The sixth ordinary general meeting of shareholders in the Far Eastern Insurance Ca., Ld., was held on Tuesday afternoon at the Yangtsze Insurance Building, Mr.
T Byrne presiding. The other directors present were Messrs. V. Meyer, H. M. Tibbey and P. H. Nye, with Mr. C..M. G. Burnie, General Manager.
34,895 shares were represented.
The Chairman said in part:—The report and accounts to De comber 31, 1921, have been in your hands for some days and, with your permission, we will take them as read. The working account for 1920 and former years shows a balance at credit of Tls. 238,099.62. There are considerable liabilities outstanding on 1920 account, and consequently your Directors recommend that this balance be carried forward.
The working account for 1921 shows an increase in net premium income from Tls. 676,147.02 in 1920 to Tls. 1,033,586.40. The revenue from interest, etc. amounts to Tls. 102,533.11 as compared with Tls. 74,931.34. Claims paid amount to Tis, 582,162.45 against Tis, 252,- 166.96 The ratio of losses to premium income is very much higher than in any previous year of the company's existence. There is else a large increase in commissions and charges, due principally to the growth of our fire business in which higher commissions are paid than in marine business.
The expansion in our figures is due to a pooling agreement with the Yangtsze Insurance Association, Ld., which came into force from January 1, 1921. This agree ment was proposed by the Association in the anticipation that they would acquire during 1921 a arge majority of the shares of The Far Eastern Insurance Company, Ld., in exchange for a similar num ber of shares of the Association plus a cash payment of Tls. 5 per share. This anticipation was realized and the Association is now the registered holder of more than 90 per cent. of the shares of this company. The effect of this pooling agreement is that each com pany participates in all the risks underwritten by either company and the necessity for cumbersome reinsurance arrangements is dispensed - with.
The balance at credit of 1921 account is Tls. 446,175.79.
Your Directors recommend that a dividend at 6 per cent. be paid absorbing Tls. 43,200 and that th remaining Tls. 402,975.79 be carried forward.
Investments have been valued at their market value as at December 3], 1921, and the rates of exchange current at that date have been taken for the conversion of other currencies into sterling.
Turning to the balance sheet you will notice that our total assets have increased by about 113,000 to Tls. 1,466,582.16. Sundry
Text read from the printed page and cleaned; old type leaves the occasional error.