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to the General Meeting of the Shareholders on the 31st May 1963 60 Mythenquai, Zurich
W. Küster W. Leimbacher Ch. Robert-Tissot H. Ryffel M. D. de Salis A. Schütz
E. A. Kubli P.-F. Niquille R. Ochsenbein H. Odermatt V. Philippi H. Rudolf H. Salzmann P. Schuppli E. Spargnapani
We have the honour to present to you the 99th Annual Report and Statement of Accounts of the Company for the year 1962.
Fire 387,389,000 340,786,000 Hail 9,176,000 10,455,000 Burglary 20,457,000 18,840,000 Machinery, Water Damage, Plate Glass and Livestock 13,233,000 12,265,000 Marine 93,972,000 89,161,000 Accident 83,270,000 77,998,000 Health 73,596,000 63,765,000 Third Party Liability 360,128,000 325,759,000 Fidelity, Surety and Gredit 47,928,000 41,079,000 Life 190,927,000 186,496,000
Including the premium income of our seven wholly-owned subsidiary companies, the premium retained by the Group for own account amounts to Sw. frs. 1,400 million.
In Accident insurance the premium growth was rather less than in the previous year. Unfortunately the results deteri­ orated to such an extent that only a small profit remains. General Accident insurance has been adversely affected by heavy losses in South America. Workmen's Compen­ sation has been disappointing, especially in Belgium; but also in overseas regions, such as Argentina, for example, the business experience has been negative. The Aviation Accident business, with its greatly fluctuating fortunes, has resulted in a deficit in the year under report, this having been largely brought about by air crashes in the U. S. A. — In Health insurance the premium income has shown a gratifying increase and the profit margin has improved somewhat as compared with the previous year.
In Third Party Liability insurance the premium income has risen more steeply than in the preceding year, this rise being chiefly in General Third Party Liability insurance. The latter gave a modest profit whilst the special classes of Aviation Third Party Liability and Aircraft Hull insur­ ance closed with a satisfactory gain. In Motor Third Party Liability insurance, which has for some years been in an unhealthy state, the situation has again deteriorated con­ siderably in the year under report. For two years in suc­ cession Swiss business has brought us the largest deficit of all countries. The experience in our country clearly dem­ onstrates the great urgency of a more realistic rating policy in this branch. The very heavy deficit which we have to record in Turkish Motor business illustrates how rapidly a situation can develop to the detriment of the insurer. The substantial business passed to us by our American organization again shows a profit.
gross business in force has risen by Sw. frs. 1,000 million to Sw. frs. 8,500 million; the business for own account has increased from Sw. frs. 6,600 million to Sw. frs. 7,500 mil­ lion. The European markets figure predominantly in this expansion of business. The favourable result derives partly from a lower mortality experience as compared with the actuarial basis assumed. In addition certain circumstances have involved us in less expenditure. As in previous years the initial expenses have been completely amortized.
Common Shares of Public Utility, Industrial, Railway and other Companies 117,704,000 119,643,000
Of the assets of our Company Sw. frs. 171,254,000 are held by Trustees appointed by us in overseas territories.
Mr. Karl Brunner, Mr. R. S. Hegner and Mr. Max H. Schneebeli retire by rotation from the Board. All three gentle­ men, being immediately eligible under the Articles of Association, offer themselves for re-election.
In the last 25 years the number of our personnel has, by virtue of continuous rationalization, increased by only 20%, to approximately 500 persons, as against a fourfold in­ crease in the volume of business. Although the burden of routine labour has been alleviated by the use of machines, there remains a greatly enlarged volume of work calling for intellectual ability and this has led to modifications in our personnel structure, as evidenced by our increased executive strength. This has also increased the space re­ quirement. Since all reserves of space in the present busi­ ness premises have been exhausted the Management is planning a further building to relieve the shortage.
In order to extend our business connections in Australia and New Zealand we opened a branch office in Melbourne at the end of 1955. Its activities not only covered the nonLife branches previously operated from Zurich, but were also extended to Australian Life business. The develop­ ment and future prospects of the Australian economy on the one hand and Croup policy on the other, indicated the advisability of founding an independent affiliate on the fifth continent too, and therefore the Australian Reinsur­ ance Company Ltd. was registered in June 1962. The new company, which also has branches in Sydney and Hong­ kong, commenced activities at the beginning of 1963, tak­ ing over the reinsurance treaties which had been concluded through the Branch. In view of supervisory legislation and for internal reasons the Branch remains in existence for the time being.
Illustrations: 1. The offices of the Australian Reinsurance Company Ltd. and the Australian Branch, on the 9th and 10th floors of 51 Queen Street, Melbourne.
3. Aerial view of Melbourne. The circle marks the business premises leased by our organizations.
If this proposal is accepted the dividend will be Sw. frs. 60.— per share; after deduction of the Federal Coupon Tax of 3 % and the Federal Withholding Tax of 27 %, Sw. frs. 42.— will be paid on presentation of Dividend Coupon No. 7.
Capital Funds After approval of the Annual Statement for the business year 1962 the capital and free reserves of the Company amount to Sw. frs. 183,988,016.
The actuarial auditor, Mr. W. Saxer, has moreover con­ firmed in his report that the technical reserves of the Life department at the end of 1962 were correctly calculated on the basis approved by the Swiss Federal Council.
Outstanding Claims for Own Account All classes excl. Life (incl. Valuation of Current Annuity Indemnities)
Zurich, 6th May 1963 By order of the Board: P. Keller, Chairman
The securities, or the corresponding deposit certificates, were examined on the 15th and 16th January and on the 2nd April 1963 and found to be in order. A check carried out on the 2nd April 1963 showed that the cash in hand corresponded with the books.
The Board of Directors proposes the following distribution of the profit: Special Reserve Fund Staff Life Assurance and Pension Fund Dividend Sw. frs. 60.— per Share Donations to Charity Directors' Remuneration Carry Forward
Cash Deposits for Reinsurances Ceded 183,620,911 Sundry Creditors 27,616,899 Unearned Premiums for Own Account
All classes excl. Life 453,009,269 Life Business (Policy and Annuity Valuations) 859,501,566
Outstanding Claims for Own Account All classes excl. Life (incl. Valuation of Current Annuity Indemnities) 722,925,077 Life Business 6,154,642
Fund for Extraordinary Losses 30,000,000 Dividend 18,000,000 Directors' Remuneration 416,000 Capital 75,000,000 Reserve Fund 30,000,000 Special Reserve Fund 70,000,000 Carry Forward 8,988,016
Uorth American Reinsurance Corporation 161 East 42nd Street, New York 17 with an Office in Atlanta
North American Reassurance Company 161 East 42nd Street, New York 17 with Offices in Atlanta, Chicago, Dallas and San Francisco
Australian Reinsurance Company Ltd. 51 Queen Street, Melbourne C. 1 with Offices in Sydney and Hongkong