The Sun.
London, England, 1861-08-05 00:00:00

GREAT FIRE IN LONDON.

" Although the event does not fall into the period em-
braced in the present review of the company's affairs, it
would be obviously impossible to avoid an advertance to the
late conflagration in London, which, from its calamitous
extent, has not been equalled in this country during the
last two centuries.

The loss to be sustained by this office will be about
£70,000, or perhaps £75,006. Considering, however, that
the company effects the largest business in London f any
provincial office, and now closely approaches some of the
largest London offices in its issue of fire policies, it is con-
cluded that the above amount, undoubtedly large in itself,
is nevertheless fortunately below the average of loss sus-
tained by the offices generally. It will not be inappropriate
here to state that within three days of the announcement of
the fire to this office measures were taken that the London
bran-:h should be in possession of ample funds to meet
every loss, in order that no inconvenience should be sus-
tained by the claimants, and that before the expiration of
a week from the date of the fire immediate payment was
ordered to such of these as were enabled to give a statement
of their respective claims.

"It may safely be affirmed that no company hag had
placed before it so repeatedly the possibility of such fires as
the recent one, and the directors cannot refrain from repro-
ducing the following passage from their report read to the
proprietors in August, 1858. It is there stated—
"'That the character of some recent fires, and the cir-
mistances attending them, have revealed more clearly
than was perceived before, the significant fact that exten-
sive conflagrations, far beyond the ratio of ordinary occur-
rences of the sort, are within the bounds of possibility.
Thesec things indicate strongly the necessity of prudence in
4t4 ling with the surpluses of income which accrue. On
which
otherl hand, it may koped that the sounder judgment
exists on the subject of insurances may lead to the
adoption of a more protective rate of premium on many
risks than has hitherto been obtained. The illusion which
ihmasagihnitedher:iloamprietvuadiledf of late years on the subject of the
busi-
ness, and of the e 3
the profits of a fire insurance husi-
involvingsmallnessal of the resources with which trans-
actionso has been for a time (large contingencies could be carried
?ia,repelled by
of the offices which the adverse experience
one afrer another, been discon-
tinued within the last few years;
" The Groat Fire wlaichyllottrarksus.'ow taken place establishes
this propriety of these rem
tw lull
company hereafter to be establis.laedN° new fire insurance
meet even with
partial encouragement if it have n,owt sufficiency, not
of subscribed but paid-up capital
talist will embark in such a new ente4 no Prudent capi-
the possibility that, until an ample reserve yet ignore
which requires several years to accomplish,
his investment,
is collected,
and it may be a large portion of his subscription',"s.traent,
any moment be required to meet some unexpecte4t3lBgeht at
of an I
equal, or even greater, magnitude than the recent one
"At the same time it must be acknowleged that when such
a reserve, fully equal to any probable contingency or any
possible succession of them, is really obtained, and that the
rates of premium established are judiciously remunerative,
being neither excessive nor insufficient, both being equally
reprehensible, no company established for any purpose
whatever in this country has greater elements of stability
within itself than a well-governed insurance office.
" It is satisfactory to the directors to announce in con-
nexion with this subject, and it may perhaps be deemed a
happy illustration of the truth of that opinion just expressed,
that the amount to the credit of the reserve and profit and
loss accounts of this company would be sufficient to pay the
loss sustained by this hitherto unexampled calamity, were
it thrice the amount it proves to be.
"The reserve fund therefore being collected and retained
for the precise purpose of meeting such exceptional occur-
rences, and for re-assurance of outstanding risks, is the
source whence it is proposed the London claim should be
paid.

DIVIDEND AND BONUS.

"The state of the accounts for the year and the condition
of the company generally having occupied the attention of
tho directors, they have arrived at the determination to re-
commend a dividend of 3s. per share, and a bonus of 4s. per
share, together 78. per share, free of income tax.
" CHARLES TURNER, Chairman.

" July 27, 1861."

The CHAIRMAN said—Gentlemen, the business of
the company, for the year 1860, as detailed in the
report which you have just heard read, does not, I
think, call for any especial remark, beyond that of
congratulation on its continued rapid progress in all
its branches. (Hear.) The amount at the credit of
12rofit and loss on the 31st of December, 1860,
_, amounted to £71,000, from which, if you approve
"I the dividend of 35., and the bonus of 4s.
per abate,
en„nroen'a%a making together 7s. per share, re-
deduct the by the directors, you must
of £37,000 at%unt of £34,000, leaving a balance
and, considerine carried on to this year's account;
the year 1860, L that there was, at the end of
serve fund
of £166 oaomount at the credit of the re-
tation whatever in advising the directors have no hesi-
(lend recommended in their report, inasmuch as the
profit and loss of the reserve' fund
still amount, after the dividetogether will
£203,000, (Hear.) They raanicciehtrs rbeen paid to
tion, notwithstanding the ocoatreneenere theommenda-
fire, which is alluded to in the report, and which
great
does, not come into the calculation of last year7shich
pro-
fit, except as a matter of precaution in looking for-
ward to the future. That fire was unexampled in
magnitude, and in the e/tent of the loss which it
inflicted on the insurance companies. I Wieve that