Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-11
WONDERFUL Showing.
WHAT CONSERVATIVE MANAGEMENT
WILL DO IN LIFE INSURANCE..
Thirty Third Annual Statement OF the
Northwestern Mutual Life insurance
Company-It Shows High Interest,
Low Death Rate, Large Surplus and Un-
paralleled Dividends to Policy-Holders.

MILWAUKEE, Jan. 26, 1892.
To the Trustees and other Poicy-Holders of the
Northwestern Mutual Life Insurance company:
The executive committee of the board of
trustees submits its report of the business of
1891, found herewith in detailed statement;
before entering upon which, however, few
words may be fitting:
The official investigation of a leading life
insurance company, and widely-published
letters from the presidents of two other
leading companies, announcing retPench-
ment and more conservative methods OF Sc
| curing and transacting business have largely
centered interest in life insurance matters
| during the past few months, and have very
| naturally suggested to the public that re-
form is necessary in some of the methods
! and practices that have recently grown up
| in carrying on the life insurance business.
The Northwestern is an advocate of re-
form, first of all within itself, if needed;
then wherever and whenever needed. Be-
| ieving it to be safer and better for any in
| stitution to find its own opportunity TOR
improvement, its practice always has been
whenever retrenchment was possible or
amendment desirable, to forthwith make the
company better in such regards. This COM
pany has from the beginning aimed to con-
| duct its affairs in all departments with a
rigid adherence to sound and honest Dusl-
ness principles and economy, and to con-
tinue in its service only those whose work
bore evidence of efficiency and integrity.
Reform in life insurance methods is con,
sidered necessary; first, in the character and
quality of business obtained; second, In the
expense of securing business and admins
tering company affairs, and third, In tne IN
vestment of trust funds. Pledged As the
Northwestern has been and is, to increase its
strength and use fulness from year to year,
let us examine briefly the company's recent
record in the above particulars. The stand
ard m mharqhin in this has
always been high, higher, indeed, in 1881
with new business of s1xty-f1ve m1llons
than ten years before with a business OF only
the company during the past 20 years was
LOG; during the past Is years, 1.03 during the
past ten years, 0.97; during the past hve
years, 0.95; during the past year, Os9; and
lower during each period than the death
rate of any other leading company.
The supremacy of the heNorthwestern N among
its principal competitors, In point OF inter G
port with statement of last january vii!
show that the rate actually earned in 1881
was lilo per cent on the assets at the DE. BE-
not due exceeds same item one year ago Dy
over $3.50 000.l The same well-known, care
full and exact standard and methods govern
the investment of its funds, and we think
no other company can show its entire "re-
serve" invested in first mortgage bonds. In
1890 the amount added to surplus in the
Northwestern exceeded that of any other
COMPANY. while in 1891 this increase was 81
per cent larger than in 1880. Figures on any
of these points in other companies are not
yet made public. Relative to the expense
Of securing new business, our company has
not for years in q single instance paid salary
to any general or soliciting agent; while the
grade and rate of commission paid
eight years ago. The sratio Of expenses
and taxes to new business during 1859 ana
1890 was lower in the Northwestern than in
any other regular company, and lower still In
II. O1r
the years 1888 and 1889, after deductlng ex-
penses, losses, endowments, dividends-1n
fact. all disbursements-hada larger per-
centage Of income remaining for 1nVe3tment
than any other company in the United
States, with single exception, one of the
smaller companies In 1890 the Northwestern
led all the companies in this respect, our
ratio that year being SO per cent higher than
the average of the ten largest companies. and
u per cent higher than that of the company
! standing second. The company's record in
this regard was per cent higher last year
than in 1890. 1t is also proper to state in
this connection that our company, during
1890, in collecting nearly nine millions OF
dollars in premiums, lost through it's agents
only $76 SO, or less than one one-thousandth
of one per cent. In 1891, in collecting over
ten millions of dollars, it lost nothing.
Our poHcyholders have become willing to
waive the distinction of belonging to the
largest company in the world, or the COM
pany doing the largest business in the world,
since they have experimentally learned that
such results as the foregoing mean not only
increased and increasing sol1dity and
strength, but annual and substantial benefits
to them not equaled by any other company
in the world.
The company during the past year paid
dividends on its first ten-year tontine poll
cies, issued in 1881, that proved very Salts
factory, and justify the belief that, what
ever the results under such policies may be
in the future, they cannot fail to yield
larger surplus returns for premiums paid
than any other form of life ana investment
in in n 1id n n n
The new business of the company was
larger in 1891 than during any previous year:
the business each month of the year being
the company's history. The steady growth
in this regard may be seen from the follow
ing table: