Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1882-05-06
PnerEcTIon AeArNsr rrns.


The 18th annual report of the Insurance
| Commissioner of Maine will soon be issued
from the press. Five fire companies of other
States have Withdrawn during the year. and
TWO nre companies from other States and
Tour foreign fire companies have been adj
h'itted. Eighty-seven Ere, fre-marine and
marine insurance companies of other States
and countries have reported to this depart
ment their condition on December 81, 1881,
Oh winch s4 are stock and three are mutual
companies. The past year has been an ex-
ceptlonaily hard one for insurance companies
10 the country generally, and but few Of them
nave made any money in business in Maine.
Inc nre premiums received BY companies
OF other States and countries upon business
done in this State for the year 1881 amount
ed to S767, 1880; the losses paid were
SOL $500; gross premiums over losses.
sz46.Z46l4. The same companies paid in
taxes to the State, on the same premiums.
over sll.OOO besides fees for licenses, etc.
when 1t is remembered that it costs COM
panies at least One-fourth of their premium
income to pay expenses. which would amount
to sl91 1863. 20. it will be seen that of the
premiums received in this State the margin
OF profit is so small, that if it were not for
the expectation of something better in the
iutnre. the most of the companies would with
nraw from the State at once, or materially in
crease their rates of insurance. And vet the
Commissioner is constrained to believe that
the fault lies at the doors of the companies.
1t Is somewhat difficult to understand WHY
some companies have uniformly made money
IN tins State, while others have as uniformly
lost money, and while careful comparison
OF the annual statements of the different COM
panies for several ears past shows that the
rates have not materially differed among the
several companies.
The Commissioner is not an expert in in
surance matters, and does not claim to be :;
and yet it is only too plain to the common
comprehension, that in large number of
cases the moral hazard is greater than the
hre hazard. Men who are heavily mortgaged
are not SO careful of their property as those
VINO own their property unincumbered; and
yet companies make but little if any differ
ence in rates between the two classes of risks: :
and the mortgaged property is insured just as
cheaply, if insured at all, as it would be if
unlncumbered. There should not only be
better discrimination in risks. but a better
discrimination in rates. When companies
Will take into consideration the moral hazard
as well as the fire hazard, in fixing rates up
on property, then the premium income will
increase in the same ratio that the losses by
fire will decrease.
The Commissioner congratulates himself,
as well as the people of the State. that the
companies doing business in this State have
all passed the ordeal of 1881 without i'm
pairment of capital or serious decrease in
surplus.
There are three stot k marine insurance
companies, organized under the laws of this
State Ocean Insurance Company, Port
land; Merchants Marine Insurance Company,
Bangor; Union Insurance Company, Bangor.
These are all believed to be in good cOndi-
ton and perfectly solvent. A synopsis of
their annual statements will be found in this
report.
The mutual companies of this State have
made their annual statements, which
have also been tabulated in this report.
The aggregate paid-up capital of companies
doing business in this State is $37 $40, 900;
their gross assets reach the enormous sum of
Sl27, 422, 1888; liabilities, SAG, 256, 434 SO
surplus as regards policy holders, ISL 1885,
$40 80; liabilities including capital, Ss4 ,096,-
434 SO; surplus over all liabilities, S43, $780,
$40 50; income. S64 1874 ,470.64; expendi-
lures, S54 900, 1852.
OF the assets of these companies, S7.56l.-
0lS 80 is invested in real estate $l7, 49,, $780,
46 in loans on bonds and mortgages; $780,
6SS, 1853 81 in stocks and bonds; S5,059, 464.-
81 in loans on collateral; S., SOC, OBJ 81 in
cash in Office and bank; S5,549 ,95l.16 in
premiums in course of collection; S2,322,
200 80 in all other assets. Total assets,
1927 ,043, 574.3S.
These insurance companies received $751;
$50. 044. 40 in 1881 from fire premiums, and
81, SOS, GIBBS so from marine and inland prem
iums interest on bonds and mortgages, ST.
OO5, 1904; interest and dividends from all
other sources 1874, 424.50; received for
rent S4ss, 1879; income from all other
sources, Ss4, 1874, 470.64 Excess of income
over expenditures, S7,49l ,063.2S
The expenditure were as follows Fire LOSE
es. S32 ,O42. 21O. So; marine ard inland losses,
"a ,429, 077.95; dividends paid 4,352 ,sO3.s5 ;
paid for commissions and brokerage, So, 1872
Sl3.O9 paid for salaries, etc, So. 759, 1854 ;
taxes, 81 ,672, 252 20; all other expenditures,
81, 1873. 405.S4. Total expenditures, So4 1906
1852.