Siib-Managers : E. Andreoli H. Grossmann V. V, Gastelberg A. Hollinger E. Froelich F. Niquille J. Gailloud R. Secretan 0. Wiesmann
We have pleasure in presenting to you the sixty-ninth Annual Report and State­ ment of Accounts, for the year 1932.
The past year was conspicuous for a number of events which had a depressing effect upon Commerce and Industry. However, in various directions a definite advance was achieved by private business in the process of adaptation to changed conditions, and to this consolidation of interests, and to the attendant improvement in the basis of ope­ rations, are to a large extent attributable the satisfactory results obtained last year in certain classes of insurance practice.
There was a reduction in premium from Hail Insurance, which was due rather to the depressed condition of agriculture, where the persistent downward course of produce prices has brought about a reduction in insurance values, than to the restraint which we impose upon our activities in this branch of our business.
Personal Accident Insurance continues to suffer under the influence of inade­ quate premiums and, in certain centres, under the unhealthy widening of the terms of the cover granted. Fictitious claims, expressive of the moral hazard which attends depressed economic conditions, are of continual occurrence, and we must therefore once more lay emphasis upon the regrettable delay which many direct companies, moved no doubt by the spirit of competition, impose upon the revision of the antiquated tariffs, which are in use in certain countries, while they at the same time continue to grant heavy insurance cover with excessive ease.
are to be regarded as permanent features. Thanks to a reduction in the number of motor cars in use, as Avell as to the institution of reforms in the manner of settling claims and to an increase in the level of tariffs, a satisfactory result was achieved. Whether this fa­ vourable position will survive the relurn to normal conditions, and the accompanying ex­ pansion of motor car traffic, would appear to us to he open to considerable doubt. A contribution to the good quality of our final figures was given by the elimination of one or two of the larger contracts.
Burglary and Theft also showed a reduction in the volume of business as com­ pared with the previous year. The results, however, were once more favourable.
We are now in the midst of a fresh currency crisis, caused by the depreciation of the Dollar, and it is not possible at present to estimate the effects which this will have upon economic conditions. In drawing up our accounts we have taken into consideration that depreciation may occur as a result of these circumstances.
The Profit & Loss Account closes with a profit of . . . Frs. 9,702,073.99 which at the General Meeting of the shareholders it was decided to distribute as follows: Special Reserve Fund » 1,000,000.— Staff Life Insurance and Pension Fund Dividend Frs. 128.72 per share . . . Directors Carried forward
PROFIT AND LOSS ACCOUNT for the year ending 31st December, 1932.
Premium Reserve from 1931 Reserve for unsettled Claims from 1931 . Reserve for extraordinary Losses . Premiums, less cancellations Frs. 201,993,347.18 Premiums for which no reserve is necessary » 29,024,513.83
Life DepL. Premium Reserve from 1931 .... Annuity Fund from 1931 . . . . . Reserve for unsettled Claims from 1931 Premiums, less cancellations .... Consideration for Annuities .... Interest Inieresi, after deduction of interest due to Life Dept- . . . .
Life Dept. Premium Reserve . Frs. 132,370,158.— Annuity Fund , . . . . 5,012,980. — Reserve for unsettled Claims . , 1,569,581. - 138,952,719