Our retention of marine business written during the year was less than in 1938, although gross premiums. were larger. Hull business was more favourable than cargo risks which continued to give us losses. The profit of £946. 3. 3d was carried to the profit and loss account. the general managers with a view to purchasing their agreement. Our auditors approved a scheme whereby the agreement was valued on a basis of five years purchase and, with the ce-operation and goodwill of the general managers, this was agreed upon in June Jast and provision made in the accounts accordingly.
Despite the changed conditions since the agreement was purchased, your board considers the purchase a satisfactory one, particularly as the business controlled by the organizing group has been retained. On behalf of the company, your board wishes to take this opportunity to express its appreciation of the help given by the group in building up the company's organization to a point where it can now stand firmly on its own feet.
On the liabilities side of the balance sheet, you will note that we have eliminated our, "Reserve for Fluctuation of Investments and Exchange" and retained the "General Reserve" accounts which, if recommendations put before you today are approved, will stand at the figure of £20,000. In view of the drastic writing down and the improvement in the value of the company's assets since the end of the year, we consider that the reserves for eventualities are more than adequate.
Text read from the printed page and cleaned; old type leaves the occasional error.