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Waterloo, Ontario. January 31st, 1955. This Annual Meeting is called for the purpose of receiving 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; for the consideration and adoption of Byâ€"Law number 36, and.for the transacâ€" tlon of any other business which Md4¢ BE properly brought before the Meeting. The retiring Directors are William Henderson,. R. J. Bauer and G. N. Hunter, all of whom are eligible for reâ€"election. The Company made Charitable Donations durâ€" ing the year of $1,634.50. Your Directors have passed a Resolution providâ€" ing for an imnroved Superannuation plan for the employees of the Company. You will be asked to eonsider and adont if advisable, Byâ€"Law number 36 with respect to this resolution, and repeal By.Law number 82 and regulations thereunder in connection with the present Superannuation plan. The Investment portfolio of the Company now amounts to $3,181,542.00 consisting of Dominion of Canada bonds 35.02%, Municipals 4.89%,, Public Utilities 26.41¢., Industrials 21.10%, Stocks 10.5107, and Mortgages 2.07% none of which are in default. She Assets of the Company now totalling $3.â€" 768,445.90 show an increase of $261,809.22. The Surplus account as shown in the Audited Statement, ‘lr'low rests at $2,199,270.61, an increase of $100,.â€" 36.00. omedinlâ€"<ndiienh n eis is idiia uh t insd Mb ts i h iedb hh 2l . 3000 .4 450A n ing further for Charitable Donation and Corporation ncome Tax, the net overall Operating Profit rested at $84,250.00. This amount has been transferred to the Surplus Account for further Protection of our Policyholders. After absorbing the Unearned Premium Reâ€" serve of $111,732.00, and providing $33,809.00 for gkegt Government taxes on Premiums, and allowâ€" Fund, and deducting Investment and other Sundry expenses, there remained a favourable balance of $100,527.00 in the Investment Account. The total mance in these two accounts amounted to $201,. .00. To the Members of The Waterloo Mutual Fire Insurance Company : Your Directors submit the Ninetyâ€"second Anâ€" nual Report presenting the results of the Company‘s operations for the year 1954, together with the Finâ€" ancial Statement as of December 31st, 1954. To these accounts and to the statement of the Comâ€" zlny's Assets and Liabilities, the Auditors have ttached their certificate. A favourable balance of $101,202.00 resulted in the Underwriting Account. After transferring an zddl!.ional sum of $16,527.00 to the Staff Pension Waterloo, February 12, 1955. un To the“ Members of The Waterloo Mutual Fire Provisions for Unpaid Claims ...........22222222022220 0000 Reserve for Unearned Premiums at 80 ......2.0..22200. Reserve and Unpaid Losses Under Unlicensed Reâ€"insurance Taxes Due and Accrued â€" Dominion and Provineial ....... Reâ€"insurance PrEMIILME .........}.2sldrolrvannecaeeanewak Agents‘ Credit Balances â€" PremilUums ...........22..22222.. Investment BRESETVE ........:0sigriciucaunean se is ens in nane Reserve for PenSiONS 2.2..2222.22222222220222202 02020000000 Surplus Book Value of Real Estate â€" Office Premises ......... Agreements for Sale .........2..22222222.2.222220..2.. Mortgage Loans on Real Estate ....................... Amortized Book Value of Bonds and Debentures ...... Book Valite of SIOCKS .....cr.lllln.sulscranceeenenars Cash on Hand and in Banks ...............22.20..2.2.. Interest Due and Accrued ...................2.....2.. Agents‘ Balances and Premiums Uncollected .......... Balance Due from Reâ€"insurance Companies â€" Premiums Balance Due from Reâ€"insurance Companies â€" Claims . THE WATERLOO MUTUAL FIRE INSURANCE COMPANY Kitchener: D. A. Bean Ins. Agencies Bender Realty Company Bollert & Caton Limited Bernhardt Ins. Service H. P. Burrows Erb & Erb Carl Kranz Limited Hessenauwer & Shantz Ltd Kearns Ins. & Realty Ltd. Sid McLennan Limited Director‘s Report 1954 The Ninetyâ€"Second Annual Financial Statemont and Auditors‘® Certificate he WaterlooMutual‘s 92nd Year ___One of Gain and Progress Waterlo0, Ont , January 12th, 19% Respectfully submitted, E. J. BAUER, President For the year ending December 31st, 1954 LIABILITIES ASSETS Lesterâ€"McNaughton Ltd. Clayton Peterson J. Schmalz Agencies Ltd. Edgar Seymour, M‘A) H. L. Staebler Co. Ltd. Otto Smith & Co. Limited Jack P. Fitzgerald J. Wesley Callander Bitzerâ€"Dubrick Limited Lauer & Wiecbe Limited Mr. Chairman and Gentlemen: It is my pleasure to review in detail the 92nd Annual Report of The Waterloo Mutual Fire Insurâ€" ance Company. This report marks the end of another year of growth for the Company. The year was also memarâ€" able, in that it experienced a series of occurrences which resulted in abnormal and unusual claim losses, which affected and reduced our Underwriting Proâ€" fits. Despite this situation, I am pleased to report that the results from all departments of our Comâ€" pany have been satisfactory. New Income levels from each class of business have been reached. As you probably know â€" the § Te s ns > Fire and Casualty business is lrebates and after effecting all unique among commercial enâ€" !Rl?