ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1934.

Appendix to the Journals of the House of Representatives, 1935 Session I, H-06a

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1935. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1934.

Presented to both Houses of the General Assembly pursuant to Section 22 of the Government Accident Insurance Act, 1908.

State Fire Insurance Office, Wellington, Ist August, 1935. I have the honour to submit the thirty-fourth annual report of the Government Accident Insurance Office, for the year ended 31st December, 1934, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position in brief 1932. 1933. 1934. Income — £ 1 £ Premiums from all classes of accident insurance .. 87,068 80,207 84,727 Interest '5-™ 1B > 240 15 >"2 Premium on conversion of securities .. .. .. • • • • 15' bonus on personal accident policies .. .. 279 272 255 Clain f g .. 63,760 48,593 62,035 Working-expenses (exclusive of income-tax) .. .. 17,707 16,865 17,962 Carried to reserve for unearned premiums Income-tax .. .. •• •• •• •• 7,183 10,787 5,504 Per Cent. Per Cent. Per Cent. Ratio of claims (all classes of business) to premium income 73-23 60-58 73-22 Ratio of working-expenses (exclusive of income-tax) to premium income •• •• •• 20-34 21-03 21 -2 Ratio of underwriting surplus to premium income .. 6-11 18-05 5-28 Surplus, apportioned as follows — £ £ £ Reserve for bad debts .. . • ■ • - - 500 Investment Fluctuation Reserve .. •• 10,000 15,000 In ' mn Reinsurance Reserve .. • ■ • • • • • • • ■ 10,000 Payment to Treasury under section 5, Finance Act, 1931 (No 2) —10 per'cent, reduction in salaries.. .. 1,174 1,174 293 Reserve Fund JU99 JUM 4,005 £13,873 £18,929 £14,298 Reserves and funds as at 31st December .. .. £324,753 £342,508 £356,513 1 A gratifying increase in premium income is shown for the first time since 1930, mainly arising from workers' compensation premiums. The underwriting surplus is, however, less than for the previous year, due in part to the fact that the Office, which was established primarily to assist all classes in industry, does not refuse hazardous occupations, in which the claim cost is above average. 2. For the third successive year the Office has acted as claims-settling agent for the Unemployment Board. No charge has been made to the Board for the services rendered. J. H. Jerram, General Manager.

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Revenue Account of the Accident Branch of the State Fire Insurance Office for the Year ended 31st December, 1934. £ s. d. | £ 8. d. Premiums after deduction of reinsurances .. 84,727 8 8 Free-year bonus on personal accident policies .. 255 7 1 £ s. d. Claims .. .. .. .. .. 62,034 16 10 Interest .. .. .. 15,170 6 0 Commission.. .. .. .. .. 3,522 12 3 Less land and income tax .. 5,503 18 2 Salaries .. .. .. .. .. 10,997 10 0 9,666 7 10 Contribution to Public Service Superannuation Premium on conversion of securities .. .. 157 2 9 Fund .. .. .. .. .. 172 10 0 Expenses of management .. .. .. 3,270 0 6 80,252 16 8 Payment to New Zealand Treasury under section 5, Finance Act, 1931 (No. 2) .. .. 293 10 0 Appropriation to Reinsurance Reserve .. . . 10,000 0 0 Amount of Accident Funds, 31st December, 1934 4,004 12 7 £94,550 19 3 £94,550 19 3 Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1934. Liabilities. £ s. d. Assets. £ s. d. Accident funds, as per Revenue Account .. 4,004 12 7 Government securities .. .. .. 163,502 15 8 Outstanding accident claims .. .. .. 48,459 0 0 Local-authority securities .. .. .. 120,427 15 9 Government taxes .. .. .. .. 6,111 10 9 Rural Advances bonds .. .. .. 14,425 0 0 Commission .. . . .. .. 345 4 1 Property under agreement for sale and purchase .. 3,980 0 0 Premium and other deposits .. .. .. 131 13 5 Fixed deposits and at short call .. .. 40,000 0 0 Sundry creditors .. .. .. .. 9849 Interest accrued but not due .. .. .. 3,76143 Reinsurance premiums due .. .. .. 56 13 11 Interest overdue .. .. .. .. 199 0 0 Officers' Fidelity Fund .. .. .. 500 0 0 Agents'balances .. .. .. .. 1,632 18 7 Reserve for Unearned Premiums .. .. 47,220 13 10 Sundry debtors, including Motor-vehicles InsurInvestment Fluctuation Reserve .. .. 41,000 0 0 ance (Third-party Risks) Act pool .. .. 51,099 13 2 Reinsurance Reserve .. .. .. 10,000 0 0 Cash in hand on current account .. .. 12,686 17 2 Bad Debts Reserve .. .. .. - ■ 1,000 0 0 Reserve Fund constituted under section 6 of the Government Accident Insurance Amendment Act, 1924 .. .. .. 252,787 11 3 £411,715 4 7 £411,715 4 7 J. H. Jerram, General Manager. 31st July, 1935. L. H. Osborn, Deputy General Manager. 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.—J. H. Fowler, Deputy Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given ; printing (1,310 copies), £2.

By Authority: G. H. Loney, Government Printer, Wellington. —1935.

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