The San Francisco call., 1905-02-10
INSURANCE.
Fifty-Ninth Annual Report
Connecticut MUTUAL LIFE
INSURANCE COMPANY

some increase IN CQe new DuS1uCoo
written, in the amount of business in
force, in premium income, in interest
and rents, in assets and in surplus;
somewhat heavier mortality than in the
preceding year, though still consider
ably less than that expected, giving a
saving of $252, 1923, with no outstanding
contested claims; a considerable de-
crease in the amount and cost OF fore
closed real estate: recovery In the
market value of other securities OF over
$576.000 as against the shrinkage OF
about $770.0O0 in 1908; reduction in the
ratio of expense to income; sound
condition throughout The company
continues in that steady. full tide OF
beneflcent operation which has for so
many years distinguished 1t among all
others. by administrative methods
which hold always one grand object In
view: maximum Of result to its bene-
ficiaries at a minimum Of cost to it's
policy holders, each and all.
All details will be found in the finan-
cial statement which accompanies this
report.
An Interesting Summary.
A summary Of the operations Of If
ty-nine years may be stated thus: Re-
ceived from policy holders. 1922, ,759.-
264.33; returned to policy holders and
their beneflciaries, 1924. 1858, ,4SS.9S, or ST.
4,224.65 more than the amount re-
ceived from them; with assets in hand
of $65, ,224. .S41-53, and surplus of s4.s2S.-
1864 with which to meet liability,
actual and contingent, o. $50, 1896, ,144.S9
on $167, ,167, $500 at risk on 70,454 poll
cies. Except in the possible case Of
some society or concern with only a To-
cal and slight membership, no COM
parable results have been accomplished
by any other American life insurance
company.
Persistence of Business.
AS for many years past. most grati-
flying feature Of our experience has
been the persistence of our business. 1t
has been no small factor in the com
pany's prosperity. Business which goes
off rapidly can be replaced rapidly only
at an undue cost. Business which stays
costs little, and permits the taking of
new business sufficient for a uniform
good experience at such moderate cost
as does not disturb the favorable aver
age. That Is one of the simple secrets
of The Connecticut MutuaPs unequaled
success.
New Business: Its Character and Cost.
The new business of the year some
what exceeded that of 1908. and also ex-
ceeded 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
civ ~ Co. Ill ELI
perience which has been so large fac
tor In reducing the actual yearly cost
of our insurance 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 company's lifetime.
To the faithful agents who in the
midst Of thoroughly demoralized COM
petition and despite the always
commissions and allowances from 9TH
ers choose to abide steadfast in our SER
vice because Of its greater value to
those whose need they sincerely seek
to serve, there is due alike from the
management and from the policy-hold-
ers benefited thereby the distinct and
constant recognition Of the high, unself-
ish quality of their labors for the
greater good OF the whole membership
Relation of Mortality to New Business
The public is often given to under
stand that as large and rapid influx
| of new business tends for a time tc
| keep down the average age Of the bust
ness as whole and so tc make the
death losses appear smaller percent
age of the whole amount at risk. II
really gives a comparatively better
mortality experience and therefore JUS
| titles it's abnormal cost. This Is not
| true. It bellies the whole basis and
structure of life insurance. 1t is worth
moments examination:
| Take 10000 sound men aged 30, In
sured for $4,000 each, or 100000. 900 al.
| together. We know within safe limits
how many of these men will die eacf
year until all are gone; we charge eacf
one the premium adequate to meet that
rate of loss, and from the premium:
make the oper reserves. The first yeal
only "a will die, the company will pay
out $S4o. 900. or only eighty-four one
! hundredths Of per cent Of the amounf
| at risk: twenty years later there viii
| be $3.50 of these men living, with $751;
100000 at risk: 124 Of them viii die thai
year, the company will pay out 1920
| 900, or IL per cent of the amount al
risk; In the fortieth year 4418 will bt
living, with $44, ,1S0, 900 at risk, 265 viii
| die, the company will pay out 81. $50 900
! or about per cent of the amount al
risk; In the fiftieth year there will bt
ITO living, with s17,7oo,0oo at risk. 23|
will die, the company will pay out ST.
300, 900, or Is per cent of the amount a.
risk; In the sixtieth year only 216 will
be living, with 2,160.000 at risk. So vii
! die, the company will pay out $500, 900
or about 30 per cent Of the amount a.
! risk But the mortality which In tn.
sixtieth year Of the business calls for 81
per cent of the amount at risk is just a.
! normal and just as favorable to th'
company as that which In the first yea,
called for only eighty-four one-hun
| dredths Of 1 per cent; and II the com
pany has charged the proper premiums
and kept the proper reserves it is jus
| as well prepared to pay the 80 per cen
as 1t was to pay the eighty-four one
hundredths Of 1 per cent: and IL tn
business was well selected and well 10
! Gated the chances for mortality NOR
favorable than that calculated for, witt
a consequent saving on losses, hav
/ been equally good all the way through
No amount Of forcing at whateve
cost can always keep the inflow of ney
business greater than the outgo Of tn
old. In the nature of things the da
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