STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1949

Appendix to the Journals of the House of Representatives, 1950 Session I, H-06

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1950 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1949

Presented to Both Houses of the General Assembly Pursuant to the Provisions of the Stale Fire Insurance Act, 1908

By Authority: R. E. Owen, Government Printer, Wellington.—l9so.

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State Fire Insurance Office, Wellington, 31st May, 1950. I have the honour to submit the forty-fifth annual report of the State Fire Insurance Office for the year ended 31st December, 1949, with the Revenue Account and Balancesheet. The following are the comparative figures for the last three years : Income— 1947. 1948. 1949. Reserve for unearned premiums at Ist £ £ £ £ £ £ January .. .. .. .. 114,214 131,329 150,098 Premiums .. .. .. .. 262,658 300,195 329,075 376,872 431,524 479,173 Less reserve for unearned premiums at 31st December .. .. .. 131,329 150,098 164,537 Earned premiums .. .. .. 245,543 281,426 314,636 Other receipts, less land-tax .. .. 83,504 73,067 68,191 329,047 354,493 382,827 Outgo— Bonus rebate to policyholders .. .. 34,059 55,410 67,094 Claims .. .. .. .. 47,194 47,684 57,327 Working-expenses .. .. .. 74,616 93,493 95,299 Fire Board contributions .. .. 16,824 22,009 23,128 Office equipment .. .. .. 10,000 5,000 182,693 223,596 242,848 Surplus, apportioned as follows — Government taxes (other than land-tax) .. 89,135 77,793 81,656 Written off Office premises .. .. 20,000 20,000 10,000 Reserve Fund .. .. .. 37,219 33,104 48,323 146,354 130,897 139,979 329,047 354,493 382,827 Reserves and Funds at 31st December .. 1,429,731 1,481,604 1,544,367 Per Cent. Per Cent. Per Cent. Ratio of claims to earned premiums .. 19-22 16-94 18-22 Ratio of working-expenses to earned premiums 30 • 39 33 -22 30 • 29 Ratio of Fire Board contributions to earned premiums .. .. .. .. 6-85 7-82 7-35 Ratio of Government taxes (excluding landtax) to total income .. .. .. 27-09 21-94 21-33 The net premium income for the year was £329,075, being an increase of £28,880 over the figure for the previous year. Claims amounted to £57,327, an increase of £9,643, and working-expenses £95,299, an increase of £1,806. After making allowance for income-tax (£81,656) the surplus amounts to £58,323, which is the highest since the year 1946. The figures show that the Office continues to expand its business and has completed another satisfactory year. Bound up in the progress of the Office is the services rendered to both the Office and the public by the staff, and I desire to express my appreciation of the excellent services rendered by the members of the staff and their loyal co-operation during the past year. R. H. Newbold, General Manager.

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Revenue Account op the State Fire Insurance Office for the Year Ended 31st 1949 £ s. d. £ s. d. Reserve for unearned premiums at 31st December, 1948 150,097 14 11 Bonus rebate to policyholders .. .. .. 67,093 11 1 Premiums after deduction of reinsurances .. .. 329,074 14 3 Fire, earthquake, and marine losses after deduction of Other income— £ g. d. reinsurances .. .. .. .. .. 57,326 17 3 Interest, commission, and rents .. 70,401 10 2 Commission .. .. .. .. .. 16,334 17 6 Less land, income, and social security Salaries .. .. .. .. .. .. 59,427 9 7 taxes on interest, commission, Contribution to Government Superannuation Fund . . 2,671 4 5 and rents .. .. .. 36,464 13 3 Contribution to Fire Boards under Fire Brigades Act, 1926 23,128 6 10 33,936 16 11 Expenses of management— £ s. d. Travelling-expenses .. .. 2,423 15 5 Transfer of officers . . .. 1,365 7 5 Printing and stationery .. .. 3,297 11 1 Advertising .. .. .. 562 12 8 Rents .. .. .. 1,571 7 2 Exchange .. .. .. 125 9 9 Postage, telegrams, telephone, and sundry charges .. .. 1,706 13 10 11,052 17 4 Motor-vehicles and office equipment .. .. .. 3,565 3 8 Office premises : depreciation .. .. .. 2,247 0 0 Reserve for unearned premiums at 31st December, 1949.. 164,537 7 1 407,384 14 9 Income and social security taxes on underwriting account 47,401 18 7 Office premises: written off .. .. .. 10,000 0 0 Fire Insurance Funds at end of year .. .. 48,322 12 9 £513,109 6 1 £513,109 6 1

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Balance-sheet of the State Fire Insurance Office as at 31st December, 1949 Liabilities Assets £ s. d. £ s. d. £ s. d. Capital authorized by State Fire Government securities .. .. .. .. 1,142,787 12 0 Insurance Act, 1908 .. .. 100,000 0 0 Local authority securities. . .. .. .. 146,779 15 1 Less not raised .. .. 100,000 0 0 Fixed deposits and at short call .. .. .. 35,000 0 0 Bad Debts Reserve .. .. .. .. 1,500 0 0 Land and buildings .. .. .. .. 84,949 8 11 Reserve Fund .. .. .. .. .. 982,427 14 3 Outstanding premiums .. .. .. .. 32,046 17 5 Investments Fluctuation Reserve Fund .. .. 85,000 0 0 Interest accrued but not due .. .. .. 13,797 17 5 Reserve for Unearned Premiums .. .. .. 164,537 7 1 Rent accrued or due .. .. .. .. 2,892 0 10 Bonus Rebate Reserve .. .. .. .. 122,578 17 0 Cash in Reserve Bank of New Zea- £ s. d. Reinsurance Reserve Fund .. .. .. 140,000 0 0 land, or in transit .. .. 341,996 19 1 Premium and other deposits . . .. .. 4,703 17 0 Imprest advances at Head Office and Outstanding fire, earthquake, and marine losses .. 6,716 10 9 branches .. .. .. 25,611 1 10 Government taxes accrued but not due .. .. 83,305 2 8 367,608 0 11 Accident Branch (Employers Liability Insurance Account) .. .. .. .. .. 112,225 15 4 Sundry creditors .. .. .. .. 24,572 2 8 Other amounts owing by the Office— £ s. d. Reinsurance premiums .. .. 26,815 14 10 Commission .. .. .. 6,688 9 7 Expenses of management .. 16,467 8 8 Fire Insurance Funds as per Revenue Account .. 48,322 12 9 £1,825,861 12 7 £1,825,861 12 7 Ist May, 1950. 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 (1,939 copies), £9 10s.

By Authority: E. E, Owen, Government Printer, Wellington.— 1950,

Price 3d,]

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