M. Klaas, F. Nlqullle, Ch. Ochsenbein, Pi. Pessina, C. Weidenmann, H. Wüst
Assistant Managers: W. Baumann, W. Belser, Ch. Burnens, G. de Bardel, M. Elsenring, M. Grossmann,
Zurich, 60 Mythenqual Address: P. 0. Box 172, Zurich 22 / Switzerland
We have the honour to present to you the S?''*Annual Report and Statement of Account of the Company for the year 1950.
The overall underwriting result is good, as in the previous year. In Fire insurance the returns were very satisfactory in almost all territories. An exceptionally violent windstorm gave rise to a large number of claims in the U. S. A. and considerably reduced our profit in that country. Hail insurance closed with a very material loss following numerous and heavy hailstorms in Switzerland, Germany and France. In Burglary and Theft insurance the poor experience recorded in the war and post-war period seems to have been overcome in recent years and the Miscellaneous branches Water Damage, Plate Glass and Machinery were also, in the aggregate, profitable. Marine insurance, despite crumbling premium-rates, again shows a gratifying surplus. The profit in Accident insurance is satisfactory, although somewhat lower than in the preceding year. Health
insurance reveals a marked expansion following the resumption of our reinsurance operations with Germany. Notwithstanding all the efforts made to bring about an improvement in the field of Third Party Liability insurance, the loss ratio continued to rise in most territories; it is a feature inherent in periods of inflation that adjustments in tariff rates cannot keep pace with rising prices. Aviation insurance, which still has an insufficient spread and balance, was unfavourably affected by two major losses. In Surety, Fidelity and Credit insurance the experience remained normal.
The increase in Investment income, net of interest on the Life Fund, was pro­ duced on the one hand by a slight rise in the average yield and on the other by the larger volume of our interest-bearing funds, following the expansion in the underwriting accounts and the increase in paid-up capital effected in 1949.
The valuation of our invested funds was, as customary, made at or below the market prices ruling at the close of the year; unlisted securities were entered in the Balance Sheet on the basis of prudent ratings. In converting foreign currencies, present trends as regards the transfer of funds and the risk of exchange fluctuations have been taken into consideration.
The Profit and Loss Account closed with a profit of . . Frs. 16,909,602.75 which, at the General Meeting of the Shareholders, it was decided to distribute as follows: Staff Life Insurance and Pension Fund Frs. 1,800,000. — Dividend Frs. 175. — per share . » 10,150,000. — Social Welfare Contributions » 250,000.— Directors' Remuneration » 207,100. — Garry Forward » 4,502,502.75
PROFIT AND LOSS ACCOUNT for the year ending 31^* Oecember, 1950.
Premium Reserve from 1949 Reserve for Unsettled Claims from 1949 Reserve for Extraordinary Losses Premiums, less cancellations
Life Department. Premium Reserve from 1949 Annuity Fund from 1949 Reserve for Unsettled Claims from 1949 Premiums, less cancellations Consideration for Annuities Interest
Interest, after deduction of interest due to Life Department . .
Premiums for Retrocession, less cancellations Commission, less Retrocession Claims paid Frs. 255,286,316.75 less Retrocession , 44,089,669.16 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
Life Department Premium Reserve Frs. 359,985,471. — Annuity Fund 6,298,207. — Reserve for Unsettled Claims 3,410,828. — 369,694,506 —