The Sun.
London, England, 1861-08-05 00:00:00

GREAT FIRE IN LONDON.

"Although the event does not fall into the period em-
braced in the present review of the company's affairs, it
would be obviously impossible to avoid an advertence to the
late conflagration in London, which, from its calamitous
extent, has not been equalled in this country during the
last two centuries.

"The loss to be sustained by this office will bo about
£70,t00, or perhaps £75,000. Considering, however, that
the company effects the largest business in London of any
provincial office, and now closely approaches some of the
largest London offices in its issue of fire policies, it is con-
cluded that the above amount, undoubtedly large in itself,
is nevertheless fortunately below the average of loss sus-
tained by the offices generally. It will not be inappropriate
here to state that within three days of the announcement of
the fire to this office measures were taken that the London
branch should be in possession of ample funds to meet
every loss, in order that no inconvenience should be sus-
tained by the claimants, and that before the expiration of
a week from the date of the fire immediate payment was
ordered to such of these as were enabled to give a statement
of their respective claims.

"It may safely be affirmed that no company has had
placed before it so repeatedly the possibility of such fires as
the recent one, and the directors cannot refrain from repro-
ducing the following passage from their report read to the
proprietors in August, 1858. It is there stated—
" That the character of some recent fires, and the cir-
cumstances attending them, have revealed more clearly
than was perceived before, the significant fact that exten-
sive conflagrations, far beyond the ratio of ordinary occur-
rences of the sort, are within the bounds of possibility.
These thmgs indicate strongly the necessity of prudence in
dealing with the surpluses of income which accrue. On
the other hand, it may hoped that the sounder judgment
which exists on the subjecr of insurances may lead to the
a4°P c I°lx of a more protective rate of premium on many
has than has
has hithertohitherto been obtained. The illusion which
prevailed of late years on the subject of the
imagined magnitude
and of the smallr'f the profits of a fire insurance busi-
ness,
suctess of the resources
trans-
actions involving with which
on, has been for a time large contingencies could be carried
have, by the adverse experience
of the offices which one after another, been discon-
tinued within the last few years Y
'‘ Tho Great Fire which has now taken place establishes
.the propriety of these remarks, rks new fire insurance
company hereafter to be established will meet even with
partial encouragement if it have not
of subscribed but paid-up capital, whilst no ull
sufficiency, not
prudent capi-
talist will embark in such a new enterprise,
yet ignore
collected,
the possibility that, until an ample reservesfund is
which requires several years
might to accomplish, investment,
and it may be a large portion of his subscription,gs n
oit at
any moment be required to meeteet some unexpected],oe
equal, or even greater, magnitude than the recent onee an
"At the same time it must be acknowleged. that when such
n reserve, fully equal to any probable coFtingency sr any
possible succession of them, is really obtained, and that the
rates of premium established are judiciously remunerative,
being neither excessive nor insufficient, both being equally
reprehensible, no company established for any purp?se
whatever in this country has greater element of stability
within itself than a well•governed insurance office.
" It is satisfactory to the directors to announce in con-
nexion with this subject, and it may perhaps be deemed a
happy illustration of the truth of that opinion ju,t expressed,
that the amount to the credit of the reserve and profit and
loss accounts of this company would be sufficient to pay the
loss sustained by this hitherto unexampled calamity, were
it thrice the amount it proves to be.
"The reserve fund therefore being collected and retained i
for the precise purpose of meeting such exceptional occur-
rences,
and for re-assurance of outstanding risks, is the
source whence it is proposed the London claim should be
paid.