S ub-Managers : E. Andreoli H. Grossmann V. V. Castelberg A. Hollinger E. Froelich F. Niquille J. Gailloud R. Secretan 0. Wiesmann
We have pleasure in presenting to you the sixty eighth Annual Report and State­ ment of Accounts of our Company, drawn up for the year 1931.
The favourable figures of the Fire Insurance department are worthy of special mention. The conspicuous ratio of reduction in premium income is mainly attributable to currency depreciation, to the effects of which the accounts of this department are par­ ticularly exposed, and is only in a small degree the consequence of a falling off in the volume of business. The deterioration in the capital values of insured objects, to which we have already alluded on a previous occasion, continued, and, as then stated, is an effect of the fall in the prices of commodities, especially of primary products, and of the decline in the holdings of stocks of manufactured goods. In the European field of our business a marked improvement upon the results of the previous year took place. From Overseas also, with the exception of Canada and Australia, we are able to report a good general experience, more especially in the United States of America, where however, the premium income has unfortunately undergone further reduction. In Europe, on the other hand, our business expanded, but not to a sufficient degree to counterbalance the effect of the depreciation in foreign currencies.
Hail Insurance was further reduced, owing to our policy of restraint in this branch. The results were poor, Switzerland once more occupying the first place in the territorial classification of our bad experience, followed by France and Germany. Italian Hail business was placed on a sounder footing by the introduction of a franchise. Unfortunately the extension of this principle to other territories meets with opposition, particularly in Germany, and we are thus led to restrict our operations in this class of insurance sfill further.
Personal Accident Insurance was not satisfactory. Individual insurances for large amounts continued to exercise an adverse influence upon the general result. This was especially the case in the United States, where the companies have finally come to realize the need for reorganization and have already initiated measures which aim at placing the business upon a sound footing. There are signs of a similar policy being adopted in Europe.
The extraordinary severity of the decline in prices in the security markets, involving even the highest grades of bonds, has necessitated a writing down of our investments, in a measure which is consonant with the extent of our business. For the valuation of our Investments we hai^e adopted the market prices ruling in December, as required by the laws of this country, which stand in contrast to the relief granted to Insurance Com­ panies in other countries, in this respect; for foreign currencies the rates ruling December 31®' have been used. Furthermore, additional depreciation which has occured in the current year has been provided for. Investments which are not dealt in in the open market have been written down, where necessary, to conform with prevailing conditions.
The Profit & Loss Account closes with a profit of . . . Frs. 9,260,994.38 which at the General Meeting of the shareholders it was decided to distribute as follows: Special Reserve Fund Frs. 500,000.— Staff Life Insurance and Pension Fund . » 300,000.— Dividend Frs. 123.72 per share » 6,186,000.— Directors, Management and Staff » 685,000.— Carried forward • » 1,589,994.33
PROFIT AND LOSS ACCOUNT for the year ending 3tsi December, 1931.
Premium Reserve from 1930 Reserve for unsettled Claims from 1930 .... Reserve for extraordinary Losses Premiums, less cancellations Prs. 218,835,830.87 Premiums for which no reserve is necessary » 35,820,249.55
Life DepL. Premiums for Retrocession Commission and Expenses, less Retrocession Surrenders, less Retrocession Losses paid, less Retrocession . . . . . . . .... . . Annuities paid, less Retrocession . . . i Premium Reserve, less Retrocession ........... Annuity Fund, less Retrocession Reserve for unsettled Claims, less Retrocession Contribution towards depreciation of investments Expenses of Management Taxes Depreciation of Investments, excluding contributions from depart­
BALANCE SHEET — 31^' DECEMBER, 1931 after approval of the proposals of the Board of Directors by the General Meeting.
lÄahilities. Capital (50,000 shares of Frs. 1000 each) Reserve Fund Special Reserve Fund Due to other Companies Life and other funds retained from other Companies Sundry Creditors Reserves: Fire, Accident, Liability, Burglary, Fidelity, Surety and Marine Dep'j; Premium Reserve Frs. 47,667,468.— Reserve for unsettled Claims 49,872,879. — Reserve for extraordinary Losses ....... , *10,000,000. —
Contribution to Staff Life Insurance and Pension Fund Dividend Directors, Management and Staff . . ' Carried forward • The Reserve for extraordinary Losses has contributed Frs. 10,000,000 towards depreciation of investments and Frs. 4,000,000 were transferred from Special Reserve Fund to Reserve for extraordinary Losses which now amounts to Frs. 10,000,000.