The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-09
The indianapolis Fire Insurance Com
pany.

The removal of the home office of the
Indianapolis Fire Insurance Company from
it's former location in the Hartford block
to the large room recently vacated by the
Union Trust Company, Nos. 10 and LIZ
East Market street, is an indication or
growth not to be overlooked. This com,
pany was Incorporated in the early part or
1899 and began business Sept. of that year.
Between the above dates 1T had disposed of
it's capital stock Of $500 600 at premium OF
so per cent, and before 1t issued its first
paid up in cash, consisting of capital $780,
600 and net surplus 100000. With this ex-
hibit Of financial strength, 1t applied for
licenses TO do business in the States of
New York and Massachusetts, to which
States 1T was at once admitted. 1t has also
been admitted to the States of Illinois, Mon
tana, New Jersey, Pennsylvania and Wis
consin, in all of which 1T has first-class
representation, it's agencies being located in
the large cities having the best fire protec-
ton.
From the date it commenced business it
has charged itself with full reserve liability
upon all business written, computed by the
New York Standard, equal to the sum total
of all unearned premiums on outstanding
risks, and this reserve fund, that fully pro-
tects all policyholders, now exceeds 100000,
constituting almost its entire liabilities. The
creation of so large a fund, charged to
liability account, in so short period as
three years, could not be effected without
a reduction of the company's net surplus,
which was created largely for the purpose
of acquiring a large and profitable bust
ness without impairing the capital of $780,
600 pledged for the prompt payment of
every Just claim against the company. The
exhibit of such financial strength on the
part of the Indianapolis Fire Insurance
Company has enabled il to secure a large
and well-selected business, assuring its sue
cess from the very beginning of its career
Its total premium income from Sept i,
1899, to June 80, 1902, was S2SS. i25.2S; income
from a sa on INFESTED TSe assea
ment of June 30, 1902, shows 1891, 010.40 as
SETS with the following liabilities: Out
standing losses and reinsurance premiums,
s1213S: reinsurance reserve fund. S95,004.2S;
capital stock. 100000: total. sSO7. 142 %. leav
ing a net surplus over capital stock and all
other liabilities of sS392S.12, or a policy
holders surplus of 1888
The company's annual premium income
having reached a volume exceeding $200, 900.
it is the purpose of the management to
restrict its growth TO about $4,000 per an
mum. thus limiting the reinsurance reserve
to about its present volume, and to apply
net earnings, after paying losses, expenses
and dividends TO increase OF surplus, there
by increasing the book value of the stock.
which, in case OF liquidation, would yield
at least S32o0c0 upon stockholders invest
ment of 100000. So far the interest earn
ings on stockholders original investment
| have largely exceeded dividends paid them.
| and present interest earnings on invested
assets are sufficient 10 pay about per
| cent annually the 100000 paid in. AS
| the assets of the company increase interest
earnings alone will be sufficient 10 pay all
anticipated dividends and also contribute
| TO the upbuilding of a large surplus fund.
The underwriting OF the company's bust
ness is along precisely the same lines fof-
| lowed by the most successful companies of
| the country that began with no greater re-
| sources than the Indianapolis Fire and that
now have become great financial institu-
| tons.
No other fire insurance company incor-
porated under the laws of Indiana was ever
| organized upon so solid financial basis;
| none have ever attained such marked sue
| cess The Indianapolis Fire on Nov.
possessed assets exceeding 100000. and in
| its new home offices. with improved facili-
| ties for transacting business. will gain rap
! idly in business and prestige.