to the General Meeting of the Shareholders on the 25th May 1962 60 Mythenquai, Zurich
Managers W. Bruppacher K. Hasler A. Ott J.-E. Rossier V. Tisi H. Zwingli
Deputy Managers E. Bart W. Belser V. Cachin A.-L. Chenaud W. Eschmann R. Farmer M. Grossmann
G. A. Gubler W. Küster W. Leimbacher Ch. Robert-Tissot H. Ryffel M. D. de Balis A. Schütz
For most branches and territories the year under review is marked by considerably more balanced results than has been the case for some time past. We have certainly ex­ perienced heavy losses such as conflagrations, windstorms and traffic accidents, but this is only to be expected with a world-wide insurance portfolio. On the other hand, there is less evidence of the losses of a special nature, mentioned in the last Annual Report, which had for some years made heavy demands upon us in important territories. No notable losses were sustained in any of the areas of polit­ ical tension, with the exception of Cuba.
A satisfactory growth in premium income was also re­ corded in the year under review. The gross premium in­ come rose by Sw. frs. 69 million to Sw. frs. 1,167 million. A relatively sharper rise is apparent in premium income for own account, which increased by Sw. frs. 63 million to Sw. frs. 927 million. The following table shows the distribution of premium income by branches; Sw. frs. Sw. frs.
Fire 340,786,000 347,724,000 Hail 10,455,000 9,377,000 Burglary 18,840,000 17,526,000 Machinery, Water Damage, Plate Glass and Livestock 12,265,000 10,423,000
Greater activity in world trade resulted in an increase in the premium income for Marine insurance, particularly in Cargo business. The loss burden was heavier than the previous year but results are still satisfactory.
The Accident classes show a further marked premium in­ crease and a favourable result, to which both General Accident and Workmen's Compensation insurance contri­ buted. Following the previous year's loss in Aviation Accident insurance, we are able to record a notable profit in the year under review. — In Health insurance the premium income rose but the yield decreased perceptibly.
There was a considerable rise in premium income in Third Party Liability insurance, of which a major portion, as in earlier years, derives again from Motor business. This class, which gains inevitably in importance as motor traff­ ic becomes denser, still remains unbalanced and it once again produced a very substantial deficit, albeit slightly below that of the previous year. During the year under review various circumstances have contributed to an improvement in the results of our Motor business from the United States. In certain other countries of importance for us, especially in Switzerland, results have deteriorated appreciably; for this the major losses falling upon rein­ surers were primarily responsible. The results of General and Aviation Liability insurance (including Hull) were satisfactory.
In Life assurance we have a noteworthy gross volume of new business of Sw. frs. 1,915 million (Sw. frs. 1,610 mill­ ion in the previous year), increasing the gross business in force to approximately Sw. frs. 7,500 million. The very high initial expenses of our new business have again been completely amortized. Rather less satisfactory mortality experience, for example on large group assurances, reduced the annual result as compared with the previous year; nevertheless the return is satisfactory.
Common Shares of Public Utility, Industrial, Railway and other Companies 119,643,000 104,215,000
Of the assets of our Company Sw. frs. 160,458,000 are held by Trustees appointed by us in overseas territories.
The management expenses rose by 7.1 % to Srv. frs. 14.3 million. Of this, Sw. frs. 9.5 million was expended in salaries and social benefits, which is an increase of nearly 10 % on the previous year, although the number of staff scar­ cely rose. There was substantially higher outlay on our bases abroad, whose tasks on the local markets are in­ creasing. In the year under review, the sum of Sw. frs. 11.5 million (a further increase of Sw. frs. 2.6 million) was paid in taxes; fiscal charges have risen particularly in Switzerland. Sw. frs. 8.2 million was required for depreciation, approximately the same figure as last year. Precautionary amortization was undertaken on permanent holdings and on the other securities. A not inconsiderable sum had to be written off in respect of fluctuations in foreign currency.
The net profit for the year, at Sw. frs. 29.9 million, is Sw. frs. 3.7 million higher than the previous year. In addition to the underwriting results the higher interest income contributed to this profit increase. Inclusion of the balance brought forward raises the amormt at the disposal of the General Meeting to Sw. frs. 33.9 million.
Mr. E. HUrlimann, Honorary Chairman, retires by rotation from the Board. Mr. HUrlimann, being immediately eligible under the Articles of Association, offers himself for re­ election.
With effect from the 1st January, 1962, the Board of Dir­ ectors promoted Mr. W. Bruppacher from Deputy Manager to Manager; Mr. G. A. Gubler, Mr. W. Leimbacher and Mr. Ch. Robert-Tissot from Assistant Managers to Deputy Man­ agers; Mr. R. Aeberli, Mr. E. Burnens, Mr. J. J. Hagedorn, Mr. R. Hedinger, Mr. E. A. Kubli, Mr. R. Ochsenbein, Mr. H. Odermatt, Mr. H. Rudolf and Mr. P. Schuppli to Assistant Managers.
In the last Annual Report we referred to the establishment by the Swiss Reinsurance Company of a foundation under the name of the Swiss Insurance Training Centre (SITC), for the purpose of specialized insurance training of students from abroad, especially from the developing countries. The first course, lasting nine months, has been successfully concluded. Twelve students participated, from the follow­ ing countries: Hong Kong, Indonesia, Iran, Ireland, Peru, Taiwan, Thailand and the United Arab Republic. A second general insurance course with twice the number of parti­ cipants will be held from Spring until Autumn 1962; it is to be followed by a course in Life assurance.
Investment Income (less Interest on Life Assurance and Annuity Funds and other technical reserves) 44,104,558 39,018,514
Zurich, 1st May 1962 By order of the Board: P. Keller, Chairman
Auditors' Report To the General Meeting of the Shareholders of the Swiss Reinsurance Company, Zurich
We have taken cognizance of the report made by the In­ dependent Auditor appointed by the Board of Directors in accordance with Article 723 of the Swiss Code of Oblig­ ations, and in particular of his findings that the accounts have been correctly kept.
We have pleasure in recommending that the Accounts as at the 31st December 1961 be approved, that the Adminis­ tration of the Company be given full discharge in this respect with best thanks, and that the proposals of the Board regarding the distribution of the profit be accepted.
Outstanding Claims for Own Accoimt All classes excl. Life (incl. Valuation of Current Annuity Indemnities) Life Business