-lnsurancg, the Net Preâ€" terprises, particularly as comâ€"‘miums retained by the Comâ€" pared to industry, in that the ‘pany totalle d $1,523,376.00, cost or premium rate is esâ€"|which is an increase of 17% tablished before knowing what ‘over the previous year. The the resulting costs will be. In ‘Earned Premiums amounted to this respect, I refer to the conâ€" |81,411,644.00. Total net claims. siderable additional costs in lor all classes of Insurance, claims and adjusting expenses ‘~~luding adjustment expenses, !of the three disastrous storm:> ~mounted to $756,192.00, proâ€" which occurred in March, July (ucing an overall loss ratio of and October of 1954. The latter |19.63%. 'srorm, commonly known as| The Government taxes on "Hurricane Hazel"â€"an uncomâ€" â€" Premtems, pgope%%tq and mon and unpredictable type of , licence Yees, Age! ommisâ€" storm for this part of the conâ€" |sions, Head Office and Branch tinent, caused millions of dolâ€" underwriting expenses, and all lars of damage to insured proâ€" |\General expenses amounted to perty. It is a tribute to the Fire | $665,982.00. Total Expenditures and Casualty Companies that |and including claim payments ’they could weather these disasâ€" |amounted to $1,422.174 â€"_ trous storm losses and remain |against this the Total Net Preâ€" financially as strong as ever. miums amounting to $1 592. The Gross written Premium Insurance of all departments amounted to $2.466.565.00, an increase of $408.395.00 over the previous year. After deducting J. Fâ€"ETULLY. CA R. P Premium Income of Company Doubles in Past Three Years Growth of Company Continues â€"â€" Outlook for 1955 Promising . N. Hunter, Managing Director, Reviews 1954 Business infi t LOCAL AND DISTRICT REPRESENTATIVES UFFELMAN, C.A., Auditors $1,408,102.32 2 098,534.36 $3.560.036.68 80 199.192.0 $3506,636.68 825.370.51 7,911.29 2%.131.83 2,137.25 605.30 200,000.00 150, 915.14 73,077.43 13,218.04 50,192.50 2,680,813.75 232.953.41 183.684.06 25.744.16 222.127.60 3,825.73 lsions, Head Office and Branch underwriting expenses, and all iGeneral expenses amounted to $665,982.00. Total Expenditures and including claim payments amounted to $1,422.174 â€"â€" against this the Total Net Preâ€" miums amounting to $1,523,â€" 376.00, created a favourable balance of $101,202.00 in the Insurance Account. The Inâ€" crease of New Premium Inâ€" come developed a Reserve Linâ€" The Government taxes on Premterms, prope fl!g and licence Tees, Aze%’t’mfinis. Galt: Waterloo C. A. Bochm Ins. Agencies Limited A. K. Cressman & Son C. W. Tweed & Co. $3,768,445.90 $1,569,175.29 2,199,270.61 ©?,768,445.90 $ 223,522.62% 937,102.99 14,548.80 34,803.31 39.40 985.68 200,000.00 158,172.49 Aitken & Son Clayton G. Hogg Gordon A. Kaiser Harold Gaskin Agency Marshall Ins. Agencies 73,077.43 13,010.73 52,132â€"50 2,281,385.90 334.413.18 211,358.10 27,198.62 265.061.423 6,204.01 4,004.00 Shannon Brubacher 1954 The Investments of the Comâ€" pany â€" increased during the year by $195.365.00 (plus a cash increase in the banks of $27,674). The Book value of our investment portfolio inâ€" creased to $3,181,542.00. The Market value also changed ’mncidorahly, producing _ an improvement _ of _ $398,714.00 for the year. Your Directors have thought it prudent to leave the Investment Reserve unchanged. The average inteâ€" rest rate also increased slightâ€" ly from 4.05% to 4.27%. The influence of the strengthening of the Bond Market, led parâ€" ticularly by the Dominion of Canada Bonds, during t_}f first _ The Premium Income of our two newer departments is srowing rapidly. The results have been generally favourâ€" able and indicate a healthy development. _ Automobile Department: The Automobile Department produced gross Premiums of $873,273.00 or net $693,299.00, an increase of 38.11% over the previous year. The claims inâ€" curred during the year resultâ€" ed in a loss ratio of 48.6%. The Casualiy and Inland Marine lines developed gross Premiums of $120,358.00 or net ©86.856.00, which is a 50.2% increase over the previous vear. The Joss ratio for this department was 38.04%. Fire Department: The Fire Depattment developed gross written Premiums of $1,472â€" 933.00. After deducting reâ€" bates and effecting Reâ€"Insurâ€" ance, the net Premiums amounted