Board of Directors: Ch. Simon, Gbairmati. C. Abegg-Stockar, Depuly-Ghairman. E. HUrlimann, Managing Director. Hans Sulzer E. Welti Felix Calender Louis Dapples
No organization, operating in a world wide sphere, escaped from the effects of the economic crisis, the development of which took a disastrous trend, more especially in the last six months of the year.
The figures of our departmental accounts were naturally affected, with consequent readjustment of the reserves, as a result of the severe depreciation suffered by several of the chief foreign currencies. At the end of 1931, nearly every foreign currency stood below parity in relation to the Swiss Franc, thus causing a shrinkage both in our Assets and in the corresponding Liabilities. The contraction which took place in the premium income of the General Account is based, to an extent of more than 80 "/o, upon currency depreciation, and the comparatively small advance in Life premiums is due to the same cause.
Prevailing conditions and our policy of curtailment are jointly responsible for the fall in the premium income of the Marine Department, which now amounts to less than 5 ®/o of the aggregate premium income of the General Account. The result shows a notable improvement, which is gratifying, and which we can only hope will be maintained.
We are glad to report an improvement in the results of Third Party Liability Insurance. However, in France we have not yet succeeded in obtaining tolerable results and we are consequently curtailing our commitments in that country. Switzerland showed a loss, but elsewhere in the European section we earned profits, and in the United States our business continued to give particular satisfaction.
Burglary and Theft Insurance once more showed a very good profit, to which all territories in which we operate contributed.
Our Fidelity Guarantee and Surety business is small and unimportant; a favourable result was not to be expected under existing trading conditions.
Credit Insurance now brings us only a very small income. In the Life department the advance in premium income was small. New assurances were fewer than for 1930, and claims by death or maturities, and surrenders, were higher. The total figure of life assurances in force contracted sensibly under the influence of currency depreciation in countries in which we have a large business. The mortality experience was less favourable, owing to the increase in the number of suicides. This is a consequence of relaxing insurance conditions excessively under the pressure of com­ petition. The evils resulting from this method have already led to stricter policy condi­ tions and to a more rigid selection of risks on the part of direct writing offices in various countries.
The advance in the item „Real Estate" was occasioned by the expenses attaching to the enlargement of the premises of our Head Office and to the purchase of a neigh­ bouring property.
Assets, Shareholders' Liability Real Estate including account for new building .... Frs. 6,730,762.20 Mortgages , 26,267,008.60 Government and other Securities 114,529,298. 75 Life and other funds deposited with ceding Companies . „ 230,871,870. 01 Bank Balances . „ 10,028,389.84 Cash in hand „ 84,821.08