The international political situation did not undergo any marked change in the past year; the elements of uncertainty remained so that trends in industry and commerce in most countries were influenced by a certain caution. The increase in premium volume accrued from changes in our portfolio and from the normal growth of our business. The impact of currency depreciations was less heavy than in previous years. The gross pre­ mium income rose from Sw. frcs. 635,948,395 to Sw. frcs. 669,937,761.
The Fire branch produced a particularly gratifying return to which almost all the countries in which we operate contributed. Whereas the accounts for 1950 and 1951 were affected by a catastrophe loss in the United States, we have fortunately been spared any similar occurrence in the year under review. In Hail insurance results varied widely in individual territories yet the deficit of last year was not repeated. With a somewhat smaller volume, Burglary and Theft insurance gave a very satisfactory return and this was also the case in the Miscellaneous branches. Our Marine portfolio has been expanded by the conclusion of new treaties in the United States; against a large rise in premium income the margin of profit showed a moderate reduction. The yield of the Accident branch was further diminished by the unfavourable trend in Workmen's Com­ pensation; the Health insurance section closed with a profit. Premium income in Motor Third Party and Motor Damage insurance was higher, particularly in the United States due to increased rates. This branch, which has been operating at a loss for a number of years, shows a certain improvement in results; however, it is still far from
being on a really sound footing. In our two main territories, the United States and Ger­ many, the deficit has indeed been appreciably reduced, hut unfortunately results from other countries were substantially worse. The experience in Third Party Liability insurance also still leaves very much to he desired. On the other hand, a notable improve­ ment is apparent in Fidelity and Surety insurance which, in contrast to the previous year, contributed in no mean measure to the favourable overall balance.
In the Life account new business was again considerable and surpassed the pro­ duction of the preceding year. With the persisting favourable mortality experience the underwriting results proved very satisfactory.
The interest-hearing assets once more rose substantially as a consequence of the increase in reserves and the call on shareholders made last year whereby our share capital of Sw. frcs. 58,000,000.— became fully paid and was subsequently increased to Sw. frcs. 60,000,000.—. Interest Income, apart from that portion bound by technical requirements, has therefore noticeably expanded; the average yield on new investments, however, shows a slight drop.
PROFIT AND LOSS ACCOUNT for the year ending 31®' December, 1952. Swiss francs cts. Swiss francs Cts.
Life Department. Premium Reserve from 1951 380,303,865 19 Annuity Fund from 1951 6,322,648 21 Reserve for Unsettled Claims from 1951 3,038,407 06 Premiums, less cancellations 94,426,889 52 Consideration for Annuities 1,140,857 52 Interest 11,932,792 24 497,165,459 74
Interest, after deduction of interest due to Life Department . . 20,618,389 49 1,533,375,758 32
IHanagement Expenses ; . . . . 9,172,982 99 Taxes 7,752,489 45 Depreciation of Investments . 4,699,509 12 Balance 21,096,569 08
Liahilities. Capital (60,000 shares of Frs. 1000 each) 60,000,000 — Reserve Fund 20,000,000 — Special Reserve Fund 32,500,000 — Reserve for Contingencies 10,000,000 — Due to other Companies 75,485,282 84 Life and other funds retained from other Companies . 184,473,552 44 Sundry Creditors 7,776,315 — Reserves: Fire, Accident, Liability, Burglary, Fidelity, Surety and Marine Depll Premium Reserve Frs. 244,961,338.41 Reserve for Unsettled Claims , 238,381,014.21 Reserve for Extraordinary Losses , 12,000,000.- 495,342,352 62