EAGLE STAR RECORDS
Sir Edward Mountain, the chairman of the Eagle Star Insurance Company, had only one black spot to deal with in the excellent results which he reviewed at last week's meeting. The motor department had showed a loss of £43,743 and the directors have provided a further £5o,000 to strengthen the claims reserve in that department. Sir Edward explained that all companies were suffering a similar experience, and that there was an additional prospective burden which had not yet been felt arising out of the decision of the House of Lords in the case of Rose v. Ford. Under that decision they were obliged to give compensation for expectation of life." But against the troubles of the Motor department Sir Edward could set off the increased business of the Life and Accident departments and the record profit of the Fire department. Moreover, as he pointed out, the increased ordinary dividend, together with the preference and preferred ordinary dividends absorb less than the net interest income of the company, and the reserves have once more been substantially strengthened.
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