April 23, 1898.]
STRAITS INSURANCE CO., LIMITED.
THE CHAIRMAN EXPLAINS THE LOSSES,
On the 12th April the twenty-first ordinary general meeting was held at the offices of the Straits Insurance Company, Singapore.
The CHAIRMAN (Mr. Bogaardt) said:-The fourteenth annual report and balance sheet of the Company is before you, and, if there is no objection, it will be taken as read. We regret to have to place in your hands so unfavourable a report, but our experience has not been differ. ent from that of the majority of Marine In surance Companies during the three years 1895, 1896, and 1897. The reports of the British as well as the Foreign and Colonial Companies which have been published this year state, without exception, that these years have been most unfavourable for underwriters generally, and that the situation calls for united action to demand increased rates so as to put the business on a sound basis. Of the 13 Irading British offices, 10 reported a loss on the account for 1895, and, of these, 7 again report a loss on 1896, the losses for the two years aggregating £230,000. The character and extent of our operations in London have not for some time past been in accordance with the wishes and instructions of the Directors, but our liabilities for the year 1897, as the accounts before you show, amount to less than half of the liability at the close of the year 1896. This cutting down of income has been voluntary, and is accounted for by the refusal to renew hull time risks in London, a business which had proved to be un- profitable. Elsewhere than in London, our business has been progressive and sound, and at the beginning of this year a new underwriter was appointed in Loudon who is writing for us on restricted lines an account which will carry less than one-third of the liability incurred for the year 1895 and 1896. The reduction in premium is the result of the refusal of business under peremptory instructions from the Board, and is not due in any way to any falling off in the amount of business offered to the Company. It was impossible to reduce expenses of management at the same time as the income was reduced, but from the beginning of the current year substantial re- ductions have been made in all items of
|
expenditure. The amounts appropriated for outstanding claims in 1895 and 1896, although largely in excess of amounts ever previously appropriated, proved insufficient, and we are now paying claims on the accounts for these years which will bring the loss on our under- writing in London to an amount not less than £40,000. We have met this loss, and have liquidated the London time account, and the doing so has taxed our resources to the utmost, as the accounts shew, bat our present liabilities are less even than the reduced income indicates, for a large proportion of the 1897 account is for voyage risks the liability on which bas already run off. Tariffs at increased rates have been agreed to by all Companies operating in New Zealand, Australia, and India, and negotiations are now proceeding in London with a view to raise rates on marine insurance risks generally. We hope to benefit from these tariffs, and as we bare had three bad years in succession we may reasonably ex- pect to share in the benefits to be derived from the increased rates which have recently come into force. So far as the 1897 and current year's accounts have run our losses have been less in proportion to premiums that at same date last year, and our liability on time risks is less than one-fourth of the amount at same date last year. Our investments, we believe, represent sound value for the amounts in the balance sheet.
On the motion of the Chairman, seconded by Mr. Derrick, the report and accounts adopted.
were
The Iloilo Heraldo reports the arrival at that port of a tugboat purchased at Singapore for the Iloilo barbour works. Stormy weather was encountered and the voyage occupied twenty- seven days, of which seven were spent waiting at Labuan for the weather to clear and two at Balabac. When nearing Iloilo she had to borrow a couple of tons of coal from a Spanish gunboat to help her on to her destination. All the stores she had left was the proverbial half bottle of whisky."
CHINA OVERLAND TRADE REPORT.
THE NORTH CHINA INSURANCE CO., LIMITED,
The following is the report for presentation to the sixth ordinary general meeting of share. holders to be held at the offices of the Company, Shanghai, on 28th April :-
The Directors have pleasure in submitting the annexed duly audited statement of the Company's accounts to the 31st December, 1897. 1896 and previous years.-After payment of the dividend declared at the last ordinary general meeting, and claims and charges to 31st December last, there remained at credit of liability account Tls. 7,120.51. and it is hoped this amount, with salvages still to be received, may prove sufficient to meet all further claims upon 1896 and previous years.
1897.-The net premium is Tls. 169,038.08 less than that of the preceding year. This decrease is entirely due to the voluntary restric tion of the Company's underwriting, and the comparatively better working results may there. fore be considered satisfactory.
The working account to 31st December shows a balance of Tis. 411.132.13. Claims amounting to Tls. 96.905.52 have since been paid, and it is proposed to retain Tls. 162,226.61 to provide for outstanding losses and unexpired risks, leaving an estimated profit of Tls. 152,000, which the directors now recommend for appropriation as follows:-
A dividend of 10 per cent. on the paid-up capital,
And a bonus of 10 per cent. upon contributory premiums, both payable at the exchange of 2s. 6d. per Tael.
Directors. Mr. Davis resigned his seat at the board during the past year owing to pressure of business. The remaining directors now all retire in accordance with the regulations of the company, but, being eligible, they offer them- selves for re-election.
Auditors. The auditors, Messrs. White and Wrightson also retire, but are willing to resume if re-elected.
By order of the court of directors.
