Managers: G. de Bardel, M. Elsenring, W. Habicht, K. Hasler, M. Klaas, F. Niquille, PI. Pessina, V. Tisi, H. WUst
Assistant Managers: W. Baumann, W. Belser, W. Bruppacher, Ch. Burnens, A.-L. Chenaud, M. Grossmann, H. Jecklin, A. Ott, J.-E. Bossier
We have the honour to present to you the 93"® Annual Report and Statement of Accounts of the Company for the year 1956.
The world-wide political situation, which had seemed to be more reassuring, was again darkened in the year under review by the events surrounding the Suez Canal and in Hungary. Fresh tensions in the international balance of power added to the uncertainty and, together with the trend towards dearer money, led to a perceptible restraint in major sectors of the economy. Insurance operations did indeed show a larger premium volume but at the same time the expense and loss ratios rose considerably.
countries the yield has similarly been appreciably lower. Apart from mounting costs, growing demands for reciprocity have contributed to this development. In the Hail section we show a slight deficit. Burglary and Theft insurance left a good profit. The showing of the Machinery, Water Damage and Plate Glass branches was on the whole unsatis­ factory. On the other hand. Marine insurance produced a good result coupled with a considerable rise in premium. The blocking of the Suez Canal led to an increase in both freight charges and sums insured, which temporarily helped to augment the premium income. The loss of the Italian liner, "Andrea Doria", also affected us as international reinsurers; however this large single claim did not noticeably impair the year's showing. Both Accident and Health insurance closed with a surplus. Under the impact of Motor insurance. Third Party Liability business is becoming an increasingly important factor in our profit and loss statement. In General Third Party insurance the results are not unsatisfactory. In Motor Third Party, however, the undesirable conditions which have prevailed for years in many countries have now spread to other territories and we have in part suffered very substantial losses. Monetary depreciation and exaggerated indemnity awards have aggravated the claims burden, whilst in many cases political influences seriously obstruct the necessary adjustments in the premium rates. In this way the insurer is denied the necessary remuneration for the important economic function which he performs, and this might have grave consequences for the insurance industry as a whole. In Surety, Fidelity Guarantee and Credit insurance, as against a large expansion in new business, we must report a considerable loss deriving mainly from Surety business in North America.
A gratifying growth in Life assurance is reflected in a higher premium income and a corresponding increase of the portfolio in force. The result was once again quite satisfactory with a continuing favourable mortality experience.
PROFIT AND LOSS ACCOUNT for the year ending 31^' Oecember 1956
Life Department. Premium Reserve from 1955 Annuity Fund from 1955 Reserve for Unsettled Claims from 1955 Premiums, less cancellations Consideration for Annuities Interest . .
Premiums for Retrocession, less cancellations Commission, less Retrocession Claims paid Frs. 360,378,123.91 less Retrocession , 86,926,231.65 Premium Reserve, less Retrocession .• . . Reserve for Unsettled Claims, less Retrocession Reserve for Extraordinary Losses . . . .
Life Department. Premiums for Retrocession 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
Premium Reserve Frs. 532,921,025.99 Annuity Fund ^ 8,831,295.32 Reserve for Unsettled Claims „ 4,417,656.68
The General Meeting of the Shareholders held on the 26"^ May 1956 resolved to convert the existing 60,000 registered shares with a nominal value of Sw. Frcs. 1,000 per unit into 240,000 registered shares with a nominal value of Sw. Frcs. 250 per unit, and to issue 60,000 additional shares with a nominal value of Sw. Frcs. 250 per unit, thereby increasing the capital from Sw. Frcs. 60,000,000 to Sw. Frcs. 75,000,000. The 300,000 new shares entitle the holder to dividends with effect from the P* January 1956. At the same time a change was made in the Articles of Association.