We have pleasure in placing before you the sixty-seventh Annual Report and Accounts covering the year 1930.
Hail Insurance, which in 1929 proved disappointing, left us last year with a modest profit, due chiefly to the introduction, at any rate in certain territories, of more rational tariffs and sounder methods generally. Serious efforts must, however, still be made in many fields by the direct writing companies before this class of business may be con­ sidered as being on a sound footing.
Our Marine account, which is not large, has still further decreased as a natural consequence of the economic situation and the conservative policy which we continue to pursue. The results have shown a great improvement on those of the previous years.
Personal Accident business has been less satisfactory especially in Europe where a number of large fatal claims Avere registered. The results drawn from business in the United States of North America were also unfavourable. As we have remarked on previous occasions the rates at present charged are insufficient in view of the automobiie hazard.
We have to register a considerable increase in Sickness Insurance last year. The results of the European business were quite satisfactoiy. Owing to the special manner in which premium payments are made there is no necessity for the setting aside of premium reserves.
The Burglary and Theft Department has, generally speaking, shown particularly pleasing results.
Water Damage, Machinery and Live Stock Insurance left us a profit, the volume however is small.
Our Fidelity Guarantee and Surety business in Europe is not considerable, on the other hand we have an important portfolio in the United States. Results in Europe were satisfactory, but America proved disappointing, these unfavourable results being a consequence of the economic depression.
Credit Insurance again brought a loss. That this class of business should run badly in times of economic disturbances, such as those through which we are at present passing, is not surprising. Unfortunately there is little to indicate that reasonable profits are to be expected even in normal times and in consequence we continue to pursue a policy of pai'ticular restraint in this Branch.
Despite the considerable volume of cancellations and surrenders we are able to show a material increase of business in the Life Department. The rate of mortality has been favourable, but the cost of the business continues to mount in consequence of the increasing expense ratio in the direct business. Following our usual practice first year commissions have been entirely written off.
The Profit & Loss Account closes with a profit of . . . Frs. 8,817,459.64 which at the General Meeting of the shareholders it was decided to distribute as follows: Special Reserve Fund Frs. 500,000.— Staff Life Insurance and Pension Fund . . . . . . » 800,000.— Dividend Frs. 123.72 per share . ... ... . » 6,186,000.— Directors, Management and staff ......... » 1,005,880.— Carried forward . . . . . . . » 825,579.64
PROFIT AND LOSS ACCOUNT for the year ending 31st December, 1930.
Premiums for Retrocession, less cancellations ....... Commission, less Retrocession Claims paid Frs. 175,737,501.48 less Retrocession 83,048,853.82 Premium Reserve, less Retrocession Reserve for unsettled Claims, less Retrocession. . . . . . Reserve for extraordinary Losses
Stafi Life Insurance and Pension Fund ...... 300,000 — Dividend 6,186,000 — Directors, Management and Staff 1,005,880 — Carried forward 825,579 64
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