The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1896-03-03

economies, and the EXPENSES are far
inside those of any otheFsasmpany' as
the savings show. N
NEW BUSINESS.
Without extra expense we made al
good gain in new business written IN
1885, and somewhat larger gain in the
amount in force.
Measuring, as we do, the true value
Of a life insurance company to its con-
stituency and to the community by its
success in realizing the ideal results OF
the system-perfectly secure protection
steadily maintained at its lowest pos
sible annual cost-it is a profound sat
isfaction that the Connecticut Mutual
has long since attained the magnitude,
financial strength, stability In member
ship, and all those elements of steadi-
ness in operation, which remove the
temptation to secure the show of
large new business at the cost of small
er dividends to present members, or at
the sacrifice. either Of sound principles
in underwriting or of consideration OF
public policy. Pursuing one undeviat-
ing course of management, we are able,
as no other company is, to give the
highest results to our old business and
to take on new with equal advantage
to both. Looking to the constant and
growing need of family protection so
long as the American home shall en-
dure, the achievement of this position
is not the least of the beneficent results
OF fifty years of corporate life and ac-
tivity.
NO FOREIGN BUSINESS.
We regard it a very material element
of safety, as well as Of profitable econ
omy, that our business is restricted to
our own country. We select our own
risks under familiar conditions, and
have our entire organization immedl-
ately in hand; we do not have to dele
gate the control of most vital matters
to the discretion of foreign director
ate; nor distribute the custody of our
assets among foreign governments, sub
ject to all the contingencies Of their
political and commercial future, to be
left behind when withdrawal is COM
PEELED until all liability on account of
foreign contracts disappears; long
wait.
DIVIDENDS.
The dividend paid in 1895 was larger
| in the case of each policy than that paid
in 1894; giving decreasing cost of in
/ surance. There will be similar in
crease of dividends and decrease of cost
policies renewing in 1896.
| The persistence Of our business con-
tinues to be a gratifying feature of our
| experience.
SURPLUS.
! Notwithstanding the dividend paid in
4, Il, o.,% 80
the home office building already noted,
we made a satisfactory gain Of surplus,
! corresponding safely with the increase
| in liabilities.
| From a legal and governmental point
/ of view our strength is much greater
/ than our own calculations show. We
are required to compute our liabilities
en- the assumption that we will earn 4
! per cent annual interest. On all busi-
ness written since April l, 1882, we have
assumed only 8 per cent as the basis of
calculation, making our liabilities prob
/ ably over $1,000, 100000 more land our
| surplus considerably less) than the de-
/ partment reports will show
/ SOME FACTS ABOUT SURPLUS.
4 The public ought to understand much
! better than 1t does just how surplus
arises in a life insurance company, and
how it is affected by the yearly varia-
lions in its experience. Policy holders
would be the better able to judge of the
treatment accorded them by their sew
era1 companies in the matter of divi-
dends, paid up assurances, etc. The
knowledge would remove prejudice as
to those companies which are doing
,.ierl,t r,,1 ao1y flyr 01c '
4 the precise character of the speculative
or Investment policies SO greatly. in
vogue, and would show what must first
be lost by somebody that it may be
won by somebody else.
/ We agree to pay certain sums on the
occurrence of a certain event. To dc
this we must have premiums large
enough to pay running expenses, the
death claims and provide a reserve fol-
the greater mortality that will come
with the increasing age of the business
We can earn interest on that reserve
while we hold it. So we assume a max
inlum death rate, a maximum expense
rate, and a minimum rate of interest
and calculate our premiums and the
reserve to be laid aside out of Them or
those three assumptions. If the deatf
losses and expenses are less than we
assumed, we save the difference from
the premium; if the interest is more, We
save that also. There are sundry Other
incidental items. Here is an exhibit o.
the operation of these several factors
in the Connecticut Mutual in 1885,
Part of premium provided
for expenses, etc, e97,o51
!. Interest and rents in ex-
cess Of rate assumed, 1,0S5,5S0
Balance profit and loss, 1929
death losses, 543,l55
Saved from reserve on
surrendered policies. s5,4o2
| Increase in market value
Of bonds and stocks, 1O5,1l3
Sundrles 1859
Total. $s,s4522..
: This total of items applicable to ex.
J penses, dividends, etc., has been applied
as follows.
Expenses of management, $779,5T6
! Taxes. 3i4,689
. Charged off on Home Of
flee building, 100000
81 ,e9i eeI