The Portland daily press., 1882-05-09
PROTECTION AGAINST FIRE.
14th Annual Report of the Insurance
Commissioner OF Maine.

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states have withdrawn during the year, and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 fire companies from other states and four
foreign fire companies have been admitted.
Eighty.seyen fire, fre-marine and marine in
surauce companies of other states and countries
have reported to this department their condi-
ton on December 81, 1881, of which "a are
stock and three are mutual companies. The
past year has been on exceptionally hard one
for insurance companies in the country gener-
ally, and but few of them have made any
money in business in Maine.
The fire premiums received by companies OF
other states and countries upon business done
in this state for the year 1881, amounted to
$767 452 so; the losses paid were S521 ,2o6.6b;
gross premiums over losses, $246, 246.14. The
same companies paid in taxes to the state, on
the same premiums, over $1,000, besides fees
for licenses, &c.
When it is remembered that it costs COM
panies at least one-fourth of their premium
income to pay expenses, which would amount
to $191, 1868 90, it will be seen that of the pre-
miums received IN this state the margin Of
profit is so small, that if 1t were not for the ex
pectation of something better in the future,
the most of the companies woad withdraw
from the state at once, or materially increase
their rates of insurance. And yet the Com
missioner 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 this
state, while others have as uniformly
lost money, and while carefuls comparison
of the annual statements of the different COM
panies for several years past showa that the
rates have not materially differed among the
several companies.
The Commissioner is not an expert in insur
ance matters, and does not claim to be; and yet
it is only too plain to the common comprehen-
sion, that in large number OF cases the moral
hazard is greater than the fire hazard. Men
who are heavily mortgaged are not so careful
of their property as those who own their prop
erty unincumbered; and yet companies make
but little if any difference in rates between the
two classes of risks; and the mortgage property
is insured just as cheaply, it insured at all, as
it would be if unincumbered. There should
not only be better discrimination in risks,
but better discrimination in rates. When
companies will take into considera ton the
neral hazard, as well as the fire hazard, In Tx
ing rates upon property, then the premium IN
losses by fire will decrease.
The Commissioner congratulates himself, as
well as the people OF the state, that the COM
panies doing business in this state have all
passed the ordeal of 1881 without impairment
OF capital or serious decrease in surplus.
There are threesstock marine insurance COM
panies organized under the laws OF thisistate:
Ocean Insurance Co., Portland Merchants
Marine Insurance Co., Bangor; Union lnsur-
ance Co., Bangor. These are all believed to be
AL A.-fa a%tx COly mt a
synopsis of their annual statements Will be
found in this report.
The mutual companies OF this state nave
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 O00 their gross assets reach
the enormous of $127 ,422, 49, liabilities,
SAG, 256, 434 IS; surplus as regards policy hold
ers, $751; 166, 34082; liabilities including capital,
1884 900, 43456; surplus over all liabilities, $4
326, $40 80; income, S64, 134, 470.64; expendi-
lures, $54, 906, 425. 80.
OF the assets of these companies, 81 ,561 ,Ol8.-
80 is invested in real estate; SIT 1882 $50. 46 in
loans on bonds and mortgages; SoO,6oS, 1851
in stocks and bonds; $5,059, 1864. 81 In loans on
collateral; $9,506,031S in cash in office and
bank; SIS, 549, 951.76 in premiums in course OF
collections So, 1875, 200 so in all other assets. To-
tai assets, $127 ,043, 574.3S.
These insurance companies received SOL.
$50, 044.49 in 1881 from fire premiums and 3d.
558 80 from marine and inland premiums;
interest on bonds and mortgages, ST. ,005 400 A:
interest and dividends from all other sources.
49, 1874 42450; received for rent. $4SS 107 49, in
come from all other sources, S84, 134, 47064; ex-
cess of income over expenditures, 81 ,491 069 %.
The expenditures were as follows: Fire
losses, 1892 042, 21O33; marine and inland losses,
So ,429 OFT 95: dividends paid, s., 352, S03S5;
paid for commissions and brokerage, $685.
813 90; paid for salaries, &C., $3, 759, 1854;
taxes, $1,672, 252.29 all other expenditures,
So, 7S3 ,4O5S5. Total expenditures, $54S, $685.
405 90