Failures and suspensions which demoralized the market for securities and properly of all kinds. during 1093, accentuated by the collapse of the collapse of the Raven Interests in 'May, were directly responsible for 0 veer of diMeulty, said Mr, 'Smith, chairman,' at the annual eneral_ meeting of the International Assurance Ca, Lid., which was held
am, Mr, Smith was supported by Friday 17 The Bund at 11.20 Messrs, R, Calder-Marshal, Ru FG. Master, Harold Porter, E, Slgatt, C. Start, directors, and 'W. A. H, Duff, secrolary, while 196,803' shares were represented, Reporting on the past year, the chairman sald:—
At frst glance the results, both from underwriting and investments, undoubtedly disappointing to you they are, though perhaps In leaser measure, to your directors who are more familiar with circumstances affecting your company and ily ae~ counts Ju' 1935, Analysis of the ae-counts, Bearing in mind abnormal events' of the year, indicate that not withstanding unusual dimeulties, development and. improvement. marked Important branches "of the company's work, Counteracting this, unfortunately, income from invest ments was seriously reduced; it has been necessary to adjust and write off Investments, and one branch of the company's business has shown heavy The year 1935 opened with Shang-hal and most of China suffering newts ancial distress due to the extreme searcely of local currency, This eon dition" continued throughout the Spring, and, together with the col aps Of the' local real estate market, caused the failure of numerous. In: stitutions "throughout China and in Hongkong. For Shanghai the climax was reached on May 24 when the American-Oriental Banking Corpora: tion, American-Oriental Finance Com. pany, and Raven Trust Company. all failed, and the Asia Really Company asked' for a trustes, These failures and suspensions demoralized the market for securities and property of all kinds, and little if any recovery had been made when the books of our Company wore closed on Decem= ber 31. Besides this indirect effect on the company's investment portfolio, was necessary for us to write off {$100,000 Invested in Ameriran-Oriental Bank shaves, forego interest on Asia Really debentures and defer part of the interest on mortgages due from the Asia Really Company. In addi on, and perhaps oven mure costly, was the effect on the company's tun: dorwriting results due to temporary loss of prestige affecting the con, dence of the Insuring public in the Agents from whom we got the largest share of our income, Lo, the American Asiatic Underwriters, Business Regaining certain, however, that this rial, through which the American Asiatic Underwriters passed and the support and friendship shown. them by your company and your directors has' established a sentiment of ape redation and loyalty which will And expression in future efforts by this valuable agency to favour our com= pany with the choice of its business, now happily regaining its former volume, 'Turning to the accounts ¥ will, with your permission, frst refer to the cellent revenue' account because this Includes our only underwriting loss. This account includes motor car, personal accident and. heal mise Jancous casualty and Mdelity—insurance, Tt shows an aggregate net Joss of $50,800.95 from all classes, of which $17,742.00 Is chargeable current operations, $1,184.55 to profit commis tons pald io agente for previous years and $38,100.26 to delayed returns on the run-off of a European {realy terminated in 1932, Motor car Inguranco, which makes up the hullo of our necident account, (conte v!lag In 1035 no Tess than '$369,284,05 to premium income), caused us 'a net curvant loss of $33,742.88 chargeable chiefly to two offices, Hanoi and Singapore. The loss from Hanoi alone was '$91,602.31, The underwriting loss, from Singapore was §12,206.00, partly offset by commissions on insurance ceded, This is the third consegulive unfavourable year for Hanoi, but is improved over 1034 and We are assured by the ceding company that the toss rollo is steadily Improving due to better selection and more control of claims, Territories in which profits were realized from motor enr business were Shanghai, Saigon, Manila, New York, and China outports, 'The' business coming to us from New York chiefly covers tourist and other risks outside America, as our company 1s not registered to write business. in the United States, "The important and growing accident and health account gave us a net earned profit, of $17,857.72, Miscellaneous casually Insurance, "which Includes burglary, plate glass, boilers, public Uabllity," ete, "because of its small volume is likely to show erratic
of $281259, Fidelity insurance have
forward profits from prior years and selting up reserves for all outslanding contracts.
Thus It appears that the loss from the accident account is chargeable to tone treaty, now entirely run off, and other risks outside America, "as motor re-Insurance from one territory, now being brought under strider control by the ceding company,
Text read from the printed page and cleaned; old type leaves the occasional error.