i'MMVifilrii'ifc^ II J. I.- — ^ ' 1. -~L 1 s: k • • iM*^ I
In Marine insurance we can report a further premium rise, this time in excess of the natural growth rate. We were far less affected by major losses than in the previous year. Nevertheless the result for some European countries can hardly still be termed satisfactory. By virtue of the grati­ fying experience in overseas territories the overall return was rather higher than last year.
Accident insurance registers a very variable trend according to both class of business and territory concerned. As against a notable premium increase on the Continent there was a decline in overseas regions, principally on account of the transfer of our Australian treaties to our new local sub­ sidiary company; consequently the overall premium in­ come has only risen slightly. General Accident insurance produced a satisfying result, to which Aviation Accident business made a not insignificant contribution. However, the very high incidence of claims in Workmen's Compen­ sation insurance in nearly all areas of operations, partic­ ularly in the U.S.A., almost entirely consumed this profit. Health insurance is satisfactory in respect of both premium growth and business experience.
The rate for management expenses in the year of report remained at the same favourable level as in the previous years. The cost pattern was like­ wise maintained, in that two-thirds of the total expenditure was allotted to salaries and social benefits. For the rest, greater travelling activity and further development of the overseas advisory offices account in the main for the increase in expenses. The tax account shows a decline in ex­ penditure, being debited with Sw. frs. 9.9 million, or Sw. frs. 4.7 million less than last year. This saving is a consequence of the deterioration in business yield, in view of which we attracted a lower tax commitment in Switzerland and, in particular, in the U.S.A. Furthermore, the sum required for depreciation decreased by Sw. frs. 0.8 million to Sw. frs. 8.4 million. Our policy of conservative assessment prompted us to revise security values and, with reference to the state of the market, to provide for depreciation on the holdings of bonds. By reason of the relative stability of currencies in our main territories of operations, fluctuations in foreign currencies are of minor significance. The net profit for the year amounts to Sw. frs. 24.0 million, which repre­ sents a decrease of Sw. frs. 2.6 million on that of the previous year. With the balance brought forward of Sw. frs. 9.0 million and a withdrawal from the internal "Centenary Reserve" also of Sw. frs. 9.0 million, the amount at the disposal of the General Meeting totals Sw. frs. 42.0 million.
The last General Meeting re-elected Mr. Karl Brunner, Mr. R. S. Hegner and Mr. Max H. Schneebeli to the Board of Directors. Mr. Paul Keller, Mr. C. ]. Ahegg and Mr. Paul Ruegger retire by rotation from the Board. Mr. P. Keller and Mr. P. Ruegger offer themselves for re-election, for which they are im­ mediately eligible under the Articles of Association, but we record with regret Mr. C. J. Ahegg's wish to withdraw from the Board. Mr. Ahegg has been a member of the Board of Directors of our Company since 1938; in 1950 he was elected to the Committee of Directors and since 1959 he has held the office of Deputy Chairman. We are most grateful to him for his many years of valuable service, which have been particularly fruitful by virtue of his in­ timate knowledge of the problems besetting the inter­ national businessman. In the last Annual Report it was revealed that the increasing shortage of office space had prompted the Management to plan an extension building. In the intervening year pre­ liminary work has continued; the commencement of con­ struction work will be determined by measures recently decreed by the Federal Council. With reference to the town planning aspects, the site of the Mythenquai tennis courts, on which it is proposed to build, is open to the lake and flanked on both sides by prominent building masses, a large residential block dating from the 1930's on one side and our present business premises on the other. Taking into consideration the special aspect from the lake, the architect of our new project felt obliged to avoid producing a building which would dominate its neighbours. His in­ tention has been rather to reduce the apparent volume of the new building by setting it well behind the line of the lake facades of the adjacent blocks and by allowing the internal organization to lead to a varied outline in plan and silhouette. At the same time a single-storey, trans­ parent wing which projects forward to and along the build­ ing line is intended to emphasize the space in front of the main block. The boldly stepped body of the building con­ sists of eight storeys, a low-level parking floor and three basement levels. Of the total ground area of 5,600 sq.m. the building will cover a surface area of 2,560 sq. m. About 6,000 sq. m. net usable space is available for subdivision of offices by movable partitions as desired. The planning module of 1 m. and special construction of the window areas will make it possible where needed to set movable partitions from metre to metre inside the building without detracting from the external appearance. This facility per­ mits room divisions which are adaptable to the constantly changing working requirements and ensures the maximum of flexibility for economical utilization of the area available for offices. The various technical installations and also the air-raid quarters and records rooms are located in the base­ ment levels. In addition there is parking space for 200 cars. The core of the building, which is standard for all the storeys above ground, houses the lifts, stairways and usual services. The top floor, with roof terrace and several conference and reception rooms, completes the structure. The architectural design of our new building is in the hands of the qualified Zurich architects Mr. W. Stiicheli and his assistant Mr. Theo Huggenberger.
