The annual general meeting of the International "Assurance Company was on Friday at 430 pin. in the company's offices, 4th Floor, 17 The Bund. Mr. F. R. Smith presided and supported by Mr. C. V. Start, Mr. R. Buchan, Mr. R. Calder-Marshall, Mr. R. F.C. Master, Mr, E. Sigaut and Mr. A. J. Welch, directors, J. Middleton-Smith, " acting secretary, and shareholders representing in all 81,941 shares, Although the year 1983 was marked by depression affecting general trade the Orient and elsewhere, and the Insurance business was no exception, li branches of our company's opera-ions showed favourable results, with continued conservative growth, he continued. The year 1983 was not a suitable one in which to seek a large increase in premium income and most insurance companies have reported decreases during the period. Forced growth during such a time might Lead to increased loss ratios, 'The following comparative figures for the fire, marine. and" accident accounts in' 1982 and 1933. indicate the progress in those departments:
[rotat_ Premiums 1999 1093 written $1010,60030 $2,160 303.01 et" Premiains:. "58,708.05 " 805,108.80 Net Losses in. curred for the COURT sesvoy 410,605.25 429,219.25, Fire insurance premiums for the year 1933 were $1,009,022.60, of which '$743,559.23 was reinsured, "leaving, het " premiums of $855,368.87.. Net losses incurred were" $120,456.08, commissions paid $68,571.31, and depart mental expenses $51,301.75.
Marine premiums were $208, of which $164,197.01 was insured, Jeaving net premiums of $143,080.28, Net losses incurred we 088.73, commissions paid $17,67218, and Aepartmental expenses $21,600.18, Accident premiums were $753,267. 12, of which $887,440.97 was reinsured, leaving net premiums of $995,- 837.15. Net losses incurred were $213,101.44, commissions paid $110, $23,223.24, 43362, "and departmental" expenses
The average ratio of losses an~ curred to premiums earned in the
cent, Shree departments was S001" per Both commissions and departmental expenses were held to low. figures being 22.99 per cent, and 10.73 per ent, respectively, of the premium written, Unapportioned and organi zation expenses have been moderate for this stage of the company's development. Such low expenses are possible because General Management is paid for chiefly by commission on the net profit, Underwriting reserves have been The following is a comparison of the underwriting profits from th various accounts for 19 The profit from the Fis Account in 1932 amounted to $67.86, The prest for 1933 was $67,114.23, The Marine profit for 1932 was $19,195.34. The profit in 1933 was $27,234.60.
The Accident account in 1982 yielded 'a profit of only §2,171.00. The net profit from the accident account in 1939 was $25,692.73.
Thus, from the three branches which can be balanced off yearly, (as distinguished from the life operations, which are more deferred), the profits for 1933 "total $120,041.56 as against $21,374.17 in 1032. This sult has been obtained after setting up full reserves for unexpired bility: and all other contingencies, The Life Insurance department has made good progress. At this early stage of the work such progress is not reflected in yearly profits as is the case in the other departments, but rather by the accumulation of insurance in force which will be a source of profitable renewal pre-miurus in future years, free of the acquisition cost' which' marks the rst policy year. In other words, future profits of this department will come from the foundation now being laid, New life insurance issued in 1083 totalled—$5,896,870.00, as compared with Tls. 2,400.708.00, or $3,397,760, in 1982, and the life insurance in force, after deducting cancellations, lapses and claims, increased from $8,515,076.00 to $8,027,730.
The life insurance reserves. been increased from $27,498.83. to $68,086.08 and your Directors recommend that these reserves be further strengthened by an appropriation of $50,000 from the profit of this ye and net cost of insurance competitive with any company in the field.
The income for the year from interest and dividends was $242,592.98, or 58 per cent. on the company's. capital. The figures for the previous year was $262,010.24. The drop in interest earnings on good securities
Text read from the printed page and cleaned; old type leaves the occasional error.