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1945 NEW ZEALAND

STATE FIRE INSURANCE OFFICE ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1944

Presented to both Houses of the General Assembly pursuant to the Provisions of the State Fire Insurance Act, 1908

State Fire Insurance Office, Wellington, 29th March, 1945. I have the honour to submit the fortieth annual report of the State Fire Insurance Office, for the year ended 31st December, 1944, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years:— 1 1942. 1943. 1944. Income — £ £ £ £ £ £ Premiums .. .. .. .. 222,081 225,037 183,827 Other receipts, less land-tax .. .. 58,638 65,982 59,779 280,719 291,019 243,606 Outgo — Bonus rebate to policyholders .. .. 44,124 47,128 20,782 Claims.. .. .. .. .. 34,234 25,018 38,110 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. 58,232 54,512 53,393 Fire Board contributions.. .. .. 15,618 16,144 16,365 Income-tax .. .. .. .. 75,270 83,788 76,341 National and social security tax .. .. 16,214 18,201 16,501 Carried to reserve for unearned premiums .. .. 1,289 243,692 246,080 221,492 Surplus, apportioned as follows : — Written off Office premises .. .. 20,000 21,000 20,000 Reserve Fund .. .. .. .. 17,027 23,939 2,114 37,027 44,939 22,114 Total .. .. 280,719 291,019 243,606 Reserves and funds at 31st December .. 1,241,271 1,266,500 1,268,613 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. .. 15-41 11-12 20-73 Ratio of working-expenses (exclusive of incometax and Fire Board contributions) to premium income .. .. .. .. 26'22 24-22 29-05 Ratio of Fire Board contributions to premiumincome .. .. .. .. 7-03 7-18 8-9 Ratio of income-tax and national and social security tax to total income .. .. 32-59 35-04 38-11 Notwithstanding the fact that the premium income for the year shows a decrease of £41,210, the amount of new business obtained by the Office has been satisfactory. The decrease in the premium income is due to the revised and simplified method of rating instituted by the Office as from the Ist March last year and which has resulted in a considerable saving to the insuring public by way of reduced premiums. The loss ratio has increased from 11-12 for 1943 to 20-73 for 1944. Although the reduction in premium income would have the effect of increasing the loss ratio to some extent, the amount paid out in losses exceeded that of the previous year by £13,092. This upward tendency is only to be expected. The loss ratio for 1943 was abnormally low, and it is only reasonable to suppose that this low ratio would not continue. The increasing work of the staff, which still continues to be carried out under extreme difficulty owing to the staffing problem, has been loyally performed, and I desire to record the excellent service rendered by the executive officers and all members of the staff. R. H. Newbold, General Manager.