The marine account continues to grow in volume and extent, thereby Sccoming ess localized and "more subject to world trade conditions and world competition. The profit for the. year shows & marked" Increase, [being $28277.99 as compared with $8,888.17 in 1035. This. shows effect from general trade revival, the marine department being the frst of [cur operations to react to cargo move= ments and increased world commerce.
Gross marine premiums in 1996 Jamounted to $629.71934 as against ftes0000 in 1085." A. conservative retention policy was, followed, how-fever. and most of the increase. was Feinsured, "leaving net premiums 312007833, a slight increase over the Tevious year. The company's Insurers and aflated offices also ex-nonced favourable loss ratios for the year. assisting our royal and capable agency organization there to build a valuable portfolio, Investments, 'A. comparison of the percentage diversification of our investments shows the following:
{Gash on, hand and in banks Teams alt 2 Srainary shares "s 34 250
Income from dividends, interest and rents amounted to $102,083.50 and profit {rom sale of investments total ed $1,601.71, Dedueting investment expenses of $9,882.61, the net income Temains at $164,392.60, as compared. with $200,203.40 "in 1985, 'The decrease in' the income from Interest dividends, ete., is principally due to lack of dividends from companies based primarily on land. "Any improvement' in the Shanghai real estate situation will. therefore, mi {erially benefit our income from in vestments, while at the same. time Improving the market value of our holdings.
While on this subject, the expansion of the company's. business abroad has required further investments. foreign securities. During. the year, we purchased gilt-edged "British Recurities in excess of £20,000 sterling. As the resc: ves on oUF over: seas business necessitate, ye antlelp= 'Ste further investments of this kind, Turning to the balance sheet, market Values of listed. securities Wave again depreciated and whil hominal' stock exchange quotations not necessarily reflect values, it is apparent that reserve should be maintained to offset the depreciation. In this respect, a source of satisfaction to shareholders and confidence. to polley-holders the fact that the general reserve has more than kept pace with the course ff. the "depression, 'The new Item of "land and bulld-Ings at cost" isthe result of our aking over properties from mort-Eagors. "A recent valuation of these properties enables your directors. to feel confident that' their acquisition is an improvement of our assets, Reserve for interest due but not yet collected" increased slightly, although the prospects for collection have been improved since the end of th year. "Cash in hand and. banks Shows a continuance of our policy of maintaining a strong" cash position, Unlisted securities" previously valuced at cost, have been valued by our auditors on a balance sheet basis. "First mortgage loans" was reduced by $247,455.08 principally due to our taking over the properties above. mentioned. "Sundry debtors and obit balances" was reduced by §07,- 492.2, The improvement in our accident account is the most striking. feature for this. year's report, a loss. in 1935 for $80,800.95 having been turned into. 8 profit of $2302927 in 1886, JEccomplishing this result the volume has been. somewhat reduced with the Jobject of maintaining a consolidated portfolio that should be @ source of
Text read from the printed page and cleaned; old type leaves the occasional error.