In their first report since the inception of the China Insurance Ca. Ltd., incorporated under the laws the National Government of he directors. state:—'The period under review is from the inception of the company on November 1, 1931, to the close of the financial year' and future' accounts will be rendered annually on the results of twelve months working as is customary.
As events were later to prove it is difficult to, conceive that the com pany could have been launched at} more inauspicious moment. for ile the uncertainties of the situation in the Three Eastern Provinces, were already present when the company commenced operations they were rapidly followed by the Sinospanese hostilities in Shanghai in january, 1932, which resulted in the credit and paralysis of trade. These effects were most, severely felt during the succeeding three months but "throughout the period under review in this report conditions in China have been far} from normal.
One fact which seems to have emerged from this troubled. period is a growing national spirit. The danger in which We stand has at Inst been realised by those of all shades of political opinion, and, at the cost of much personal sacrifice, they are uniting in their efforts save our country from disaster. We can only hope that we shall soon see the beginning of a brighter era in our country's history.
Although by no." means insurmountable, there have been many difficulties in introducing an entirely new company into an alread; crowded market. The natural restrictions on trading development} as a result of abnormal conditions have caused keener competition, among the companies already operating, and, with a limitation on new business available, it has only deen by our untiring efforts that we have been able to secure. a measure of business and a footing in the [period and should consequently be Fufficient. to meet any normal con-
Separate accounts have not been published in respect "of "marine, accident and miscellaneous business as euch form avery. small. pro-Portion of the company's income. This may be done later if considered expedient.
Due to the existing state of the imarine insurance market the direc tors have deemed it advisable to fexereise particular care. in. the acceptance of this "business. A large proportion of coastal marine business is offered on this market
fand natural restrictions on the mo competition among' the compan unremunerative res due fo been
ments of cargoes at the present time. The directors have also eon-sidered it' inadvisable to. enter the! focal hull market. The reserve on marine business has been fixed at 30 per cent. of net premiums, Should be adequate in view of the fact that the account "is" limited almost entirely to cargo on short, Jocal runs, During the year the company's activities have been extended to include motor insurance. The income from this branch of the business has been limited and the directors have favoured a cautious Policy. Although with careful development such an account should later prove a valuable asset the directors cannot feel other than concerned regarding the stability of premiums which are already based, on a much lower scale than is effec tive elsewhere and that without adequate rates being maintained the margin of profit will rapidly vanish.
Mention may be made of the fact: that. the directors have under consideration the inauguration of a life department in the future, Life insurance in China is in its infancy and has made no popular appeal up to the present. However, with the inculcation of Western ideas and the realisation of investment security the "future possibi of thi market cannot be ignored.
'The profit resulting from the operations of the company during the period under review amounts to '$165,580.62. After making" the necessary legal reserve of $16,558.06 there is an available balance of $148,985.66. This profit is lower than' would otherwise have been shown due to the unusually heavy decline in the value of Chinese Government Bonds which has mecessitat. fed writing. off the sum of $00,288.45 under the heading of depreciation in Nhe Proft and Loss Account. This figure has been arrived valuing the securities on the basis lof the market price on December 51, 1932, Tess, a margin of at Toast sixty cents. "In view of the future fecetantic in the value of these
Text read from the printed page and cleaned; old type leaves the occasional error.