Shanghai, May 1 the annual meeting of the shareholders of the Tal Shan Insurance Ca, Ltd. held yesterday at the com-any's office in 406 Kiangse Road, Mr. Singloh Hsu, chairman of the board of directors, reported as: foliows—
Tt Is needless to emphasize the. disastrous effects of the present. hostilities on business during the latter halt of 1997. The nature and peculiarities of the insurance -busi-nos necessitated your management to) curtail operations even in unaffected areas. Nevertheless, a gross premium of $812,114.70 was written and a net profit of $24,017.18 was earned.
War Risk Losses Regarding the Fire account, the final results would have been satisfactory, It it were not for war risk losses, However, your Company is launs pald and outstanding. The deficit balance of $10,770.54 Is no cause for anxiety, as the operations of the Fire department are fund: mentally sound and conservative and can be depended on to yield good Fesulls under normal business conditions in future years.
The final results of the Marine department are fairly satisfactory considering conditions as they were. Inspire of rather heavy losses pald, a Profit "of $2,373.58 was earned, and {ransterred to the Profit and loss account, ment operates personal accident, motor cat, plate glass, and miscellany eons casualty lines jointly with a number of friendly companies. In Previous years. this department showed consistently good profits with personal accident insurance contributing a major share. Last year, the personal accident showed a small loss due to heavy claims on inward re-Insurance. Nevertheless, the department as a whole returned a profit of $2,188.34, The operations of the Lite department were greatly curtailed since August, 1037." Most of the branch offices and agencies had to be suspended. Nevertheless, insurance in force Increased to $4,605,757.91 as of Dec. 31, 1937, and the Life Insurance Fund increased to $180,841.07. Claims paid were 5148 per cent. of the ex-Bected morality provided for in rates Referring to the balance sheet, your company maintained a strong! cash position throughout 1937 in view of the then existing conditions. The entire portfolio of investments which amount to $665,517.51 swell diversifled and composed of high grade securities. Listed shares were taken at their market values as of Dec. 31.
1987. Unlisted shares are carried ai cost and bonds and debentures not in default at amortized—values. The absence of reliable market prices due to war conditions has given your directors some dif culty, but the valuations decided upon are believed to be conservative and conform to the best accounting and actuarial tactices. "Additionally we are suggesting to you today that the reserve} [for uctuation of investments be further "increased from the year's earnings.
Strengthen Reserves In view of present business conditions your directors do not feel justi-fled in recommending any dividend to shareholders but suggest that the surplus be apportioned to strengthen, the various reserves of the company. It'ls therefore recommended that out fof the total surplus of $61,806.95, $3401.72 be transferred to statutory, reserve, $90,000 to reserve for Muctuation™ of investments and exchange, making the said reserve $82,977.07, and $10,000 be transferred the Life Insurance fund to increase it to $190,841.67. An amount of $3,200 is to be alloted for, the compensation of directors and supervisors, The balance of $14,705.23 is to be carried forward.
Text read from the printed page and cleaned; old type leaves the occasional error.