COMPANY MEETING
NORTH BRITISH AND MERCANTILE INSURANCE CO., LTD.
GOOD RESULTS IN ALL DEPARTMENTS VISCOUNT WAKEFIELD'S REVIEW
THE 128th annual general meeting of the North British and Mercantile Insurance Co., Ltd., was held on Thursday, May 5th, in Edinburgh.
The Right Hon. the Viscount Wakefield of Hythe, G.C.V.O., C.B.E., LL.D. (the cha rman), said that on the Life side of their operations they again I a i a very satisfactory year, and for the third year in succession the total new sums assured exceeded 51 millions. This indicated a steady consistency in the flow of business, the average for those three years being £5,587,109, while for last year the actual figure was £5,619,779. On the Annuity side, too, the flow of business had been most consistent, the total purchase prices received during the year being £645,050, against £658,872 in the previous year.
In the Fire Department the premium income had increased by the substantial amount of £159,000, and exceeded £3,500,000. The steady expansion since 1932 had continued to an even greater extent in the past year, both home and foreign business participating in the advance. The surplus on Fire business for the year, after providing £63,000 as reserve for unexpired risks in respect of the increased premium income, amounted to £356,938, which was only slightly less than the 1936 total, and represented to per cent. of the premium income. They considered that this result was very satis- factory. They had transferred a further £1,000,000 from profit and loss account to the additional reserve in the Fire Insurance Fund, making that reserve up to £3,000,000. Figures of their home and general foreign business were both rather better than in the previous year, as regarded loss and expense ratios and contributions to underwriting surplus.
The accident business was conducted through the Railway Passengers Assurance Company, whose shares were owned entirely by this company. The results had again been most satisfactory, both as regarded premium income and underwriting profit. Premiums amounted to £1,346,456, the highest total in the history of that company, and an increase of £91,598 over those for the preceding year. After making full provision for outstanding claims and reserve in respect of unexpired risks, the underwriting profit was £143,055.
The premium income of the marine department (Ocean Marine Insurance Company) for the year amounted to £297,933, an increase of more than £61,000 over the income of the previous year.
Once again the " Fine Art and General " had produced very good results. The premium income had increased by over £13,000, which was only slightly less than the increase shown in the previous year, and the underwriting profit amounted to £54,344.
With regard to the profit and loss account, starting with an aggre- gate balance brought forward of £7,091,490, they carried forward, subject to dividends for 1937, £6,520,979 after making not only their customary allocations but also after providing for the transfer of
1,000,000 to Fire Fund Additional Reserve and a grant of £15,000 to the Widows' Pension Fund.
In times that continued to be very difficult they had been able once again to maintain evenly good results in all the main depart- ments of the business. It was proposed to pay the same dividend as last year, namely, 6s. 3d. per share, less income-tax, payable one-half on May 16th and the other one-half on November 11th. This dividend, together with the Preference dividend, would require approximately £555,672, in comparison with a combined total of net interest shown in the accounts of £579,596.
The report was unanimously adopted.
Previous page
