The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-07-14

Inc Dig insurance GeaI winch mas
been on the tapis for some weeks past.
and which has drawn the attention of
eastern and western insurance men TO
Salt Lake city in an especial manner,
has been consummated, and the Home
Fire of Utah may be credited with one
more brilliant stroke, in the interest of
its stockholders and its policy holders
as well. The deal in question is the
reinsurance of a large part Of the
Homes fire risks by the famous Hart
ford Fire Insurance company, of Hart
ford, Conn, a company we'll known as
one Of the strongest in the world. By
the arrangement. which was concluded
by the directors of the Home company
at their recent meeting, all the policies
which have been written at cut rates
since the war opened in February last,
are assumed by the Hartford until
their expirations, which run from one
day to three years. The Hartford, of
course, allowed a stiff bonus on the
deal, but 1t was glad to 90 so in order
to acquire such a desirab bic line of
risks as are on the Home books. and
the Home people are especially pleased
with the double advantage of placing
such a company as the Hartford be-
hind them during the war, and making
a handsome profit at the same time.
The contract of reinsurance is very
different from those which have been
so frequent since the war of rates
opened, as it provides that the Home
shall continue to do an active business,
while other companies which have re-
insured their risks have retired from
the coast or quit writing business al
together Several insurance papers
that the Home would retire from bust
ness, but nothing of the kind has ever
been contemplated.
We have every reason to be salts
fed with the transaction" said Presi-
dent Heber J. Grant yesterday to a
Herald representative. 1t Is really
more in the nature of q partnership
between the Hartford and the Home
than a reinsurance contract, as the
Home keeps right on doing business
and the Hartford merely stands be-
hind US on the cut rate business We
have taken and shares our liability
during the war. I consider it q very
handsome tribute to the class of bust
ness on the Home books, that with the
insurance demoraIized as II IS and
with the future so uncertain, the Home
should have been able to enter into
an agreement so desirable, and to do
SO at d handsome profit. OF course, u
was only possible from the fact that
the Home business is carefully picked,
and that the ratio of its losses has
always been far below the general
average in the territory. This fact
has been the occasion of our receiving
many offers to reinsure and go out of
business in the past, but the directors
have always declined to entertain any
such proposition. The present demon
allied condition of the insurance bust
ness, however, decided the company
that it would be good business discre-
ton to share our liabilities with some
strong company till the war was over.
especially as the chance offered itself
to do so at a profit. Hence the ar
Management with the Hartford. The
Home will go right on in its cOnserva-
tive way, and people who patronize it
will have the satisfaction Of knowing
that they are supporting a purely local
institution, with the added knowledge
that the partnership arrangement with
the Hartford gives them a security on
their policies second to none in the
world"
The Hartford was organized in 1910,
and has a capital Of a million and
quarter. On January 1, 1895, its assets
were SS,645,73 and its surplus over all
liabilities was more than two and a
half million dollars. 1t paid nearly
three millions in fire losses in 1894 in
the United States.