Board of Directors: E. Hürlimann, Chairman Hans Sulzer, Deputy-Chairman Paul Keller, Deputy-Chairman Max Huber C. J. Abegg Paul Ruegger R. S. Hegner t Rud. V. Heberlein Ernst Froelich Hans Schindler
Sui-Managers: E. Rart, V. Cachin, W. Eschmann, R. Farmer, W. Küster, V. Philippi, Gh. Robert-Tissot, H. Ryffel, M. D. de Salis, H. Salzmann, K. Schneider,
Gentlemen, We have the honour to present to you the 94"* Annual Report and Statement of Accounts of the Company for the year 1957. On the plane of world-wide politics, tensions were not diminished during the year under review. The events connected with Suez in the previous year affected the Middle East area, and the political currents which flowed from the situation there have reached new regions. The free cultivation of commercial relations, especially between the more developed countries and the so-called under-developed areas is still hindered by political uncertainty. Despite a slight relaxation on the money market towards the end of 1957, an attitude of caution has prevailed in the business world and has perceptibly moderated boom conditions especially in North America.
distributions within the companies of our Group, so that we were able to show only the same premium volume as last year. The result was somewhat better than in 1956. An exception is formed by Canada which again produced a considerable deficit and where it becomes urgently necessary to revise the inadequate premium rates and restrict cover for special hazards, which in recent years had been granted all too generously. In the United States, where the loss experience was still unfavourable, we have no profit to record, despite the fact that we were spared any major natural catastrophes, particularly windstorms. Hail insurance again closed with a loss. Burglary and Theft and the other minor classes of property insurance once more yielded gratifying results. In the Marine department there was a further rise in income, but as a result of the increased loss burden the profit is somewhat smaller than in the previous year. In Accident and Health insurance we are able to register a modest increase in premium. The result is satisfactory, although in Accident slightly less so than last year. The premium volume of Third Party Liability business has again risen much more than that of the other classes. Of the gross increase in premium of Sw. Frcs. 76 million referred to above, more than half derives from liability business. The importance of these constantly unprofitable lines has not ceased to grow, thus disturbing the balance between the various branches. This problem is one about which direct insurers are also much concerned. The reinsurer is however more seriously affected by this development since he is very often denied the compensation which the other more favourable branches, such as Fire, might provide. The experience was just
In line with the expansion of our activities, our investments have increased and the interest income is considerably higher. Management expenses have risen, being affected in particular by the adjustment of salaries to the rising cost of living. However, in proportion to our premium income the ratio of expenses remains within reasonable bounds. The amounts written off on investments are slightly higher than last year, which is not surprising in view of the economic situation in certain important areas.
In accordance with the requirements of the Code of Obligations, Article 723, the annual accounts have been examined and approved by an independent accountant.
Real Estate and fully-owned real estate Companies . . » » 37,875,852.10 Life and other funds deposited with ceding Companies » » 668,604,196.75 Bank balances » » 53,452,578.94 Cashinhand » » 729,201.78
It was further decided at the General Meeting of the shareholders to transfer to the Reserve Fund the amount of Sw. Frcs. 10,000,000 hitherto held as a Reserve for Con­ tingencies.
PROFIT AND LOSS ACCOUNT for the year ending 31«» December 1957
Premium Reserve from 1956 300,643,718 93 Reserve for Unsettled Claims from 1956 353,172,551 77 Reserve for Extraordinary Losses 12,000,000 — Premiums, less cancellations 785,229,639 43 1,451,045,910 13
Life Department. Premium Reserve from 1956 516,511,702 01 Annuity Fund from 1956 8,803,311 75 Reserve for Unsettled Claims from 1956 4,248,672 46 Premiums, less cancellations 121,138,976 60 Consideration for Annuities 1,171,631 29 Interest 15,767,100 98 667,641,395 09
Interest, after deduction of interest due to Life Department . . 28,839,715 56 Interest, after deduction of interest due to Life Department . . 2,149,639,440 32
Premiums for Retrocession, less cancellations 193,462,518 83 Commission, less Retrocession 201,344,076 57 Claims paid Frs. 405,367,868.43 less Retrocession „ 102,176,694.57 303,191,173 86 Premium Reserve, less Retrocession 322,881,907 91 Reserve for Unsettled Claims, less Retrocession 405,900,494 66 Reserve for Extraordinary Losses 15,000,000 — 1,441,780,171 83
BALANCE SHEET — 31^' DECEMBER 1957 after approval of the proposals of the Board of Directors by the General Meeting of the Shareholders.
Life Department Premium Reserve Frs. 557,777,065.89 Annuity Fund „ 9,461,729.97 Reserve for Unsettled Claims „ 8,981,795.76
Assets. Real estate and fully-owned real estate Companies . . Securities Mortgages Life and other funds deposited with ceding Companies Bank balances Cash in hand .
Of these assets Sw. Frcs. 118,393,084.53 are administered by Trustees designated by us in overseas territories.
The General Meeting of last year elected as new members of the Board Mr. E. Froelich and Mr. H. Schindler.
At this year's General Meeting Mr. E. Hürlimann and Mr. H. Snlzer were re-elected for a further period as Members of the Board of Directors.
At the beginning of this year Mr. R. V. Heberlein, a member of the Board of Directors, passed away unexpectedly. His wide experience and personality had made him a valued adviser during the all too short period of his membership of the Board.
The Board of Directors last year appointed as General Manager Mr. M. Klaas, as Assistant Managers Mr. C. P. Rehsteiner and Mr. H. Zwingli, and as Sub-Manager Mr. E. Spargnapani.
Mr. PI. Pessina, Manager, also retired on the 81st December 1957. He too rendered great service on behalf of the company and we are grateful to him.
Mr. W. Baumann, Assistant Manager, left us at his own request on the 80th June 1957. We regret his departure and thank him for his good work for our company.