Seventy first Annual Report of the Board of Directors of the
We have much pleasure in submitting to you the seventy first Annual Report and statement of accounts of the Company, for the year ended 31st December 1934.
Hail business, in which we conduct our operations with great restraint, produced a small profit. The results were favourable nearly everywhere, but notable among the exceptions was Italy, where, notwithstanding the various measures which have been in­ troduced for its improvement, this class of insurance continues to be particularly precarious.
The premium income and profits from Burglary and Theft business underwent a slight contraction.
The volume of Life Reassurance is particularly susceptible to economic conditions. In general the reassurance of policies is only effected where the sums assured are for large amounts, and the circumstance that such cases have become less frequent has com­ bined with the increase in the number of lapses and surrenders to produce a fall in the volume of the business. It is therefore all the more satisfactory to be able to draw attention to the growth in the number of cases of sub-standard business which are sub­ mitted to us by our Ceding Companies for consideration. The mortality experience was again very favourable, and the results were satisfactory.
The amalgamation of the Prudentia Re- and Coinsurance Company Ltd. with the Swiss Reinsurance Company, which was adopted at the General Meeting of Shareholders of the 21st August 1934, was carried out with effect from the 1st January 1984. Pur­ suant to the decision which had been taken, the share capital was increased, by a new issue of shares, from Fr. 50,000,000 to Fr. 58,000,000, of which Fr. 28,200,000 are paid up. The Special Reserve Fund has been brought up to the statutary amount of Fr. 28,200,000, and in addition a sum of Fr. 6,000,000 has been set aside as an Investment and Exchange Contingency Reserve.
It should be -mentioned that, as the entire business accepted by the "Prudentia" was always in the first instance ceded to the Swiss Reinsurance Company, our Gross Premium Income has remained unaffected by the amalgamation. The Net Premium Income, on the other hand, has risen, in consequence of the participation of the "Prudentia" in our business having ceased.
Marketable Investments are entered at their market values in December last, while the values of our unquoted investments have been computed as usual on a conservative basis. Foreign currencies have been converted at the rates of exchange ruling in December last.
In view of prevailing economic conditions we continue to maintain a large volume of liquid funds, which, combined with the further depreciation of foreign currencies, had the effect of reducing our interest earnings. We are continuing in our endeavours to limit the exchange risk by the balancing, as far as possible, of our assets and liabilities in the various currencies.
The Profit & Loss Account closes with a profit of . . . Frs. 9,268,717.28 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. 125.66 per share » 7,288,280.— Directors » 179,881.— Carried forward » 1,851,056.23
PROFIT AND LOSS ACCOUNT for the year ending 31st December, 1934.
Premiums for Retrocession, less cancellations Frs. 39,746,804.32 Premiums for Retrocession for wliicli no reserve is necessary , 5,491,149.93 Commission, less Retrocession Claims paid Prs. 105,703,720.—
less Retrocession , 27,011,764.71 Premium Reserve, less Retrocession .' Reserve for Unsettled Claims, less Retrocession . Reserve for Extraordinary Losses
Life DepL. Premiums for Retrocession Commission and Expenses, 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 of Management Taxes Depreciation ot Invesiments Balance * Premium Reserves and Reserves for Unsettled Claims brought forward from 1933 include those of the "Prudentia".
Life DeptPremium Reserve Prs. 203,428,947. — Annuity Fund . , 4,945,505. Reserve for Unsettled Claims . ; 2,410,963. 210,785,415
Contribution to Staff Life Insurance and Pension Fund 450,000 Dividend 7,288,280 — Directors 179,381 — Carried forward . 1,351,056 23
Mortgages . , 26,879,493.30 Govermnent and other Securities . » 148,617,314.30 Life and other funds deposited with ceding Companies . „ 260,220,005.92 Bank Balances :..... . , 16,895,501.14 Cash in hand . , 70,443.77 460,072,758 43 Due by other Companies . . ... 49,825,628 54 Sundry Debtors 425,000 Accrued Interest 1,833,335 42