H.—6a.

1933. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE. (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1932.

Presented to both Houses of the General Assembly pursuant to Section 22 of the Government Accident Insurance Act, 1908.

State Fire Insurance Oifice, Wellington, 31st August, 1933. I have the honour to submit the thirty-second annual report of the Government Accident Insurance Office, for the year ended 31st December, 1932, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position in brief: — 1930. 1931. 1932. Income — £ £ £ Premiums from all classes of accident insurance .. .. 104,934 102,061 87,068 Interest .. .. .. .. .. .. 14,860 16,316 15,654 Outgo— Free-year bonus on personal accident policies .. .. 307 337 279 Claims.. .. .. .. .. .. .. 61,040 82,561 63,760 Working-expenses (exclusive of income-tax) .. .. 19,121 18,745 17,707 Carried to reserve for unearned premiums .. 10,611 Income-tax .. .. .. .. .. .. 4,036 7,249 7,183 Loss on realization of securities .. .. .. .. 146 Per Cent. Per Cent. Per Cent. Ratio of claims (all classes of business) to premium income .. 58-17 80-89 73-23 Ratio of working-expenses (exclusive of income-tax) to premium income .. .. .. .. .. 18-22 1-8-37 - 20-34 Ratio of underwriting surplus to premium income .. .. 13-07 0-41 6-11 Surplus, apportioned as follows:— £ £ £ Reserve for bad debts .. .. .. .. .. .. 500 500 Investment Fluctuation Reserve .. .. .. .. 3,000 7,000 10,000 Payment to Treasury under Section 5, Finance Act, 1931 (No. 2) —10 per cent, reduction in salaries .. .. . . 881 1,174 Reserve Fund .. .. .. .. .. .. 21,531 1,105 2,199 £24,531 £9,486 £13,873 Reserves and funds as at 31st December .. .. £303,448 £312,054 £324,753 1. A considerable fall in premium income is recorded in the above figures consequent mainly on lack of employment and greatly reduced wage returns. Some of the loss of income, however, is due to the lapsing of unprofitable workers' compensation risks which were accepted by the Office solely to assist certain employers who had found it difficult, if not impossible, to obtain insurance protection elsewhere. These employers have now been able to make other arrangements satisfactory to them. 2. The claim ratio shows an improvement over the previous year. The office working expense ratio of 20 34 per cent, (excluding taxes), although higher than for the previous year, compares very favourably with the average of competing offices, which in 1931, the last year for which figures are available, was 34-13 per cent. The working expenses of the State Accident Office include the cost of settling relief workers' claims for compensation, during the last three months of the year, on behalf of the Unemployment Board. This voluntary service, which involves time and expert supervision and some actual expenditure, has so far been performed without cost to the Unemployment Board.