Seventy second Annual Report of the Board of Directors o! the
Board of Directors: Ch. Simon, Chairman. E. HUrlimann, Deputy-Chairman. Hans Suizer Max Huber E. Welti Felix Calender Louis Dapples
We have the honour to present to you the seventy second Annual Report and Statement of Accounts of the Company for the year ended 31st December 1935.
The results of our reinsurance operations were again satisfactory. Profits were earned in Fire Reinsurance in all countries, with the exception of
Our Hail business is of comparatively small importance, and gave a satisfactory profit. The experience in Italy, after a large number of exceedingly unfavourable years, was surprisingly good, while in France the loss ratio was heavy.
The frequency of medium sized claims in Personal Accident Insurance, has provided additional proof, that the tariffs applied in most countries are inadequate to meet the intensified strain caused by the increase in traffic and the influence of prevailing economic conditions. Endeavours, long since pursued, to bring about the much needed increase in premium rates continue to be hampered by the custom of accepting Accident insurances in order to procure desirable business in other departments. Our experience resulted in a deficit.
The declining margin of profit in Third Party Liability Insurance, in which Motor Business is becoming more and more a prominent factor, leads to the conclusion
The field of Personal Accident and Third Party insurance has been enlarged by the extension of Air Travel. In spite of technical improvements, we have not succeeded in attaining a gratifying result from our developing business in this direction.
In the Life Department we are pleased to he able to report a substantial advance in the new business, together with a reduction in the volume of surrenders and lapses, while at the same time we have been able to register a gratifying surplus. Our organi­ sation for writing sub-standard business is becoming an ever more valuable contributing factor in the development of our business. Arbitrary legal conversions of interest rates, which have been made in various countries, constitute a serious problem for Life Assurance.
The fall in the market prices of securities, particularly of Swiss and French Govern­ ment Bonds, absorbed considerable sums for depreciation, which were however partly offset by the advance in American quotations.
Foreign currencies have been converted at the rates ruling in December last, hut adequate provision is made in the case of non-transferable accounts.
Our interest earnings, after years of stagnation, show a larger return; however the interest yield continues to be infiuenced by protective measures in respect of foreign curr­ ency fluctuations and by our policy of maintaining a substantial degree of liquidity.
The increasing influence of the State in private industiy, and the consequent barriers to the free functioning of the International Exchanges, together with the tendency towards economic autonomy within national boundaries, are all particularly burdensome to the trans­ action of Reinsurance business, the organisation of which postulates the smooth working of commercial intercourse between the nations.
Life DepL. Premium Reserve from 1934 .... Annuity Fund from 1934 . . . . . Reserve for Unsettled Claims from 1934 Premiums, less cancellations .... Portfolio premiums Consideration for Annuities ... . Interest . Interest, after deduction of interest due to Life Dept
Expenses of Management Taxes Depreciation of Invesfments . . . . . . Balance . .
Life DeptPremium Reserve Frs. 227,000,299.Annuity Fund . . . , 5,752,455. Reserve for Unsettled Claims ....... , 2,196,948. — 234,949,702 —
Ässets. Shareholders' Liability 34,800,000 _ Real Estate Frs. 7,000,000.— Mortgages , 25,787,562.40 Government and other Securities . . . . ... . . „ 155,293,769.20 Life and other funds deposited with Ceding Companies . „ 282,788,377.30 Bank Balances , 25,340,333.19 Cash in hand . 73,920.89 496,283,962 98 Due by other Companies . . . • ••••.. 44,211,921 15 Sundry Debtors 405,000 Accrued Interest . . . . . . . . . . . . . . . . • 1,864,757 27
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