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Uhursday, February 22, 1962 Outdoor Adventures (Continued from page 2) smen‘s relations a step badly needed. In fact in some districts to the south of us the situation has become very acute. with farmers having signed up over 60% of the land. and more being signed up each day. As hunters we can do something about it if we act now and as Sportsmen we should volunteer to help the fagmer, why not act now? before it is too late. COMING EVENTS Saturday, Feb. 24th â€" Club Social, with a dance in the evenâ€" ing. music by our one and only homeâ€"brew band. Friday. March 2nd. Jack Shaw stag at the club. Saturday, March 3rd. Bunny Banquet. How To Handle Men: Treat as any betâ€"3 meals a day, plenty of affection, a loose leash and do not disturb while eating. A fine is a tax for doing wrong and a tax is a fine for doing all right. THIS FAMILY‘S STORY may have some bearing on the way your family‘s story goes. With the backing of his wife, Patâ€" ricia, and four children Steohen, Chris, David and Nancy (aged 12 to 4). Dr. Norman Alcack abandoned a $15,000â€"aâ€"year career as nuclear physicist and engineering executive to work fullâ€" time and unpaid during the past two years to develop a scientiâ€" fic brogram for peace. His plan to put world scientists to work on the problems underiving the nuclear peril and international tension will besin in Canada in 1962 if fellow Canadians conâ€" tribute $2.000,000. A fundâ€"raising campaign begins this month (February). BELL{®) whenever you need them itself, does it? Well as soon as it does, I‘ll take it." Farmer to Salesman: "Pays for INSTANTLY AUTOMOBILE SERVICE ESSO SERVICE STATION FACILITIES PHONE SH 5â€"6815 ARNOLD DUENCH â€"â€" SERVICE MGR. PHONE JOE KIRKEY SH 4â€"8282 puts help at the tip of your finger ORR AUTOMOBILES LTD. GENERAL REPAIRS FOR ALL MAKES OF CARS WATERLOO RESIDENTS 150 WEBER ST. sOUTH WATERLOO CORNER UNION & WEBER ATTENTION AT a 6e 4 hose ts w ong AALWILIY According to Hal Wright, Safety Specialist with the Ontario Deâ€" partment of Agriculture, short winter days usually mean heavâ€" ier electrical loads around the house. To prevent extra loads adding to the fire hazard, make sure you are not using overâ€" sized fuses. The answer to a cirâ€" cuit that keeps blowing isn‘t a larger fuse, but an extra circuit SAVE $20 Phone us for car insurance before you buy your licenc INSURANCE AGENCY 138 Bleam‘s Rd., Kitchener Phone SH 3â€"6815 KEN ZIEGLER rommmenemmumenk The Assets of the Company, now totalling $4,901,445, show an www _ _ increase of $171,660 over the previous year. The Surplus account inâ€" in hy on n oo# creased by $108,033 and now amounts to $2,008,997. â€" â€" The Book Value of the Invested Funds of. the Company increased by $243,184 to now amount to $4.020,443. They consist of Governâ€" ment of Canada Bonds 38.03%, Municipal Bonds 12.73%, Public Utilities 11.58%, Industrial and Corporation Bonds 13.06%, Miscellâ€" aneous 10.95%, Common and Preferred Stocks 11.34%, Mortgages 2.31%%, none of which are in default â€" â€" WATERLOO MUTUAL‘S 99th YEAR SUCCESSFUL ALMOST A CENTURY OF SERVICE Summary of Reports Show Premium Income Levels But ° Increases Over Past Year â€" Assets Increase to $4,991,445 Creation of a tribunal to determine damage claims efâ€" ficiently and expeditiously is desirable. More direct method of dealing with legal cases is advisable. Waterloo, Ontario, January 30, 1962. To the Members of The Waterloo Mutual Insurance Company: Your Directors submit the Ninetyâ€"Ninth Annual Report of the Waterloo Mutual Insurance Company, presenting the results of the Company‘s operations for the year 1961, together with the Finanâ€" cial Statement as ofDecember 31st, 1961. To these accounts and to the statement of the Company‘s Assets and Lisbilities, the Auditors have attached their certificates. THE NINETYâ€"WNINTH ANNUAL FINANCIAL STATEMENT AND AUDITOR‘S CERTIFICATE The Waterioo Mutual Insurance Company For the year ending December 3ist, 1961. ASSETS y Book Value of Real Estateâ€"Office Premises ... $ Agreements for Sale nprmerisitniess Mortgage Loans on Real Estate Amortized Book Value of Bonds and Debentures ............ Book Value of Stocks AÂ¥ighe Cash on Hand and in Banks . isnn Interest Due and Accrued Agents‘ Balances and Premiums Uncollected Written on or after October 1, 1961 651,908.52 Balance Due from Reâ€"Insurance Companiesâ€"Premiums 8,430.88 Balance Due from Reâ€"Insurance Companiesâ€"Claims 37 481.84 Other Assets edeipedfonsbrie ce eocercecieaieemnesareage f 750.00 Provision for Unpaid Claims C Reserve for Unearned Premiums at 80% ‘Taxes Due and Accruedâ€"Dominion and Provincial Balances Due Reinsuring Companies Agents‘ Credit Balancesâ€"Premiums Reserve for Nonâ€"Registered Reâ€"Insurance ... Reserve for Past Pensions aeivees Investment Reserve _ These Funds are invested with care and prudence and the results indicate a valuable income return. An adequate reserve for posâ€" sible future depreciation in the portfolio is maintained. The total Earned Premiums increased _ moderately in | all classes of â€" insurance _ except Fire. The overâ€"all