The Portland daily press., 1874-07-06
Insurance in Maine.

The first part of the report of the Insurance
Commissioner, Hon. Joshua Nye, is published.
AT the close of business in 1873, there Al fire,
fire marine and marine insurance companies
organized under the laws of this state and au-
thorzed to do business therein, of which two
were stock fire marine, two stock marine, one
mutual marine and thirty.six mutual fire in
surance companies. No new companies were
organized during the year. Three companies
have closed business or are in the hands of re-
ceivers,-the Maine Mutual Marine Insurance
Company of Bangor, in the hands of a receiv-
er; the Eastern Insurance Company of Bangor,
which closed business in 1872 on account of
losses by the Boston fire after paying those
losses, amounting to $4,000, by assessment;
the National Insurance Company, whose at
fairs are in the hands of a receiver, and on
whose policies small dividend will soon be de
clared and paid. The capital stock of the I'm
lou Insurance COMPANY of Bangor has been re-
duced to 800 900. The total capital invested
in stock companies in the state is $3.50, $50,
which, in the opinion of the Commissioner, is
entirely inadequate to the demands of the state
This meagreness of insurance capital the Com
missioner attributes to want of confidence on
the part of capitalists in insurance stock and
the smallness of returns. As a result. the peo-
pie of Maine are dependent to a large extent,
on foreign companies.
The domestic stock companies have received
premiums on fire risks amounting to 500, 269. SO,
and paid losses on the same to the amount of
$40, 625. 63, being 1913 per cent of losses to
premiums. The same companies have receiv
ed for premiums on marine risks Ss26S, S25 "a,
and paid for losses on the same $40, 26543, or
40 per cent of premiums received. The rate
OF total losses paid to total premiums received
by Maine stock companies is 40 per cent.
Several of the mutual companies of Maine,
says the Commissioners, ARE well managed and
perfectly safe and reliable, and are doing a large
business, while it must be admitted that the
large part of them insignificant in the
amount of their business, and few material
losses would end their existence as it has done
with many in the past.
These mutual companies have paid for losses
during the year Sal 6S1. 81. Their assets amount
to $SS6. LOS, of which amount S773,44o57
| consist OF premium notes.
AT the close of 1873 there were 70 fire and
| fire marine Insurance companies OF other states
and countries authorized to transact business
| in this state, of which 76 were stock and
| three mutual companies. During this year and
up to the date of the annual report, nine COM
panies have been admitted, making eighty
eight now licensed to do business in The state.
| from the state during the year. These compa-
| MES have received premiums amounting to
1851 1872 81. aud paid losses amounting to $780,
| 52S Co. or 65 per cent. of premiums received.
The Commissioner says that the compares
| transacting business in this state have been ex-
| eeedingly prompt in paying their losses, as is
| shown by the cases of the Portland and Belfast
| fires. The losses incurred by insurance com
| paries doing business in Maine in 1873 were
| S709, 297 81.
| With regard to the tax on insurance business
| the Commissioner says that in the mutual COM
| panies every dollar of the tax will come out of
| the pockets of policy "a vague idea"
says the Commissioner, "seems to exist that the
| business of insurance is exceedingly profitable,
| and so grab is made npon the treasures of
the companies, as if it were legal plumber, not
| taking into consideration that such treatment
applied to other various kinds of business would
| be considered very unjust" The Commissioner
| hopes that the next legislature will remove the
| injustice of the tax.
This is the first report of Commissioner. Nye,
| and makes volume of $50 pages, elaborate in
| details and full of valuable information con-
corning companies doing business in this state.