The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-09-17
TIE ROYAL INSURANCE COMPANY.
From The North American Exchange and RevieC, Sept.
z 197O

for 1869 completes the history of operations for
a quarter of century. Its twenty-6fth annual
exhibit vindicates the past, and is rich in pro-
mise for the future. The whole record of the
Royal demonstrates a steady financial growth
scarcely disturbed by the fluctuations of busi-
ness. Its present stock cash capital is partly
surplus capitalized, and the annual dividend
for the twenty fifth year is equal to twenty-five
per cent. of the capital as paid in by the share
holders. At the close of 1868 the Royal had
by the American standard, a net earned surplus
over capital of $l,079,273, deductng all life
and fire liabilities. The special reserve surplus
tund one of this company, set apart out of
profits to guard the capital from
impa rment was increased through the
esults of 1859 by the splendid addition of
$591, $3.50. This reserve now amounts to a sum
nearly equal to the cash capital. Total assets
about nine million dollars.
The fire department shows for 1869 a less
ratio of loss to premium than the business of
the previous year. With such a wide distribu-
ton of hazards. excessive losses in any particu-
lar country generally compensated by sue
cesses elsewhere. The heavy American fire
losses of 1869 of the Royal, merged in the vast
extent of the underwriting, have very slight
effect upon tue aggregate result. American
policy holders will appreciate the value OF a
security which is lifted out of the contingencies
besetting fire insurance here. In insurance as
in war, the more avenues for resources that are
kept open the better the chance of ultimate
safety. To give idea of the details of the
Eoyal's position, present abstract of the
LIS ua report
Thr annual general meeting of the sharehol-
ders was held August 5, at the head office of
the company, North John street. Liverpool
REPORT FOR THE YEAR 1869.
The directors have the pleasing duty of re-
porting that the results of the year 1869 are
highly satisfactory in both departments of the
business.
FIRE DEPARTMENT.
The premiums for the period amount to sc4S5-
1S0 IS. Cd ($2, 425 900). and the losses to $780,
6S5 los. lid. (Sl, ,453, ,425), being increase of
premium and a decrease of loss, as compared
with the corresponding totals of the preceding
velve onths. The net profits of the depart
ment including interest, amount to e7S 154 3s.
Sd. CS390 770). With single exception, this is
the largest surplus that has been announced as
the result of years operations since the esta-
blishment of the company; and it is satisfactory
to state that most of the branches have contri-
buted to it in some measure, the American de-
partment being the only important one that
shows a small adverse balance.
Your directors have repeatedly had to refer
to the fluctuations to which fire insurance bus-
has been marked by the absence of fires of any
serious extent; but it has been succeeded by
period equally distinguished for the number and
severity of the losses which have occurred
in various parts of the world. The Royal
has shared in many of these and so favorable
report as the one now presented cannot there
fore, be anticipated for 1870.
LIFE DEPARTMENT.
1t will be in the recollection of the share
holders that the results of the quinquennial
valuation of the liabilities of this department
now fall to be reported. Your directors feel
that more than the usual interest attaches to
this investigation, in consequence of public
attention having been prominently drawn, dur
ing the past twelve months, to the financial
position of life offices by the failure of large
company and the rumored difficulties of
others. For the better security of the
public bill, which has just received the
approval of the legislature, will compel all life
companies TO publish, periodically, important
information respecting their financial position
and the means they possess of meeting their en-
gagements Your directors approve OF the salu-
tary provisions of the measure which enforce
the publication of accounts upon all compa-
nies; and, in order to afford an adequate con-
firmation OF the accuracy of the statements of
this company, Your directors have adopted
further check, which they are satisfied will
commend it to every shareholder and assurer.
A valuation of the life liabilities has been made
by the officers of the company as heretofore,
and totally independent valuation has been
obtained from Mr.. Samuel Brown, one of the
most experienced actuaries of the day. 1t is
satisfactory to state that the two valuations
were nearly identical in their results, although
in the one case each policy was valued sepa-
rately, and in the other they were grouped in
classes according to ages.
1t is unnecessary to enter upon the details
here, as they are given fully in the accompany
ing reports by the manager and consulting actu-
ary, and it only remains to make the announce
ment that the amount of profit accruing to the
shareholders for the transactions of the last
five years is eSl 1888 6s. Sd. ($409, ,665). The
results of the business for the last twelve
months have been as follows
Total income from pre-
mums after deduct
ing reassurances. e2ls, ,42O las. Sd. Cs1O67, ,1OO
OF which the l24S new
proposals completed
during the year have
contributed, nett. e19OO3 rs. Sd. (s95,O10
The interest from in
yestments .:..;..;;.. e4o,162 las. Cd. s2aO,slO)
The claims, including
payments OF bonus ad-
ditions 49,. ....... e1O4, 1888 9s Cd. s52l, ,915)
New annuities and en-
dOwments, purchase
money and premiums e16,S2l As I'd. (SS4, 1851
The interest placed TO
the credit Of these ac-
count ................ e7,IS5 IS. I'D. Css6s25)
After payment of all
claims annuities, and
expenses OF every de-
scriptiOn, the amount
added to the life funds
fort 10 O.