New-York tribune., 1877-06-14
LAST YEJRS LIFE INSURANCE..

SuspiciOn and mistrust were so largely en-
pendcred in the public mind by the failures
and lamentable exposures in life insurance,
that a decrease in the business done last year
by the companies was inevitable. Neverthe-
less, the figures given in superintendent
Smyth's Annual Report show many pleasant
facts The companies as whole, IN The nee
essary contraction Of their business, have re-
duced it in the direction Of economy and
safety IF the figures prove anything, 1t Is
that the average life insurance policy Is more
strongly secured than hitherto. In reviewing
a few of the facts presented i'll the report, we
shall deal with the totals of all life insurance
companies doing business in this State New
York companies constituting, as regards vol
ume OF assets, capital, and most other items,
rather less than half of the whole, but possess
ing nearly two-tlirds of the surplus.
The falling off of income is of course very
great. As compared with the previous year
the total receipts were $12,250,000 less-a
decrease of more than IL per cent. 1t follows,
of course, that the excess of income over eX-
pcnditures was smaller; but as the decrease
under this head is rather less than f9OO0,OOO,
il may be assumed that the business has been
more economically managed. At all events,
the dividends paid to stockholders, the COM
missions paid to agents and cnnyasscrs, and
the salaries paid to officers and employees are all,
separately, smaller. Underthe head of 'all other
expenditures" there is slight increase, but
not enough to turn the scale, since The total
expenditures are reduced $3,373, ,OOO-i. e.,
considerably more than four per cent. On the
other hand it is a gratifying feature that
the payments to poicy-h0ders show an in
creased proportion; in 1875 these payments
(of all sorts) were $81 SO out of every 800;
in 1876, they were S92 81. Perhaps, how
ever the chief difference at this point is due
to larger amount having been paid for sur
rendered and also for maturing policies than
In the previous year.
As regards the capacity of the companies to
meet the claims upon them, there are several
things to be said in their favor. When com
panies are, comparatively, standing still after
doing very active business, both their assets
and their liabilities should increase, as on she
one hand they reap the interest ON their IN
vestInents and on the other Their policies grow
older and more nearly due. Such appears to be
the case with the companies taken as whole
their assets having increased %4.260,oOO ana
their liabilities $3,950,OO0 But the surplus
as regards policy-holders, which has increased
$500. 900 in all the companies, obtained the
whole of that increase and more among the
companies of this State, the surplus of the
latter having augmented by $56O,O0O, while
that of companies in other States fell off. The
total amount of risks in force is diminished by
nearly $1S7, 100000, yet the amount OF the
Al, i,.t ahn
500, 600 900 less than in 1875, and the death
claims paid and accrued were also less III proper
ton to the amount at risk. Among the items
of decrease are the income from notes and
loans, and the amount of them regarded as
assets; and also the amount of unpaid
premiums accounted as assets. The reduction
of these items is partly due to the decreased
amount of the whole business, but it is well
that such doubtful assets are diminished in at
least due proportion.
On the whole the contraction Of the business
as shown by these figures reveals nothing
alarming and much that is reassurng. Coupled
with this we have good hopes from the energy.
of the insurance department and the evident
desire to make thorough work in the separate
examination of companies which is now in
progress. Some of the pending examinations
may seem to be slow, but perhaps that is be-
cause they are meant to be sure.