STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1944

Appendix to the Journals of the House of Representatives, 1945 Session I, H-06

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1945 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1944

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

State Fire Insurance Office, Wellington, 29th March, 1945. I have the honour to submit the fortieth annual report of the State Fire Insurance Office, for the year ended 31st December, 1944, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years:— 1 1942. 1943. 1944. Income — £ £ £ £ £ £ Premiums .. .. .. .. 222,081 225,037 183,827 Other receipts, less land-tax .. .. 58,638 65,982 59,779 280,719 291,019 243,606 Outgo — Bonus rebate to policyholders .. .. 44,124 47,128 20,782 Claims.. .. .. .. .. 34,234 25,018 38,110 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. 58,232 54,512 53,393 Fire Board contributions.. .. .. 15,618 16,144 16,365 Income-tax .. .. .. .. 75,270 83,788 76,341 National and social security tax .. .. 16,214 18,201 16,501 Carried to reserve for unearned premiums .. .. 1,289 243,692 246,080 221,492 Surplus, apportioned as follows : — Written off Office premises .. .. 20,000 21,000 20,000 Reserve Fund .. .. .. .. 17,027 23,939 2,114 37,027 44,939 22,114 Total .. .. 280,719 291,019 243,606 Reserves and funds at 31st December .. 1,241,271 1,266,500 1,268,613 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. 15-41 11-12 20-73 Ratio of working-expenses (exclusive of incometax and Fire Board contributions) to premium income .. .. .. .. 26'22 24-22 29-05 Ratio of Fire Board contributions to premiumincome .. .. .. .. 7-03 7-18 8-9 Ratio of income-tax and national and social security tax to total income .. .. 32-59 35-04 38-11 Notwithstanding the fact that the premium income for the year shows a decrease of £41,210, the amount of new business obtained by the Office has been satisfactory. The decrease in the premium income is due to the revised and simplified method of rating instituted by the Office as from the Ist March last year and which has resulted in a considerable saving to the insuring public by way of reduced premiums. The loss ratio has increased from 11-12 for 1943 to 20-73 for 1944. Although the reduction in premium income would have the effect of increasing the loss ratio to some extent, the amount paid out in losses exceeded that of the previous year by £13,092. This upward tendency is only to be expected. The loss ratio for 1943 was abnormally low, and it is only reasonable to suppose that this low ratio would not continue. The increasing work of the staff, which still continues to be carried out under extreme difficulty owing to the staffing problem, has been loyally performed, and I desire to record the excellent service rendered by the executive officers and all members of the staff. R. H. Newbold, General Manager.

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Revenue Account of the State Fire Insurance Office for the Year ended 31st December, 1944 £ s. d. £ s. d. Premiums after deduction of reinsurances .. 183,826 13 1 Bonus rebate to policyholders .. .. 20,781 10 1 Other receipts— £ s. d. Losses by fire and earthquake (after deduction of Interest, commission, and rent 60,843 16 0 reinsurances) .. .. .. .. 38,110 7 3 Less land and income tax, Income-tax .. . . .. .. 44, 538 2 8 £34,011195. 2d., andnational National and social security tax .. .. 9,621 7 7 and socialsecurity tax, £6,880 40,891 19 2 Commission .. .. .. .. 7,955 16 3 19,951 16 10 Salaries .. .. .. .. 31,004 19 1 Profit on realization of securities .. .. 1,144 6 0 Contribution to Public Service Superannuation Fund .. .. .. .. .. 411 17 9 Contribution to Fire Boards under the Fire Brigades Act, 1908 .. .. .. 16,365 0 4 Expenses of management— £ s. d. Travelling-expenses .. .. 1,137 0 5 Printing, stationery, and advertising .. .. .. 942 8 11 Rent .. .. .. 2,108 16 11 Exchange .. .. .. 44 10 8 Postages, telegrams, cablegrams, and sundry charges.. .. 4,569 6 2 — 8,802 3 . 1 Office equipment .. .. .. .. 142 18 9 Office premises— Depreciation .. .. .. .. 5,075 0 0 182,809 2 10 Written off .. .. .. .. 20,000 0 0 Amount of fire-insurance funds at end of year .. 2,113 13 1 £204,922 15 11 £204,922 15 11 Balance-sheet of the State Fire Insurance Office on the 31st December, 1944 Liabilities £ £ s. d. Assets £ s. d. Capital authorized by the State Fire Government securities .. .. .. 840,356 12 0 Insurance Act, 1908 .. .. 100,000 Local-authority securities .. .. .. 213,760 3 7 Less not raised .. .. .. 100,000 Rural Advances bonds .. .. .. 14,175 0 0 Nil Fixed deposits and at short call .. .. 150 ,000 0 0 Bad Debts Reserve .. .. .. .. 1,500 0 0 Land and buildings .. .. .. .. 191,714 811 Reserve Fund .. .. .. .. 804,902 2 8 Outstanding premiums .. .. .. 13,530 8 8 Investments Fluctuation Reserve Fund .. 85,000 0 0 Interest accrued but not due .. .. .. 10,522 17 2 Reserve for unearned premiums .. .. 112,518 14 10 Rent accrued or due .. .. .. 15.733 11 3 Bonus Rebate Reserve .. .. .. 122,578 17 0 Cash in Reserve Bank of New Reinsurance Reserve Fund .. .. .. 140,000 0 0 Zealand at Wellington, or in £ s. d. Premium and other deposits .. .. .. 1,744 810 transit to Wellington .. 139,620 17 11 Outstanding fire and earthquake losses.. .. 5,656 0 0 Imprest Account balances : Head Government taxes .. .. .. .. 195,576 10 3 Office and branches .. 4,582 6 8 Sundry creditors .. .. .. .. 87,014 12 0 144,203 4 7 Other amounts owing by the Office— £ s. d. Reinsurance premiums due .. 23,004 7 (i Commission.. .. .. 2,101 0 0 Printing, stationery, and advertising .. .. 5 0 0 Postages and sundry charges .. 10,281 0 0 35,391 7 6 Fire-insurance funds, as per Revenue Account .. 2,113 13 1 £1,593,996 6 2 £1,593,996 6 2 R. H. Newbold, General Manager. T. L. Seator, Deputy General Manager. 31st May, 1945. 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.— Cyril G. Collins, Controller and Auditor-General.

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