H.~ 6A

1935. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1934.

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

State Fire Insurance Office, Wellington, Ist August, 1935. I have the honour to submit the thirty-fourth annual report of the Government Accident Insurance Office, for the year ended 31st December, 1934, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position in brief 1932. 1933. 1934. Income — £ 1 £ Premiums from all classes of accident insurance .. 87,068 80,207 84,727 Interest '5-™ 1B > 240 15 >"2 Premium on conversion of securities .. .. .. • • • • 15' bonus on personal accident policies .. .. 279 272 255 Clain f g .. 63,760 48,593 62,035 Working-expenses (exclusive of income-tax) .. .. 17,707 16,865 17,962 Carried to reserve for unearned premiums Income-tax .. .. •• •• •• •• 7,183 10,787 5,504 Per Cent. Per Cent. Per Cent. Ratio of claims (all classes of business) to premium income 73-23 60-58 73-22 Ratio of working-expenses (exclusive of income-tax) to premium income •• •• •• 20-34 21-03 21 -2 Ratio of underwriting surplus to premium income .. 6-11 18-05 5-28 Surplus, apportioned as follows — £ £ £ Reserve for bad debts .. . • ■ • - - 500 Investment Fluctuation Reserve .. •• 10,000 15,000 In ' mn Reinsurance Reserve .. • ■ • • • • • • • ■ 10,000 Payment to Treasury under section 5, Finance Act, 1931 (No 2) —10 per'cent, reduction in salaries.. .. 1,174 1,174 293 Reserve Fund JU99 JUM 4,005 £13,873 £18,929 £14,298 Reserves and funds as at 31st December .. .. £324,753 £342,508 £356,513 1 A gratifying increase in premium income is shown for the first time since 1930, mainly arising from workers' compensation premiums. The underwriting surplus is, however, less than for the previous year, due in part to the fact that the Office, which was established primarily to assist all classes in industry, does not refuse hazardous occupations, in which the claim cost is above average. 2. For the third successive year the Office has acted as claims-settling agent for the Unemployment Board. No charge has been made to the Board for the services rendered. J. H. Jerram, General Manager.