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Board of Directors E. Hürlimann, Honorary Chairman Paul Keller, Chairman C. J. Abegg, Deputy Chairman Ernst Froelich Karl Brunner Paul Ruegger R. S. Hegner Hans Schindler Max H. Schneebeli Max Petitpierre
Managers W. Bruppacher K. Hasler J.-E. Rossier V. Tisi H. Zwingli
Assistant Managers R. Aeberli K. Aerni G. Bassin E. Bosshardt E. Bumens C. E. Geiser J. J. Hagedorn R. Hedinger G. Huguenin
In the report on the 1961 business year we were able to record favourable results in most branches. In the year under review the picture has unfortunately changed in that the majority of non-Life branches have been affected by serious losses. With the exception of the violent hurricane on the Pacific island of Guam, we have sustained no catastrophe losses, but a large number of heavy claims have been incurred, in Fire insurance in particular. More­ over many markets have suffered greater setbacks in Motor insurance. The fact that we have nevertheless been able to achieve a satisfactory overall result, albeit smaller than that of the previous year, is due primarily to the favour­ able experience of late in Life reassurance.
The growth in business in the year of report was very gratifying. The gross premium income rose by Sw. frs. 113 million or nearly 10%, to Sw. frs. 1,280 million. The premium income for own account increased by Sw. frs. 92 million to Sw. frs. 1,019 million. The premium income is distributed over the individual branches as follows: Sw. frs. Sw. frs.
The aggregate underwriting result falls well short of that of the previous year. Considered geographically, the nonLife branches have shown disappointing results in Europe but proved satisfactory in the U. S. A. The Life business has yielded a very good return in both areas.
In Vire insurance the premium income has risen consider­ ably. For the first time for many years, however, this branch has closed with an appreciable deficit. This is the consequence of a process which had already started to become apparent in previous years and of which the effects can be felt particularly in heavily industrialized countries
such as France, Germany, Belgium, Great Britain and the U. S. A.: Fire losses in industrial plants are continually in­ creasing in number and size, whereas, owing to the influ­ ence of competition and failure to appreciate the enhanced risk, premium rates continue to show a falling trend. There is an urgent need of measures to correct this tendency. — Hail insurance again leaves a profit, though somewhat smaller than in the previous year. — Burglary insurance has shown a bare profit. The Miscellaneous branches (Machinery, Water Damage, Plate Glass and Livestock) have resulted in a reduced profit margin.
In Marine insurance, despite slower expansion in the vol­ ume of world trade, we can again record a premium rise, which we owe in part to new connections in overseas territories. The sharp increase in total and partial losses in shipping and the storm disaster in Hamburg have in­ fluenced the result, which does not match the average profit of recent years.
In Surety, Fidelity and Credit insurance the business em­ anating from the U. S. A. has made a significant contri­ bution to the appreciably larger growth in premiums. The fact that we are able to report an unusually gratifying result in these branches is due to a considerable extent to the favourable running-off of the claims reserve of the previous year and to recoveries on claims already paid.
In Life assurance the new business has again increased significantly. The gross volume of new business reached the figure of Sw. frs. 2,170 million (Sw. frs. 1,915 million in the previous year). Taking into account terminations, the
interest Income and Investments In line with the expansion in the underwriting sector and the growth in capital and free reserves, the interest-bearing assets have risen from Sw. frs. 1,943 million to Sw. frs. 2,120 million. The interest income has increased from Sw. frs. 66.6 million to Sw. frs. 74.7 million, of which Sw. frs. 25.1 mil­ lion have been required to cover interest on the actuarial reserve for life policies. The composition of our invest­ ments may be seen from the following table: Securities and Loans Sw. frs. Sw. frs.
With an increase of 6.3% (7.1% in the previous year) the management expenses rose relatively by less than the premium income. Salaries and social benefits again ac­ counted for almost two-thirds of this expenditure. Our bases abroad and travelling expenses represented greater debit items than in the previous year and these items show a rising trend as a result of intensified service to overseas markets. Our expenditure on taxes amounted to Sw. frs. 14.6 million. This has risen recently, particularly in Switzer­ land and the U.S.A., and represents an increase of Sw. frs. 3.1 million compared with the previous year. For de­ preciation we required Sw. frs. 9.2 million (Sw. frs. 8.2 mil­ lion in the previous year). The prudent principles which are observed in balancing our accounts have again induced us to undertake amortization on our securities and per­ manent holdings. The fluctuations in foreign currencies were largely self-compensating so that there was no ne­ cessity to provide for depreciation under this heading in the year under review. The net profit for the year amounts to Sw. frs. 26.6 million, or Sw. frs. 3.3 million less than in the previous year; with the balance brought forward of Sw. frs. 8.1 million the amount at the disposal of the General Meeting totals Sw. frs. 34.7 million.
The last General Meeting re-elected Mr. E. Hiirlimann, Honorary Chairman, to the Board of Directors and elected Mr. Max Petitpierre as a new member of the Board.
At the end of 1962 Mr. A. Ott, Manager, and Mr. R. Farmer, Deputy Manager, entered retirement. Both gentlemen de­ voted themselves wholeheartedly to the interests of our Company and we are grateful to them for their many years of valuable service.
In addition the Board of Directors propose that the remainder plus the balance brought forward from 1961 should be allocated as follows: Additional Dividend Special Reserve Fund Donations to Charity
Audit In accordance with Art. 723 of the Swiss Code of Oblig­ ations the present Annual Statement has been examined and found correct by an independent Accountant.
All Classes exci. Life Sw. frs. Sw. frs. Sw. frs. Sw. frs.
Investment Income (less Interest on Life Assurance and Annuity Funds and other technical reserves)
Acting upon our terms of reference, we have today checked the Profit and Loss Account and the Balance Sheet against the accounts of the Company which have been kept in proper form and order, and have found that the figures concord. We have further satisfied ourselves that the pre­ sentation of the operating results and of the assets of the Company conforms with the methods of valuation legally prescribed.
We have pleasure in recommending that the Accounts as at the 31st December 1962 be approved, that the Adminis­ tration of the Company be given full discharge in this respect with best thanks, and that the proposals of the Board regarding the distribution of the profit be accepted.
Cash in Hand 772,634 Postal Bank Account 247,310 Bank Balances 41,536,195 Current-Account Balances from Reinsurances Assumed 201,246,219 from Reinsurances Ceded 23,633,513
Cash Deposits with Ceding Companies 997,863,879 Sundry Debtors 17,097,702 Securities and Loans 1,209,251,445 Real Estate and Fully-owned Real Estate Companies 96,465,753 Accrued Interest 13,728,422
Swiss-South African Reinsurance Company Ltd. 408 Swiss House, 86 Main Street, Johannesburg with an Office in Capetown 1950 All classes
SwissRe Advisers Ltd. Rooms 820/23, Union House, Connaught Road/Chater Road, Hongkong