to the General Meeting of the Shareholders on the 23rd May 1959
Assistant Managers W. Belser W. Bruppacher Ch. Burnens A.-L. Chenaud M. Grossmann H. Jecklin A. Ott C. P. Rehsteiner J.-E. Rossier H. Zwingli
Sub-Managers E. Bart V. Cachin W. Eschmann R. Farmer W. Küster V. Philippi Ch. Robert-Tissot H. Ryffel M. D. de Sails H. Salzmann K. Schneider A. Schütz E. Spargnapani
We have the honour to present to you the 95th Annual Report and Statement of Accounts of the Company for the year 1958.
International reinsurance does not only follow its own economic laws, but is also influenced by current world­ wide political and market conditions. In the year under review political developments were uneven. Tendencies towards a degree of stabilisation in Europe and North America contrasted with profound changes in certain LatinAmerican States, and fresh problems arose in Africa and Asia. In the highly-developed countries economic condi­ tions showed a certain trend back to normal after the recession of 1957, whereas the efforts for a unification of the European market brought new tasks also to the in­ surance profession.
In insurance the curve of business expansion has levelled off in many territories. Our gross premium income never­ theless rose again by some Sw. Fes. 71 million to Sw. Fes. 977 million. It is gratifying to observe that the branches which we consider to be particularly interesting also par­ ticipated in this premium growth. The division by branches is as follows, in round figures: Fire Hail Burglary Machinery, Water Damage, Plate Glass and Livestock Marine Accident Health Third Party Liability Fidelity and Surety Credit Life
Our premium income for own account increased by Sw. Fes. 72 million, or 10.3% over 1957 (9.1% in the previous year) and attained Sw. Fes. 767 million.
to assist in the distribution of such losses within the framework of the world insurance market, both geo­ graphically and over long periods.
In Fire insurance the premium income rose by 6.5 % . How­ ever, the proportion of profit declined. In particular, consid­ erable losses arose during the year in some overseas territories which usually produce handsome surpluses. Thus Egypt, Turkey and Cuba were affected by unusually high losses. On the other hand. United States business after several poor years once again produced a satisfactory profit, while in Canada the loss was smaller. — Despite good results in a number of countries the aggregate ex­ perience in the Hail branch was not all that could be desired owing in large measure to severe hailstorms in Southern Germany. — The Burglary and Miscellaneous branches produced a profit but this was also noticeably lower than last year.
In the Marine department the fall in earnings materialized, as we had feared, because of the persistent downward movement in premium rates. The overseas experience in particular was unsatisfactory.
The returns for 1958 in Surety, Fidelity and Credit insur­ ance have been most disappointing. With an only slightly increased premium income we were burdened with very considerable losses, especially in Venezuela and the Middle East. In a large measure these claims arose as a direct consequence of political events. Such risks, which in them­ selves are undesirable, cannot unfortunately always be declined by the reinsurer, since they are combined with business in other branches from which profits can be expected.
The development in the Life department continues to be satisfactory. New life reassurance business has passed the
Of the assets of our Company Sw. Fes. 126,455,000 are held by Trustees appointed by us in overseas territories.
This reduction in the depreciation account together with the higher interest income offset the decline in profit from the technical departments and enabled us this year to show an over-all gain from technical and financial opera­ tions which is slightly higher than last year.
At the Annual General Meeting last year Mr. E. Hürlimann and Mr. Hans Sulzer were re-elected as Members of the Board.
At the same time, Mr. E. Hürlimann retired from the Chair­ manship of the Board, wishing to be relieved of his exe­ cutive duties. For 54 years, and since 1942 as Chairman of the Board, Mr. Hürlimann has devoted his best energies to the affairs of the Company, and has had a decisive influ­ ence on its formation. Under his enlightened leadership our Company has gone from strength to strength. In re­ cognition and appreciation of the outstanding services rendered by Mr. Hürlimann the General Meeting last year appointed him Honorary Chairman for life.
Early this year the Deputy Chairman of our Board of Di­ rectors, Mr. Hans Sulzer, passed away after a long illness. For 36 years he had been a Member of the Board and from 1942 onwards its Deputy Chairman. By virtue of his powerful and dynamic personality as well as of his in­ tellectual and moral qualities he enjoyed our highest esteem. We shall honour his memory and shall remember with gratitude his collaboration over many years.
At the end of 1958 Mr. W. Habicht, Manager, and Mr. R. Walthard, Sub-Manager, retired. Both these gentlemen greatly contributed to furthering the interests of our Com­ pany and we thank them for their valuable collaboration over many years.
At the end of 1957 we inaugurated our new dining room and lecture hall, which caters for the staff and allows the management to entertain our many Swiss and foreign guests. It also serves other useful purposes, for instance as the venue of the General Meeting of our Shareholders and for lectures and staff functions.
should be allocated as follows: Additional Dividend Special Reserve Fund Donations to Charity Carry Forward
The actuarial auditor, Mr. W. Saxer, has moreover con­ firmed in his report that the technical reserves of the Life department at the end of 1958 were correctly calculated on the basis approved by the Swiss Federal Council.
The Board of Directors proposes the following distribution of the profit: Special Reserve Fund Staff Life Insurance and Pension Fund Dividend Sw. Fes. 60.— per Share Donations to Charity Directors' Remuneration Carry Forward
Cash in Hand 720,846 Postal Bank Account 403,430 Bank Balances 41,995,561 Current-Account Balances from Reinsurances Assumed 154,834,097 from Reinsurances Ceded 13,316,728
All classes excl. Life 346,069,592 1 Life Business (inch Policy and Annuity Valuations) 610,763,203 |
Outstanding Claims for Own Account All classes excl. Life (inch Valuation of Current Indemnities) 467,567,269 Life Business 6,151,172
Fund for Extraordinary Losses 20,000,000 : Dividend 18,000,000 Directors' Remuneration 354,200 Capital 75,000,000 Reserve Fund 30,000,000 Special Reserve Fund 52,500,000 Carry Forward 2,505,688 i 1,921,254,045 |
United States Branch 161 East 42nd Street, New York 17 1910 All classes excl. Life
Uorth American Reinsurance Corporation 161 East 42nd Street, New York 17 1940 All classes excl. Life
North American Reassurance Company 161 East 42nd Street, New York 17
Canadian Reinsurance Company 250 University Avenue, Toronto 1, Ontario 1953 All classes excl. Life