INSURANCE COMPANY'S PROBLEMS.
One of the few successful post-War insurance undertakings is the World Auxiliary Insurance Corporation. Each succeeding year has shown a steady growth in the Corporation's business and in the establishment of a sound position, and it is due to the able administration and to a wise conservative policy that the business so well withstood the difficulties of the past year. These difficulties were lucidly discussed by Captain the Bight lion. C. C. Craig, the chairman, at the annual meeting of the Corporation. Apart from the general trade situation and the large amount of unemployed shipping tonnage one of the chief influences operating was our departure from the gold standard. The resultant depreciation of sterling necessitated an increase in the sum which may be required for claims notified but not yet presented from overseas. Had the necessity for exchange provision not arisen the Corporation would have carried forward a fund of approximately 60 per cent. of the premium income, as compared with 50 per cent. brought into the last account. Referring to the considerable reduction in the fire and accident premium, the chairman explained that it was the result of a deliberate decision to reduce the company's liability in countries abroad where the trade and financial position has become such as no longer to justify continuing business on the same scale as formerly. Justification for the conservative policy followed in the past is seen in the maintenance of the tax-free dividend of 61 per cent., but on the subject of an increase on this rate the chairman intimated that so long as the outlook was so un- certain the shareholders must expect a continuance of the cautious policy.
Previous page