to the General Meeting of the Shareholders on the 20th May 1960
Board of Directors E. Hürlimann, Honorary Chairman Paul Keller, Chairman C. J. Abegg, Deputy Chairman Ernst Froelich Karl Brunner Paul Ruegger R. S. Hegner Hans Schindler Max H. Schneebeli
Assistant Managers K. Aerni G. Bassin E. Bosshardt G. E. Geiser G. A. Gubler G. Huguenin W. Leimbacher P. F. Niquille V. Philippi Ch. Robert-Tissot H. Salzmann E. Spargnapani
We have the honour to present to you the 96th Annual Report and Statement of Accounts of the Company for the year 1959.
The experience in Marine insurance reflects the severe competitive situation in the shipping industry. Despite the perfection of navigational aids the number of total losses and collisions has not decreased. Our premium income has again risen, but so too has our share of me­ dium-sized claims. Fortunately we have ourselves been spared any major total losses and the loss ratio has con­ sequently improved slightly.
In the Accident branch a considerably smaller profit in Personal Accident insurance is offset by a noteworthy im­ provement in compulsory Workmen's Compensation in­ surance. The surplus in Health insurance was somewhat less than in the previous year despite a further growth in premium volume.
Third Party Liability insurance continues to be the sore point for the insurance industry all over the world. For the first time in years we have succeeded in avoiding any marked increase in our premium income in what has been over-all for us a consistently unprofitable branch. Both General Liability and Motor Third Party business again caused us considerable losses. Unfortunately, Aviation Liability and Aviation Hull insurances, contrary to last year, have also to be included among those branches in which losses arose, owing in the main to serious aircraft accidents in the U. S. A. Any extensive reduction in our contractual commitments in these sections, in which conditions have been most difficult for many years, is frustrated largely because the reinsurance of Motor risks is linked with desirable business in other branches of insurance.
Sw. Fcs. 5,700 million at the end of the year. No small part in this considerable expansion has been played by the U. S. A., where we conduct Life reassurance through our domestic subsidiary company, which, however, only retrocedes its surpluses to us and has a retained portfolio equivalent to Sw. Fes. 3,600 million. The profit from our Life department, notwithstanding the expenses of our new business which we write off immediately, is once more very satisfactory.
Interest Income and Investments Hand in hand with the increase in our volume of business our interest-bearing assets (securities, real estate and de­ posits) further rose from Sw. Fes. 1,469 million to Sw. Fes. 1,596 million and brought a substantially higher interest yield.
Common Shares of Public Utility, Industrial, Railway and other Companies 95,772,000 87,469,000
As was to be expected, Management Expenses also rose slightly in the year under review, though to a lesser extent than in 1958. On the other hand, the expense ratio, i. e. the management expense in relation to the premium income, continues to drop and is now lower than it has ever been. The incidence of taxes at Sw. Fes. 5.2 million is practically unchanged. Under depreciation we include actual amounts written off and fluctuations in foreign currencies and Stock Exchange quotations. As a result of the increase in interest rates in many countries and the consequent drop in quo­ tations, considerable amounts were written off on fixedinterest securities; the book loss on foreign currencies is however principally due to the conservative closing rates employed, while the remaining depreciations chiefly con­ cern permanent holdings.
Fortunately the increase in the depreciation account has been more than offset by the improved technical result and the higher interest income, so that the over-all gain from technical and financial operations is slightly higher than last year.
Mr. Max Huber, who had been a member of our Board of Directors from 1935 until 1959, died on the 1st January 1960. We paid tribute to the services he rendered to our Company in the last Annual Report, but here once more we should like to honour the memory of this outstanding Gentleman.
Mr. Paul Keller, Mr. C. J. Abegg and Mr. Paul Ruegger retire by rotation from the Board. All three gentlemen, being immediately eligible under the Articles of Associa­ tion, offer themselves for re-election.
With effect from the 1st January 1960 the Board of Di­ rectors promoted Messrs. A. Ott and H. Zwingli from De­ puty Manager to Manager and Messrs. E. Bart, V. Cachin, W. Eschmann, R. Farmer, W. Küster, H. Ryffel, M. D. de Salts, A. Schütz from Assistant Manager to Deputy Manager, and Messrs. K. Aerni, G. Bassin, E. Bosshardt, C. E. Geiser, G. A. Gubler, G. Eluguenin, W. Leimbacher, P. F. Niquille to Assistant Managers.
A little before the first World War we had entered the U. S. A. by establishing a Branch Office. Over the years we have founded in New York a Life Reassurance Com­ pany, a Casualty and General Reinsurance Company and an Advisory Office. Since 1952 these four organisations have been housed in the four upper stories and other offices of the Chrysler Building East; some photographs are shown on the opposite page.
3. UNO building by night from the offices of the SwissRe Corporation.
Capital Funds After approval of the Annual Statement for the business year 1959 the capital and free reserves of the Company amount to Sw. Fes. 163,495,012.
Ali Classes exci. Life Sw. Fes. Sw. Fes. Sw. Fes. Sw. Fes.
Zurich, 26th April 1960. By order of the Board; P. Keller, Chairman
The securities, or the corresponding deposit certificates, were examined on the 13th and 14th January and on the 7th April 1960 and found to be in order. A check carried out on the 7th April 1960 showed that the cash in hand corresponded with the books.
The Board of Directors proposes the following distribution of the profit: Sw. Fes.
Cash Deposits with Ceding Companies Sundry Debtors Securities Real Estate and Fully-owned Real Estate Companies Accrued Interest
Canadian Reassurance Company 425 University Avenue, Toronto 2, Ontario in course of est.
Swiss-South African Reinsurance Company Ltd. 408 Swiss House, 86 Main Street, Johannesburg 1950 All classes
Principal Office for Australia 51 Queen Street, Melbourne C. 1 with Branch Office in Sydney 1955 All classes