The working account for re insurance shows a net prof of $22 472.13, but both premium and profit were less than planned, Following sueccesful negotiations In Europe and America with other companies Te-Presented In the Far East by the American Aslale Underwriters, a rangements were made early In the year with the AAU, to. me Srease our company's "share their fre pools from 18% per cent. to 48 per cent, for China and from per cent. to 43 per cent, for the Philippine Istands, all effective from March 1, The department organization was extended 10 take care of larger volume of business and control the underwriting thereof in conformity with our limits, Actual we however, despite our increased per centage of their total business, promlums received from the AAU. during the year increased very litle over 1994, due to their temporary loss of public confidence following the failure of the Raven Institutions. Our {otal net fire premiums increased rom. $238,602.66 In 1934 to $310,225.09 1085, mostly from treaties in the Philippines, but this was insufficient to offset increased expenses.
Marine premiums were $415,118.94, of which $289,09555 was reinsured, Teaving net premiums $127,82631. Nei losses incurred were $105, i48.57, cur~ rent commissions paid $12,190.00, departmental expenses $10,316.90, profit commissions for prior years $1,508.84, inet underwriting profit The volume of Marine adversely affected by general stagnation of business as well repercussions from local Most Important Activity The life account indicates continu-fed sound progress. Life assurance {in force is steadily growing and on December 31, 1038, totalled $12486,- 013,97 as compared with $10,883,100.67 the year before. The life assurance fund increased. from $226,805.20 to $8128782) and Is" approximately equivalent to actuarial valuation on full "preliminary term basis. The mortality for the year was favour able, being 2865 per cent. of the expected provided for in' the company's rales and reserves. With the volume of assurance in force mounting steadily, the time is approaching when a profit may be expected from the life department, This branch of the company's work, together with the personal accident and casually accounts, should be looked upon as the most Important and most promising of the Company's activities.
Investments at values on December 31 are diversified approximately as follows Cash on hand and in banks ea... 1315 Bonds, debentures and preferred shares First Loans against securities". 435 Ordinary shefea sseesersesscccccce 2400)
Income from dividends and inter-fest amounted to $204,081.01, and profit from sale of investments $10, STAR. After deducting investment expenses of $648.8, the net income Investments and deposits written off against general reserve were {$100,000.00 invested in American Oriental Bank shares, and $2,161.32 deposited therein, being the com-any's total holdings in this bank fand all its affiliates, with the ex-eption of first mortgage debentures of the Asia Really Company and well jceured first mortgage loans to the same company on which no uslimate loss is expected.
Debenture and mortgage int2cest accrued but uncollected on December was $34,928.09, of which $24,647.56 has since been collected. "The re-of $20,000 set up in the acuriis is thus in excess of the actual requirement.
'A. strong cash position was comfortably maintained throughout the year notwithstanding the" financial crisis, Judged either by assets or liquidity in proportion to its volume of business, your Company's policies meet the highest standard of protec-ton.
'A special effort has been made this year to bring all accounts up to date and allocate expenses as carefully a5 possible. The net profit for the year carried to the balance sheet is $00411.73 which, together with $52,605.24 carried forward from 1034, gives a credit balance of $143,107.07, Your directors recommend that, after deduction of the general managers commission of $8,219.25, the balance
Text read from the printed page and cleaned; old type leaves the occasional error.