The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-02

Sls.ael 800 costing slsSs7 eST. IS. and Of n
,narset v1alue e sii.sss s-s, At a very
mostly long time 10 run. Their qualtty
viii readily appear from the reading OF the
schedule.
INSURANCE OPERATIONS.
Mortality.
The death losses In 1895 were So a1s. sSa
This amount e so far under that expected
BY the mortality tables used in our cal
culations as 70 give a saving from the pre-
miums and reserves provided therefor OF
s5s3 l55--a very satisfactory result
II is common thing for those companies
which are younger than the Connections
Mutual. or whose business has lspsed more
freely and had TO be replaced by costly
new blood to represent our mortality as
unfavoTahie IN comparison with their own.
by taking its ratio 10 some set OF figures
which makes our mortality look large and
theirs look small The amount OF COM
pany's losses and their ratio TO assets.
amount at risk, or any other group OF fig
ures, have nothing to do with the question
OF proper mortality or of loss or gain
by reason of il. The older the company.
the longer it's business has been on its
books. the more persistently II has been
kept up-that Ia. the more valuable tho
business has been 20 the company--the
heavier In amount relatively VIII its NOR
tally be. And the sole test OF the favor
able or unfavorable character of the actual
death rate incurred is IN comparing II with
the death rate expected by the table OF
provided for by the premiums and reserves
based thereon. Were the suggestions OF
such critics true, company would be safe
only so long as il were young
A company's business may be large and
comparatively new. and Its losses. there
fore, comparatively small in amount: and
yet these small losses may be far above
what were expected and provided for. and
may be a cause OF serious deficiency. Any
exhibit OF the amount OF death losses. how
ever apparently favorable or unfsvorabie.
-fr 81.
the expected losses were and what was
the loss or the gain by the difference be-
tween the actual and the expected death
rate.
Both in It's financial result and as a test
OF care IN The selection Of risks. our NOR
tally Is highly favorable.
Expenses.
The ratio OF expenses TO income IN 1875
was exactly 10 per cent. trIfing increase
over several previous years. II is an in
crease In ratio. however. and not In actual
VI w.. and Is csnse. by reason Of the
years business. as stated earlier IN thisre-
port There has been no relaxation IN the
strictness Of our economies. and the ex-
penses are far inside those OF any other
company. as the savings show.
Now business
without extra expense we made a good
gain In new business written in 1895. and a
somewhat larger gain In the amount In
force.
Measuring. as we do. the true value OF a
life insurance company to It's constituency
and 10 the community by its success In
realizing the ideal results OF the system
perfectly secure protection steadily main
tained az ITS lowest possible annual cost-it
is a profound satisfaction that the Con-
necticut Mutual has long since attained the
magnitude, financial strength. stability I'm
sn,emIsersnip. and all those elements OF
temptation 70 secure the show OF a sargs
rev business a. the cast Of smaller dlvf-
bends 70 present members. or at the sacri-
flee either OF sound principles IN underwent
Ing or of considerations OF public policy
Pursuing one undertaking course Of man
agement. we are able, as no other company
is. 10 give the highest results 70 our old
business and TO take on new with equal
advantage 10 both. Looking to the con-
slant and growing need Of family protec-
endure. the achievement of this position ~
rct the least Of the henefcent results Of
fifty years OF corporate life and activity.
No Foreign Business.
We regard II very material element OF
safety, as wen OF profitable economy
that our business Is restricted 10 our owa
country We select our own risks under
organization Immediately In hand: we do
net have TO delegate the control Of most
vital matters to the discretion OF a for
eign directorate. nor distribute the custody
OF our assets among foreign governments
subject 10 all the contingencies of their
political and commercial future. 10 he left
behind when withdrawal IS compelled until
ell 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
1ssi giving decreasing cost Of insurance
Ihere VIII oe SIM lar increase of divl-
dends and decrease in cost OF policies re-
ueving in 1926
The persistence OF our business centin-
uss 70 be gratifying feature OF our ex-
perience.
surg lus.
Notwithstanding the dividend raid In
1895 and The deduction from the cost OF the
home Office building already nofhd, we
made . satisfactory gain OF surplus. cor
bs'ties. - IA
From legal and governmental point OF
view our strength "a much greater than
our own calculations show. we are re-
eulFed 20 compute our liabilities on the
assumption that we earn 4 per cent an
nual Interest on AL business written
since April l, 1850. vs. have assumed only
2 per cent. as the BASIS OF caicuiaffo1.
making our liabilities probably over
A.epeoo more fand our surplus consider
ae,y lessl than the Department reports
~oms Facts About Surplus.
The public ought 20 understand much
better than e does Just how surplus aTisss
IN lie insurance CON pany, aas hSv ~
is affected BY the yearly variations in ia
experience Policy holders would BE ira
better able - Judge Of the treatment ac-
corded them b. their several Companies
in tins matter OF dividends. paI1-slp IN
surancSs. etc. The kno~lsdga woufa re-
move prs1a9ics as 20 those cnrnnsnges
which are doing right. and would make
perfectly clear tire precise character CT
the speculative CT Investment policies
50 greatly 10 vogue. and would show what
must hrst os lest ~ some body thar i.
may De won by somebody else.
Ne agree TO pay certain sums on fhA
occurrence o. a certain event To do tn
we must have premiums large enough -
pay running expenses. the death claims
and provide reserve for The greater Fsscr.
tally that viii come with the increasing
are % the business. We can earn inter-
est on that reserve while We hold IL So
we assume a maximum death rate a
maximum expense rate and - r7talms1zn
rate % interest. and calculaSs our Pre-
NUNS and the reserve 20 be tad esi3s
0It 81 them On those three assumptions
Y ths death losses and expenses are less
thar We Assumed, save the dlfersnc@
from the premium. IL the interest Is rnors
We save that also There are suudry
other Incidental items. Here IL an exhibit
OF TIE Operation o. these several factors
IN the Connecticut Mutual II lsS5.
Part of premium prvylesd
Tor expenses. etc. .......S NT.daf
interest and rents n ex-
eeSS q rate Asslfned.... ] CO SO
Balance proht AID loss. s.7ss
S~N-o fFSu expected
@s--~o xssSsS ............. sl@sl-o