The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-08
INSURANCE,
FIity.nInth Annual Report
or THE
CONNECTICUT MUTUAL LIFE
INSURANCE COMPANY.
To the Members:--

To the Members
The experience OF The Connecticut Nut
ual in it's nfty-nlnth year was satisfactory
and may be thus outlined: Some Increase
[ in the new business written. In the amount
OF business In force, In premium income,
| in interest and rents, In assets and In sur
| plus: a somewhat heavier mortality than
in the preceding year. though sttll consider
| ably less than that expected. giving saving
! OF 1882. s23. with no outstanding contested
claims considerable decrease In tho amount
and cost OF foreclosed real estate: recovery
In the market value OF other securities OF over
$4,000 az against the shrlnkAge Of about
! $4,000 In 1908; a reduction In the ratio OF
expense 20 income; sound condition through
out. The company continues In that STEADY
| full tide OF benehoent operation which mas
| for so many years disting ulshed IL among
all others. by administrative methods which
hold always one grand object In view maxi
mum OF result TO its benehciaries at mini
mum Of cost TO It's policy. holders, each and
all
All details will be found In the financial
statement which accompanies this report
An Interesting summary.
summary OF the operations OF hfty-
nine years may be stated thus Received
to polcy-holders and their benehciaries.
1924. 1853 IssOs. or 1874 2t,sS more than
the amount received from them: with assets
In hand OF SOS, 22t .s+i.5a, and surplus OF
sts2s. eOe,s4 with which TO meet liability.
actual and contingent. OF o.$se its.sa on
cept In the possible Gaze OF some society or
concern with only 4 local and slight MEM
accomplished by any other American life
Insurance company.
Persistence OF Business.
As for many years past. most gratifying
feature of our experience has been the per-
estence OF our business. 1t has been no
small factor in the company's prosperity
Business which goes OF rapidly can be re-
placed rapidly only at an undue cost. Bust
ness which stays costs little. and permits
the taking OF new business sufficient for
uniform good experience at such moderate
cost as does not disturb the favorable average.
That Is one of the sim pie secrets Of The Con-
nectcut Mutual's unequaled success.
New Business: Its Character and Cost.
The new business OF the year somewhat
exceeded that OF 1908. and also exceeded
the amount OF business ceasing SO that there
was some increase In the amount In force.
The new business was selected with our usual
constant care TO take only such risks as are
likely to give the same favorable mortality
experience which has been so large factor
In reducing the actual yearly cost Of our In
surance hitherto and 1t has been taken on
the same low basis of cost which has been
directly reflected in our large dividends
TO policy-holders throughout the oompany's
lifetime.
To the faithful agents who in the midst
OF a thoroughly demorElized competition.
and despite the always pressing temptation
Of much higher commissions and allowances
from Others choose to abide steadfast in our
service because OF IT, greater value TO those
whose need they sincerely seek to serve,
there il due alike from the management and
from the policy-holders benefited thereby
the distinct and constant recognition of the |
high. unselhsh quality of their labors for the |
greater good OF the whole membership.
Relation OF Mortality TO New Business. |
The public is often given to understand !
that as large and rapid influx OF new busi-
ness tends for time TO keep down the aver
age age of the business whole and no to
make the death losses appear IA smaller per-
centage OF the whole amount at risk. il really |
gives comparatively better mortality ek-
perenoe and therefore justihes it's abnormal
cost. This is not true. 1t bellies the whole
basis and structure OF life insurance. 1t Is
worth a moments examination:
lake 10000 sound men. aged 30, insured
for $1,000 each. or 500. 200. 600 altogether
these men will die each year until all are gone:
We charge each one the premium adequate
TO meet that rate OF loss. and from the pre-
miums make the proper reserves. The first
year only So will die, the company viii pay !
out $4,000. or only eishty-four one-huu.
dredths of per cent. Of the amount at risk
twenty years later there will be $3.50 OF these
men living. with ISL SOC. 900 at risk: I24 OF
them will die that year, the company will
IA n,ss al p4pn fn
amount at risk; in the forteth year CAS- Will
be living. with s44 1850. 900 at risk EOS will die.
the company will pay out 81, $50. 900. or about
) per cent OF the amount at risk In the fftieth
year there will be no living. with sl7 700 900
At risk. 80 will die, the company will pay
out $4,000 OOO or ia per cent. OF the amount
At risk: in the siIteth year only 2i8 will be
living. with .2.ieo,OOo at risk. eS will die the
will pay out s63O.O OF about 80
per cent. OF tho amount at risk But the
mortality which in the si1tleth year OF the
business calls for 30 per cent. of the amount
It risk Is Just rs normal and just as favorable
o the company rs that which in the first year
allied for only eighty-four one-hundre
II per cent. and If the company has charged
he proper premiums and kept the proper
eseryes It Is just well prepared to pay
he 80 per cent. as IL was TO pay the eighty
our one-hundredths OF / per cent. and II
no business WAS wen selected and well To- |
ated. the chances for a mortality more
adorable than that calculated for. with a
consequent saving on losses. have been equally |
rood all the way through.
No amount OF forcing at whatever cost
an always keep the inflow OF new business
reater than the outgo OF the old In the
Hture OF things the day will inevitably come
With any company. when its amount at risk
must come to a practical standstlll and the
gc OF its business. and the consequent ratIo
( its death losses to the amount at rlsk
each the maximum average. In that DIV
ho greater the amount at risk and the higher
he cost az which II was obtained, the greater
i'll be the struggle and the higher the cost
I keeping ii at even a standEtill.
Securities.