ALEXR. ROSS,
Secretary.
Shanghai, 13th April, 1898.
BALANCE SHEET, 31ST DECEMBER, 1897. Dr.
Trels.
937,5000 250,000.00
To capital account:-5,000 shares at £25
=£125,000 0.0 at 2s. Sd. To reserve fund
To working account, 1893 :-- Tls.
Balance on 31st De., 896 376,515 51 Deduct-1st dividend, be-
ing 10 per cent. per an- num on paid-up capital,
declared 28th April, 1897 90,909.09
Tls. 285,609.42
307,223.45
Dr. Tls. 21,614.03 Amount transferred to
liability account......... 21,614.03
Amonut brought forward
from below
To working account, 1897:-Amount
brought forword from below... To liability account for 895
and previous years Less-Amount transferred from 1896 account as above
29,734.54
Liability account for 1896 and pre-
vious years..........*** To dividends uncollected
411,132.13
By Shanghai Waterworks Co.'s 5 per
sent. debentures
By mortgage on property in Shanghai... By land and premises-Head office,
Shanghai
By London freehold premises By London branch- Bal-
ance, viz. :- Cash at Bankers
£ s d.
20,708 7 4
8,28% 13 6 Short loans on security... 8,000 0 0: Indian Gort securities. 21,998 2 [ Colonial Gvt, bonds Chinese 5 per cent. loan
of 1894 Japanese Government 5
***
11,844 14 7
per cent. bonds... 10,311 13 4 Great Central Railway 4
percent. pref stock 1891 8,213 17 0 North Eastern Railway
Consols ...
De hi Umballa Kalka Railway ordinary stock Southern Punjaub Rail-
way stock
1,939 10 4
4,322 0 0
2,210 14 0
South Behar Railway 34
percent del entrestock 2,115 18 3 H.H Nizam Railway 4
per cent, mortgage de- bentur s
4
Illinois Central Railroad per cent gold bonds Furnitu e Reconluis-
London & Manchester Premia outstanding bills
receivable, policy stamps and drafts, etc. in course of collection
5,102 10 0
5,087 11 0
405 0 0
9, 29 15 10
£114,873 8 1 Less-Due to sundries... 8,1.4 9 1
By H'kong branch-Balance $43, 83 22 yY'hama branch-Balance 23,573.l By S'pore bra ch-Balance 23,167.15 B. furniture at head office, Hong, ong, Yokohama, and Singapore branches... By sundry debtors-Premia, Tis
etc., outstanding at head office and agencies
60,209.41 Less-Due to sundries
1,399.46
[329
9,600.00 13,000.00
50,000.00 287,803.84
838,188 38
31,450.75 17,680.21 16,912.02
2,987.71
59,809.95
Taels 1,606,038 10
WORKING ACCOUNT, 1896. Dr.
To interest
To balance carried forward..
Taels.
5.26 307,223.45
Tuels 307,228.71
Cr.
Taels.
st
35,410.51
6,307.58
265,510.62
Tacls 307,228.71
Taels.
824,885.07
50,920,09
By return and re-insurance premia, January to 31st December, 1897 By sundry charges and income tax By losses and claims paid
WORKING ACCOUNT, 1897.
Dr.
To net premia, 1st January to 31st De-
cember, 1897.
To interest
To transfer and certificate fees
To'profit on London investment realized To exchange account
Cr.
By agency commissions, 1st January to
31st December, 1897
By agency charges 1st January to 31st
December, 1897
96.00
340.36
29,674.02
Taels 905,915.54
Taels.
21,6:4.03
14,336.71~
Tls 7,120 51.
12,105.13
7,120.51 343.46
By general charges, 1st Jan ary to 31st
Decenter, 1897
1,852 36
By head office charges, 1st January to
31st December, 1897
•
33,149,25
Taels 1,606, 98.10 By Indon charges, 1st January to 31st December, 1897
65,718.02
Cr.
Tuels. 92,965.24
By Hongkong charges, 1st January to
31st December, 1897
11,185:86
By Yokohama charges, 1st January to
31st December, 1897
1
7,405.83
38,500 00 11,100 0
By Singapore charges, 1st January to
31st December, 1897
8,169.87
By directors and auditors' fees
·4,910,00
My inc-me tax
1,127.22
By Isses and claims paid
334,637.25
19,00 00
6,500.00
By cash on current and deposit accounts
in Shanghai By Chinese Imperial Government loan
of 1886 (E issue)
By Shanghai municipal loan of 1888. By Shanghai municipal loan of 1890. By Shanghai municipal loan of 1891. By Shanghai municipal loan of 1894. By Shanghai municipal loan of 1895 By Shanghai municipal kan of 1896... By Shanghai municipal loan of 1897 By Shanghai Land Investment Co.'s 6
per cent. debentures
15,000.00 9.00 15,00 .00
18,500.00
55,000.00
By depreciation furniture account. By repairs to head office premises... By balance carried forward
331.96
314.15
411,182.13.
Taela 905,915.54
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