STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1945

Appendix to the Journals of the House of Representatives, 1946 Session I, H-06

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1946 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1945

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, 1946 I have the honour to submit the forty-first annual report of the State Fire Insurance Office, for the year ended 31st December, 1945, with the Revenue Account and Balancesheet. The following are the comparative figures for the last three years : 1943. 1944. 1945. Income— £ £ £ £ £ £ Premiums .. .. .. .. 225,037 183,827 203,494 Other receipts, less land-tax .. .. 65,982 59,779 63,693 291,019 243,606 267,187 Outgo— Bonus rebate to policyholders .. .. 47,128 20,782 20,398 Claims .. .. .. .. 25,018 38,110 36,900 Working-expenses (exclusive of income-tax and Fire Board contributions) 54,512 53,393 55,958 Fire Board contributions .. .. 16,144 16,365 16,418 Income-tax .. .. .. .. 83,788 76,341 72,746 National and social security tax.. .. 18,201 16,501 12,596 Carried to reserve for unearned premiums 1,289 —r 246,080 221,492 215,016 Surplus, apportioned as follows : Written off Office premises .. .. 21,000 20,000 20,000 Reserve Fund .. .. .. 23,939 2,114 32,171 44,939 22,114 52,171 Total .. .. .. 291,019 243,606 267,187 Reserves and funds at 31st December .. 1,266,500 1,268,613 1,300,785 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. 11-12 20-73 18-13 Ratio of working-expenses (exclusive of income-tax and Fire Board contributions) to premium income .. .. .. 24-22 29-05 27-5 Ratio of Fire Board contributions to premium income .. .. .. .. 7-18 8-9 8-07 Ratio of income-tax and national and social security tax to total income .. .. 35-04 38-11 31-94 The result of the year's working must be considered highly satisfactory. Net premium income shows an increase of £19,667 over that for 1944, and is the largest increase secured in any one year since 1926. This result has been achieved notwithstanding the fact that the Office has carried on with a depleted trained staff due to the war, and it speaks well of the capacity and zeal of those who so efficiently coped with this increased volume of business. It also points to the increasing practical support given the Office by the insuring public. The premium rates charged were the lowest since the inception of the Office. I desire to again record the excellent service rendered by the executive officers and the staff generally during the year. R. H. Newbold, General Manager.

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Revenue Account of the State Fire Insurance Office for the Year ended 31st December, 1945 £ s. d. £ s. d. £ s. d. Premiums after deduction of reinsurances .. 203,494 7 6 Bonus rebate to policyholders .. .. .. 20,397 14 3 Other receipts— Losses by fire and earthquake (after deduction of reInterest, commission, and rent .. 65,902 1 0 insurances) .. .. .. .. .. 36,900 3 10 Less tax on interest, commission, and Income-tax on underwriting account.. .. .. 38,425 8 0 rent— £ s. d. National and social security tax on underwriting account 6,655 18 3 Land and income tax 36,529 19 2 Commission .. .. .. .. .. 8,861 11 5 National and social Salaries .. .. .. .. .. .. 33,082 13 9 security tax .. 5,940 0 0 Contribution to Public Service Superannuation Fund .. 418 13 2 42,469 19 2 Contribution to Fire Boards under the Fire Brigades Act, 23,432 110 1908 .. .. .. .. .. 16,417 15 11 Expenses of management— £ s. d. Travelling-expenses .. .. 1,691 5 7 Printing, stationerv, and advertising 1,171 1 7 Rent .. - .. .. 2,056 12 8 Exchange .. .. .. 45 0 5 Postages, telegrams, cablegrams, and sundry charges .. .. 3,877 4 0 8,841 4 3 Office equipment .. .. .. .. .. 78 19 8 Office premises— Depreciation .. .. .. .. .. 4,675 0 0 174,755 2 6 Written off .. .. .. .. .. 20,000 0 0 Amount of fire-insurance funds at end of year .. .. 32,171 6 10 £226,926 9 4 £226,926 9 4

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Balance-sheet of the State Fire Insurance Office on the 31st December, 1945 Liabilities £ s. d. Assets £ s. d. Capital authorized by the State Fire £ Government securities .. .. .. .. 914,753 12 0 Insurance Act, 1908 .. .. 100,000 Local-authority securities .. .. .. .. 201,916 16 7 Less not raised .. .. .. 100,000 Rural Advances bonds .. .. .. .. 14,175 0 0 Nil Fixed deposits and at short call .. .. .. 150,000 0 0 JBad debts Reserve . . .. .. .. .. 1,500 0 0 Land and buildings. . .. .. .. .. 167,339 8 11 Reserve Fund .. .. .. .. .. 807,015 15 9 Outstanding premiums .. .. .. .. 15,325 17 8 Investments Fluctuation Reserve Fund .. .. 85,000 0 0 Interest accrued but not due .. .. .. 10,868 0 0 Reserve for unearned premiums .. .. ... 112,518 14 10 Rent accrued or due .. .. .. .. 6,755 14 6 Bonus Rebate Reserve .. .. .. .. 122,578 17 0 Cash in Reserve Bank of New Zealand Reinsurance Reserve Fund .. .. .. .. 140,000 0 0 at Wellington, or in transit to Welling- £ s. d. Premium and other deposits .. .. .. 2,367 11 0 ton .. .. .. .. 132,742 10 6 Outstanding fire and earthquake losses .. .. 7,697 0 0 Imprest Account balances: Head Office Government taxes .. .. .. .. ... 178,755 6 3 and branches .. .. .. 3,889 5 9 Sundry creditors .. .. .. .. 74,902 16 8 136,631 16 3 Other amounts owing by the Office— £ s. d. Reinsurance premiums due .. 39,157 17 7 Commission . . .. .. 2,904 0 0 Printing, stationery, and advertising 327 0 0 i 1 Postages and sundrv charges 10,870 0 0 53,258 17 7 Fire-insurance funds, as per Revenue Account .. .. 32,171 6 10 £1,617,766 5 11 £1,617,766 5 11 31st May, 1946. R. H. Newbold, General Manager. T. L. Seator, 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. P. Rutherford, Controller and Auditor- General. Approximate Cost of Paper.—Preparation, not given ; printing (1,818 copies), £7

By Authority: E. V. Paul, Government Printer, Wellington.— 1946.

Price 3d.]

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