Daily globe., 1879-03-31
INSURANCE BUSINESS.
THE FIRE RISKS IN MINNESOTA
DURING THE PAST YEAR.

1HA I1xIE hlSAS IN MlNNESOIA
DURING THE PAST YEAR
The Losses Heavier Than Their Receipts
An Increase of Nearly Five Million in
Risks In 1878-The Minneapolis Mill
Explosion Brings the Losses Way Up
: All the Companies In the State Sound.
We are indebted to Insurance Commits
sioner McGill for advance sheets of his val
liable annual report from which We make tho
following extracts:
The aggregate business of 1878 of the in
surance companies now doing business in
Minnesota, as recorded in the tables here
with presented, compared with that of the
previous year, while it does not afford to the
companies occasion for unmixed Joy, is nev-
ertheless in many respects Encouraging to
them, showing, as it does, some decided ad-
vantages.
There are at this time ninety-three COM
panies doing business in the State-an in
crease of two over the number reported last
year. The number embraced in the tables
is ninety-two-the Minnesota Farmers Mu-
tual being excluded account of the dis
similarity of its business and the character
of its assets, to those of the other compa-
MES. ....
There are seventy-six American and six
teen foreign companies in all. OF the
American, three two marine and one fire
are mutual companies, without capital. The
other seventy-three are joint stock .compa-
MES, with an aggregate capital of 1884, ,696, 200,
and it is a matter of congratulation that
there is not one company in the entire list
whose capital is impaired to the extent of q
dollar. On the contrary, every company has
surplus over all liabilities, capital Included.
The weakest company-making the amount
OF the surplus the measure Of strength has
over two thousand dollars of surplus and the
strongest, over twenty-five hundred thou
sand.
BUSINESS IN MINNESOTA.
The business of 1878 in the aggregate, as
reflected in the foregoing tables, appears to
have been a declining one. Compared with
that of the previous year, there was ma
terlal reduction in the volume of business
done. Separating, however, the Minnesota
business from the aggregate, and consider
ing it by itself, the contrary seems to have
been the result. Thus the amount of fire
risks written in Minnesota during the past
year was 1854, ,655, ,661 against $3.50, ,488 in
1877-an increase of over four and one-half
million dollars. The inland business in
creased from 81, 1888, ,4S3 in 1877 to $751;
$40 in 1879 difference of $448, ,O37-mak-
ing an aggregate increase on the fire and in
land business of nearly five million dollars
IN the amount of business written, but the
increase IN the total amount of premiums re-
ceived was not proportionate to this increase
In the amount of business written, as will be
shown farther along.
CLASSIFICATION OF THE BUSINESS.
Classifying the business between the COM
panies of this State, the companies of other
States, and the companies of foreign coun-
tries, we have the following result:
COMPANIES OF THIS STATE
Risks Premiums Losses
:. written. received incurred
and Marine. .$122As,9l S 97el1 % S e5, 5,7s9 10
Mimi. Farmers
Mutual 800. aoe4973 s3,22s 80 1892 90
Total: ). s15,sls,e4 s1ala4o "a S 8o,7sl 80
other States. 47,ess,ses eso,s1s 70 e5o,e25 81
cOrelgu cOIupa- ....
MES ......... e,5ie,se2 1912 20 154,oe5 80
Grand Total. s72,4e7,2o1 1901, ,o6s % s8s5,472 40
It appears from this statement that while
the "Companies of other States'' and the
"Foreign Companies" incurred losses, in the
aggregate, in the excess of their aggregate
premium receipts, amounting to $1o,s11.42
IN the case of the former and $14,953.60 in
the case OF the latter, the two Minnesota
companies show an excess of premiums over
losses of $5O,358.55. Deducting thirty per
cent. OF the premiums for expenses-a low
estl stlrnate-there is a net gain here of $11,-
Ol6.55. Ibis is not very large margin, but
compared with the record of the other State
and foreign companies, it will do very well.
The aggregate amount of net premiums of
these companies was $769,925.99. Thirty
per cent. of this amount, or $3.50, 70 must
be allowed for the expenses of obtaining the
business, which, including the two per cent.
paid for taxes, is a low estimate. Therefore
the facts may be clearly stated as follows:
Aggregate fire losses incurred ....S 804,69l OIL
Expenses. being 80 per cent. OF
premium receipts. ......... 230, ,977 79
Total aggregate losses to the
companies. ............ .$1 OBS, ,668 80
Deduct sggregate premium re-
ceipts ....................... 769,925 80
Aggregate net lesses to COM s
pan1es.. ............$ 265,742 81
The above amount of 1886, 5,742.91, repre-
sents tne amount these companies are "Out'
IN the aggregate, aeg on their years business in
Mlnnesota-the actual amount of losses they
have sustained over all income or benefits.
COMPARISON.
The following affords comparison of the
aggregate business in Minnesota of the last
two years: ,....
1877. 1878,
Fire risks written ,5S8 90 $S4, ,665 6s1 90
Inland risks written. 7,383,483 90 7,83l,54O GO
Total risks written
during year .$67, ,54o,931 90 $72,497, pol 90
Fire premiums received s51 ,12S "a 968,531 SO
Inland premiums re.
ceived. .............. 37,253 81 32,52s s.
Total premiums re- g.E =-~
ceived: >.............. ss5,3S2 81 S9o1,o66 %
A3rr fro.v, o,,oS,1r ,ro%a