The annual general meeting of shareholders of the Tai Shan Insurance Ca, Ltd, was held at 2 Peking Road on Tuesday (May 15), with Mr. issu Singioh in the chair. The following is the chairman's speech, which includes the directors' recommendations, which were approved by the meeting in tht form of resolutions:
Our company commenced to do bus!- ness on September 21, 1992, Therefore, most of the 1033 business represented first year optations. Bearing in mind this fact, your directors feel that the accounts compare favourably with that of any young company during a similar period of its development.
1983 the unsettled Sino-Japanese conflict in the North, the Communist trouble in Central China, and the insurrection in Fukien cotised a great deal of political unrest in China. - The world depression was also increasingly felt in this country. 'The political Gisturbances and economic depression affected all business adversely, and the insurance business was no exception. It is most encouraging, therefore, to find that despite such' /handicaps our company was able to write a, gross premium income of '$538924.46, with favourable loss Tatios, and to corn a net profit of $73,946.53 after providing "reserves, for' all contingencies.
During the year under review a great deal of effort has been spent organizing work. We are working. steadily to build up a competent home office staff, skilled in selecting risks, and a strong agency force from, which we can obtain a constant premium income, with risks distributer reasonably wide territory. While we now have branches or agencies in' North, Central and South China, "including Hongkong, we plan to' continue our organizing work in 1984, as much remains to be done.
The fire insurance business in gen-cecil is still marked by excessive competition and continuous decline fu net rates. Our company has made no effort to meet all competition but thas felt compelled to exercise much caution in its acceptances. Our tire premiums which totalled $253,695.53, Gross, or $143,393.03 after deducting} Feinsurance, gave us a ratio of 625) per cent. losses incurred to pre-miurus earned. 'This permits a small profit due principally to the low rate of commission paid. on premium written, 1610 per cent. Unless a remedy' for present" demoralized conditions is found. with the combined efforts of all fire insurance] companies operating here, we must continue to underwrite at' extremely Tow rates and with the greatest caus tion." We lay no special emphasis on the volume. of our fire insurance business and your Directors. will be content to write only. a moderate mount of business until conditions improve. marine insurance we have confined ourselves principally to ocean go business. China coastwise marine business. presents formidable Underwriting diMeulties as, in spite of the limited market, the prevailing fates are so low that little margin left for the catastrophes that marine Underwriters must always anticipate 'The local hull market also offers Iittie inducement to careful underwrite Jers at present rates. Our' Marine Premiums totalled $59,052.14, and the {oss ratio to premiums earned was $206 per cent.
Our accident business is being car ried on joint account with two other focal companies. This pooling of in~ forests has given us a fair income [and an. opportunity experience without undue 'Because personal accident ance is still" in the experlental stage in China, A premium Income of $81,629.63 is quite encouraging, but the public. must be educated to appreciate more widely this valuable form of protection. Motor' car" insurance premiums amounted to $81,440.15, with loss Tatlo of 54.08 per cent, but, there {is evidence that uncontrolled competition in this field is starting and Unless curbed will destroy the good work. of the Motor Car Insurance Association.
Our Life account, shows excellent results, Insurance in force at the fend of 1933. totalled $1,998,613 as against $514,000 at the end of 1032. Usually a gain of insurance in force fora. new. company means a det in te te fund, but our {ind while working the above gain ses have been carefully con
the fund has increased from $2,000.36 atthe beginning of the year to $23, 431.82 at the end of December.
For all our fire, marine and cident business we have set aside adequate reserves for unexpired risks as of December 31, Total reserves fon that date amounted to $114,250 The Lite Insurance Fund, $23,431.82, ample for this state of the Company's development, and only about five thousand dollars short of the most conservative American legal reserve calculation" for older com= panies with interest earnings assumed only 3% per cent. Your directors recommend that this reserve be increased by an appropriation from profits which will permit our agents Yo meet the competition of all companies operating in this feld, both as fo cash" values and estimated not cost of insurance.
'As for the Profit and Loss Account, you will find that the year 1933 closed with' a profit of $73,04658, We have set aside 20 per cent. depreciation on furniture and fixtures, written off fal stationery and. taken no credit for" appreciation of investments which amounted. to $14,850.63 and was transferred directly to the Reserve for Fluctuation of Investments.
We hope for a larger profit. 1634, which will be our real second year, The reserves carried over from the previous year will be much larger and the bulk of the reserves will not have to be set aside en-lirely from the current year's in-
In the balance sheet you will note that we have a large item of cash in hand and on current account with banks. Good investments are scarce and your Investment Committee has had no easy task to keep your funds employed. The average yield for the year has Been fair, however, and the company's position most liquid, We all desire to see this company built up as one of China's strongest institutions. "Your interest does not tie in getting dividend returns alone but equally in creating a. sound strong company which in time will bring you honour through its increasing service to the public and. the nation. To this end your Directors Fecommend that the following a propriations be made: $20,000 to the Life Insurance Fund, $40,000 to. the General Reserve Fund, and $13,94653 to be carried forward to the follow-ting year's account.
On behalf of the Directors allow mention that the staff and agents of the company have exerted their utmost efforts to bulla up the company in a sound manner and they deserve our appreciative thanks. With their help, Taishan promises to show continued growth through 1934,
Text read from the printed page and cleaned; old type leaves the occasional error.