H. <»A.

1937. NEW ZEALAND.

ACCIDENT INSURANCE BRANCH OF THE STATE FIRE INSURANCE OFFICE (ANNUAL REPORT ON THE) FOR THE YEAR ENDED 31st DECEMBER, 1936.

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

State Fire Insurance Office, Wellington, 30th July, 1937. I have the honour to submit the thirty-sixth annual report of the Government Accident Insurance Office for the year ended 31st December, 1936, together with the Revenue Account and Balance-sheet. The following comparison with the previous two years shows the position briefly : — 1934. 1935. 1936. Income — _ £ £ £ Premiums from all classes of accident insurance .. .. 84,727 97,766 113,649 Interest .. .. •• 15,170 14,936 15,111 Premium on conversion of securities . . . . . . 157 2,105 Profit on realization of securities . . . . . • • • • ■ 1,012 Outgo — Free-year bonus on personal accident policies . . . . 255 231 286 Claims .. •• 62,035 66,172 76,471 Working-expenses (exclusive of income-tax) .. 17,962 20,330 23,156 Carried to reserve for unearned premiums . . . . . . 1 ,'662 7, 941 Income-tax . . ■ ■ ■ ■ • ■ ■ • 5,504 4,127 6,622 Per Cent. Per Cent. Per CentRatio of claims (all classes of business) to premium income 73-22 67'68 67-29 Ratio of working-expenses (exclusive of income-tax) to premium income .. .. •• •- 21-2 20-8 20-37 Ratio of underwriting surplus to premium income . . 5-28 9-58 5-1 Surplus, apportioned as follows : — £ £ £ Reinsurance Reserve .. .. ■■ ■■ 10,000 10,000 10,000 Payment to Treasury under section 5, Finance Act, 1931 (No. 2) —10-per-cent. reduction in salaries . . . . 293 Reserve Fund .. • •• • 4,005 12,284 5,296 £14,298 £22,284 £15,296 Reserves and funds as at 31st December .. . . . . £356,513 £380,459 £403,697 1. The premium income of £113,649 is the largest ever recorded in the history of the Office. It is necessary to go back to 1930 for the previous record, when the income was £104,934-. The increase reflects both a return to more prosperous conditions of employment and a growth of consciousness by industry and by the individual of the importance of insurance protection against accident. 4,395 accident claims (or an average of twelve a day), of which 3,060 were in the Workers' Compensation Branch, were dealt with, showing an increase of 928 above 1935. The total claim-cost (£76,471) was greater than in any previous year except 1931. The claim, ratio to premiums of 67-29 per cent, is slightly lower than for the previous year (67-68 per cent.), but is unlikely to remain on such a favourable basis in future, for reasons referred to later in this report. The slight fall in working expense ratio despite the restoration of salary " cuts " is to be attributed to the large increase in income during the year.