loss ratio inâ€" creased by 6.93%. Despite the effect of an increased loss ratio and other adjustments in un earned premium reserves and other increased expense of deâ€" velopment an overâ€"all profit of $45,289 resulted. This amount has been transferred to the Surâ€" plus Account. A policy of moderate expanâ€" sion and modernization of servâ€" ices is being pursued by the Company. A new Branch Office was opened in Peterborough to service our business in the midâ€" eastern area of the Province. Our services and facilities have been expanded in all other Branch Offices including addiâ€" tional representation in the Niâ€" agara Peninsula area. â€"" THBE WATERLOO (Ontario) CHRONTICLE Surplus _ The average interest rate earned, based on Book Value, is recordâ€" ed at 5.32% as compared to 5.22% the past year. _ _ â€" Our _ Agency _ representation throughout â€" the Province â€" inâ€" Last year, at this time, when I reviewed the operaâ€" tions of the company in my annual report it was a pleaâ€" sant occasion. It represented a record year in the hisâ€" tory of the company in all its various operations. We naturally hoped that the trend would continue. We entered the new year 1961 with considerable optimism, but not without our characteristic caution. It was not long before we noticed the signs of imâ€" pending problems. Competitors introduced plans of reduced rates, unusual extensions of insurance coverage, of increased commissions, and various contingent forms of inducement to attract the premium dollar. We were soon caught in a swirl of competition and related proâ€" blems, never before experienced in the history of the general insurance business. G. N. Hunter, viceâ€"president and managing director, addressed the meeting as follows: Mr. Chairman and Gentiemen: When situations like this occur we are immediately faced with unexpected expense and other cost. New policy forms are required, new printed rating and inâ€" structional material is prepared. Our fieldmen accelâ€" erate their travelling and promotional efforts, our pubâ€" licity and advertising costs increase and some additional personnel are employed. W. J. McGIBBON, Q.C. President fire and Casualty Loss Ratio Satisfactory â€" Automobile Losses Remain High Surplus Fund for Protection of Policyholders â€" Gains â€" Now $2,008,997 Managing Director‘s Report THE Directors‘ Report LIABILITIES INSURANCE COMPANY Established 1883 Head Office, Waterlon, Ontario Branch Offices in Toronte * Mamilten * Ottewa * _ Peterborough creased favorably. The producâ€" tion of business from . new sources, plus the increase reâ€" ceived from _ our established agencies, is â€" quite . satisfactory despite the most extreme comâ€" petitive â€" situations which . we face in present times. This Annual Meeting is called for the purpose of receiving the Annual Report of the Company for the year ending December 31, 1961; and for the election of Directors; for the appointment of Auditors, and for the transâ€" action of such other business as may properly be brought before the Meeting. The retiring Directors are J. E. Motz, M. J. Smith and R. A. Forbes, all of whom are eligible for reâ€"election. Respectfully submitted, W. J. McGIBBON, President Waterloo, Ontario. February 10, 1962. WATERLOO mutUaL Viceâ€"President and Managing Director $4,991,445.35 $ 753,659.10 . 181647762 .___16,206.41 _ 121,273.09 + 1,361.37 s 3,469.95 .__20,000.00 . 250,000.00 $2,982448.14 $4,991,445.35 _ 83,062.55 25,272.90 60,355.86 3,471,718.66 455,991.45 149,697.41 46,775.28 2,008,997.21 In a way this is progress, which has been the accepted policy of the Waterloo Mutual. However, when we are suddenly forced into a situation involving an accelerated increase in costs, combined with a similar deâ€" crease in rate levels â€" the natural result has a great effect and curb on a profit possibility. The usual loss months, due to the nature of the fire, automoâ€" bile and casualty business is in the first and last quarter of the year, and in 1961 our company‘s results followed this pattern pretty well â€" except that in the first quarter of the year we were plagued with more and greater fire losses than usual. The exâ€" perience â€" moderated â€" favorably from then on until December and then we encountered an unâ€" usually high frequency of autoâ€" mobile claims. The result of this descriptive resume of fire and casualty claims is that our company‘s policyholders incurred $218,000, more claims in 1961 than in the previous year. Our operating expenses were kept level with those of the previous year, but with an increase of 6.99% is the overâ€"all loss ratio and other adâ€" justments which changed the unearned premium reserve, an underwriting loss in the insurâ€" ance account of $108,000 result However, we have income from investment funds and othâ€" er sources, which, after providâ€" ing for charitable donations, the company‘s contribution to the present pension fund â€" pay: ments under the old pension fund â€" amounted to $153,329. The balance created a net operâ€" ational profit of $45,289. This amount was transferred to the surplus fund. In general â€" the assets of the compamy, now