COMPANY MEETING
EAGLE STAR INSURANCE COMPANY, LIMITED
SUCCESSFUL YEAR'S OPERATIONS STRONG FINANCIAL POSITION DIVIDEND 30 PER CENT.
GENERAL INSURANCE In the general insurance account, which includes various miscel- laneous classes of business now shown separately, there was an increase in premium income which now exceeded half a million. The results had again been very satisfactory, a profit of £94,973 being carried to profit and loss account.
EMPLOYERS' LIABILITY ACCOUNT The premiums increased to £247,242 and a profit of £1,407 was carried to the profit and loss account.
MOTOR DEPARTMENT
Despite the difficult conditions obtaining in motor car insurance, last year's results showed an improvement on the previous year. The premium income was £1,607,231. The claims paid and out- standing amounted to £918,715 and after providing for expenses, a sum of £18,401 was transferred to profit and loss account.
MARINE DEPARTMENT
In that account £32oA85 was brought forward, which, with the net premiums for 1938, L275,06o, gave a total of £595,545. Claims paid during the past year and for all previous years amounted to £220,905. Expenses, including taxes, amounted to £56,532, and they were able to carry forward £318,108, which represented 115.65 per cent. of the premium income.
PROFIT AND Loss ACCOUNT With the credit balance brought in of £294,521, net interest from investments of £358,392 and transfers from the various trading accounts, there was available a total of £954,055. Of that the payment of the dividends absorbed £328,204 (which it would be observed was more than covered by the net interest earnings alone), and after making provision for taxation, expenses and transferring L5o,000 as an additional claims reserve to the motor insurance account, there was carried forward a balance of £402,134 against .-294,521 brought in.
In conclusion, he wished to thank all the members of the staff and agents for the support they had given to the company during the past yea; and to add that he thought they might all look forward to the future with confidence, subject, of course, to the international situation.
The report and accounts were unanimously adopted, and the proposed dividend of 30 per cent, was approved.
PRESIDING at the annual general meeting of the Eagle Star Insur- ance Company, Limited, held in London, on the 13th instant, Sir Edward Mountain, Bart, J.P., ;n moving the adoption of the report and accounts, said that in the life department 3,097 new policies were issued for £10,522,804 gross, of which £209,543 was re- assured, and the premium income in the current funds had in- creased by over a quarter of a million pounds. The expense ratio now stood at 13 per cent, of the premium income, and it was a matter of satisfaction that during the past four years it had shown a steady and continuous decline. The gross rate of interest earned by the current funds was £4 18s. rid. per cent. A transfer of L4o,000, as an interim payment, had been made from the current fund non-participating life business to the shareholders' profit and loss account. The total assets of the life department (including both current and closed funds) now exceeded £16,1 millions, being an increase of £541,160 during the year. The current sinking fund and capital redemption account had expanded during the year by approximately £85,000 and now stood at over £644,000.
" STAR " AND " SCEPTRE " FUNDS The valuation of these two closed funds was made at the end of 1938 on the same stringent basis as on the last occasion. In the Star Fund a surplus of £705,677 was shown, which enabled the directors to maintain the reversionary bonus of 4 per cent. per annum. In the Sceptre Fund the surplus was £145,178 and they were able to repeat the record rates of bonus declared five years ago.
FIRE DEPARTMENT The premium income was L808,464 and showed a profit of L54,447. ACCIDENT DEPARTMENT The premium income from ordinary personal accident and sick- ness insurance showed an increase from £81,258 to £89,565, while the premiums on special contracts, the liabilities under which ter- minated at the close of the year, amounted to £14,536. An amount of £12,995 was transferred to profit and loss account.
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