The daily gazette., 1877-06-19

LAST YEARS LIFE INSURANCE.


suspicion and mistrust were 50 largely
engendered in the public mind by the
failures and lamentable exposure III life
insurance, that decrease in the bust
ness done by the companies last
year was inevitable. Nevertheless
the figures given in Supt. Smyth's annual
report show many pleasant facts. The
companies as whole, in the necessary
contraction of their business, have re-
duced It in the direction of economy and
safety. If the figures prove anything it
is that the average life insurance policy
is more strongly secured than hitherto
In reviewing a few of the facts presented
in the report, we shall deal with the to-
tails OF all life Insurance companies doing
business in this State-New York com
panies constituting as regards volume of
assets, capital, and most other items,
rather less than half of the whole, but
possessing nearly two-thirds OF the sur
plus.
The falling off of income is of course
very great. AS compared With the pre-
yious year the total receipts were Sl3,-
25O,OOO less = a decrease OF more than IL
per cent. 1t follows, of course, that tile
excess of income over expenditures was
smaller but as the decrease under this
head is rather less than $9,000,009, it
may 'e assumed that the business has
been more economically managed. AT
all events, the dividends paid to stock
holders, the commissions paid to agents
and canvassers, and the salaries paid to
offlcers and employees, are all, separate
ly, smaller. Under the head of call other
expenditures" there is slight increase.
but not enough to turn the scale, since
the total expenditures are reduced $3,-
.375,OOO-i. e., considerably more than 4
per cent. On the other hand,it Is graf
flying feature that the payments to policy
holders show an increased proportion !;
In 1875 these payments (of all sorts)
were $S1,SS out of every Sl0O; in 1876
they were SS2.31. Perhaps, however,
the chief difference at this point is due to
10 the larger amount having been paid
for surrendered and also maturing poll.
cies than in the previous year.
AS regards the capacity of the compa4
MES to meet the claims upon them, there
are several things TO be said in their fa-
vor. When companies are, comparative
ly, standing still after doing very active
business, both their assets and their LA
bilities should Increase, as on the one
hand they reap the interest on their in
vestments and on the other their policies
grow older and more nearly due. Such
appears to be the case with the compa-.
nies taken as Wholesaler assets hav-
ing increased 81, 100000 and their liza
bilities $3,950,000. But the surplus as
regards policy holders, which has increas-
ed 100000 in all the companies. obtain
ed the whole of that increase aud more
among the companies of this State, the
surplus of the latter having augmented
by $3.50, 1000, while that of companies in
other States fell Off The total amount
of risks in force is diminished by nearly
$1S7, ,0OO, 900, yet the amount of the poll
cies that laps3d last year was about $20,-
OO0,00 less than in 1875, and the death
claims paid and accrued were also less in
proportion to the amount at risk
Among the items of decrease are the in
come kfrom notes and loans, and the
amount of them regarded as assets ; and
also the amount of unpaid premiums ac-
counted 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 dimin-
isehd in at least due proportion.
On the whole the contraction of the
business as shown by these figures re-
veals nothing alarming and much that is
reassuring. Coupled with this we have
good hopes from the energy of the insu-
rance department and the evident desire
to make thorough work in the separate
examination of companies which is now
in progress. Some of the pending ex-
aminations may seem to be slow, but
perhaps that is because they are meant
to be sure.