The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-06-04

Several days ago The Herald made the
announcement that the Guardian Fire AS
surance company of England, whose Utah
business during 1898 was nearly half &
million dollars, was Withdrawing from
business in the Omitted States. Coupled
to this announcement was the intimation
that other foreign insurance companies
have tired of losing money on business
in this country and are about to With
draw 1t now develops that among the
foreign institutions which are about to
unload are the Lion OF Dublin, Ireland,
Imperial of London, and the Patriotic
Of Dublin, with possibly several others,
all represented in Salt Lake city.
In direct substantiation of The Herald S
prediction the San Francisco Chronicle
has the following anent the SITUATION:
Insurance men all over the United States
are likely to have much TO occupy their
attention in the next few weeks. as
charges OF almost .portentous nature are
on the eve of being made. Briefly stated,
these changes involve the withdrawal
from this country OF ssVeral OF the
largest British insurance companies IN
the world and the reinsurance of their
business by American companies and
such other English companies as believe
it may still be made profitable to con-
tinue business in this country.
The following brief dispatch contains a
volume OF information for insurance men:
New York. May 3L-The Guardian Fire
Insurance company of London, England,
viii reinsure all eastern business in the
New York Underwriters Insurance com
the United States entirely. This is said
20 be the first move only on the part of
HIltish companies, as others are DESTROYS
a pulling out also. Rumor says that
the Lion OF London. the Imperial of Lon
don, and the Patriotic of Dublin, ireland,
viii follow in the lead of the Guardian
as soon as reinsurance can be effected.
English companies remaining in this coun-
try Will reduce their territory. Among
those which intend to stay and retrench,
the London and Lanca shire are named.
The dispatch contains several surprises.
The story relative TO the Guardian was
common talk on the streets two days ago
but the rumors about the other companies
are not yet current here.
The Guardian. Fire and Life Assurance
company of London England, was estab-
lished in 1921. ana is a very large and
wealthy corporation. having a IRE fund
. net surplus alone of 100000 over and
above every liability. In the United
and last wear its premium income was
S12e.000. It's United States surplus, which
will as a matter of course. be withdrawn
%when the company has reinsured all ITS
ern business has been reinsured in the
New York Underwriters, which IS real
" the Hartford Insurance company. as
its assets alone are back Of the New
York Underwriters. On this coast the
Guardian and Sun of London have been
jointly represented by William j. Ian
ders for many years. Last year the coast
business Of the Guardian showed a pre-
MUM income of $4,000. This business
will he insured by the North British and
Mercantile at present represented by Tom
G. Grant. 1t is said also that the North
British and Mercantile will join the sun
under Mr. Lander's management.
a leading underwater to whom the dis
patch from New York was referred last
evening was much surprised 10 read II.
likelihood of the rumors proving correct:
He said. This is the commencement of
change in the underwriting capital of
the United States, which has been sup
piled very largely by English companies.
They and many large American compan-
les have sunk millions of dollars in the
past few years in underwriting business
in the United States. This pulling out OF
English companies will take away much
British capital and will place a. great
deal Of insurance business in American
. hands Many of these corupanieS have
large United States assets and deposits in
certain states. all OF which will, as mat
ter of course, be Withdrawn when the
That the big fire insurance companies
have lost heavily in the past ten years
is evident from the facts gathered last
evening. In sixty millionaire companies
only seventeen have any profit at all TO
show for ten years business from Janu-
airy. 1884,. to January. 1894. The other for
tv-three companies show losses for the ten
Wears, VARYING from $4,000 for the small
est 10 Sl.S2S.000 for the largest loser The
get loss of the business OF the sixty com
NAMES aggregates in round numbers So
$1,000 OF the companies which made
a profit in the ten years the Hartford.
which has reinsured the Guardians east
ern business. is one. its profit being ST.
100000, and exceeded only by the Liver
pool ard London and Globe. with profits
of 100000 and the Aetna of Hartford.
whose profits were S2.560.0o9. The Guar
dian lost in the ten wears S541.000 the I'M
perial S35900o and the Lion s165.000.
The losses by fire have steadily increased
ear by year. and in the ten years
amounted TO the enormous sum of S499.550,-
200. OF nineteen millionaire foreign COM
panies-all of which. except two. ere Brit
ish--two alone, the Commercial Union and
the Liverpool and London and Globe.
made any profit at all on their United
I, States business in the last ten years.
4 This accounts for the desire of these Eng
y fish companies to get out of business. es-
necially as many of them have made in
Engiand and lost in the United States.
In New York. ont of fifteen companies,
thr-s. made a profit. and out ot twenty
Millionaire companies in other states,
Twelve showed a balance for the ten years
On the right side of the ledger
While nothing can be stated positively
81 regard to the Lion. Imperial and Pa
tr.etic. the fleures unoted suggest a reason
for their withdrawal
AN INCIDENT IN INDIANA.
A search warrant has been issued for a