COMPANY MEETINGS
NORTH BRITISH AND MERCANTILE INSURANCE COMPANY
LORD WAKEFIELD'S SPEECH
THE one hundred and twenty-ninth annual general meeting of the North British and Mercantile Insurance Company, Limited, was held on May 4th at the North British Station Hotel, Edinburgh.
The Right Hon. the Viscount Wakefield of Hythe, G.C.V.O., C.B.E., LL D (chairman of the general court of directors), pre- siding, said: In the life department, I am happy to say that, notwithstanding the various difficulties experienced in 1938, we again had a satis- factory year,.and the new business figures were remarkably con- sistent with those of previous years. For the past four years the net new sums assured have exceeded £5,00o,000, the average being £5,522,000 and last year's £5,327,000.
On the annuity side a steady business continue:, to be transacted, and we are, I think, unique in publishing a separate annuity account showing funds of well over L8,000,000 in respect of that particular class of contract.
With regard to the fire department, the reduction in premium income was not wholly due to general conditions. It was also due in part to some revision of their underwriting policy in the United States, which they considered would have a beneficial effect upon their portfolio there. Their home premium income showed quite a fair increase, and altogether that business had again been satis- factory. Excellent results had also been achieved in the general toreign business.
Every one concerned was to be congratulated on achieving a fire underwriting profit of £354,352 after providing the usual re- serve of 4o per cent. for unexpired risks. That profit represented toe per cent. of the premium income, and was only very slightly less in amount than the 1937 figure.
The accounts of the Railway Passengers Assurance Company, the subsidiary company through whom they transacted their casualty insurance business, again reflected excellent results both as regarded premium income and underwriting profit, each of which showed a new peak record in the history of the company. The premiums totalled £1,402,595, being £56,139 in excess of those for the preceding year. The profit amounted to £171,117, equal to 12.2 per cent. of the premium, as compared with 10.62 per cent. in the preceding year's account.
In the marine department the premium income for the year 1938 amounted to £298,045, which was almost identical with the corresponding income for the previous year. Their subsidiary .company, the " Fine Art and General," had again produced most satisfactory figures. Premium income ex- ceeded £36o,000, only fractionally less than last year, this consoli- dating the increase of over L13,000 shown in that year. The " Fine Art and General " showed a profit of £59,184, representing 16.44 per cent. of premium income and exceeding last year's result by nearly Ls000. After making the customary allocations, including a further con- tribution of £55,000 to the widows' pension fund and L4,75o for N.D.C., the aggregate balance carried forward was increased from £6,520,979 to £6,979,o67, subject to dividends for 1938. The directors again recommended a dividend of 6s. 3d. per share, less income-tax, one-half payable on May 15th and the other one-half on November nth. This dividend, together with the Preference dividend, would absorb approximately £557,o78 in comparison with a combined total of net interest of £558,847.
The report was unanimously adopted.
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