Their prime concern is to increase their crop, and the beauties which their activity inadvertently imposes on the landscape as the seasons pass are far from their thoughts. But what would Michigan be in spring without the strict geometry of cherry tree plantations in blossom? What would New England be in autumn without the splash of berries when the cranberry farmer embarks on his harvest? And even the waste dump of rotting tomatoes and squash can become a feast for the eyes. Yet these images of abundance and surplus should not obscure the fact that, on a worldwide scale, agricultural production is heading towards crisis: erosion and salinization are rendering vast stretches of land infertile, the desert is spreading, land reclamation is coming to a halt and the population continues its unflagging growth. For some years the amount of food harvested per mouth of the world population has for the first time been falling to an alarming extent.
In Haii reinsurance, premium income increased by 3%. ­ Following a series of profitable years, 1990 closed with a loss, although it was not really a bad year for hail. The neg­ ative result stems from the combination of storm and hail covers common in the Netherlands and is attributable to the winter storms.
The gross premiums were practically the same as in the previous year, at Sw. frs. 564 million. At constant foreign exchange rates, the increase would have been about 10%. Despite the continuing rise in the weight of risk premiums ­ and consequently a relative decline of the savings element ­ a significant increase of volume could be achieved In var­ ious leading markets. Net premiums of Sw. frs. 537 million are about the same as in the previous year, and also the proportion of additional covers (accidental death, disabil­ ity, sickness and annuity covers) saw no change in the year under report.
A question that very often emerges is: "What actually causes such a devas­ tating series of storms?" It may be answered as follows. General wind cir­ culation at our latitude is usually con­ trolled by high and low pressure sys­ tems over the North Atlantic ­ namely a high over the Azores in the south and a depression over Iceland In the north. Between these two pressure zones air masses are continuously im­ pelled towards Europe producing typi­ cal westerly conditions. This situation is usualiy accompanied by a polar front lying over the North Atlantic with its characteristic sharp temperature contrasts between cold polar and warm subtropical air masses. Low pressure zones develop continuously on this rather unstable polar front and are pushed towards Europe by the zonal circulation. If a ridge of the Azores high extends over central Europe to Russia ­ as is normally the case ­ these moving cyclones are diverted far to the north leaving the mainland untouched. However, if the ridge of high pressure peters out over central Europe or if it is situated further south than usual, the stormy depressions may sweep across central Europe. This was the case in the early months of 1990.
The total loss burden of the Swiss Re Group resulting from the eight storms amounts to approximately Sw. frs. 620 million, of which Sw. frs. 450 mil­ iion was borne by Swiss Re, Zurich.
At this year's General Meeting, the terms of office of Messrs Walter Diehl and Kurt Purgier expire; the Board of Directors will propose to the General Meeting that both gentlemen be re­elected.
Claims comprise benefits for term and endowment insur­ ance, paid annuities and the adjustment in the outstanding claims reserve. The total figure for own account rose in the year under report by Sw.frs. 1.1 million to Sw.frs. 316.6 million.
748.0 million) or 8.4% (previous year, 14.6%) of the bal­ ance­sheet value of securities. The decrease of the valua­ tion difference is due to the unfavourable development of prices on the stock markets, lower valuation of the bond portfolio because of interest­rates and the negative effect of foreign currencies. The insured value of business prop­ erty is Sw.frs. 323.8 million.
Contingent liabilities (sureties and guarantees) amounted to Sw.frs. 49.6 million per 31 December 1990.
The Board of Directors proposes to the General Meeting to allocate this profit as follows:
The gross premiums of the Union Reinsurance Company, Zurich, fell in Non­Life reinsurance by 15.2% to Sw.frs. 490.1 million. The main reasons for this drop are the effects of foreign exchange rates and the altered balance­sheet period put into effect in the previous year. The underwriting result deteriorated noticeably, mainly because of the storm damage in Europe. ­ In Life reinsurance the gross amount of business in force fell as a result of foreign exchange rates by 2.9% to Sw.frs. 8,600 million. On the other hand, the undenwriting profit was higher than in the previous year. ­ Investment income rose slightly. The overall profit was Sw.frs. 3.2 million (previous year, Sw.frs. 7.2 million), from which an unchanged dividend of Sw.frs. 2.4 million was paid.
There were no major changes in the holding portfolio in the year under report. SwissRe Holding participated in the capital increase carried out by Lloyd Adriatico S.p.A., Trieste, and by making further acquisitions was able to in­ crease its share of the voting capital of this company to 62.3%. On the other hand, the minority holding of the Donau Allgemeine Versicherungs­AG, Vienna, was sold. On balance, the funds invested in company holdings in­ creased further. The loan granted by Swiss Re rose in the year under report by Sw.frs. 67.8 million and amounts to Sw.frs. 1,706.5 million.
European International Reinsurance Company Limited Hadley House, St. George Street Bridgetown
Swiss Reinsurance Company Representative Office Tokyo Sansfio Building 7 F, 2­9 Nihonbasfii 3­cliome, Gfiuo­ku, Tokyo 103
United States Fidelity and Deposit Company of Maryland 300 Saint Paul Place Baltimore, MD 21203
Gay & Taylor, inc. 3334 Heaiy Drive Winston­Saiem, NC 27103 (USA)
­ Incurred but not reported (IBNR) losses (also late claims): Losses which have occurred but which have not yet been reported to the ̂ insurer or­^ reinsurer on the balance­sheet date.
Policyholder: The ^ insurer's contractual partner who receives ^ cover in return for payment of a ^ premium.
­ Credit Insurance: Insurance against financial losses sustained through the failure for commercial reasons of policyholders' customers to pay for goods or services supplied to them. zyxwvutsrponmlkjihgfedcbaZYWVUTSRPONMLKJIHGFEDCBA