New-York tribune., 1901-02-23
FIFTY-FIFTH ANNUAL REPORT
-oF THE
CONNECTICUT
MUTUAL LIFE INSURANCE
COMPANY.
RESUME or INTERESTING HISTORY AND
4 REVIEW OF RESULTING CONDITIONS

/
! The experience ~ the vear lsfa while favorable.
! was IN way especially remarkable n the busi-
/ ress - progress Of the Company It's chief Incl
dents may b very briefly summarized There was
| a fair Increase in the premium income and in the
| amount Of insurance in force. as for many years
past, the Of interest desirable securities
| showed general tendency downward. the fore
closure of MORTGAGES which for several years fol-
| loving tho panic ~ 1893 for considerable
! amounts. showed change for the better. with an
increase in the sales Of foreciosed property. the
expense ratio has been kept al it's usual low limit
save in the expenses incurred upon forecosed real
| put and keep the properties In good condition
pending sale. and which will disappear as sales
hsyer 1f ha1 9rsy hat Of Fl 3 Sae Ta so M inside
Ing amounted sil2. .9f2 the market values Of Sc
curries which had ruled lower for several years
recovered: for two or three years We have been
| able 70 earn less surplus than for many previous
atng small items Of surplus in excess OF our usual
ayfa S9S a ig i es6me sSn S nSsa az eaCe ~ u
tain for the present the same high dividend scale
and o,aeT conditions which affect the surplus earn
/ .nE ability ~ an comranies shall be more definite
| ~ ----'- - The necessities Of the future can he
better Judged
~teadIne-s In Dividends.
| u : our desire % 20 far perfect safety
| viii hermit IN n1aintai-iug = steady scale Of an
/ -uaIlv decreasing cash cost The greatest ar
most uncertain factor operating against Us Is ths
continued tendency 20 fan in interest foreseein-
Ia,ionS rom tho basis ~ per cent annual inter
| est 10 that of only r-r cent The only mTasura-
| earn or save surplus are the death rate and the
n ems" acco-i pr I-S "- -. NJ - 49,,
/ orty r-aaitiousi uifh The Connecticut Mutual are
The oIa CeE,ur, aud the
With this very brief review % the general
features ~ 'hs years experience and calling AZ
\ rerton the statement clsewhere - the details
| of our financial operations and condition. We beg
rrrr rHr aar att ~
tiers relating 70 our own past history. and 70 The
existing conditions ~ the life insurance ousiness
/ as We stand an the ie-i-rirg ~ a new century
/ with history behind MS of hfty-hve most event
For IN tbs, line there have been wrought
so9T ~ unp4fea T S5qe -ltEer es seniais ~ the
fundamentai r-ncDes ~ correct PrastiGe and o. of
which The Connecticut Mutual has stood and
stands Issue
The True Question.
What. in that time. have We done how efficiently
have We accomplished the one service which life
insurance alone can render; how do Ne to-day
stand addressed 20 the best rendering of that
sfTs 5 eoas Il 5s r6oTv '% 70 i sa ps % need need wc
life insurance sets i-se-f 70 serve and loyal 10
those facts and principles which. themselves un-
changing must ALWAYS remain the basis and test
respecf ~ these thinrs docs our history ssG pres
ent position contrast W-.-l those ~ many others
which some have succe~cod. justified hy tho-~
IN which they have ft--,1- oui II VIZ Ne -
riFht OF wrong: have Ne done are doing tho
and for those who must Uag rs cosl2
Financial summary of FiGty-nv. Years.
The monetary pa-t - the story Is sNoT TOD. r.
members Tor oriiulry eNtr7. ard annuity
premiums sZlIslscs 81. ~ have returned 90 them
fo- death losses. sndoNmenfs. anrui-es s1rr"n-
5ered policies and diy.dents - 7ss II 81 or s. =
Der cent Fo- interest rents art rTo1f and .'--
We have had 81 ~ sa55s. Total income - ''a-
70 hlf
cnly per cent-has gone for expenses - u. -
forms part % gross assets - - 20 5cover-
Ing p1s9 ssiT & STs rd ssssis ns IsSres
81 ~ 81 81 l2s ss cent ~ the receipts from
! 1oHry-holders.
These results % more than haf century have
! been equaTed BY no Other American company No
other company has returned 20 its policy holders
20 large 4 proportion q their payments. no other
holds large proportion OF us Interest income
| e reserve other has done - business A. -
small a rate ~ expense. II has done more for Us
policy holders and A. 20 them. than any
| other company
Lif. Insurance Pa.t aud Present
Put that t. not All that is - profoundest inter
| a-t as Ne stand A. the beginning 81 a new To
SEE clearly where stand to-day and what the
prop-;ery ~ our attitude. past and present q is
necessary 70 review the main festures - the de-
yeIopueni % the business - life Insurance during
! ire afty-Ave years Of our corporate exlstence.
which cover practically The whole history % the
Fifry i've years ago there local business
| experience 70 - guided by. The companies
/ perience ~ the EEglish companies a. being that
/ most likely 10 be repeated here They assumed
| seventeen English companies per cent annual
/ interest. and = considerable margin or loading
simple, They realized that the right business of
life insuI company was 70 insure hves and
| as nrrle a. possible Commissions and All
| penses uitched on low scale Rates ~ tr-
| ierest were fairly high. No provision was made
for any return on lapsinE policies n a premium
not paid sl former payments were forfeited
to the company, no matter now large the reserve
/ This was very large source ~ proht but a great
| cause - complaint on the part ~ those who had
~ eive M their policies especially after they be
gan learn that not only had their premiums
ree p,,- "a ai-o 1-ovi,,ed : reserve fund watch
was for the future protection Of their policies. and
was therefore not needed By the company when
/ these policies lapsed and ceased n he liability.
Dividend Periods.
In view OF ne lack of experience and the small
amount 81 business. and following again English
precedent dividends made only AT the end ~
| hve-year periods. were not begun on any policy
until IL had run I'VE Years The prodts from for
FIXTURES the high rates Of interest and the savings
carefully managed coupanIts 20 hlahe We HlNl-
| deuds unexpectedly large. II was not many years
before annual dividends became ne general prac-
>on-Forfeisur-.
Presently. the inequity Of keeping mans con
tribution 20 the reserve policy which had
lapsed and ceased 10 a liability. and the current
cost of which while # in force he had funy
paid. began b. more clearly seen and more gen
The strongest competitive attractions Companies
wed with each Other in doing equity" 10 lapsins
Changes N Plans Premiums.
As an alternative 20 annual premium payments
during life rates made for the payment OF
an premiums in limited period of years. as ten
fifteen. etc. while the policy covered the whole
Lite endowment policies we're introduced. to