This business is always written in conjunction with fire and has previously been included in the fire account; but, due to its comparative importance in 1937, we have shown it separately in the accounts before you. During the last four months of 1936, prior to any action of the fire officers committee, London, to exclude war risk land cover entirely, we accepted war risk in various parts of China at the low rates then ruling.
The business was accepted on an annual basis and consisted mostly of renewal of business that had been on our books for some years. Had the hostilities commenced a few months later, this business would have run off late in 1937 and the losses sustained by ourselves and our reinsurers would have been greatly reduced, The small amount of business accepted in 1937 was inward reinsurance, which was retroceded. The Write off furniture and fix Carry forward ' (subject io payment of general managers' commission)
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