 0 5 Printing, stationery, and adver- Auckland.. ~ 0 0 2 tising .. .. .. 59 2 J Hamilton.. .. 219 6 Postages and sundry charges .. 1,291 411 i New Plymouth .. 163 14 11 11,637 14 3 ! Palmerston North .. 19 1 1 Fire-insurance funds, as per Revenue Account .. 57,276 12 3 j Napier .. 16 8 6 Nelson .. . . 4 6 4 I Christchurch . . 0 7 1 Timaru .. .. 21 12 9 Dunedin .. 22 19 9 Invercargill . . 5 0 4 343 10 10 42,048 1 7 £862,285 5 0 ! £862,285 5 0 ! .. . . - 2nd April, 1930. J. 11. Jerram, General Manager. C. B. Redward, Accountant. I hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—G. F. C. Campbell, Controller and Auditor-General.

Approximate Cost of Paper. —Preparation, not given; printing (1,800 copies), £3 15b.

Authority : W. A. G. Skinner, Government Printer, Wellington.—l93o.

Price 3d.]