The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-27
LIFE INSURANCE.
.FIFTY=THIRD
ANNUAL REPORT
OF THE
CONNECTICUT
MUTUAL
LIFE INSURANCE COMPANY


umn, the items or Whlch are, therefore,
not repeated here.
It is very gratifying to be able to say
that. notwithstanding the many untoward
conditions of the past year. Its main re-
suits. so far as the Connecticut Mutual
IS concerned, have been satisfactory. the
mortality has been favorable; the lapses
and surrenders were relatively few; the
amount of business in force and the pre-
MUM income have increased; the assets
have Increased by $685., 345 IS, and the sur
plus by $50 POS %; the companys own
unique standard of economy has been
maintained; it has made the cost or its
insurance less than that in any other
company through its larger aver
age dividends. which it has not
had to reduce for the year 1893;
its securities have largely in
creased in market value; 1t has MAINTAIN
ed its conservatism at every point, and is
prepared with growing strength TO repeat
in the future its unrivaled success or the
past ffty-three years.
Assets, Liabilities, and Surplus.
The admitted assets January /, 1893,
were s64 1872. 3S7 q; the total liabilities were
S56, 665, S45 20, leaving a surplus OF S,5l6'-
542 or OF these liabilities S55, $751; l4 is the
reserve from former premiums required
to meet the increasing mortality OF the
future from the increasing age OF our
members, their premiums remaining UNI
form except as decreased by yearly oiVl-
dends. The legal standard of solVency
reouires this reserve to be computed on
the assumption that the companies Will
earn per cent annual interest as long as
any of the policies in the account may
continue: a possible period OF sixty or
seventy years.
In 1882, the Connecticut Mutual, alone
among the companies, anticipating the
great decline which has taken place in the
rate of interest and is still in progress,
based It's premiums and reserves for all
business thereafter on the assumption OF
earning only per cent, as the highest
safe calculation for so long future. rms
makes our reserve 81, S22 059 larger than 1t
is by the legal standard OF solVency' ana
our surplus correspondingly smaller. by
that standard our reserve liability Is $o3,-
$40 755. and our surplus s9,33S sol. Thus
have we long been steadily preparing Tor
that which is now startlingly evident to
all.
Insurance in Force.
The early months of the year gave
promise of considerable increase in busi-
ness, which was checked by the outbreak
and progress of the war; but so small
relatively were our lapses and surrenders
that we, nevertheless, made gain in the
amount Oh DuSlIISSS III AOlSC. AhO PSA-
sistence of our business is a most crafty
ing feature of our experience. 1t adds
steadiness to all our operations, gives US
the greater benefit of care in the selection
of risks and materially assists to keep
down the expense account.
We had in force January l, 1899, 1852
policies for $15S ,07S, $50; an ample business
for securing the most satisfactory results
to policy holders, and presenting less diff
flcult problems, in management than per-
tain to a business of several times greater
magnitude.
a Favorable Mortality.
We had a very favorable mortality ex-
perience for the year, the losses incurred
being so much less than those expected by
the Mortality Table and provided for by
our premiums and reserves as to make
saving of $541 1858. While our death rate
varies somewhat from year to year, such
has been the care exercised in the accept
anCe of risks that the variations have so
far all been well within the amounts called
for by the table, affording very material
savings. In no year has such saving
failed TO be effected.
The Interest Rate and It's Incidents.
The past four or five years have been
notable for the great volume of loans paid
off by borrowers, for great diminution in
the consequent accumulation of funds
awaiting investment, and a decline in the
rate of interest pending a revival of de-
mand. The hard times of the early nineties
with the panic of 1893 and the depres-
sion following, made great many solvent
borrowers anxious to get out from under
the burden OF debt and interest paying
and forced great deal Of foreclosure in
the case of fnsolvent or embarrassed bor-
fr row e The conditions have not yet so
lish the demand and the rates for money.
1t has, therefore, during the past year
been more difficult than usual to keep
money received in payment for loans has
not been absorbed by loans of a like char
acter, and has had to seek investment in
bonds Of a high class for security. but at at
a lower rate of interest
The conditions which have so affected
me the rate 17i OF interest have not only caused
the liquidation of many loans by fore
closure, but have prevented the real es-
tate market from recovering It's normal
ACTIVITY SO as to cause the transcription
or the foreclosed properties by Individual
holders. The real estate market is the
last to respond to either favorable or mn
favorable influences. When the market
believe that our properties, taken as
whole, will prove worth all they have
cost. Our past experience under like con-
ditions fully justifies that belief Mean
time, we are in a condition to await a re-
turn to conditions which will enable us to
sell at fair prices.
The stocks and bonds which now form
a large item of our assets Cat a market
value of over $40 ,0O0.0 00) are Of the best
character for security, yielding as fair a
rate of interest as the times allow upon
investments of the highest class ONLY
one item of these securities is in any
questionable condition. The city of Aus
tin, Texas, after receiving the money for
an issue of $40 900 of bonds and paying in
terest on them for fourteen years, has
now refused further payment, and denies
its obligation, alleging a technical defect
in its own compliance with the compH-
Gated laws of the State. The matter Is
being properly cared for.
This item aside, our assets are in g. thor
oughly sound condition.
The Distinctive Position of the Con-
necticut Mutual.
We desire to call most careful attention
to the particular, and as we believe, the
peculiar value Of the Connecticut Mutual
to it's policy-holders and to the insuring
puD.ic. and especially TO those principles
and practices which so widelv distinguish
it from the great competitors.
In the intense struggle between many
of the companies during late years for
pre-eminence in the volume of new busi-
ness and premium income and in rapidity
and magnitude of growth, certain funda-
mental facts have been put aside by the