Management expenses, taxes, depreciation, fluctuations in stock exchange and foreign currency rates Profit applicable to minority shareholders
Auditors Term to expire in Swiss Auditing and Fiduciary Company, Zurich 1982
Moreover, insurers and reinsurers find themselves con­ fronted with the fact that, of the large number of claims, which has increased enormously throughout the world in recent years, and particularly of major losses, only a rela­ tively small percentage is independent of human miscon­ duct. Most loss occurrences are, to a greater or lesser ex­ tent, affected by human fault or error. This applies not only to road, household and sporting accidents but also to the Fire losses caused by carelessness, negligence or arson, to many Liability and Marine losses and to the ever-growing number of thefts, burglaries and robberies. As a result of growing Indifference, negligence and crimi­ nality, not only the number but also the gravity of losses, above all for the reinsurer, have risen. In the wake of alarming socio-political developments new loss phe-
Depreciation outside the sector of investment and holdings involved a debit of Sw. frs. 12.2 million (previous year, Sw. frs. 4.4 million). This amount is largely due to the increase of the reserve for outstanding balances in for­ eign currencies and, to a lesser extent, to the costs for re­ building and renovating own business property.
In 1980 the Swiss Re Group and the "Zurich" insurance Company, Zurich, each acquired a 50% shareholding of the Fidelity and Deposit Company of Maryland, Balti­ more, USA, one of the leading companies in the U.S. in the field of Surety and Fidelity insurance. As this is not a ma­ jority holding, it will not be included in the consolidation, in contrast the Tudor insurance Company, New York, and the mh Bausparkasse, Munich, both of which took up activity in the reporting year, were included in the Group account for the first time.
The circumstances which affected the activity of Group companies in Great Britain, South Africa and Australia were largely identical: excess capacity on the corre­ sponding reinsurance markets, tighter competition among local insurance and reinsurance companies, rising inter­ est rates and optimistic assessment of prospects on the share markets. In non-Life reinsuranceaworsening ofthe underwriting result had to be borne. In contrast, it was possible to improve the result of Life reassurance in some cases. After taking into account investment results, the Swiss Reinsurance Company (UK) Ltd., London, and the Swiss-South African Reinsurance Company Ltd., Johan­ nesburg, achieved a higher profit. The Australian Re­ insurance Company Ltd., Melbourne, showed overall a loss which was principally due to strengthening the re­ serves for outstanding bodily injury claims in the Work­ men's Compensation and Liability branches; this be­ came necessary as a result of a fundamental change, during the year under report, in legal practice to the in­ surers' disadvantage.
The mh Bausparkasse, founded in 1979, in which the Swiss Life Insurance and Pension Company and the "Winterthur" Swiss Insurance Company also have share­ holdings, closed its first year with a satisfactory produc­ tion.
Issue of non-voting share capital by Swiss Re, Zurich 84 —