ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1944

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

H. —6a

1945 NEW ZEALAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1944

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

State Fire Insurance Office, Wellington, 29th March, 1945. I have the honour to submit the forty-fourth annual report of the Government Accident Insurance Office for the year ended 31st December, 1944, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly :— 1942. . 1943. 1944. Income — £ £ £ £ £ £ Premiums from all classes of accident insurance 232,241 384,035 298,250 Interest .. .. .. .. 22,364 22,588 25,427 Profit on realization of securities .. .. 18 .. 432 Transferred from reserve for unearned premiums .. .. 25,000 254,623 406,623 349,109 Outgo — Bonus and sums accrued under profit-sharing schemes .. .. .. .. 3,746 590 467 Claims .. .. .. .. .. 122,826 193,816 202,552 Working-expenses (exclusive of income-tax) .. 38,172 43,656 51,808 Carried to reserve for unearned premiums .. .. 72,813 Income-tax .. .. .. .. 68,930 54,597 69,174 National and social security tax .. .. 13,797 10,720 14,977 247,471 376,192 —338,978 Surplus, apportioned as follows : — Bonus Reserve .. .. .. .. .. 30,000 10,000 Reserve Fund .. .. .. .. 7,152 431 131 7,152 30,431 10,131 Total .. .. .. 254,623 406,623 349,109 Reserves and funds as at 31st December .. 587,077 690,321 675,452 Ratio of claims (all classes of business) to premium Per Cent. Per Cent. Per Cent. income .. .. .. .. ..52-89 50-47 67-91 Ratio of working-expenses (exclusive of incometax) to premium income .. .. .. 16-43 11-37 17-37 Ratio of underwriting surplus to premium income 0-21 6-18 0-72 The premium income for 1944, compared with the previous year, shows a distinct falling off. The previous year's premium income was, as pointed out in the last annual report, by far the largest in the history of the Office, due largely to special insurances effected as a consequence of allied war activities within the Dominion. During the year under review these activities diminished considerably, with the result that this business, which was of a temporary nature, was no longer available. In other respects the business of the Office has shown steady progress. The Office continues to carry the increased liabilities under both the 1936 and the 1943 amendments to the Workers' Compensation Act without any increase in premium rates, and as from the Ist January, 1945, is allowing a rebate of 12| per cent, on premiums to policyholders, special provision for which was made in the report and balance-sheet for 1943. As with the Fire Branch, the work of this Branch has been carried on with a depleted staff assisted by a temporary staff, and I desire to record my appreciation of their excellent services and co-operation. R. H. Newbold, General Manager.

H.—6A

Revenue Account of the Accident Branch op the State Fire Insurance Office foe the Yeae ended 31st December, 1944 £ s d. £ s. d. Premiums after deduction of reinsurances .. 298,249 13 0 Bonus and sums accrued under profit-sharing Interest (including interest on Re- £ s. d. schemes .. .. .. .. . . 467 6 10 serve Fund investments) .. 25,427 2' 9 Claims .. .. .. .. .. 202,551 16 5 Less — £ Income-tax.. .. .. .. .. 54,482 11 1 Income-tax .. 14,692 National and social security tax .. .. 11,798 12 10 National and social Commission .. .. .. .. 8,928 16 7 security tax .. 3,178 Salaries .. .. .. .. .. 32,500 12 0 17,870 0 0 Contribution to Public Service Superannuation 7,557 2 9 Fund .. .. .. .. .. 302 8 0 Profit on realization of securities .. .. 432 8 0 Expenses of management .. .. .. 10,075 15 11 Transferred from reserve for unearned premiums 25,000 0 0 321,107 19 8 , Appropriation to Bonus Reserve .. . . 10,000 0 0 Amount of Accident Funds, 31st December, 1944 131 4 1 £331,239 3 9 £331,239 3 9 Balance-sheet of the Accident Branch of the State Fire Insurance Office as on the 31st December, 1944 Liabilities £ s. d. Assets £ s. d. Accident funds, as per Revenue Account .. 131 4 1 Government securities .. .. .. 443,719 0 0 Outstanding accident claims .. .. .. 187,728 0 0 Local-authority securities ... .. .. 142,955 10 2 Government taxes .. .. .. .. 150,026 311 Rural Advances bonds .. .. .. 4,725 0 0 Commission .. .. .. .. 863 0 0 Fixed deposits and at short call .. .. 150,000 0 0 Premium and other deposits .. .. .. 1,678 16 3 Interest accrued but not due .. .. .. 5,564 10 5 Sundry creditors .. .. .. .. 8,363 13 1 Agents'balances .. .. .. .. 3,452 14 5 Reinsurance premiums due .. .. .. 714 10 4 Sundry debtors, including Motor-vehicles Insurance Officers' Fidelity Fund .. .. .. 500 0 0 (Third-party Risks) Act pool .. .. 214,608 10 3 Reserve for unearned premiums .. .. 182,200 14 0 Cash in hand on current account .. .. 59,800 14 1 Bonus Reserve . . .. .. .. 40,000 0 0 Investment Fluctuation Reserve .. .. 70,000 0 0 Reinsurance Reserve .. .. .. 56,000 0 0 Bad Debts Reserve .. .. .. .. 1,000 0 0 Reserve Fund constituted under section 6 of the Government Accident Insurance Amendment Act, 1924 .. .. .. .. 325,619 17 8 £1,024,825 19 4 £1,024,825 19 4 31st May, 1945. R. H. Newbold, General Manager. T. L. Seatojr, 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.— Cyril G. Collins, Controller and Auditor-General.

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