to $743,222.00. This is a slight increase over the previous year. The chief reaâ€" son for this was the lower amount of Reâ€"Insyrance ceded to our Company during the year. Fire claims, which inâ€" clude losses from windstorm: and waterâ€"escape coverage, afâ€" forded by the extended coverâ€". age, totalled $349,994.00, for a Toss ratio of 47.09%. This reâ€" sult is particularly interesting inasmuch as our Company exâ€" perienced 550 claims amountâ€" ing to approximately $50, 000.00 from "Hurricane Hazel" alone. bility of $111,732.00. Income from Investments, inâ€" cluding profit on the sale of seâ€" curities, and other Sundry Reâ€" venue, amounted to $117,â€" 055.00. After allocating a furâ€" ther sum of $16,527.00 to the Pension Fund and deductâ€" ing investment expense, there remained a balance of $100,â€" 52700 in this account. The Total Profit from the Insurâ€" ance and Investments Acâ€" counts amounted to $201,â€" 729.00. After absorbing the Unearned Premium Reserve of $111,732.00, and deducting amounts for Charitable Donaâ€" tions, depreciation of Comâ€" nanyâ€"owned automobiles, and Income Tax. the Net overall ~perating Profit rested at $84,â€". ©50.00. 1 @R. G. N. HUNTER Reâ€"clected Director The year has produced unâ€" mistakable signs of greater acâ€" cepntance of the Companies‘ faâ€" cilities by our older Agents and by a great many newly appointed Agents throughout the Province. It has been a continueus policy of the Inâ€" surance Industry, influenced largely by the highly competiâ€" tive nature of our business to establish the lowest rate levels consistent with the cost of claims and expense. In this reâ€" spect, there have been a good mahy rate reductions in Fire premiums, due to improved construction methods, includâ€" ing better and safer electrical and heating equipment. We‘ must not overlook the influâ€" ence of Fire Prevention actiâ€" vity carried on by Fire Deâ€" partments of civic communiâ€" ’ties and other social bodies throughout the Province. The experience in Automobile Inâ€" surance from an overâ€"all picâ€" ture has not improved. Acciâ€" dent frequency in certain ci~ ties and districts has changed for the betterâ€"insurance buyâ€" ers have benefited. Other disâ€" tricts have been affected ad-' versely and rate â€" increases : { Our new Toronto Branch Office, which opened at the beginning of the year, under the management of R. G. Webâ€" ber, now employs a staff of six personnel. The Branch Ofâ€" |fice very soon indicated its importance in a very busy centre of our operations. The first year‘s results, along with its service importance, have been quite gratifying. We ex-‘ pect it to grow. Other sections of the Province are being proâ€" perly and efficiently covered by our Staff of enthusiastic Fieldmen. Their work includes inspections of all types: of risks, the promotion of new business and educational aid to our Agents. The fruits of their endeavours are encourâ€" aging. Our Head Office has reached a stage of satisfactory efficiency insofar as the Unâ€" derwriting, Claims and Acâ€" counting departments are conâ€" cerned. It is not uncommon to hear complimentary remarks from Agents and Policyholdâ€" ers in this regard. | Preston: Thomas Yates H. C. Edgar Agencies S. H. Smithers Elzear Yates Elmira: Plattsville: Ernest E. Rhodenizer The Assets of the Company are now $3,768,445.00, an inâ€" crease of $261,809.00 over the previous year. The surplus for the protection of Policyholdâ€" ers is now $2,199,270.00, an inâ€" crease of $100,736.00. threeâ€"quarters of the year, enâ€" abled your Board to make adâ€" vantageous exchanges into inâ€" vestments producing higher returns. At the same time, it provided an opportunity of creating greater diversificaâ€" tion throughout the Portfolio. Investments were made in a larger number of firstâ€"class Preferred and Common Stocks, Utility and Corporate Debenâ€" tures. The tax relief on Comâ€" mon and Preferred Canadian Stocks being an important inâ€" come factor. ‘ Mr. William Henderson Sr. Reâ€"elected Director Elmira Insurance Agencies R. L. Hatter, operating as L. Peine & Sons The Casualty Lines written by the Company are numerâ€" nus. They include various risks such as: Personal and Comâ€" mercial Public Liability haâ€" zardsâ€"Residence and Mercanâ€" tile Burglary and Robbery Inâ€" surances Plate Glass Insurance covering valuable glass in new modern homes â€" including large and costly installations in mercantile premises. Fidelâ€" ity and Surety Bonds guarâ€" anteeing against dishonesty of Individuals ‘in positions of trust. Insuring the contratual agreements for the construcâ€" tion of civic worksâ€"municipal roadsâ€"private homes and inâ€" dustrial