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The Waterloo Mutual‘s 91st Year _ _ Another One of Gain and Progress Friday, February 19 To the Members of The Waterloo Fire Insurance Company: DIRECTORS‘ REPORT 1953 Your Directors submit the presenting the results of the C year 1953, together with the December 31st, 1953. To these ment of the Company‘s Assets have attached their certificate. Book Value of Real Estateâ€"Offic Agreements for Sale.......0l0.~ Mortgage Loans on Real Estate ... Amortized Book Value of Bonds e > | .‘-‘i A. 5 x | ies s ‘5‘, im * fl * . $ + vB .-* & ~. ke _ q e $ t D@DENEUT@S | ........oscssceee mm en Book Value oOf StOCKS......cc e Cash on Hand and in BANnkS...c.ccscssseees Interest Due and ACCTU@Q....c.ccccce es Agents‘ Balances and Premiums Uncollected.. Balance Due from Reâ€"insurance Companiesâ€" PrEMIUMS | ...s.ccscccccs cce Income Tax Paid in Advance Provision for Unpaid Claims......ls0l}> Reserve for Unearned Premiums at 80‘ .. Reserve and Unpaid Losses Under Unlicensed Reâ€"insurance .....scleeee> Taxes Due and Accrued â€"â€" Dominion and PYOVIMCIAL ......c0o2 cce cmcccrrenererecces e Reâ€"insurance PreMmiUuMmS ... ..lseee~~ Agents‘ Credit Balances â€" Premiums Investment ReSQPV@ ... e e Reserve for PeNSIONS ... Surplus Waterloo, Ont., January 18th, 1954 The Assets of the Company now totalling $3.506,636.68,; show an increase of $273,387.74 over the previous year. The Surplus account now amounts to $2,098,534.36. The Investments of the Company amount to $2,986,177.70, gonsisting of â€" Canadian Government _ Bonds 49.27‘;; Municipals 2.78‘;; Public Utilities 18.04‘@; Industrials and Miscellaneous 19.98‘; ; Stocks 7.81‘; and Mortgages 2.12‘%, none of which are in default. vear of $1,712.00 This Annual MNecting is called for the purpose of reâ€" ceiving the Annual Report of the Directors of the Company; for electing three Directors for a term of three years; for the appointment of two Auditors for a term of one year, and for the transaction of any other matter which may be properly brought before the Meeting. The retiring Directors are and C. A. Bochm, all of whom Waterloo, Ontario February 13, 1954 The Company made charitable donations during the KITCHENER P. V. WILSON Reâ€"elected Director D. A. Bean Insurance Agencies Bender Realty Company Bollert & Caton Limited Bernhardt Insurance Service H. P. Burrows Erb & Erb Corl Kranz Limited Hessenaur & Shantz Limited Kearns Insurance & Realty Limited Sid McLennan Insurance with the To these y‘s Assets certificate. Respectfully submitted, LIABILITIES ctors are P. V. Wilson, A. G. Haehnel of whom are eligible for reâ€"election. ASSETS J. F. SCULLY, C.A., R. P. UFFELMANN, C.A., Auditors Office Ninetyâ€"first ompany‘s op Financial S accounts al and Liabilit Mutual and Premises cial Statement as of nts and to the stateâ€" iabilities the Auditors E. J. BAUER. President C. A. BOEHM Reâ€"elected Director st Annual operations $ 192,128.00 â€" 825,370.51 $3,506,636.68 $1,408,102.32 . 2,098,534.36 2,689,813.75 232,953.41 183,684.06 25,744.16 222,127.60 $3,506,636.68 73,077. 43 13,218.04 50,192.50 28,434.83 7137.25 605.30 200,000.00 150,915.14 3,825.73 12,000.00 Report for the as of 7,911.29 e 30 _ .} Poat mk | P k n S s ait * * P es . * e S 3 C w i+ l P s es & & e < se | MB nulin ienss wl ta+ i% A ' h y m iss & § i8 | y k e / l » es m ~yl # is l iex ‘:‘: A ; hmb t § a aee * ‘ ' % * > % A‘ & P hi - es § 2 " l W * t . #a, hss C % L . i k o % + "L e 3 e en » $ P ce » Satisfactory Results From All Departmentsâ€"Refers to Important Function of the Agency System _ As our President has mentionâ€" ed, I shall repeatâ€""1953 was a year of Continued Progress." The ‘Company‘s Premium Income and â€" expansion operations continued and surpassed the previous year‘s record. Gross Premium Income handled _ by _ all _departments ; amounted to $2,058,170. After deâ€" ducting _ rebates, _ cancellations, w_'and after effecting all Reâ€"insurâ€" "+ance, the net premiums retained ° by the Company amounted to $1,300,195, an increase of 41.95 per cent. Mr. Chairman and Gentlemen I have the honor and pleasure of presenting in General the 91st Annual Statement of the Comâ€" pany. After providing and transferâ€" ring the sum of $170,365 to the Reserve of Unearned Premiums for unexpired policies, there reâ€" mained _ Earned â€" Premiums_ of $1,129,830, an increase of $357,694 for the year. Governinent taxes on Premiâ€" uims. Property Taxes, and License Fees, _ Underwriting _ Expenses, \Agents‘ _ Commissions, | Salaries, Head Office Maintenance, Auditâ€" ing Fees and other General Exâ€" penses amounted to $590,649.27. Total _ Expenditures, _ including |Claims. amounted to $1,182,710. The excess of Income over Claims land Expenses amounted to $117,â€" Total net Losses, including adâ€" justing expenses, for all classes of Insurance, incurred during the year, amounted to $592,060. This produced an overall ratio