In accordance with Article 30 of the Artic­ les of Association, the Board of Directors proposes that the General Meeting should allocate the net profit as follows; 5 % Statutory Dividend Staff Life Assurance and Pension Fund Directors' Remuneration
In addition the Board of Directors proposes that the remainder plus the balance brought forward from 1962 should be allocated as follows: Additional Dividend Donations to Charity
Following withdrawal from the internal "Centenary Reserve" constituted in earlier years of there remains at the disposal of the General Meeting of Shareholders which is proposed for allocation as follows: Shareholders' Centenary Bonus
If this proposal is accepted the 1963 dividend will be Sw. frs. 60.— per share and the Centenary bonus likewise Sw. frs. 60.— per share; after deduction of the Federal Coupon Tax of 3% and the Federal Withholding Tax of 21%, Sw. frs. 84.— will be paid on presentation of Dividend Coupon No. 8.
After approval of the Annual Statement for the business year 1963 the capital and free reserves of the Company amount to Sw. frs. 176,312,000.
Investment Income (less Interest on Life Assurance and Annuity Funds and other technical reserves) 52,268,161 49,582,455
Outstanding Claims for Own Account All classes excl. Life (inch Valuation of Current Armuity Indemnities)
Balance Profit Carried Forward from Previous Year Withdrawal from the Internal "Centenary Reserve" Net Profit 1963
The securities, or the corresponding deposit certificates, were examined on the 16th and 17th January and on the 8th April 1964 and found to be in order. A check carried out on the 8th April 1964 showed that the cash in hand corresponded with the books.
Dividend Sw. frs. 60.— per Share 18,000,000 Centenary Bonus Sw. frs. 60.— per Share 18,000,000 Staff Life Assurance and Pension Fund 4,000,000 Donations to Charity 300,000 Directors' Remuneration 365,000 Carry Forward 1,312,225
Cash Deposits with Ceding Companies Sundry Debtors Securities and Loans Real Estate and Fully-owned Real Estate Companies Accrued Interest
Outstanding Claims for Own Account All classes excl. Life (inch Valuation of Current Annuity Indemnities) Life Business
Fund for Extraordinary Losses Dividend Centenary Bonus Directors' Remuneration Capital Reserve Fund Special Reserve Fund Carry Forward
North American Reassurance Company 161 East 42nd Street, New York, N.Y. 10017 with Offices in Atlanta, Chicago, Dallas and San Francisco
Canadian Reinsurance Company 250 University Avenue, Toronto 1, Ontario with an Office in Montreal
Swiss-South African Reinsurance Company Ltd. 408 Swiss House, 86 Main Street, Johannesburg with an Office in Cape Town 1950 All classes
Australian Branch 51 Queen Street, Melbourne C. 1 with an Office in Sydney
Fire Hail Burglary . Machinery, Water Damage, Plate Glass and Livestock Marine Accident Health Third Party Liability Surety, Fidelity and Credit Life
Investments For the following comparisons too, those items which could produce a duplication of figures have been eliminated. Holdings within the Group do not appear as such, since the consolidation of statistics involves presentation of the subsidiary companies' assets instead of their hook value. Consequently the holdings included here are merely those which are not counted as investments within the Group.