to the General Meeting of the Shareholders on the 19th May 1961
The aggregate result achieved in the past year is better than in 1959. The underwriting results taken as a whole, however, continue to be modest. The trend towards a de­ cline in the underwriting profit, which has been noticeable for some years, continues unchanged. For the time being we, like the insurance industry in general, can offset this decrease with the rise in financial yield. On the other hand, it will not always be possible to rely on this support. Each year shows once again that insurers, and more particularly reinsurers, do not automatically benefit from a boom, as the loss experience does not necessarily follow economic developments. In the year under review our activities have not been appreciably affected by political factors and world tension.
The volume of business in all branches, particularly also in Life, has further expanded, though the growth in the gross premium income has in recent years slowed down. Relatively little affected by currency devaluations, it has increased by Sw. Fes. 54 million to Sw. Fes. 1,098 million. The following table shows the distribution of premium income by branches for 1960 and 1959: Sw. Fes. Sw. Fes.
Our premium income for own account increased by Sw. Fes. 45 million or 5.4 per cent over the previous year and attained Sw. Fes. 864 million.
Marine insurance has again shown a substantial increase in premium volume, especially in Hull business. Notwith­ standing all the achievements of modern science, there has been a rise in the number of major losses; owing, however, to the fact that otherwise the business has run well the result achieved is again satisfactory.
Of the assets of our Company Sw. Fes. 161,570,000 are held by Trustees appointed by us in overseas territories.
Mr. Ernst Proelich and Mr. Hans Schindler retire by rotat­ ion from the Board. Both these gentlemen, being imme­ diately eligible under the Articles of Association, offer themselves for re-election.
With effect from the 1st January, 1961, the Board of Direc­ tors promoted Mr. J.-E. Kassier from Deputy Manager to Manager.
With due regard to the economic significance of Canada and the special status of the Canadian insurance market, we established in 1953, in Toronto, the Canadian Reinsurance Company, for Fire and Casualty, and last year the Cana­ dian Reassurance Company, for Life business. Further­ more, since 1959 our own Company has been licensed in Canada, though operations are for the present limited to the granting of cover to our two affiliates. The photo­ graphs opposite show the buildings in Toronto in which the two Companies and our Branch rent their offices.
In December of the year under review, we set up a foundation under the name of the Swiss Insurance Training Centre (SITC). Its object is the establishment and running of a centre for specialized insurance training of students from all over the world, especially from the developing coun­ tries. Mr. Martin Trippel was appointed Principal and as teachers we were able to engage senior insurance officials with a background of practical experience. We have ac­ quired and adapted property at 133 Seestrasse, Zurich, for the use of the SITC. A first course for promising candidates from Asia and Africa will begin on the 16th May and will deal mainly with the non-Life branches.
At the beginning of the year under review, we moderniz­ ed our Punched Card Department, which dates back to 1926, by installing electronic data processing equipment. We are thus now in a position to handle a still more sub­ stantial part of our various types of administrative work by mechanical means.
In addition the Board of Directors propose that the remainder plus the balance brought forward from 1959 should be allocated as foUows: 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 1960 were correctly calculated on the basis approved by the Swiss Federal Council.
Investment Income (less Interest on Life Insurance and Annuity Funds and other technical reserves)
Outstanding Claims for Own Account All classes excl. Life (incl. Valuation of Current Indemnities)
Zurich, 25th April 1961. By order of the Board: P. Keller, Chairman
The securities, or the corresponding deposit certificates, were examined on the 17th and 18th January and on the 12th April 1961 and found to be in order. A check carried out on the 12th April 1961 showed that the cash in hand corresponded with the books.
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 Obli­ gations, 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 1960 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.
Outstanding Claims for Own Account All classes excl. Life (incl. Valuation of Current Indemnities) Life Business
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