of Losses to Net Premiums of 45.5 per cent. 485 The substantial increase of new Premium Income during the year created a Reserve Liability of $170,365. Lesterâ€"Macnaughton Limited Clayton Peterson John A. Schmalz Agencies Limited Edgar Seymour, M.A. E. J. Shantz Otto Smith & Co. Limited H. L. Staebler Company Limited John F. Fitzgerald J. Wesley Callander Bitrerâ€"Dubrick Limited Lauer & Wiebe Limited M. E. Bacher come of claims totalled amount MER. F. S. KUMPF Reâ€"elected Viceâ€"President gross 720, 9.14 Reâ€"in No Such Thing as a "Bargain‘" Price for Insurance; Public Woants Quality Insurance and Service; G. N. Hunter, Managing Director, Reviews 1953 Business pet Fire Dey written p an incre: ber cent $1 expenses, To _ this the Statuâ€" LOCAL AND DISTRICT REPRESENTATIVES THE WATERLOO (Ontaerl) CHRONICLE The Fire Losses amounted to $287,051, the ratio of Losses to Net Premiums being 38.7 per cent. This result is quite favourable, particularly when the trend genâ€" erally is a reduction in Fire Rates. This means a lowering: of the average Fire premium, Whilst the inflationary cost of claims reâ€" mains the same or even slightly higher; the frequency of losses from year to year being unpreâ€" dictable. The Automobile Department produced Gross Written Premiâ€" ums of $607,694, or Net $501,955, an increase of 145.8 per cent over the previous year. Losses amountâ€" ed to $261,935, thereby developing a Loss Ratio of 52.18 per cent. The Casualty and Other Lines developed Gross _ Premiums of $71.155, Net $57,826, or 140.2 per cent increase over the previous year, with a satisfactory Loss Ratio of 31.9 per cent. The _ new _ Automobile and‘ Casualty Departments which are‘ less than two years in operation, produced a total of $679,450 in | new premiums, with satisfactory loss expericnces. The results have been generally favourable and indicate a healthy development. The total Investments of the Company increased during the year by $179,000 (plus increase in Bank Deposit of $30,000) bringing the Book Value of our portfolio up to $2,986,177. I am pleased to report that the Market Value of our portfolio improved also. Your Directors thought it prudent to leave the Investment Reserve unâ€" Ichanged. m The average interest yield rate improved from 3.27 per cent in 1952 to 4.05 per cent in 1953. New funds were invested during the vear at much more attractive inâ€" terest returns. â€" However, the majority of our Securities were obtained during times when lowâ€" er rates prevailed. The influence of the past year‘s higher level of interest rates has reflected the slightly greater return on our Investments . its A of n thro:w larl plan In 1953 the Company increased its Agency Force by the addition of many new productive agents throughout the Province, particuâ€" larly in the larger centres. Our plan is to develop all classes of insurance which we now provide. The Casualty hazards exist in the citics and larger populated cenâ€" tres where protection against loss is more necessary to the indiviâ€" dual and the corporation. Our work in this respect is producing results. I am pleased to report that your Board of Directors recently auâ€" thorized the opening of a Branch Office in the city of Toronto. This office is now fully equipped and staffed under the supervision of our Toronto and District Repreâ€" sentative, Mr. R G. Webber. g'he MR. E. J. BAUER Reâ€"clected President WATERLOO: ELMIRA : GALT C. A. Boehm Insurance Agencies Ltd. A. K. Cressman & Son C. W. Tweed & Co. Shannon Brubacher W. K. Ament Elmira Insurance Agencies Aitken & Son Clayton G. Hogg results so far are quilo_‘gr‘atifygng We have also installed a field representative in Western Onâ€" tario, in order to develop and stimulate our business in that part of the Province. Mr. B. N. Steggles, who has been covering the Province generally, is our resident representative in Chatâ€" ham, the centre of his operations. Mr. Dennis Taylor and Mr. E. E. Rotharmel will continue to service other parts of the Provâ€" ince in which we operate, pendâ€" ing further developments. The Head Office Staff has been increased â€" considerably, proporâ€" tionate to the volume and growth of the Company‘s business. Our Eastern Ontario districts are now in the care of Mr. Mel. Mclntyre, who recently succeeded Mr. S. J. Fisher on the latter‘s superannuation. Mr. Fisher‘s serâ€" vice and energy on behalf of the Company in that District will long be remembered. Mr. Mcâ€" Intyre has an important mission to carry out as itâ€"is a large, imâ€" poitant area. . Kaisor We have also inaugurated a new Head Office claims departâ€" ment, fully staffed and equipped for supervising and servicing of all claims. This became necessary as a result of the substantial growth of the Company‘s busiâ€" ness. This Department is under the supervision of Mr. R. K. Kadâ€" well, an experienced and capable addition to our Staff. The Accounting and Treasury Department