Sub-Managers: Ad. Ammann, Ch. Burnens, G. de Bardel, F. Eggenberger, Ch. Ochsenbein, H. Ritz, P. Simon, C. Weidenmann, H. WUst
The past year was marked by an increasing tension in the political atmosphere, which occasioned a further crippling of international trade and commerce. However, in­ dications of economic revival were to be found in some of the European countries, as well as in the United States and in parts of South America, and are reflected in an advance in the premium income of our company; the first which we have been able to register since tbe year 1930. Unfortunately the degree of expansion was cui-tailed by the depreciation of certain foreign currencies.
Switzerland and Sweden. The loss in Switzerland is due chiefly to the decline in premium rates, which set in some years ago and has not yet been arrested. In other countries also, intensified competition, contrasting to an ever greater extent with the dictates of accepted underwriting principles, has cut premiums and raised acquisition costs, so as to make it seem doubtful whether the present premium level would be adequate to meet the higher loss ratio which might be expected to accompany a return to normal economic activity; these doubts apply more particularly to conditions in the United States.
The Marine Department again registers a surplus, as has been the case for several successive years, although the margin is less than last year, as a consequence of a further fall in premium rates. The war in Abyssinia and the threat of international complications caused the insurance of War Risks to regain some prominence in this department.
that also in this branch tariff rules are not being moulded to the progressive increase in the perils involved. Continued evolution in the nature and control of traffic, together with recurrent changes in economic and social organisation, and in the influences surrounding judicial decisions, tend to outstrip measures aiming at the adjustment of premium rates to the constant widening of the claims' incidence.
Burglary and Theft insurances produced a stable profit, while Fidelity and Credit business was also generally profitable.
The Profit & Loss Account closes with a profit of . . . . Frs. 9,426,079.79 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. 127.66 per share . » 7,404,280.— Directors » 179,381.— Carried forward . . . ..... . . . . . . » 1,892,418.79
Premiums for Retrocession, less cancellations Frs. 40,550,202.74 Premiums for Reti ocession for which no reserve is necessary „ 5,900,081.02 Commission, less Retrocession Claims paid Frs. 98,346,590.97 less Retrocession . „ 25,396,773.62 Premium Reserve, less Retrocession Reserve for Unsettled Claims, less Retrocession Reserve for Extraordinary Losses
Liabilities. Capital (58,000 shares of Prs. 1000 each) 58,000,000 — Reserve Fund . 10,000,000 — Special Reserve Fund 23,200,000 — Reserve for Contingencies 6,000,000 — Due to other Companies . 30,517,087 68 Life and other funds retained from other Companies . . 82,267,606 28 Sundry Creditors 2,425,829 65 Reserves: Fire, Accident, Liability, Burglary, Fidelity, Surety and Marine Dep^ Premium Reserve Frs. 48,499,716. — Reserve for Unsettled Claims ........ „ 62,279,620. — Reserve for Extraordinary Losses ....... , 10,000,000. - 120,779,336 —
Contribution to Staff Life Insurance and Pension Fund 450,000 Dividend 7,404,280 — Directors . • ' . • • . • 179,381 — Carried forward . . . . ... . . . . . . . ....... 1,392,418 79