H.—6

2

Since my report of April, 1916, no progress has been made with the proposed buildings for the' housing of the staff of the Office in Wellington. The Government has not deemed it advisable to authorize proceeding with the work under present conditions. The'business has outgrown the present premises, and it has been found necessary to fit up a one-story brick building in Waring Taylor Street, on the site purchased in 1915, to house the staff. This is at best but temporary, and will not obviate the necessity of proceeding with the proposed building as soon as the work can be carried out at a reasonable cost. Following are the particulars of profits, net income, losses, working-expenses, and funds for 1916 as compared with the year 1915 : — Profits. —The net profits, after appropriating a further sum of £2,577 ss. sd. to unearnedpremiums reserve, and a further sum of £1,000 to investment-fluctuation reserve, amounted to £35,697 ss. 6d., as compared with £25,652 19s. 4d. for 1915. The total accumulated profits at the close of 1916 amounted to £121,915 2s. 4d., as against £86,217 16s. lOd. for 1915. Net Income. —The net income from all sources amounted to £82,694 lis. 10d., as against £76,299 lis. Bd. for 1915, showing an increase of £6,395. The net premium income was £77,609 Is. lOd. as against £71,165 18s. 2d. for 1915, an increase of £6,443 3s. Bd. Losses. —The net losses were £21,897 14s. 2d., as compared with £27,476 10s. sd. for 1915, the ratio to premium income being 28-22 per cent, and 38-6 per cent, respectively. Working-expenses. —The ratio of working-expenses to premium income for 1916 was 27-7 per cent., and 27-5 per cent, for 1915. Accumulated Funds. —The funds at close of 1916 amounted to £155,958 15s. Id., and for 1915 £116,684 4s. 2d., showing the very substantial increase of £39,274 10s. lid. The State Fire Office has now been in operation for twelve years, and a comparison between the figures for the first six years and those of the second six years is given hereunder. The success of the second half of the period over the first half is very pronounced. First Second Six Years. Six Years. £ £ Total net income .. .. .. .. .. 160,164 393,214 Total losses .. .. .. .. .. .. 81,783 158,107 Total profits .. .. .. .. .. 7,046 114,869 Averages per annum— Net income .. .. .. .. .. .. 26,694 65,535 Net losses .. .. .. .. .. .. 13,630 26,351 Profits .. .. .. .. .. .. 1,174 19,145 Ratio of working-expenses to premiums (per cent.) .. 34-9 27-3 Ratio of losses to premiums (per cent.) .. .. .. 51 -8 42-1 C. R. C. Robieson, General Manager.

Revenue Account of the State Fiee Insurance Office for the Year ended 31st December, 1916. £ s. d. £ s. dPremiums after deduction of reinsurances 77,609 110 Losses by fire (after deduction of reinsurOther receipts—lnterest, commission, and ances) .. .. .. .. 21,897 14 2 rent .. .. .. .. 5,085 10 0 Appropriated to reserve for unearned premiums (in addition to £28,466 7s. 4d. already reserved) .. .. .. 2,577 5 5 Investments Fluctuation Reserve Fund.. 1,000 0 0 Commission .. .. .. 6,701 4 3 Salaries .. .. .. .. 8,216 15 1 War bonus to staff on salaries under £315 455 ■% 9 Contributions to Fire Boards under the Fire Brigades Act, 1908 .. .. 1,489 110 Expenses of management — £ s. d. Travelling-expenses .. 422 1 7 Printing, stationery, and advertising .. .. 713 17 7 Rent.. .. .. 1,017 14 7 Exchange .. .. 19 13 3 Postages, telegrams, cablegrams, and sundry charges .. .. 1,546 14 10 Office equipment written off .. .. .. 939 18 0 4,659 19 10 Amount of fire-insurance funds at end of year .. ... .. .. 35,697 5 6 £82,694 II 10 £82,694 II 10 12th February, 1917. C. R. C. Robieson, General Manager. Examined and found correct. —R. J. Collins, Controller and Auditor-General.