of our Company,. after a period of considerable strain due to our new Accounting and Statistical System, has deâ€" veloped a satisfactory level of efficiency and the result is quite gratifying. Generally speaking, the Comâ€" pany now is fully departmentalâ€" ized. We have a fully qualified senior staff, with many younger members training for their fuâ€" ture insurance career The continuous volume of satisâ€" factory business being placed on our books should react favourâ€" ably in succeeding years, as the Expense Ratio of our operations will become adjusted to a lower level. As I mentioned last year â€"during the initial period, when our premium income is building up in substantial increases, we must be prepared to face an our premium income is building up in substantial increases, we must be prepared to face an underwriting deficit or_ limited profit, even when the general experience is satisfactory. This is due to the strain of adjusting the new premium reserve required by the severe standard set up by the Department of Insurance. The reâ€" sults of the year appear satisfacâ€" tory inasmuch as an operating Profit has been achieved, despite the fact that the aforementioned reserve liability of $170,365 has been effected. The trend this year and for succeeding years should MR. G. N. HUNTER Managing Director A Year of Satisfactory Developmentâ€"Assets {Of Company Increaseâ€"Fire and Casualty Insurance Important in Economy of Country _ P. V. Wilson, C. A. Boehm, A. G. Haghnel Reâ€"elected Directors t The Waterloo Mutual, since its inception 91 years ago, has funcâ€" tioned on the Agency System. Its| present reputation and position, developed over these years, is | largely the result of the energetic and devoted work of our Agents. Presently, however, a cloud looms f on the horizon. It is the threat of | competition from direct writing Companies, which are now in the Automobile field and which, in addition, plan to enter the Fire Insurance business on the same basis. The competitive threat is grounded on a price differential, chiefly resulting from the elimiâ€" nationâ€"or reduction of the Agent‘s commission in the premium. The Insurance Agent is the connecting link between the person seeking insurance and the Company. His connection is important both to the prospective buyer and the Company, inasmuch as he arâ€" ranges the original contract and advises the buyer regarding his specific needs. He selects the coverage most suitable. When a claim arises, the agent Usually sets up the machinery for further servicing the claim. His interest continues until the case is satisâ€" factorily settled. All this is of utmost importance to the policyholder. On the other hand the Company depends on its agent to supply the necessary | data regarding the contract; to . act in good faith in producing Quantity and Quality of business. The Company is satisfied to pay . a reasonable remuneration for this service and production. The public should be satisfied to muâ€" tually contribute to this remuneâ€"â€" ration in return for advice and service. There is no such thing as a "bargain" _ in â€" Insurance â€" "barâ€" gains" such as are intended to be sold over the counter. "Quality" insurance, such as provided by this Company, is too vital to the insuring public to be marketed on a simple price basis. The elimination of the agent‘s funcâ€" tion in the business in return for cheaper insurance, simply _ means a reduction or loss in the Quality of Insurance now obtainable. nsurance, such as provided by Several members of our Staff his Company, is too vital to the reached retirement age at the ; nsuring public to be marketed end of the year. They qualify for | on a simple price basis The lifelong pension payments under elimination of the agent‘s funcâ€" the Superannuation Plan of the tion in the business in return for: Company. The Board of Directors cheaper insurance, simply means extends best wishes for continued a reduction or loss in the Quality health and happiness to these' of Insurance now obtainable. employees. Their many years of Over the past twentyâ€"five years service and devotion to the Comâ€". Fire Rates have dropped ébom\panys‘afialrs is recognized and‘ 50 per cent because of the imâ€" appreciated. provement in the Fire Record.| In closing my remarks 1 feel Automobile rates, on the other | that it is fitting to mention some hand, have shown a tendency t0 indjcation of what the year 1954 rise steadily because of the inâ€"} will bring. It appears that Canaâ€" crease in the number of accidents, | dion business, generally, will proâ€" :ih("n;“gl\;l‘:é‘a'lhgogtlshog_;"g:;:":’gf'gress without serious fluctuation. n?cdi(%;l and h0<pltgahzat‘i)on serâ€"| M c criclg P "Tav . ® 8 power of the individual. This vices. | should remain the same according It has been a continuous policy‘ to our leading Economists. There of the Companies, influenced also , aTC., indications of greater comâ€" by the highly competitive naturelpetlfilon in practically all types of of our business, to establish the| business. lowest rate levels consistent with the cost of claims and expenses.