Assistant Managers R. Aeberli K. Aerni G. Bassin E. Bosshardt E. Burnens C. E. Geiser J. J. Hagedorn R. Hedinger G. Huguenin
We have the honour to present to you the 98th Annual Report and Statement of Accounts of the Company for the year 1961.
Marine 89,161,000 84,809,000 Accident 77,998,000 69,691,000 Health 63,765,000 55,421,000 Third Party Liability 325,759,000 304,352,000 Fidelity, Surety and Credit 41,079,000 38,527,000 Life 186,496,000 160,038,000
With the net premium of our six subsidiary companies, which operate on our behalf in particular markets, the premium income retained by the Group for own account reaches Sw. frs. 1,277 million.
Almost all branches have contributed to an aggregate underwriting result which is substantially higher than that of last year. Geographically speaking, the improved results from the U.S.A. played an important part. Should it prove possible to maintain in the future an adequate underwriting return on this, for us, very important market, the results shown in our annual reports would benefit greatly. However, experience indicates that we shall al­ ways have to expect significant fluctuations in the U. S. A. Special mention should also be made of the particularly gratifying results from the majority of European countries.
In Fire insurance the premium income decreased slightly, principally as a result of further changes in the basis of certain treaties for U. 8. A. business. After two lean years the result is again quite satisfactory, although industrial fire losses have not diminished and in the U.S.A. we had to make considerable payments for claims arising from the hurricane «Carla» and the Hollywood conflagration. Deficits in India, the Philippines and Italy weigh less heavily against the improved results from other areas. — The experience in Hail insurance was very good; by way of exception there were few hailstorms in most areas during the year under review. — Burglary insurance again showed a favourable result and the Miscellaneous branches (Machinery, Water Damage, Plate Glass and Livestock) gave a profit which chiefly derived from the growing Machinery section.
With moderate growth in premium income, we again recorded a loss in Surety, Fidelity and Credit insurance; however, it is considerably less than in the previous year. More favourable results were obtained in all areas save the U. S. A., where the incidence of claims in respect of Gonstruction Bonds has remained high. Moreover, also in the U. S. A., there were losses in both Fidelity and Credit insurance, which may easily produce deficits as a result of, in themselves, insignificant disturbances in the stability of the economy.
interest income and investments Our interest-bearing investments rose, in conformity with the growth in the underwriting sector and the capital and free reserves, by Sw. frs. 140 million and attained a total of Sw. frs. 1,943 million. Consequently our interest income likewise increased to a figure of Sw. frs. 66.6 million, of which Sw. frs. 22.5 million is required to cover interest on the actuarial reserve for life policies. The composition of our investments may be seen from the following table: Securities and Loans Sw. frs. Sw. frs.
We record with deep regret the sudden death of Mr. C. P. Rehsteiner, Deputy Manager, cutting short a most success­ ful career. He was greatly esteemed by all and we shall honour his memory as a valued colleague.
At the end of 1961 Mr. H. Jecklin, Deputy Manager, entered retirement. He gave his best to the interests of our Com­ pany and we are grateful to him for his many years of valuable service.
At the end of 1950, in order to consolidate and extend our business connections in Africa, we established an affiliated company in Johannesburg, the Swiss-South African Rein­ surance Company Ltd. (SSAR). This company gives rein­ surance cover in all branches of insurance. As regards premium figures it heads the five professional reinsurance companies operating in South Africa. In 1957 our affiliate had the opportunity of purchasing premises very favour­ ably situated in the business quarter of Johannesburg.
In addition the Board of Directors propose that the remainder plus the balance brought forward from 1960 should be allocated as follows: Additional Dividend Special Reserve Fund Donations to Charity
After distribution of profits the increased balance carried forward, as compared with the previous year, contains provision for expenditure in connection with the Com­ pany's centenary celebrations in 1964.
If this proposal is accepted the dividend will be Sw. frs. 60.— per share; after deduction of the Federal Coupon Tax of 3% and the Federal Withholding Tax of 27%, Sw. frs. 42.— will be paid on presentation of Dividend Coupon No. 6.
Capital Funds After approval of the Annual Statement for the business year 1961 the capital and free reserves of the Company amount to Sw. frs. 178,149,952.
The actuarial auditor, Mr. W. Saxer, has moreover con­ firmed in his report that the technical reserves of the Life department at the end of 1961 were correctly calculated on the basis approved by the Swiss Federal Council.
The securities, or the corresponding deposit certificates, were examined on the 15th and 16th January and on the 3rd April 1962 and found to be in order. A check carried out on the 3rd April 1962 showed that the cash in hand corresponded with the hooks.
The Board of Directors proposes the following distribution of the profit; Sw. frs.
Special Reserve Fund 5,000,000 Staff Life Assurance and Pension Fund 2,000,000 Dividend Sw. frs. 60.- per Share 18,000,000 Donations to Charity 300,000 Directors' Remuneration 483,700 Carry Forward 8,149,952
North American Reinsurance Corporation 161 East 42nd Street, New York 17
Principal Office for Australia 51 Queen Street, Melbourne C. 1 with an Office in Sydney 1955 All classes