Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-05
FIRE INSURANCE
The General Result for the Past Twelve
Months Est at All satisfactory
Losses and Expenses
Greater and Premiums Lower Than for
Any Year Since 1s72-Very Little
- MONEY in the Business.

NEW YORK. January 4.-The insurance
companies dong a large agency business
throughout the country cannot tell exactly
az yet how they stand. They have exact
figures for eleven months business, and by
adding to these approximate figures for
December they are enabled to form pretty
safe conclusion as 10 results. From all that
could be gathered in the best informed in
surance circles, the general results OF the
year are not at all satisfying. The losses,
without any extensive conhagrations,
have been greater than in any year since
1872, the total being not Less than S70,000,-
600, of which the companies have had to
bear at least $S5,000 900. Besides rates of
premium. except in few psrts of the coun-
Efry,z have bean lower than at any period
since the time Immediately preceding the
Chicago fire, and the cost of obtaining and
conducting the business has been higher.
Tire chief object of the United Fire Under
writer's in America has been to divide the
country into districts and establish associa-
tIons to systematize and regulate the methods
of the business therein. A great deal was
expected from this plan, but years effort
TO carry il out has no. produced the desired
results. Most of the Eastern companies
panies in other localities refused to
sign the pledges adopted by the
district associations, OF which five were or
ganized. Notwithstanding The unsarIsfac-
tory condition of the business, there has
been large influx OF foreign companies
seeking American risks during the year.
While foreign insurance capital sought in
vestment in business here, no fewer than
thirteen American FIRE and fre-marine insur-
ance companies ceased operations. By the
retirement of these companies an sggrega,e
r Il l. - l. =
ness. The Hamburg -Magdeburg, was the
business here. The capital engaged in
the business underwent the following
changes: Capital withdrawn Companies
having been wound up), s., SOC, 900 reduction
OF capital of companies still in business,
$275, 900; total, 81 075 900; increase of capi-
tai, $7S7 $50; rev companies organized 81, ;
100000; tota ret6xStion OF American capital,
| $2,077 $50. II The sdeposits made with the
State ldepar...ient by the four foreign COM
panies admitted during the year are added
| to The capital eqccrueds the ne. .rsduclion,i in
the entire capSal enQ&ssd VIII be 81, ,677 $50.
In the meantime, while this reduction in
| capital and lessening of policyholders' se-
| curiiy was being effected, the risks taken by
the companies in the aggregate reached
proportions never before attained in
1
country. Ia reviewing the business
of the year, an experienced manager said TO-
day that the only companies which made any
| money or SHIELD their own" were those that
did not push for business, but rather moved
slowly and conservatiyely. The compsuies,
| large and small, which extended their lines
and struggled to swell their premium re-
ceip,s have been overtaken by disaster. He
believed very little if any moHey was made
Oh the business proper by even the most
carefully managed companies. Those pos.
sessed OF large surplus would be enabled
to pay dividends out OF the interest income,
but the stockholders, who we're relying upon
the underwriting business for dividends,
would be disappointed. Unlike the fire
insurance business, The operations of the life
companies were most satisfactory. Not only
will the accounts of most of the companies
show large decrease in business. but ii ia
expected that the results will show sussian.
tial reductions in the percentage OF expenses
I snd gsner&s Increase in assets. The only
companies which retired from business dur
ing the year were two feeble institutions. Tn,
Franklin Life of Indianapolis and the Nortl
Carolina State Life of Raleigh.