Deputy Managers E. Bart W. Belser W. Bruppacher V. Cachin A.-L. Chenaud W. Eschmann R. Farmer M. Grossmann H. Jecklin W. Küster G. P. Rehsteiner J.-E. Rossier H. Ryffel M. D. de Sails A. Schütz
Although world events both political and economic con­ tinue to make their influence felt on an international business like ours, in the year under review problems of insurance proper have shown an increasing tendency to occupy a prominent position. Nonetheless, because it so largely depends on a free exchange of goods and services, reinsurance is vitally interested to see that the dangers can be avoided which are inherent in the formation of econo­ mic blocs such as are unfortunately discernible in Europe, since these may contain the seeds of fresh attempts at self-sufficiency and thus run counter to the idea of inte­ gration. It may be observed, however, that with a few exceptions state intervention during the year in the mone­ tary field and in the spheres of nationalisation, insurance supervisory legislation, taxation and transfer regulations remained within tolerable limits.
From the point of view of volume, the development of insurance in 1959, world-wide, was satisfactory, though profits were erratic and often inadequate. Our gross pre­ mium income rose by Sw. Fes. 66 million and at Sw. Fes. 1,043 million has passed the milliard mark for the first time. We have succeeded in obtaining this growth in premium mainly in the branches of insurance which are normally profitable. The following table shows the distri­ bution by branches for 1959 and 1958: Sw. Fes. Sw. Fes.
Our premium income for own account increased by Sw. Fes. 52 million or 6.9 per cent over the previous year and attained Sw. Fes. 819 million.
It is gratifying to record that in the year under review not only has the premium volume increased, but also, in con­ trast to the previous year, the aggregate underwriting profit both absolutely and in relation to the premium in­ come. Nevertheless the profit margin in international reinsurance continues, as in recent years, to be unsatis­ factory. The main reason is perhaps to be found firstly in the fact that as a result of the modern techniques large risks," in both trade and industry, are rapidly increasing in number and size, and secondly that the Reinsurer who
has to carry the main burden of these risks is no longer interested to the same extent in the main body of the smaller and average-sized risks which produce more ba­ lanced results. As in the previous year, there was no lack in 1959 of major claims, which, especially in the Motor and the Aircraft industries but also in Aviation and Credit insurance, sometimes assumed exceptional proportions.
In Fire insurance, despite an increase in premium of Sw. Fes. 30 million, or 9.6 %, the proportion of profit fell just short of that for 1958, owing primarily to the major industrial losses in England and Germany which have already been mentioned. The experience in Switzerland, Belgium, Turkey and Latin America was favourable. Hail insurance, by nature subject to severe fluctuations, once again proved satisfactory; heavy losses were recorded only in Greece and Italy. The Burglary and Miscellaneous branches (Machinery, Water Damage, Plate Glass and Livestock) on the whole produced fairly good results.
The results in Surety, Fidelity and Credit insurance for the year under review are still partly overshadowed by the liquidation of the major credit crisis in Venezuela. However, the U. SA. business also contributed to the loss recorded in these branches, which, though small in com­ parison with the previous year, still remains significant. On the other hand, the returns from other markets were very satisfactory.
Life assurance has again developed very well in all re­ spects. New business, which in 1958 exceeded the Sw. Fes. 1,000 million mark for the first time, rose to Sw. Fes. 1,400 million in 1959, and the business in force amounted to
Our investments, prudently valued as in the past, are as follows: Securities Sw. Fes. Sw. Fes.
Of the assets of our Company Sw. Fes. 155,684,000 are held by Trustees appointed by us in overseas territories.
The last General Meeting re-elected Mr. R. S. Hegner and elected Mr. Karl Brunner and Mr. Max H. Schneebeli to the Board of Directors.
To our very deep regret Mr. G. de Bardel, Manager of our Company, died suddenly a few days before he was due to retire; we shall remember him with gratitude as a loyal and most valued colleague.
2. View from the R. C. A. building towards Midtown Manhattan showing office building.
In addition the Board of Directors propose that the remainder plus the balance brought forward from 1958 should be allocated as foUows: Additional Dividend Special Reserve Fund Donations to Charity Carry Forward 5«: If this proposal is accepted the dividend will be Sw. Fes. 60.— per share; after deduction of the Federal Coupon Tax of 3 % and the Federal Withholding Tax of 27%, Sw. Fes. 42.— will be paid on presentation of Dividend Coupon No. 4.
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 1959 were correctly calculated on the basis approved by the Swiss Federal Council.
All classes excl. Life Sw. Fes. Sw. Fes. Sw. Fes. Sw. Fes.
Special Reserve Fund 2,500,000 Staff Life Insurance and Pension Fund 2,000,000 Dividend Sw. Fes. 60.— per Share 18,000,000 Donations to Charity 300,000 Directors' Remuneration 368,200 Carry Forward 3,495,012
We have pleasure in recommending that the Accounts as at the 31st December 1959 be approved, that the Admini­ stration 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.
Cash Deposits for Reinsurances Ceded Sundry Creditors Unearned Premiums for Own Account
'North American Reinsurance Corporation 161 East 42nd Street, New York 17