Board of Directors; Ch. Simon, Chairman. E. Hiirlimann, Deputy-Chairman. Hans Sulzer Max Huber E. Welti Felix Calender Louis Dapples f
The combined results of our reinsurance operations in all departments were once more very satisfactory, although the good experience was less evenly distributed amongst the individual departments than in the previous year.
Reference has been made in the past to the difficulty, not to say impossibility, of keeping Third Party premiums adjusted to the additional risks arising from fluctuating currencies and unstable economic conditions. This applies particularly to motor insurance,
which constitutes a veiy large proportion of the liability business. Thus the higher rates of premiums, which have been applied in various territories, did not prevent us from in­ curring a loss in Europe, following on a span of profitable years. Germany, France, Italy and Poland were chiefly responsible for this unsatisfactory result. In the United States on the other hand Third Party business again afforded a gratifying experience.
The volume, both of new business and of reassurances in force, in the Life De­ partment has been adversely affected by the depreciation of the French currency. Not­ withstanding the economic recession, there was a further decline in the number of lapses. Mortality was again favourable in the year under review and the experience generally satisfactory. The upward adjustment of premiums to compensate the reduced level of in­ terest rates is a pressing need, but it has so far only been carried out in a few countries. — Increasing use is being made of the extensive organisation of which we dispose for the rating of substandard risks.
The special nature of our business requires the investment of substantial sums represent­ ing the Company's reserves in a large number of countries. In times of political uncertainty and economic crisis the inevitable decline in security values causes considerable amounts to be absorbed by depreciation. The year under review witnessed severe shrinkage, more particularly in respect of our investments in the United States and in France. The general fall in values has been covered in part by the transfer of an amount of Frs. 1,300,000 from the Reserve for Contingencies, which was established for the purpose of meeting Investment and Exchange fluctuations. Listed securities have as usual been entered at, or below, the market prices ruling in December. Unquoted investments have been valued with our custom­ ary conservatism and in accordance with the provisions of the new Companies Law.
The Profit & Loss Account closes with a profit of . . . Frs. 10,111,588.54 which at the General Meeting of the shareholders it was decided to distribute as follows: Staff Life Insurance and Pension Fund Frs. 450,000. — Dividend Frs. 127.66 per share » 7,404,280.— Directors > 155,000. — Carried forward ............. » 2,102,808.54
Premium Reserve from 1936 Reserve for Unsettled Claims from 1936 Reserve for Extraordinary Losses . . . Premiums, less cancellations Frs. 190,999,340.97 Premiums for which no reserve is necessary „ 32,433,030.12
Life DepL. Premium Reserve from 1936 Annuity Fund from 1936 Reserve for Unsettled Claims from 1936 Premiums, less cancellations Portfolio premiums Consideration for Annuities Interest Interest, after deduction of interest due to Life Dep^ ....
Premiums for Retrocession, less cancellations Frs. 51,351,164.46 Premiums for Retrocession for which no reserve is necessary „ 6,076,519.43 Commission, less Retrocession Claims paid Frs. 113,750,988.82 less Retrocession „ 29,392,788.97 Premium Reserve, less Retrocession Reserve for Unsettled Claims, less Retrocession Reserve for Extraordinary Losses
Life DepL. Premiums for Retrocession Portfolio premiums retroceded Commission, less Retrocession Surrenders, less Retrocession Losses paid, less Retrocession Annuities paid, less Retrocession . Premium Reserve, less Retrocession Annuity Fund, less Retrocession Reserve for Unsettled Claims, less Retrocession Expenses ol Management Taxes Depreciation of Investments, excluding Frs. 1,300,000 transferred from the Reserve for Contingencies ..... Balance
Contribution to Staff Life Insurance and Pension Fund , 450,000 — Dividend 7,404,280 — Directors 155,000 — Carried forward 2,102,303 54
Assets. Shareholders' Liability 34,800,000 _ Real Estate Frs. 7,500,000.Mortgages „ 26,100,895.75 Government and other Securities „ 205,096,910.39 Life and other funds deposited with ceding Companies „ 380,978,440.— Bank Balances „ 26,626,387.14 Cash in hand 84,137.15 646,386,770 43 Due by other Companies 54,576,878 49 Sundry Debtors 260,000 — Accrued Interest 2,164,299 12