New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-02-14
AN UNFAVORABLE YEAR.
FIRE INSURANCE NOT PROFITABLE
, Summary OF THE REPORTS OF COMPANIES
no,vr pusrNBes IN THIS STATE DURING
nnr 1Aer rwELYE. MONTHS.

oorNC pIreIYBfs IN THIS 5IAlh D'A
THE LAST TWELVE MONTHS
The returns Of fire insurance COM -, - eIed NTH
ness in the state Of New-York nave " n. :, ,s no,r
a., insurance DEPARTMENT at ADahS' az" y -, ~,
rossible TO ascertain the result OF hio ooae,,a
ta wear 1883 Practically all the - -. vi,
to. ., The limited states are represented ~ o"
n'os % -, ,ro,o Albany indicate with suDseah-
taI accuracy the general results Vi '"'
business. tn.ss NJ the New
-, .onooanies were received in this CITY YESTERDAY
ht Tho tables showing the aggregate business -
etate and foreign companies llcenseu ~ ~ - a.
NOT vet available although they pfOO"0' WIZ =" "
day or two. u,n,n,es reportIne to
| - = ,on. at the end Of December, 1885, was
st eo AGAINST 6fty-seven at the corresponding uato
| . year bofore Three companies e"Ie" iV ~
nees during the year, the Merchants on
Howard ALI of this city. ono company III '"' n''orior
| of the state began business - ....,.u,.. 49,,
| The assets of the present mty-hNe 0oinPo"'o a0
SCI 100 900; the liabilities, inoiuuis S"F'S -1-.,
a a.. not s,rpus sl5,357 900. Compared
- 80 ronort NJ afty-seven companies year ago,
,h asso,s show an increase OF ABOUT SoOl'oOV anu
| tbe snrnlus an increase OF about SeO''OVO
orto re,ms received I'm 1888 by the hfty-five com
NAMES amounted 10 SGT $4,000, and the 'o,ai income
! 10 soo.55OyOO0 Compared with the rcpor' vi hiS
seven companies year ago. the receipts nun Proin
INNS have fallen off about 100000, aud me total IN
.,o tr,eo over $500 900. The losses paid amounted
N OoO dividends TO 81 $4,000 ana the total
expenditures 10 s2s 737 600. Compared with the re-
mort of ffty-seyen companies year ago, inc losses
pad show dlmlnuton of over Sl,OOOOOo' the dlVi-
Tends falling off of about s1soO00, and the total ex-
pepditures reduction Of nearly S1,2oOOoo' Inc rsAs
in force at the end of tie year amounea 10 S4'ooe'
$4,000, an increase during the year oil about
S233, 900 900.
An ANALYSIS of these figures furnishes nothing on
which 10 base claim that the fire insurance business
of New.York state companies proved extraordinarily
nroatable last year. and II the losses had equalled
those of 1887 the report might have taken on very
dlscouragng complexion Nevertheless many OF the
larger agency companies had in 1883 an unusually
prohtable year. and the close showing winch the
figures make Is largely due TO the mitorunes OF thc
smaller companies. The increase In risks In force
compared with the decline in premium receipts ana
total income is a striking feature, and possibly VIII
impress upon fire underwriters the necessity OF main
tanning rates little more stalwartly than they have
been doing for the last year more The combined
figures OF all the companies Will make somewhat
better showing than the returns Of the New-fork
companies alone.
calculation OF the ratio of losses incurred and
expenses of management to premium receipts shows
that tweny-nine OF the hftyfve New-York companies
received less In premiums thah inc sum VI o i"9o0
and expenses Of management. OF seventy-three com
panes of other States twenty had losses and ex-
penses in excess Of premiums OF twenty-one foreign
companles three appear 90 have used their premium
reerlpts 10 meet losses and expenses In other Wors
about one third OF the companies reporting 10 the
New.York department found their premiums insult
aoIent to meet losses and expenses. In commenting
ON the result Of last years underwriting, Tho Weekly
Underwater says:
The year 1888 was not good ono. The premiums
only paid 90 per cent Of the expenditures, ana inc
total expenditures nearly 81 per cent OF me IN
come This would do very well II all other thhEs
remained equal but II viii not do on hliing mar
ket for securities and a falling mMSn on premems'
While some companies made a ~ money IN lSso,
AZ a whole the fire Insurance business In tho United
States was a losing game.
II has been the custom for a number Of years TOT
fire insurance TO fail make report OF progress ana
the outcome Of last years business Is only an al
donal chapter to those that have gone before Ieo
Is no more that IS dlscouragng In the returns oil TINS
year than there has been in the reports OF preVlVSs
| years But the deduction IS unavodaole tha' aao
fre Insurance business Is now being done On soly
] close margin and that dividends must largely 'oH'o
| from interest on investments