H.—6.

1937. NEW ZEALAND.

STATE FIRE INSURANCE OFFICE. ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31st DECEMBER, 1936.

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

State Fire Insurance Office, Wellington, 30th July, 1937. I have the honour to submit the thirty-second annual report of the State Fire Insurance Office for the year ended 31st December, 1936, with the Revenue Account and Balance-sheet. The following are the comparative figures for the last three years :— T 1934. 1935. 1936. Income-'— £ £ £ Premiums 200,581 199,898 202,987 Other receipts, less land-tax .. .. .. .. 43,750 39,303 42,432 Premium on conversion of securities .. .. .. 45 329 Outgo — Bonus rebate to policyholders .. .. .. 41,211 41,233 41 563 Claims .54,751 53', 151 43^517 Working-expenses (exclusive of income-tax and Fire Board contributions) .. .. .. .. .. 53,073 53,779 53,347 Fire Board contributions .. .. .. .. 7,940 7 994 8 225 Income-tax .. .. .. .. .. 41^296 „ , , . . Per Cent. Per Cent. Per Cent. Katio 01 claims to premium income .. . . .. 27-3 26-59 21-44 Ratio of working-expenses (exclusive of income-tax and 26-46 26-9 26-28 Fire Board contributions) to premium income Ratio of Fire Board contributions to premium income .. 3-96 4-0 4-05 Ratio of income-tax to premium income .. .. 17-41 11-83 20-34 £ £ £ Carried to reserve for unearned premiums Surplus, apportioned as follows :— Payment to Treasury under section 5, Finance Act, 1931 (No. 2) .. .. .. .. .. 87i Written off Office premises .. .. .. .. 26,000 27,000 23,500 Reserve Fund .. .. .. .. .. 25,601 2,731 '471 Bonus Rebate Reserve .. .. .. .. .. 30,000 33,500 Total £52,472 £59,731 £57,471 Reserves and funds at 31st December . . . . . . £1,016,688 £1,049,420 £1,083,391 1. Both premium and investment income for 1936 show an improvement over the figures for 1935. The actual increase in premium income is greater than the figures indicate, for the reason that premiums for 1936 are shown less rebate for the month of December, whereas the figures for 1935 are inclusive of the rebate. The alteration is consequent on the operation of a new system of bonuses which was instituted as from the Ist December, and which is referred to hereunder. The comparisons also require to be viewed in the light of the steady decline in the average rate for fire insurance which has taken place. The Government Statistician reports that the average rate over all classes of business, hazardous or non-hazardous, in 1931 was 9s. 3d. per cent., whereas it had fallen by stages to Bs. 2d. per cent, in 1935.