The Saint Paul globe., 1902-02-27
MONEY MAKINCYE
INSURANCE COMPANIES DID ENOR-
NOUS BUSINESS IN MINNIE
SOTAsIN 1901
NET PROFIT OF 12 PER CENT
Premiums Increased and Losses De-
creased-More Companies Needed
to Handle Business, Says
Commissioner Dearth.

State Insurance Commissioner Elmer
III. Dearth yesterday completed his pre-
hminary report, reviewing the fire and
marine insurance business done in Min
,nesota for the year 1901 The companies
operating in this state made a net prof
1t last year of zabout IL per cent. The
total business written by fire. marine and
fire and marine insurance companies for
the year was sass, 1888 49,, an increase of
$S,O42,S4 over 1900. The total premiums
We're $5,A2,172, an increase of $50, ,130,
Wills soo the he losses were $2,5S5,S6 decrease
of $689,076. 4 ~
The fire and marine companies did a
total business snr Minnesota during 1901
OF $50. 765,0S3. an excess Of SIS. 445, ,269
over 1900. . "a
The premiums collected during 1901
amounted TO $3.50, 1854, an increase of
1853, ,S91.54 over 1860.
Losses for 1901 were $2,215.46 AZ. or $780,
075I2 less than in 1900.
The average premium rate for 1901 was
$l.34 per $780, an increase of .03 over 1900
The average rate paid American com
panies was $f,20 and to foreign companies
$167. *
The ratio of losses to premium receipts
for 1901 was 4S,79. "a decrease of 21,21
from 1900
Figuring the operating expenses of the
companies at 40 per cent of the premi-
unls receipts. would make the total cost
or doing business in Minnesota 6S. 70 per
cent, leaving a net profit of 11.21 per cent
for the stock companies
Mutuals and Lloyds wrote risks to the
1900 of $588O44 Their premium receipts
aggregated $226, 80. .29, a decrease of $l5,-
1920 from 1900 Losses sustained, $780,
390.3l, a decrease of $S3, AZ from the
rate was Bliss per $100 of insurance, and
the ratio of losses to premiums was 1918
per cent.
Marine companies in 1901 wrote business
m t1An ne
from 1900 of $3.50, 4S9 Premium receipts
$475, ,062.21, an increase over 1900. OF SILL
549.5l. The increase in premium receipts
is due to the fact that these companies;
had not previously been reporting their
full receipts to the state. Losses for 1901
aggregated $225, ,014.08, an increase of $87,
5l6.4 over 1900. The average premium
rate was Al, and the loss ratio 49.49, an
increase over the preceding year of l9.49.
The township mutuals are the most
prosperous Of all fire companies in the
state. They do a farm business exclusive
ly. They had insurance in force to the
amount of $l35, ,425, ,669, an increase of $13,-
426,583. Policies outstanding numbered
81, 232 an increase of 6.707. Losses were
crease of $29,77653. Cash receipts amounted
to $267, ,472.57. an increase of $50, ,z39. 80. The
average cost of insurance was slightly
over Is cents per 800. The losses cost I3
cents, and the operating expenses a trifle
over cents per 500.
Mutual hail and cyclone companies in
1901 paid losses to the amount of $66, TAP. 49,
as against $76,025.S0 for 1900. The cost was
Is cents on each 500 Of insurance The
excess of receipts over losses was $25,-
1888, making the total assets of. these
companies at the close of the year $12,-
774.10 The commissioner reports that
most of these companies have begun to
yield up a reserve to place themselves
upon a better financial footing.
Notwithstanding the prosperous busi-
ness done in Minnesota last year, twenty
four companies withdrew from the state
because they could not do business at 4
profit. OF these fourteen were American.
nine were foreign and one was Mime
sofa mutual, which went into the hands
of a receiver. s-r
Six new companies We're admitted dur
ing the year. One mutual creamery and
cheese factory. insurance company was
organized, making the net decrease in the
number Of companies seventeen.
The commissioner says the number of
companies now in Minnesota is too small
to handle properly the large and ranadIv
increasing business of the state.