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State Fire Insurance Office, Wellington, 30tli March, 1948. I have the honour to submit the forty-third annual report of the State Fire Insurance Office, for the year ended 31st December, 1947, with the Revenue Account and Balancesheet. The following are the comparative figures for the last three years : 1945. 1946. 1947. Income— £ £ £ £ £ £ Premiums .. .. .. .. 203,494 228,429 262,658 Other receipts, less land-tax .. .. 63,693 124,889 83,504 267,187 353,318 346,162 OutgoBonus rebate to policyholders .. .. 20,398 25,224 34,059 Claims .. .. .. .. 36,900 58,483 47,194 Working-expenses (exclusive of income-tax and Fire Board contributions) .. 55,958 70,847 74,616 Fire Board contributions .. .. 16,418 17,236 16,824 Income-tax .. .. .. .. 72,746 74,242 77,476 National and social security tax .. 12,596 12,673 11,659 Carried to reserve for unearned premiums .. 1,696 17,115 Office equipment (balance) .. .. .. .. 10,000 215,016 260,401 288,943 Surplus, apportioned as follows : Written off Office premises .. .. 20,000 20,000 20,000 Reserve Fund .. .. .. 32,171 72,917 37,219 52,171 92,917 57,219 Total .. .. .. 267,187 353,318 346,162 Reserves and funds at 31st December .. 1,300,785 1,375,398 1,429,731 Per Cent. Per Cent. Per Cent. Ratio of claims to premium income .. 18-13 25*6 17-97 Ratio of working-expenses (exclusive of income-tax and Fire Board contributions) to premium income .. .. .. 27-5 31-02 28-41 Ratio of Fire Board contributions to premium income .. .. .. .. 8-07 7-55 6-40 Ratio of income-tax and national and social security tax to total income .. .. 31-94 24-6 25-75 (1) The premium income of £262,658 is the largest recorded in the history of the Office, and shows an increase of £34,229 for the year. (2) As a result of the favourable loss experience the bonus rebate of 10 per cent, for wood risks and 15 per cent, for brick risks was increased to 20 per cent, off all renewal premiums as from Ist November, 1947, on both wood and brick risks. (3) Working-expenses at 28*41 per cent, show a reduction of 2-61 per cent., despite increasing administrative costs. (4) Shortage of experienced staff and limited transport facilities severely curtailed work of an active competitive nature, but service to policyholders and to the Dominion in giving attention to the rapidly increasing business was maintained notwithstanding these difficulties. (5) I desire to place on record appreciation of the executive officers and staff of the Office in achieving the excellent results recorded in the accounts. R. H. Newbold, General Manager.

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