Premiums for 1937 were 9 per cent, more than for 1936. Loss ratios for insurance companies represented were satisfactory as regards fire and accident insurance, Marine companies showed operating losses due principally to the effects of the Hongkong typhoon and the bombing of the British steamer Tatung at Wuhu. War risk losses have been reported totaling approximately $3,000,000, of which our companies' share was approximately $400,000, the balance being reinsured, principally with Lloyd's, Considerable difficulty has been encountered in collecting premiums from up-country agents as well as a number of substantial accounts in Shanghai and Tientsin, This difficulty is entirely due to the effect of the war on agents and insureds, their funds having been tied up by various Chinese banking regulations and, in some cases, their properties destroyed. In general the attitude of the debtors has shown good faith, and some progress has already been made toward clearing up the accounts. Reasonable prudence requires, however, that the reserve against overdue accounts be substantially increased and that some accounts now obviously uncollectible should be written off, No important changes occurred in representation during the year, but exchange restrictions in Manchoukuo became so severe that no funds could be withdrawn from there, This, together with deposit laws requiring investments in Manchoukuo securities, caused most of our companies early in 1938 to advise us that they would withdraw from the territory, Present indications are that all except Japanese companies will soon be excluded from the business of insurance in Manchukuo (there being no exchange restrictions for the Japanese).
Text read from the printed page and cleaned; old type leaves the occasional error.