ROYAL INSURANCE COMPANY, LTD.
94th ANNUAL REPORT SATISFACTORY RESULTS
RECORD NEW LIFE BUSINESS
STRONG FINANCIAL POSITION
AT the ninety-fourth annual general meeting of the Royal Insurance Company, Limited, in Liverpool, on Monday, May 22nd, Mr. A. Kentish Barnes (a Deputy-Chairman) presided, and referred to the loss the company had sustained through the death of the Chairman, Mr. A. E. Pattinson, a few days before the meeting. Mr. Barnes mentioned the deep interest taken by Mr. Pattinson and the wealth of knowledge and understanding brought to bear upon all the problems.
Fire premiums amounted to £5,429,000. Fires in this country last year had caused material damage estimated at £8,800,000, saleshops, warehouses, and woodworkers' premises being principal contributors.
At £5,176,000 net, new life business figures provided a record. As an alternative form of investment there were stressed the counter attractions of life assurance which was entirely free from risk of de- predation, gave a capital sum at death or maturity, and, as the premiums carried substantial income-tax relief, a high rate of tax made the life policy especially attractive, apart altogether from the invaluable benefit of life assurance itself.
Accident and General premiums, at £6,030,000, also created a record.
The average cost of motor claims had increased very consider- ably during the last few years and the tendency continued. Although motor third party insurance was compulsory, and an insurance company was expected to discharge the motorist's lia- bility, it should be realised that the motorist ultimately paid, and if present experience persisted, there could be little hope of avoid- ing an increase in motor premiums.
1937 had been an unsatisfactory year for Marine Insurance generally, and had resulted in heavy losses to Marine underwriters both at home and abroad.
1938 RESULTS Net premiums : Fire, £5,429,090 (against £5,538,750 for 1931; Accident and General, 6,030,780 (against £5,945,545 for 1937 ; Marine, £1,ca5,o75 (against £926,403 for 1937).
New Life business (net) amounted to £5,176,871, against £5,158,467 in the previous year.
The profits, exclusive of interest, were: Fire, £511,926; Accident and General, £566,920; Life, £50,000; and a loss on Marine of £46,420. The total interest carried to profit and loss account was £1,210,133. The profit and loss account, after providing for interest on debenture stock, dividends and other outgoings, including trans- fer of £699,99t to Uncalled Capital Reduction Fund, showed a balance carried forward of £2,106,848.
The report and accounts were adopted, and a final dividend of 3s. 3d. per share was declared, making 6s. 6d. per share, less income- tax, for 1938.