Board of Directors: W. C. Escher f Rob. Hegner C. Abegg-Stockar Hans Sulzer Felix Calender
Sub-Managers ; E. Andreoli H. Grossmann E. Froelich A. Hollinger J. Gailloud R. Secretan
Economic conditions are always reflected in the business of both Insurance and Reinsurance and the fact that the past year has produced for this Company a satisfactory profit, despite the effects of the general depression which continues to weigh on certain countries of Europe, is due mainly to the important and well selected business in various branches which we have in the United States of America.
The results of the Fire department are disappointing in the majority of European fields and in some territories the losses have been considerable. Besides the influence of an unsatisfactory economic situation we feel the effects of a continued reduction in premium rates as well as of an increased cost of the business. The severe nature of the winter which heralded the commencement of 1929 coupled with the hot and dry summer which followed further accentuated the unfavourable trend of affairs and in consequence the loss ratio rose to an exceptional degree. General Foreign business has been somewhat less profitable than in previous years, but business in the United States of America produced once more a satisfactory profit, although in this territory too, insurance is faced with the problem of a falling off in premium rates and a rising expense ratio.
Hail insurance has suffered from the effects of exceptional atmospheric conditions and considerable losses resulted chiefly in the South of Germany, France, Poland, Czecho­ slovakia, Austria and also in Switzerland.
The Marine Account continues to be unprofitable and we congratulate ourselves once more on the relatively moderate volume of the business transacted by this Company. The unsatisfactory experience which this branch has been showing for a number of years has had the effect of bringing about a shortage of cover to direct and reinsurance Companies which is becoming more embarrassing. It is to be hoped that this will assist towards the establishment of healthier conditions.
As regards Third Party Liability, although the increase of rates effected in recent years in some parts of Europe has had some effect, considerable efforts still remain to be made before this branch will show normal conditions. The results of the American business have again been favourable.
Burglary and Theft insurance produced good results both in Europe and in America and the same may he said of the Miscellaneous branches, with the exception of Credit Insurance which shows a loss. The volume of this latter business is small and the losses suffered do not, in consequence, affect our results as a whole.
The Life Account is gratifying. The volume of new business as well as the rate of mortality have been satisfactory. First year commissions have, as usual, been entirely written off.
In spite of the general fall in Stock Exchange prices towards the end of the year no writing off for depreciation has been necessary. From the sale of securities during the past year there resulted a profit of frs: 1,318,781.71.
Premium Reserve from 1928 Reserve for unsettled Claims from 1928 . . . . Reserve for extraordinary Losses Premiums, less cancellations
Life DepL. Premiums for Retrocession Commission and Expenses, less Retrocession . . Surrenders, less Retrocession Losses paid, less Retrocession Annuities paid, less Retrocession Premium Reserve, less Retrocession Annuity Fund, less Retrocession . . ... . . . 1 . . . . . Reserve for unsettled Claims, less Retrocession Expenses of Management . . Taxes Net Profit . . . L : Swiss francs Cts. Swiss francs Cts,
lÄahilities. Capital (50,000 shares of Frs. 1000 each) 50,000,000 — Reserve Fund 10,000,000 — Special Reserve Fund 23,000,000 — Due to other Companies 39,474,741 39 Life and other funds retained from other Companies . . . . . . . . . 103,887,601 18 Simdry Creditors 2,457,134 18 Reserves: Fire, Accident, Liability, Burglary, Fidelity, Surety and Marine Dep^ Premium Reserve . Frs. 72,792,548.— Reserve for unsettled Claims ....... , 44,882,687. -