STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1946

Appendix to the Journals of the House of Representatives, 1947 Session I, H-06

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1947 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1946

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, 1947. I have the honour to submit the forty-second annual report of the State Fire Insurance Office, for the year ended 31st December, 1946, with the Revenue Account and Balancesheet. The following are the comparative figures for the last three years : 1944. 1945. 1946. Income — & & £ £ £ £ Premiums .. .. .. .. 183,827 203,494 228,429 Other receipts, less land-tax .. .. 59,779 63,693 124,889 243,606 -267,187 353,318 Outgo— Bonus rebate to policyholders .. .. 20,782 20,398 25,224 Claims .. .. .. .. 38,110 36,900 58,483 Working-expenses (exclusive of income-tax and Fire Board contributions) .. 53,393 55,958 70,847 Fire Board contributions .. .. 16,365 16,418 17,236 Income-tax .. .. .. .. 76,341 72,746 74,242 National and social security tax .. 16,501 12,596 12,673 Carried to reserve for unearned premiums .. .. 1,696 221,492 215,016 260,401 Surplus, apportioned as follows : Written off Office premises .. .. 20,000 20,000 20,000 Reserve Fund .. .. .. 2,114 32,171 72,917 22,114 52,171 92,917 Total .. .. .. 243,606 267,187 353,318 Reserves and funds at 31st December .. 1,268,613 1,300,785 1,375,398 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. 20-73 18-13 25-6 Ratio of working - expenses (exclusive of income-tax and Fire Board contributions) to premium income .. .. .. 29-05 27-5 31-02 Ratio of Fire Board contributions to premium income .. .. . . .. 8-9 8-07 7-55 Ratio of income-tax and national and social security tax to total income .. .. 38-11 31-94 24-6 The figures in the Balance-sheet show that the Office has completed a highly satisfactory year, the increase in income being the highest attained in any one year since the inception of the Office. Owing to higher administrative costsj working-expenses show an increase over those of the previous year, and claims also show a considerable increase. The results of the year's operations are quite good, and the volume of business transacted by the Office indicates that it continues to receive the support of the insuring public. During the year the Office has not been devoid of staffing problems, but, notwithstanding this, the staff available have given excellent service, and I desire to thank all officers for their co-operation and loyalty. R. H. Newbold, General Manager.

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Revenue Account op the State Fire Insurance Office for the Year ended 31st December, 1946 £ s. d. £ s. d. Premiums after deduction of reinsurances .. .. 228,428 10 6 Bonus rebate to policyholders .. .. .. 25,224 3 9 Other receipts— Losses by fire and earthquake (after deduction of Interest, commission, rent, and £ s. d. reinsurances) .. .. .. .. .. 58,483 1 10 exchange .. .. .. 126,948 11 3 Income-tax on underwriting account .. .. .. 20,892 8 1 Less tax on interest, commission, Social security tax on underwriting account .. .. 3,902 15 0 rent, and exchange—- Commission .. .. .. .. .. 11,676168 Land and income £ s. d. Salaries .. .. .. .. .. .. 43,762 16 0 tax .. .. 55,558 19 2 Contribution to Public Service Superannuation Fund .. 421 6 8 Social security tax 8,770 0 0 Contribution to Fire Boards under the Fire Brigades Act, 64,328 19 2 1908 ... .. .. .. .. .. 17,235 12 3 62,619 12 1 Expenses of management— £ s. d. Profit on realization of securities .. .. .. 149 13 9 j Travelling-expenses .. .. 2,675 1 3 ! Printing, stationery, and advertising 1,527 9 5 Rent .. .. .. .. 1,763 6 4 Exchange .. .. .. 50 3 7 Postages, telegrams, cablegrams, and sundry charges .. .. 3,216 18 10 9,232 19 5 Office equipment .. .. .. .. .. 1,454 0 5 Office premises: Depreciation .. .. .. 4,299 0 0 Reserve for unearned premiums .. .. .. 1,695 10 5 198,280 10 6 Office premises: Written off .. .. .. 20,000 0 0 Amount of fire-insurance funds at end of year .. 72,917 5 10 £291,197 16 4 £291,197 16 4

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Balance-sheet op the State Fire Insurance Office on the 31st December, 1946 Liabilities Assets £ s. d. Capital authorized by the State Fire Insurance £ £ s. d. Government securities .. .. .. .. 914,262 12 0 Act, 1908 .. .. .. .. 100,000 Local-authority securities .. .. .. .. 190,473 19 5 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 .. .. .. .. 144,240 8 11 Reserve Fund .. .. .. .. .. 839,187 2 7 Outstanding premiums .. .. .. .. 18,144 16 7 Investments Fluctuation Reserve Fund .. .. 85,000 0 0 Interest accrued but not due .. .. .. 10,410 0 0 Reserve for unearned premiums .. .. .. 114,214 5 3 Rent accrued or due .. .. .. .. 10,493 11 4 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 Wei- £ s. d. Premium and other deposits .. .. .. 1,973 14 4 lington .. .. .. 183,841 11 1 Outstanding fire and earthquake losses .. .. 7,282 0 0 Imprest Account balances: Head Government taxes .. .. .. .. 172,269 3 1 Office and branches .. .. 10,558 12 6 Sundry creditors .. .. .. 45,012 1 1 194,400 3 7 Other amounts owing by the Office— £ s. d. Reinsurance premiums due .. 34,473 2 8 Commission .. .. .. 7,121 0 0 Printing, stationery, and advertising 4 0 0 Postages and sundry charges .. 3,068 0 0 44,666 2 8 Fire-insurance funds, as per Revenue Account .. 72,917 5 10 £1,646,600 11 10 £1,646,600 11 10 ___ R. H. Newbold, General Manager. 31st May, 1947. 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. 1 Approximate Cost of Paper.— Preparation, not given ; printing (2,003 copies), £B.

By Authority: E. V. Paul, Government Printer, Wellington.— 1947. Price 3tZ.]

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