Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1890-02-18

FORTY FOURTH ANNUAL REPORT
OF THE
CONNECTICUT MUTUAL /,
LIFE
INSURANCE COMPANY. |
TO the Members:
The year 1889 was marked by no unusual
Incident in our financial history, but was one
Of decided prosperity in every direction, and |
closes with every department. of the COM
pany's affairs in a thoroughly sound and |
healthful condition, and with an increase in |
business, in assets and in strength.
OPERATIONS FOR 1882 |
The company received
F For R intsrsse and rents, Sos as 4
From pront and loss, aiz.47s g
Total receipts. s7.7o1.aai ~
During the year It paid out:
matursd endowments s4,I7o.oee IS
Surplus returned to policy .
La HS.ssfs and surrendered ''.0'''-' u
policies, 49i.a91 OF
Total paid policy holders, s5.ssssis 81
Commissions to agents, salaries, medi-
tising legal, real estate, and all other
r: expenses Of management Sc sss 81 e g
Total expenditure. se.0ls,s9a %
Leaving balance of 1854, 81 to be
carried to net or ledger assets.
At the beginning Of the year the company
began paying death claims on receipt of sat-
isfactory proofs, instead of thirty or ninety
days, as formerly, and during the twelve
months of 1889 1t therefore paid the losses
carried to the increase of net assets would
have been larger by several hundred thou
sand dollars. ..
It is of interest to note that during the
year the company paid its members and
benehciaries on various accounts 81 49,
976. "a more than it received from them In
premiums.
The death losses for the year 1880 were
we'll within the tabulatsd expectation, Civ
ing a saving on the cost of insurance Of
about $475, 900. It is believed that no COM
pany takes more careful measures to restrict
its business to safe localities, and those
which will not tend to increase its average
mortality, or in the personal selection of its
risks and its success In this direction is at
tested by uniform and large saving upon
the mortality cost Of its insurance from year
to year. Every just claim has been promptly
paid, while equal care has been taken to
protect the members from imposition through
fraudulent claims.
Extraordinary expenses to a considerable
amount were incurred by the company DUR
ing the past year on account of it's troubles
at the beginning of the year at Indianapolis,
the examinations by the commissioners of
Connecticut and Indiana, and the advertising
of their results, and other matters necessa-
rily incident thereto, so that the ratio of ex-
penses to income for the year was 9.98 per
cent, an increase over the usual low ratio,
but still far within that accomplished by
most companies, and lower than that of any
other company. These matters are all hap
PLY ended, and there is no reason known at
present why the expense ratio for 1890
should not return to its usual average low
point. The increased expense for 1889 did
not. however interfere with the company's
ability to declare its usual dividend for the
year 1890. It has not increased its expenses
| for procuring new business, of which, how
ever, it gained an increasing share.
INTEREST AND RENTS.
The income from Investments during the
past year shows an impr ovement over that
of the previous year, and is believed to be
quite as satisfactory as could be expected
from any other body of assets selected with
| like regard to ultimate security. The diff
6culties of such investment at satisfactory
rates are by no means growing any less on
the average. It is cause of constant and
| increasing satisfaction that in 1889 We based
all our new business upon the assumption Of
| earning only three per cent. instead of four
| per cent. (Which is the basis used by other
oompanies), and that go large proportion of
our reserve is already measured by that
standard. Already the managers of some of
the companies are said to be considering the
possible future usefulness OF the great
amounts of deferred dividend surplus held
by them, In enabling them to establish a
three per cent. instead of four per cent.
reserve, or in applying 1t to supply the def
cheney OF the four per cent. basis There lie
no doubt that this company took Its conser-
| vative step in this direction in ample time to
prevent the necessity of the disturbance OF
any existing relations in the complete pro-
lection of an ample reserve.
1t may be of interest to know that the in
come of the company from rents does not in
own extensive and valuable accommodations.
| PRoyIT AND LOSS.
| During the year the company has sold
eleven pieces of property at loss of &c..
$40 % on their cost to 1t. It he's sold thirty.
two pieces of property at a gain OF $685..
5000. It has received net upon tho sale Of
certain properties turned over to it on the
defaloation of Joseph A. Moore, $43, $50. 90
It has also received certain other sundry
items OF profit and loss, making the entire
balance from this source In its favor during
the year, $217, 479.36. It still has othel
which it has never put an appraisal, bu
which will appear In its profit and loss &C
oount as 1t IL sold and converted into money
It will be remembered that the entire loss b,
him was charged of at once.
REAL ESTATE.
During the year 1889 We sold for $879.
916.92 properties which had cost $729, 1913. 90
gain over cost of $3.50. 542.97. This mako
total sale ont of property taken by tn
company for foreclosure or satisfaction o
debt, of properties costing In the aggregat
81, 1924. zoo. AZ for 81, $40, 500 S5, . gain owe
cost Of 1886. S93 40.
It has been deemed best by your director
to reduce somewhat the figure at which tn
company's home Office in Hartford stands II
Its schedule of assets. The corner upo
which this building stands IL one of the mos
valuable in this city or in this state. TIL
building erected upon IL was begun in 1880
and built In time of very high prices 70
material and labor. Il Is thoroughly fr
proof and admirably appointed in every par
ticular; is o building which has not deprecis
ted by time and will not for many years
come. Its cost, together with the land upo
which it stands, was 81 ,104, $40 "a, and 1t i
at this figure of cost at which it has beel
81 IA 4