Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1882-02-03
BAD YEAR FOR INSURANCE MEN.
Low Rates and English Competition Caus.
Ing: the Retirement of Several Compare
New York Herald.

New York Herald.
The year 1881 was particularly disas-
troIs one for the business of fire insur-
ance underwriters. There were 25O fires
in this country during the first eleveE
months of the year, at which the average
loss was S14o,0O0, and at not one of these
fires was the loss less than $4,000. In
December the aggregate losses by fire
were estimated by insurance men at not
less than S1O,O00,00O. Taking into con.
sideration the fires at which the losses
were less than $4,000, it was estimated
at not less than S1O0,0O0,000 worth OF
property was destroyed in the United
States during the year 1881. Such being
the case II was expected that consider
ing the extremely low rate current, many
small companies OF this state would
withdraw from the business, and this
has been the case to large extent. Over
dozen American companies have re
tired. The state has at present 1872 fire
Insurance companies as against l76 in
1875, and the prediction by veteran
takes place in the system of undercut-
ting one another 1882 will
be still more disastrous
wear. This time, however, the gentle.
man in question believes that the large
companies will be the ones to suffer. the
| fight affecting them more than the
smaller companies, whose busicess is of
a conservative character, many of them
having refused to write policies upon the
terms accepted by large companies who
with heavy expenses must have the
business and run the risk or "go to the
wall"
The low rates nre not to be attributed
altogether to the sharp competition of
the foreign companies. The larger
American companies, ii is said, wage n
sort OF war of eXterminatlon against
their smaller rivals, and 1t is the smaller
ones that have thus far been the suffer-
| CrS.
| The latest company to go under is the
Commercial Mutual Marine and Fire of
this city. 1t has just retired from bust
ness after reinsnllng its risks in the Roy
al fire insurance company, of Liverpool,
one OF the foreign companies, who bid
higher than any other, the risks of the
retiring company being considered the
most desirable class, principally up
on dwellings in this city and
Brooklyn. An officer of
the Commercial Mutual said yesterday
that it would continue the marine busi-
ness. At the office of the Royal 1t was
stated that the business reinsured aver
nged about $4,000 annual premiums,
aud when inquiry was made as to whether
the discount given was thirty-five per
cent as currently reported. the reply was
that it was much less than that figure.
A leading underwater said yesterday
that the state superintendent annual
report would not show the condition OF
American companies without knowl.
edge OF the methods Of insurance book.
keeping. The uniniated might think
that company was losing heavily,when
rs matter of fact, it was making money
He did not believe that the English
companies are doing any better than the
I American, and be could explain theil
persistency III seeking business here al
very low rates, on the theory that the
insurance business is more dcmoralizet
on the other side of the Atlantic thai
here.