The Fire Department earned very good profits in the majority of European coun­ tries, the only exception to this happy result, among the more important of the regional divisions in which we operate, being supplied by England. In most overseas countries business was not so good, owing chiefly to the fact that the economic situation has there assumed quite different features, and is for the most part less adaptable to changing circumstances, .than is the case in European countries. Canada and Japan were particu­ larly disappointing. Our results in the U. S. A., after beginning in a very promising manner, underwent an unfavourable change in the last months of the year. The world wide dec­ line in economic activity was responsible for a further shrinkage of premium income, but in the case of our company, this was more than compensated by new business derived from the opening of valuable connections and the extension of existing relationships du­ ring the course of the year.
Marine Insurance is peculiarly affected by the influences of stagnation in Commerce and Industry. Whilst diminished values and shrunken cargoes entailed a restriction in the need for reinsurance facilities, the concentration of hull business upon the larger and more modern vessels, which are heavily insured, led to the market being frequently satu­ rated. The account was not unusually burdened by any of the well known cases of fire outbreak on board ship of recent occurence, and the final result is thoroughly satisfactory.
That Fidelity Guarantee, Surety and Credit business should again have brought a loss is not surprising, but the scope of our operations in these branches is of small dimensions.
Life Assurance is particularly susceptible to the effects of the economic situation. Conditions generally were characterized by an increase in the number of sun-enders and cancellations, and a falling off in the amount of new business. These symptons are naturally apt to be intensified in reinsurance accounts. That under these circumstances there should have been an increase in the total figure of Life assurance in force, in the European section of our business, gives us cause for special satisfaction. Mortality experience was much better than in the previous year, and this may be partially ascribed to a reduction in the strain from claims resulting from accidents and suicide.
For tbe valuation of our Investments we have adopted the market prices ruling in December, where quotations are available, and have written down securities which are not listed to conform to prevailing conditions. Foreign currencies have been converted, as usual, at the rates ruling at December 81st.
The increase in the item „Real Estate' is due to the completion of our new buil­ dings. Part of the cost of these buildings has already been written off.
Premiums for Retrocession, less cancellations Frs. 89,828,116.75 Premiums for Retrocession for which no reserve is necessary , 11,412,909.66 Commission, less Retrocession . Claims paid Frs. 139,278,230.16 less Retrocession , 61,837,200.35 Premium Reserve, less Retrocession Reserve for unsettled Claims, less Retrocession . . . . . . . Reserve for extraordinary Losses
Liahilities. Capital (50,000 shares of Frs. 1000 each) . . . . . 50,000,000 — Reserve Fund . 10,000,000 — Special Reserve Fund 21,000,000 — • Due to other Companies 40,699,194 92 Life and other funds retained from other Companies . 135,047,144 29 Sundry Creditors . 1,974,776 42 Reserves: Fire, Accident, Liability, Burglary, Fidelity, Surety, and Marine Dep^ Premium Reserve . Frs. 46,887,549.— Reserve for unsettled Claims Reserve for extraordinary Losses . , 10,000,000. — 108,018,228 —
Contribution to StafiF Life Insurance and Pension Fund 300,000 Dividend 6,186,000 Directors 160,000 Carried forward 2,056,073 99
Assets, Shareholders' Liability 30,000,000 Real Estate Mortgages Government and other Securities „ 120,369,599. Life and other funds deposited with ceding Companies . „ 254,114,670.33 Bank Balances . , 12,137,080.18 Cash in hand . , 68,633.14 420,333,648 85 Due by other Companies ........... 62,219,328 61 Sundry Debtors 450,000 — Accrued Interest 1,391,159 16