12 MAY 1928, Page 49

THE HIGHER DIVIDEND JUSTIFIED.

In the Fire department the profits for the year amounted to as much as 9•1 per cent. of the premiums. Interest earnings, it may be pointed out, practically cover the requirements of the dividend apart from debenture interest payable on stock which has been issued in connexion with the acquirement of other companies. The company now places £150,000 to the Fire Account to increase its reserves, while £250,000 is placed to Miscellaneous Insurance Reserves and £70,000 is added to Staff Pension Fund. This leaves in Profit and Loss a sum of no less than £873,617, quite apart from the General Contingencies Fund amounting to £514,904. These are results which fully justify the recent raising of the dividend from 28s. to 24s.

A. W. K.