ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1946

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

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1947 NEW ZEALAND

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1946

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, 1947. I have the honour to submit the forty-sixth annual report of the Government Accident Insurance Office for the year ended 31st December, 1946, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly : Income 1944. 1945. 1946. Premiums from all classes of accident £ ' £ £ £ £ * £ insurance .. .. .. .. 298,250 335,690 341,304 Interest .. .. .. .. 25,427 26,502 26,636 Profit on realization of securities .. 432 1,825 Transferred from reserve for unearned premiums .. .. .. .. 25,000 349,109 364,017 367,940 Outgo— Bonus and sums accrued under profitsharing schemes .. .. .. 467 14,791 18,672 Claims .. .. .. .. 202,552 238,459 212,914 Working-expenses (exclusive of income-tax) 51,808 61,346 70,918 Carried to reserve for unearned premiums Income-tax .. .. .. .. 69,174 16,758 28,763 National and social security tax.. .. 14,977 2,920 4,823 338,978 334,274 336,090 Surplus, apportioned as follows : Bonus Reserve .. .. .. 10,000 10,000 10,000 Reserve Fund .. .. .. 131 19,743 21,850 10,131 29,743 31,850 Total .. .. 349,109 364,017 367,940 Reserves and funds as at 31st December .. 675,452 705,195 737,045 Ratio of claims (all classes of business) to per Cent. Per Cent. Per Gent. premium income .. .. .. 67-91 71-04 62-38 Ratio of working-expenses (exclusive of income-tax) to premium income.. .. 17-37 18-27 20-78 Ratio of underwriting surplus to premium income .. .. .. .. 0-72 5-77 5-12 The increase in the premium income, although not as great as in 1945, is £5,614 over that of the previous year, and indicates that the Office continues to make steady progress. The claims ratio (all classes of accident business) to premium income shows a decrease of 8-66 per cent, and working-expenses an increase of 2-51 per cent. The net result of the year's operations can be considered as quite satisfactory. The staff have again given excellent service throughout the year, and I desire to express my appreciation of their keenness and efficiency. R. H. Newbold, General Manager.

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Revenue Account op the Accident Branch of the State Fire Insurance Office for the Year ended 31st December, 1946 £ s. d. £ s. d. Premiums after deduction of reinsurances .. .. 341,304 7 11 Bonus and sums accrued under profit-sharing schemes .. 18,672 11 6 Interest (including interest on Reserve £ s. d. Claims .. .. .. .. .. .. 212,913 17 7 Fund investments) .. .. 26,636 1 1 Income-tax on underwriting account .. .. .. 18,489 11 4 Less tax on interest— £ Social security tax on underwriting account .. .. 2,825 0 5 Income-tax .. .. 10,274 Commission .. .. .. .. .. 12,724 4 10 Social security tax .. 1,998 Salaries .. .. .. .. .. .. 45,583 3 0 12,272 0 0 Contribution to Public Service Superannuation Fund .. 365 17 0 14,364 1 1 Expenses of management .. .. .. .. 12,244 7 11 323,818 13 7 Appropriation to Bonus Reserve .. .. .. 10,000 0 0 Amount of Accident Funds, 31st December, 1946 .. 21,849 15 5 £355,668 9 0 £355,668 9 0

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Balance-sheet of the Accident Branch qf the State Fire Insurance Office as on the 31st December, 1946 Liabilities £ s. d. Assets Accident Funds, as per Revenue Account . . 21,849 15 5 £ s. d. Outstanding accident claims .. .. 229,297 0 0 Government securities .. .. •• 518,852 0 0 Government taxes .. .. .. .. 54,378 11 9 Local-authority securities .. •• • 116,003 14 5 Commission .. .. .. .. 1,641 0 0 Rural Advances bonds .. 4,725 0 0 Premium and other deposits .. .. 2,587 3 7 Fixed deposits and at short call 50,000 0 0 Sundry creditors .. .. .. .. 1,671 2 10 Interest accrued but not due 5,270 15 7 Reinsurance premiums due .. . . 1,092 1 8 Agents'balances .. .. .. •• •• 7,894 7 1 Officers' Fidelity Fund .. . . 500 0 0 Sundry debtors, including Motor-vehicles Insurance Reserve for unearned premiums .. .. 182,200 14 0 (Third-party Risks) Act pool .. ■■ 245,486 2 6 Bonus Reserve .. .. .. 60,000 0 0 Cash in hand on current account .. .. 79,479 13 9 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 .. 345,494 4 1 4 £1,027,711 13 4 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. Approximate Cost of Paper.—Preparation, not given ; printing (%003 copies), £B. By Authority: E. V. Paul, Government Printer, Wellington.— 1947. Price 3d.~\ \

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