EAGLE STAR PROGRESS
Sir Edward Mountain, in his review of the results of the Eagle Star Insurance Company last week, reported on two matters especially favourable to the company. The expense ratio in the Life Department has fallen for four years in suc- cession, and in 1938 amounted to no more than 13 per cent. of the premium income. The Motor Insurance Account did better, despite the very difficult conditions in which motor insurance is at present conducted, and was able to make a contribution of £18,401 to the profit and loss account. This has not prevented the company from increasing the reserves of that department still further. The reserve in the motor department has been raised to 74.6 per cent, of the premium income in pursuance of the policy of keeping reserves in excess of requirements. On the other hand, Sir Edward had less favourable news from the marine insurance market. Hull insurance is, he reports, being accepted at premiums 20 per cent, less than in 1931, although costs of repairs in this country are about 40 per cent, more than in that year. Thanks to the Eagle Star's conservative policy it has, in the last four years, held its own in the marine market.
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