totallingâ€"$4,991,â€" 455 increased by $171,660 over the previous year. While this inâ€" crease is satisfactory, we had hoped to see our assets exceed the five million dollar mark. It was curbed unfortunately by an unusual increase of $50,786, in agents‘ â€" outstanding _ accounts, which are not admitted as an asset, according to regulations. The surplus funds increased by $108,033, to now amount to $2,008,997. This increase was moderated â€" considerably by a substantial increase in the reâ€" serve for outstanding claims, plus an additional reserve for the past pension fund. Due to the considerable change in the values of our inâ€" vestments over the past two years and because the depreciâ€" ation dropped to a low of $56,â€" 000, over the entire portfolio, your directors decided that a reduction in the reserve from $375,000 to $250,000 was logical and warranted. The departmental results are as follows: The fire insurance department produced earned premiums of $913,666, with claims and adâ€" justing expenses of $488,260, which produced a reasonable loss ratio of 53.44%. The automobile insurance deâ€" partment produced earned preâ€" miums of $1,582,665, with claims and adjusting expenses of $1, 047,301. This resulted in a loss ratio of 66.17% . The casualty and other lines which includes inland transportâ€" ation, personal property, real property, _ employers liability and â€" workmen‘s compensation, public â€" liability, _ fidelity and surety _ bonds, burglary _ and plate glass â€" produced earned premiums â€" of _ $521,773, with losses of $292,972, or a loss ratio of 56.15%. The total earned premiums of $3,018,105, and total losses of $1,828,544, produced an overâ€"all loss ratio of 60.59% . The total earned premiums inâ€" creased _ moderately from $3« 001â€".942 of the past year to $3.018,105 for 1961, but the loss ratio changed from 353.85% of the previous year to 80.63°% in 1961 â€" an increase of 6.98°%. ‘The expense ratio of our oper: ations dropped | slightly from 43.24% in the previous year to 4290% in 1961. Our _ controllable _ expenses which are under constant superâ€" vision have been kept in line with the volume of business transacted, despite the higher levels of staff remuneration and other operating expenses. In 1961 the aaditional investâ€" ments purchased increased the book value of the investment portfolio by $243,184, bringing up the total to $4,020,443. The market value totalled $3,963,460 which was an improvement of $378,525 over the previous year. The â€" average â€" interest â€" rate based on book values was 5.32°% as compared to 5.22% of the previous year. The main feature of our operâ€" ations in 1961 was the slowing in the growth of our premium volume _ particularly _ in _ fire class. 1 am informed that this experience was felt by most companies in the fire and casugâ€" ty business. This change of pace was unâ€" usual for the Waterioo Mutual so that a policy of increased acâ€" tivity was carried out. Our fieldâ€" men worked harder and covered more miles â€" their instructions were to increase their promoâ€" tional activities â€" our advertisâ€" ing programme was increased to include all media â€" newspaper â€" radio â€" television and insurâ€" ance agency publication. We endeavored to increase our underwriting and claims service. A branch service office was established in Peterborough unâ€" der the management and care of Mr. Dennis Taylor, in order to service and promote our busiâ€" ness in the midâ€"eastern area of the province. This includes the Lake Ontario towns and cities which are growing fast and well at the present time. Mr. Kenneth Walker was ap pointed a district representative for the Niagara peninsula. This area is associated with the actiâ€" vities of our Hamilton branch office. Mr. Walker brings to the company a combination of exâ€" perience and personal ability and already his valuable connecâ€" tions and energy have shown excellent results. A similar operation in midâ€" western and western Ontario is at present in the planning stage which will be the responsibility of Mr. Victor Thorne and Michâ€" ael Fox. It is a policy to have our representatives living and working in the area of their operations. Then they are availâ€" able to provide service, underâ€" writing | assistance, â€" educational advice, and to provide that close personal link between the agent in his field of operations and our company. I need not comment too much on the operations of our estabâ€" lished branches in Toronto â€" Ottawa and Hamilton. It is sufâ€" ficient to say that they are managed satisfactory by young men who have a good sense of responsibility. Most of them have received their training and education in head office. It is with considerable pride also to say that a high propor: tion of our men are enrolled in the Ontario and Canadian Insurâ€" ance Institute courses. Mr. Vicâ€" tor Thorne, Mr. Keith Oehm and Terrence Jones have alâ€" ready received their fellowship degrees, (FILIC.) others have reached their associate degrees and many others will reach these goals in time. Our company is held in high respect by the fire and casualty industry for its major repreâ€" sentation in the Institute courâ€" ses and also for the achieveâ€" ments of those who have gradâ€" uated. I am not going to comment too long on the serious side of the present state of the fire and casualty business, except to say briefly that last year, this year, 1962, and probably the coming years will provide the greatest challenge to our company and many others to maintain our respective positions in the field of insurance. W. J. McGibbon, Q.C., was reâ€"elected President. G. N. Hunter, Managing Director, was reâ€"elected Viceâ€"President. {*I..MM.J.