Balance Sheet: The objectives of your directors and general managers uring 1998 were safely of capital and liquidity of assets. These "are the outstanding features of the state~ ment before you today. The large Accumulation of cash funds, in "hard" currencies, the sale of local securities ft Tess than cost and the disposal. of surplus Tand '(the proceeds of which were converted into U.S. dollars and pounds sterling at favourable rates of exchange), the creation of new reserves and ihe heavy argumentation of underwriting funds, indicate the steps taken towards the fulfilment of this programme, You will further note that we have reduced mortgage Igans to a comparatively small figure, reserved in full for Interest not yet collected, "reduced. sundry debtors: after writing off all debts considered questionable, depreciated our deve-oped properties and valued loca securities at figures below. market quotations today, comparison of the percentage aiversifieation our investments, shows as follow: tot Marine Account: Hull business ran very prodiably during the year, but we lost money on cargo. soverace.
2032 An analysis of our losses shows that the "adverse result was not due to the acceptance of undesirable risks, ost mas rather to an aceumutation misfortunes occurring 0 vessels of Miesteelass 1 ion. We are of opinion that present marine rates make it diqeutt" for marine underwriters to achieve a profit under Normal loss experience. With vers Hittle prospect of Increased rates. in the near future, your limiting the extent of its Gross premiums amounted to £27. 264.6, Td of which we reinsured CMAT, 19. 2d, retaining 9.792. 7. fe for aux own account. Net losses red amounted £5,042. 18. 2d. debit balance £1,144 8, 6a was red 10 the Profit and Loss Ac~
\eeident Account: Taking separ= ely the individual tines. that make is account. we find that:—Bfowor boreased during the Malaya and decreased, the 1 result contributing approximately alt of the. year's. total "Accident" prof. Fidelily and Miscellaneous Casualty "Hines ave comparatively sivall, but the result this year {rom ich' shows Iavourable response. t0 th time spent in development.
he total premiums collected mounted to £49,768. the company retained £23,000, 2. 10d. Net losses amounted to £12,040, 17 rod, The profit of £1,816. 19. 7d was xd to the Profit & Loss Account, Life Account: We continue to expand and to consolidate our life busi~ hess, "Although the prolongation of he Sino-Japanese hostilities has made it advisable to discontinue solicitation, 'oF new business int Held, other the shrinkage disturbed area Total insurance force on December 31, 1938, mounted to £915,594. 9. Od as com= n the Accounts that ceded has been repureh:
duri the year ata favourable price to the Company. Life™ Assurance fund increased to "£09,024. 6. td." Mortality was Sixty Five Percent 63 per cent) of the expected provided for in the Company's rates.
During the year under review. Seventy Three Percent (73 per cent) of your life assurance business came from sources outside of China and Fey slightly more than Sixty Percent ber cent) of the total Life business in force covers assureds abroad, on on Sharer 2098 1559 1105 3.58
Text read from the printed page and cleaned; old type leaves the occasional error.