Suh-Managers: Ad. Ammann, Ch. Burnens, G. de Bardel, F. Eggenherger, Ch. Ochsenhein, H. Ritz, P. Simon, C. Weidenmann, H. WUst
Fire Reinsurance proved profitable in all countries on the Continent, with the exception of Sweden, Italy and Spain, the results in certain tei-ritories being again above the average. British Home business which has for some time past been affected by de­ clining premium rates, closed with a loss. The experience in overseas countries was satis­ factory. In the United States the ratio of profit shows a retrograde movement, as was to be expected after a series of unusually remuneiative yeai's. Acquisition costs have everywhere marked a further advance; in some countries they have reached an unhealthy level, partly as a result of legal regulations covering salaries and working hours. Direct writing Companies will ultimately have to seek a compensation for these additional expenses in an adjustment of premium-rates.
The incidence of loss in Personal Accident Insurance has been less heavy. If the account none the less discloses a deficit, this is entirely attributable to the experience in Aviation Insurance, where the rates are still inadequate.
The moderate margin of profit remaining in Third Party Liability Insurance has further declined, and it seems doubtful whether it will suffice to meet the higher awards which have in part already materialized and which may still he expected as a result of currency devaluation, increased wages and the rise in the cost of living. A readjustment of the premium rates to altei-ed conditions, particularly in Motor business, appears to be inevitable and we observe with satisfaction that in several countries earnest endeavours are being made in this direction. Our results in the United States were satisfactory.
Burglary and Theft Insurance, as well as Fidelity and Surety business produced a gratifying surplus both in Europe and in the United States.
The amount of Interest earned on Investments is substantially larger than in re­ cent years.
The normal development of our business has resulted in a marked increase in our invested Funds. The appreciation in our holdings of foreign securities, in so far as they represent the investments of reserves, have their counterpart in a corresponding revaluation of liabilities. The depreciation in our French securities was more than com­ pensated by the rise in the market value of other investments, particularly in Switzerland and in the United States. Securities were entered as usual at or below market quotations ruling in December 1936, while unquoted investments were valued on a conservative basis with due regard to prevailing conditions.
Foreign Currencies in the Profit and Loss Account and the Balance Sheet have been converted at the average rates of exchange for December 1936, with the exception of certain currencies, for which we have considered it advisable to use lower rates in view of existing transfer difficulties.
The Profit & Loss Account closes with a profit of . . . Frs. 11,774,005.81 which at the General Meeting of the shareholders it was decided to distribute as follows: Special Reserve Frs. 1,800,000. — Staff Life Insurance and Pension Fund » 450,000. — Dividend Frs. 127.66 per share » 7,404,280. — Directors » 155,000. — Carried forward » 1,964,725.81
PROFIT AND LOSS ACCOUNT for the year ending 3lst December, 1936.
Premiums for Retrocession, less cancellations Frs. 49,124,976.80 Premiums for Retrocession for which no reserve is necessary „ 6,559,086.37 Commission, less Retrocession Claims paid Frs. 114,912,804.92 less Retrocession „ 28,983,984.02 Premium Reserve, less Retrocession ^ i ! T Reserve for Unsettled Claims, less Retrocession Reserve for Extraordinary Losses
Assets. Shareholders' Liability 34,800,000 — Real Estate . Frs. 7,500,000.Mortgages , , 25,520,656.65 Government and other Securities „ 205,609,589.05 Life and other funds deposited with ceding Companies . , 355,770,376.77 Bank Balances , 29,690,166.81 Cash in hand . „ 74,111.41 624,164,900 69
Due by other Companies 55,185,588 70 Sundry Debtors 250,000 — Accrued Interest 2,371,897 43