‘.M““'NA. Forbes were reâ€"elected It appears that no business is escaping the keen competition which exists generally. At no time in its history has the inâ€" surance _ industry _ been _ more competitive and changing The â€" directors. officers and the general staff of the Waterâ€" loo Mutual are fully aware of the increased requirements nec essary to deal with this modern Down grading of insurance rates develops lower premiums â€" naturally a lower commission income results. The agent is faced with rising costs of oper ating his agency â€" and thereâ€" fore he is faced with increasing his pÂ¥oduction to maintain his normal level of profift and inâ€" come. He also must plan and work harder. We are sympathâ€" etic with this problem of our agency forces. It is related alâ€" most exactly with the problem of the company. situation. It requires the greatest sense of personal responsibility on the part of everyone to contribute their best efforts in work, thought and action. Our large agency force is similarly affected by this chanâ€" ging, competitive situation. Both companies and agencies are faced with the growing proâ€" blem of the direct writers who offer the public slightly lower rates and various instalment paying plans. This competition so far has been confined to auto. mobile insurance. This has forâ€" ced companies, which operate on the agency system to reduce rates to a competitive level with the direct writers. The direct writers endeavor to select and accept only the preferred risks. The agency companies provide a market for all risks within reaâ€" son. Our agents require this normal accommodation in order to provide a market for the mass of people who own and use vehicles in their daily way of life, whether business or pleasure. The agency companâ€" ies‘ costs are higher because a commission is paid to the agent. The direct writer avoids this Therefore, a definite competiâ€" tive factor exists. Our rates do not appear adeâ€" quate as you can see from the automobile loss _ ratios from year to year. However, we have continued to allow our agents a fair and reasonable commis sion on this class, despite the competitive and unrealistic rate levels under which we operate. Most Waterloo Mutual agents are good responsible citizens in their communities. They have developed th» name of our comâ€" pany, they have produced profâ€" itable business. and generall® speaking, they have made monâ€" ey for themselves and the comâ€" pany. We ask and seek their conâ€" tinued support and in return we pledge our full assistance in every respect. As I mentioned previously, we look forward in 1962 and the coming years to many complexâ€" ities in our business. The chief problem being the competitive pressure of meeting insurance rates, â€" unwarranted by â€" experâ€" ience and unrelated to sound underwriting _ experience. . The other serious problem is one which faces all industries â€" that is the problem of controlling our operational costs â€" which now includes the new provin cial 3% tax. This affects not only our company‘s internal exâ€" penses but extends and . adds to the cost of claims. doing about al brings up my marks. The Waterloo ging ahead â€" inary signs are The Waterloo Mutual is forâ€" ging ahead â€" and the prelimâ€" inary signs are encouraging. We have developed new poâ€" tential _ a gency connections throughout the province which will _ produce â€" additional busiâ€" ness We are developing new areas of potential business by providâ€" ing the necessary services inâ€" cluding the help and services of fully _ trained â€" and personable fieldmen. We have increased our pTO motional and advertising activâ€" ities in many new and varied ways. â€" S d A new, rejuvenated sense of personal responsibility is being displayed by all members of our staff. chiclobdd From _ the â€" statement today you have seen that the Waterâ€" loo Mutual has grown in strem gth and stature, with a substanâ€" tial increase in assets and surâ€" plus after providing all neces: sary reserves that are required for â€" statutory contingencies . 10 that it would appeat that your company is in an excetfent and enviable position to withstand these adverse conditions I wish to pay MY personal tribute to the members of our entire staff and to our agents for their loyal coâ€"operation in times which call for the maxiâ€" mum of effort and energy ME PBR CE 0 _ \“J-i;nt"i; lhe Waterloo Mut\_}gl I also wish to thank of directors for their and understanding in usual times. PAGE THREE all this? And this concluding _ reâ€" the board assistance these unâ€"