constructions. Guarâ€" anteeing the honesty and perâ€" formance of administrators of have followed the trend. Cerâ€" tain gualifications of driversâ€" or car use, have benefited by rate reductions or credits for no claims. We, in the business, feel optimistic over possibilty of a reducton in car accidents. The emphasis being continued on safeâ€"drivingâ€"the educating of teenâ€"age high school drivâ€" ers, the better traffic regulaâ€" tionsâ€"more serious law enâ€" forcement and improved roads, should have a contributing efâ€" January 20th, 1955 On behalf of the Directors, I wish to express our appreciation to The Head Office Staff, Field Staff, and to our many Agents whose continued supâ€" port and coâ€"overation enabled the Company to show another satisfactory advance. If we are to believe the present optimistic opin. ons of our Country‘s leading Economists, it would appear that business generally, with a few excepâ€" tions, should continue at a prosnerous pace. There« fore, We, of the Waterloo Mutual, with a backâ€" ground of 92 years steady growth, face the coming years with confidence, and with serious intentions of taking full advantage of the opportunities of the Future. The Primary Function of Insurance is to spread risk among & large number of people so that those who suffer loss can be indemnified in full at a careâ€" fully prepared and reasonable cost to all. In this respect the "Waterloo Mutual" endeavours to ful fill this function by providing Quality Insurance and relative services at reasonable cost. Since the last Annual Meeting of the Company I regret to report the death of two of our oldest emâ€" ployees. J. M. Gillespie who died after a long Mâ€" nessâ€"and C. J. Moogk who died suddenly after enâ€" joying a few months of his retirement period. Their many years of loyalty in connection with the Company‘s affairs was a grateful contribution to the progress of the Company. ____ The Managing Director will review in detail the business operations of the Company following this report. r_ q400 000 25, CPCCC 22 IVDOWS 10 Nt members at the Company‘s Annual Meeting : The "Waterloo Mutual" has completed another satisfactory year despite several serious occurrences which produced abnormal losses. I refer to severe storms which struck sections of the Province in March, July and October of 1954. The latter storm was the Disaster popularly known as "Hurricane Hazel." It caused widespread property damage and heavy loss of Ige. The Waterloo Mutual absorbed its losses in stride and continued its steady advance. The year 1954 resulted in an increase in gross writâ€" ten premium Income which amounted to $2,466,â€" 565.00. This is once more a Record. Claims paid to or on behalf of policyholders totalled $952,607.00. The Assets and Surplus funds of the Company increased satisfactory, consistent with the additional Security required by the Substantial growth of New Insurance in force. c The Investment Fund of the Company, aug. mented by new income, increased during the year. The Market Value of our Stocks and Bonds apâ€" preciated materially and an adequate Reserve for possible depreciatior_lAis being continued. Steady Developement Continues Despite Abnormal Storm Losses During 1954 _ Company Directors Reâ€"elected Were Wm. Henderson Sr., E. J. Bauer, G. N. Hunter E. J. Bauer, President of the Waterloo Mutual Fire Insurance Company, spoke as follows to the members at the Company‘s Annual Meeting : mMb O gsese . c N Ayr: G. S. Dalrymple Hespeler: Linwood: Tavistock : Louis A. Heimler E. A. Kalbfleisch Charles J. Kaufman Morgenroth Limited Winfield Rrewster E. J. BAUER, President. Sdedtls i n MB 5A h nb ies aided sn s‘ 4 Newer customs of person:l living, and more modern feaâ€" tures in commercial enterpris®, have created additional haâ€" zards. The possibility of finanâ€" clal loss has therefore become more important and, sensible individuals â€" or â€" corporations have sought protection against such dangers through the meâ€" dium of an appropriate type of Casualty Insurance. We are very encouraged over the reâ€" sults of this Department. In summarizing this report, I would like to mention these important features: 1. Premium Income of the Company _ has more â€" than doubled within a period of three years. 2. The Companv has many more Policyholders, more Inâ€" Continued on Next Page _ Inland Marine Lines coverâ€" ing private and commerclal movable propertiesâ€"varying from jewelry, furs and personâ€" al property, to tenâ€"ton Hvdro condensers and sizable, glasgâ€" lined brewery tanks. ‘These, and other various Casualty Coverages, are specialized lines, all of which are now written by our Company, wills and other types of legal executors.