Board of Directors: E. Hürlimann, Chairman Hans Sulzer, Deputy-Chairman Max Huber C. J. Abegg Emil Bebler f Fritz Baumgartner Paul Ruegger R. S. Hegner Rud. V. Heberiein
Managers; G. de Bardel, W. Habicht, K. Hasler, M. Klaas, F. Niquille,
Assistant Managers: W. Baumann, W. Belser, Ch. Burnens, A.-L. Chenaud, M. Eisenring,
Zurich, 60 Mytbenquai Address: P. 0. Box 172, Zurich 22 / Switzerland
Although the international political situation was in many ways still quite confused, economic activity in the past year continued to be marked by a spirit of optimism. This produced a renewed growth in premium income due to an increase in insurable values, and easy conditions on the money market encouraged the production of Life insurance. Currency devaluations had little effect on the volume of business of insurance companies.
Our gross premium income rose from Sw. frcs. 695,884,475 to Sw. frcs. 744,245,068. The combined technical returns were again satisfactory. Taxation charges were con­ siderably increased whereas administrative costs remained stable and the Account for Dif­ ferences in Exchange and Investments closed this year with a profit. The results for the year were in the aggregate gratifying.
The individual underwriting accounts developed as follows: The Fire branch can once more look back upon a good year, although the large losses in the United States caused by Hurricanes of unusual intensity considerably reduced the profit margin. Almost every market showed an underwriting gain; in particular, we suffered from no other major losses. Burglary and Theft insurances ran favourably
and the experience in Machinery, Water Damage and Plate Glass was satisfactory. A decline in larger losses appeared in our Marine account and the result was therefore very good. The Accident section was disappointing chiefly because premiums have not yet been adjusted in a sufficient measure to increased benefits. On the other hand, the experience in Health insurance was again satisfactory. In General Third Party, particularly in Motor Liability as well as in Motor Damage insurance, we had once more a notable increase in premiums. Whilst there was still a deficit, the loss was again smaller than in the previous years. The experience in Motor business, which is predomin­ ant in this section, continued to be unfavourable in many countries. However, Switzer­ land once more produced a surplus and in the United States also our burden of claims was again lighter. The Fidelity, Surety and Credit branches renewed their satisfactory results. Owing to the cool and rainy summer. Hail insurance closed with a profit for the year.
The increase in investment income, net of interest applicable to the Life Fund, corresponds to the rise in assets, whilst the average yield is little changed. The valuations of securities, in so far as they are listed on the stock exchange, were mostly made at rates considerably below current quotations. Unlisted investments were, as usual, carried at a conservative figure. In fixing the exchange rate for foreign currencies, transfer regu­ lations were again given due consideration.
Premiums for Retrocession, less cancellations Commission, less Retrocession Claims paid Frs. 323,432,185.18 less Retrocession , 75,629,510.24 Premium Reserve, less Retrocession Reserve for Unsettled Claims, less Retrocession Reserve for Extraordinary Losses . . . .
Life Department Premium Reserve Frs. 455,408,136.60 Annuity Fund n 7,098,097.93 Reserve for Unsettled Claims 3,499,743.82 466,005,978 35
Contribution to Staff Life Insurance and Pension Fund 2,000,000 — Dividend 13,500,000 — Social Welfare contributions 300,000 — Directors 305,000 — Carried forward 2,200,388 73