|. The genetal Insurance business In this respect I may mention a|!S closely related to such condiâ€" further reduetion in Fire Dwellâ€" tions and this is the situation we ing rates, effective this year, plus might expect. Insurance is the a system of merit rating in Autoâ€" {basis of Progress, being the safeâ€" movile insurance which provides“guard against complete and sudâ€" a reduction in rates for the acci dent free or careful driver. Your Company and exe officers of the Staff are me of Conference groups rep ing the General Insurance try, studying these current lems and trends with the p of providing now, as in th quality â€" insuranceâ€" and . r services, at a minimum dent free or carefu‘! driver Your Company and executive | o Ptse officers of the Staff are members‘ M % s se & Lag of Conference groups representâ€"| l e i. Jn Aud 4 ing the General Insurance Indusâ€" y 3 * [ try, studying these current proh-1 © 3 % lems and trends with the purpose | & < F of providing now, as in the past, sB $ @1 I quality insurance. and relative | sem. d 05 & services, at a minimum cost to ‘*g the Public & bndikg tA P The vear has produced unmis . id â€" Oe h A takable signs of greater acceptâ€" . *\ iss 4 ance of the Company‘s facilities i Wtc 30â€" g“c‘\f\ is by the large Agency forces in the § I i. . .. R Province. It has been a year of s . 00 ii’:;. C satisfactory development and \% l % \\ progress < a S s*& A I wish to express my gratitude, s is in addition to the sentiments of R 3 * our Board of Directors, to mem bers of our Staff and our Agency ' forces for their loyval and ener getic sorvices Any degree of Progress which the Company has experienced is largely the result n{pa'w excellent contribution by J. A. FISCHER J. H. BUSBRIDGE sny antire Staff Secretary Casualty Manager our entire Staff PRESTON: Thomas Yates H. C. Edgar Agencies S$. H. Smithers NEW HAMBURG: R. L. Hatter, operating as L. Peine & Sons PLATTSVILLE: Ermest E. Elzear Yates produced f greater mpany‘s executive _ members representâ€" nce Indusâ€" rent probâ€" e purpose 1 the past, 1 relative m cost to E. J. Bauer, President of the Waterloo Mutual Fire Inâ€" surance Company spoke as follows to the members at the Company‘s Annual Meeting: Continued Progress was the keynote of The Waterloo Mutual Fire Insurance Company during the year 1953. The year developed more Policyholders â€"a higher Preâ€" mium Income from each class of Insuranceâ€"an increase in Agency Representation throughout the Province â€" a greater degree of Prominence in the Insurance business in Canada. Broadly speaking, the year produced more and greater opporâ€" tunities for the services of the Company to its Policyholders and the Insuring Public â€" the result of our progressive and expanding policy. The Assets and Surplus Accounts increased satisfactorily, consistent with the additional Security required by the subâ€" stantial growth of New Insurance in Force. The Investments of the Company have increased during the year by reason of the greater funds available. These funds have been invested in first class Canadian Securities at a much more attractive Income Return than in previous years The General Manager will explain the business picture in more detail following this introductory report. I wish ot mention and thank my fellow Board Members for their continuous support and loyalty to the Company‘s affairs during the year. Their contribution to the splendid progress of the Comâ€" pany‘s affairs should be appreciâ€" ated by all. During the year the Company has lost by death and age inâ€" firmities, several valuable, older agents. The sympathy of the Company is extended to the families of the deceased. We also welcome all new agents who have made satisfactory connections to fill these gaps. The genetal Insurance business is closely related to such condiâ€" tions and this is the situation we might expect. Insurance is the basis of Progress, being the safeâ€" guard against complete and sud: TAVISTOCK: AYR MHESPELER: LINWOOD: Louis A. MHeimler den loss of an Individual‘s or Corporation‘s investment by Fire or Casualty causes. Therefore it is necessary that we continue to fulfil our important role in the business economy of our Country by continuing our aggressive acâ€" tions in order to maintain a satisâ€" factory production levelâ€"at the same time keeping a keen eye on the expense of our operations. On behalf of the Directors, I wish to express our appreciation to the Head Office Staff and Field Staff, and to our many Agents whose continued support and coâ€" operation enabled the Company to show another satisfactory adâ€" vance. Waterloo. Ontario. E. A. Kalbfleisch Charles J. Kautman Morgenroth Limited G. S. Dairymple Wintield Brewster