The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-27
FIFTY-FIFTH ANNUAL REPORT
OF THE
CONNECTICUT
MUTUAL LIFE INSURANCE
COMPANY.
A RESUME OF INTERESTING HIS
TORY AND A REVIEW OF RE-
SULTINGs CONDITIONS.

TORY AND A REVIEW OF RE-
SULTING CONDITIONS.
To the Members:
The experience of the year 1900, while
favorable. was in no way especially re-
markable in the business or progress. of the
company. Its chief incidents may be very
briefly summarized: There was fair in
crease in the premium income and in the
amount Of Insurance In force; as for many
years past, the rates of interest de-
sirable securities showed a general tend
ency downward: the foreclosure of mort
cages, which for several years following
| the panic of 1893 was for considerable
amounts showed change for the better,
with an increase in the sales Of foreclosed
property: the expense ratio has been kept
| at its usual low limit, save in the expenses
| incurred upon foreclosed real estate, which
have been considerable in order to put and
keep the properties in good condition pend
| ing SALE and which will disappear as sales
take place; the mortality of the year, while
somewhat heavier than that OF 1889, was
| so far inside the losses provided for by our
tables that the saving amounted to $4l3,-
| 362 the market values Of securities, which
had ruled lower for several years following
the panic of 1893, were in great measure
recovered; for two or three years we have
been able TO earn less surplus than for
many previous y1ars, during wnhch its %e ha az
| surplus in excess of our usual dividend,
which, in just such times as have been
experienced since 1854. become available
| to maintain for the present the same high
dividend scale for many years past,
| and until the interest rate and other con-
ditions which affect the surplus earning
ability of all companies shall be more deh-
nitely settled and the necessities OF the
| future can be better judged.
steadiness i'm Dividends.
| 1t is our desire to go as far as perfect
| safety will permit in maintaining a steady
scale of annually decreasing cash cost.
| The greatest and most uncertain factor OPP
Grating against is the continued tend
| ency to fall in interest, foreseeing which,
| We, nineteen years ago. changed our caicu-
lations from the basis of per cent annual
| interest to that of only per cent. The
| only measurably controllable factors af-
fecting our ability to earn or save surplus
| are the death rate and the expense &C
count In respect of these, the care in
the selection of risks and the prudence and
F! economy traditional with THE con-
NECTICUT MUTUAL are steadily MAIN
| tanned.
The Old Century and the New.
With this very brief review of the gen.
| eral features of the years experience, and
| calling attention to the statement else
where of the details of our financial 0per-
| atoms and condition, we beg to ask your
/ lating to our own past history, and TO the
existing conditions of the life insurance
| business, which seem especially pertinent
and interesting as we stand at the begin
ming of new century, with a history be-
| hind us Of ffty-five most eventful years.
! For in that time there have been wrought
on a scale of unparalleled magnitude, and
by many companies, certain great practical
1 denials of the fundamental principles of
| correct practice and of business morality.
upon their departure from which THE
| CONNECTICUT MUTUAL has stood and
stands at ISSUE
The True Question.
| What, in that time, have done: how
| efficiently have we accomplished the one
| service which life insurance alone can rem
| der; how do to-day stand addressed to
| the best rendering of that service in the
future: how far basis, plans, and
methods responsive TO that special need
which life insurance sets itself TO serve, and
loyal to those facts and principles which,
themselves unchanging, must always re-
main the basis and test of legitimate plan
| end legitimate method; now, In respect OF
| these things, does our history and present
| position contrast with those OF many
| others; and do stand condemned by
| those things in which some have succeeded.
| or justified by those in which they have
| failed, but in which we have succeeded;
have We been, are we to-day, doing right
| or wrong; have We done, are we doing, the
best that can be done for widows and or
| phans, and for those who must pay It's
cost?
Financial Summary of Fifty-Five
| The monetary part of the story is soon
told: In the fifty-five years we have re-
| ceived from our members for ordinary, ex-
ira, and annuity premiums. s2ll,6i2069.S6;
we have returned to them for death losses,
| endowments, annuities, surrendered poll
4 aia dividends
| per cent. For interest, rents. and profit
| and loss we have had $50, $50, 545.5s:
| total income of sos, 462, 6l5. 49, OF this sum,
| s207. 79s, 11l.S1 has been returned to policy
| holders as just stated: $21 ,9o6, 3O5. 69-only
| per cent.-has gone for expenses; &c.
| 41s,175-66 has gone for taxes. and the bal
| ance. S62. $40, OF. %. forms part of our gross
| assets-$64 965, 176. recovering present liza
bilities and surplus. The payments to
gate S272, 1853, 2S7.96, or 12SSS per cent. of the
receipts from policy-holders.
| These results of more than half century
| have been equalled by no other American
! company No other company has returned
| to it's policy-holders as large a proportion
| of their payments; no other holds large
/ a proportion of it's interest income in
| serve: no other has done its business at
| so small a rate of expense. 1t has done
more for its policy-holders, and at less
| cost to them, than any other company.
| Life Insurance Past and Present.
| But that is not all that is of profoundest
| interest as we stand at the beginning of
/ new era To see clearly where we stand
| to-day. and what the propriety of our atti-
tude. past and present, 1t Is necessary to
l review the main features of the develop
/ ment of the business of life insurance dur
ing the fifty-tive years of our corporate
| existence. which cover practically the whole
history of the business in the United States.
| Fifty-fve years ago there was no local
| business experience to be guided by. The
| companies organized about that time took
as a guide the experience of the English
| companies being that most likely TO be
shown by the actual experience OF IL Eng
| lish companies, per cent. annual interest,
| and considerable margin or loading
| for expenses. Their plans were very few
and simple They realized that the right
business of life insurance company was
1 to insure lives and to make that insurance
cost the premium payer as little as posi-
| BILE. Commissions and all expenses We're
pitched on a low scale. Rates of interest
| were fairly high. No provision was made
| for any return on lapsing policies II a
premium was not paid all former pay
| ments were forfeited to the company, no
matter how large the reserve or surplus
| that had been accumulated from them.
| a great cause of complaint on the part of
| those who had TO give up their policies,
| especially after they began TO learn that
| not only had their premiums paid the cost
| of their policies up to the time of lapse, but
| had also provided a reserve fund which was