The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1877-03-03

During the above period the total
amount paid to policy holders in death
claims, dividends, surrendered policies,
etc., has been 81, la, ,639 Is.
The income during the past year was
$12, 153 9S less than the prior year, being
a decrease of about two per cent; but
considering the general depression in
all branches OF business, it il quite re-
markable that the business should have
kept up 80 we'll. The expenses were
$10, 946 81 less, and the total disburse
meuls $49, ,312 81 less Than during the
year 1875.
The income during the year exceeded
all disbursements by $17S,600 Ct, which
amount has been invested entirely In
mortgage loans upon real estate. The
interest and rent receipts during the
year equaled all death claims paid dur
ing the year, and left an excess oil
W 4S5 53. The total interest account
(belng the interest received, increase OF
accrued interest, and increased market
value OF bonds, stocks, etc. during the
year was $Sl,95l 30, being over nine per
cent. upon the Reserve Fund of the com.
pany at the commencement OF the year.
This rate OF interest upon the Reserve
Fund has very rarely been realized by
life companies, and only by Western
companies. ,., ..
AS to tacts in detail we call special
attention to the tenth annual statement
presented herewith. ...
From the above il will be seen that,
taken together, the year 1876 has been
financially the most prosperous year in
the history of the company.
| Inc investments of the company are
chiefly mortgage loans, and are only
Imade upon unencumbered real estate
worth double the amount loaned there
on, estimated at cash value, sherif's
sale, and exclusive Of buildings.
The advantages arising from Judi
cious medical selection oil risks can not
be overestimated, and quality rather
than quantity of business having been
sought, it has been the policy OF this
company to accept at the ordinary rates
of premium only those regarded by the
medical directors as first class lives,
| 1t will readily be seen that when mod
crate and inferior risks are admitted at
| the same rates OF premium as tirst-class
risks the latter are compelled 10 sustain
heavier mortality, and the extra loss
must be largely sustained by them. The
business of the Union Central being
chiefly upon the mutual plan, all gains
from savings in mortality among those
insured upon that plan go TO the policy
holders in The shape OF dividends, or
are applied to increase The surplus fund
| of li.e-rate endowment policies, and
| thereby hasten the date OF their 'matur-
| ity.
| Appended to this report will be found
the Mortality Record of the company
Tor the past year, which is decidedly
| favorable. Also tables showing the
mortality experience OF the company
from the date OF it's organization, March,
1867, to January l, 1877. II
AS will be seen by these tables the
actual number oil deaths among original
Union Central policy holders has been
only 149, while the expected number ac-
cording to the American table Of NOR
tality was 260.26. -
This result has only been attained by
the continuous exercise of the most
careful discrimination in the selection
of risks by the medical directors, and
the Watchful care upon the part of the
officers generally in protecting the COM
pany from fraud, Misrepresentation
etc.
1t will be seen that the rate of mortal
ity among insured females has been
much greater than among males, hence
the Board OF Directors decided in 1874 10
make q separate class OF the female
risks, and i'll adjusting dividends to
charge them with their own rate of NOR
tallty. ..E
The ratio of deaths among those pol
icy holders transferred from the Cincin-
natl and Home Mutual Life Companies
has been heavy as compared with the
mortality among those originally ac-
cepted by this company, and in ADJUST
ing the surplus, each class of policy
holders has, according to the bylaws Of
the company and in justice to all, been
charged with its own rate OF mortality.
We are, however, pleased to say that
the present indications are, that in
very few years the mortality among
those policy holders transferred will fan
below the expected mortality.
The net cost of insurance according
to the death rate experience of the COM
pany upon its own original male men,
bers has been only about one-half thai
experienced by the average of all other
regular life companies. .....t.
To those seeking insurance who will
be accepted by the medical directors
the Union Central offers special in.
ducements, as judging from the past, it
will in the end give insurance at a less
net cost than is given by any other COM
paly.
There Is large number OF applicants
who are not frst-class risks, but yet
safely lnsurabie, and the company ac-
cepts such risks at such rate Of pre-
MUM, or upon such plan of insurance,
as to work no iDjust tice TO the frst-class
risks, and when such risks are taken
upon either Of the lite-rate endowment
plans, and prove to be long lived, they
suffer no loss, as tue larger the premi-
ums paid upon this plan the sooner the
policies mature.
The ten, fifteen annual payment, and
life rate endowment policies continue TO
be very satisfactory to the holders
thereof, aud the new business OF the
company is now almost entirely upon
these plans, and we invite special atten-
tion to the workings OF the same and the
results thus far obtained.
The demand lor life insurance shows
that it meets one OF the pressing wants
OF the public, but many OF those who
need its protection most and would glad.
ly avail themselves OF its advantages
are unable TO 10 SO by reason Of the
large payments required at one time,
and some plan should be devised to meet
this demand among the industrial class.
as. The Deposit anu Benefit Society