Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-07
Fifty-ninth Annual Report
Connecticut MutualLife
Insurance Company.

outlined: Some increase in the new business writ
ten, in the amount Of business in force. In pre-
mium income, in interest and rents In assets and
In surplus; a somewhat heavier mortality than In
the preceding year, though still considerably less
than that expected, giving a sewing of $3.50. 1913.
with no outstanding contested claims: consider
able decrease in the amount and cost of forecosed
real estate; recovery in the market value Of
other securities of over $4,000 as against the
shrinkage OF about $4,000 in 1908; a reduction
In the ratio Of expense to income; sound condi-
lion throughout. The company continues in that
steady, full tide Of benefcent operation which has
for so many years distinguished it among all
others, by administrative methods which hold al
ways one grand object in view--a maximum Of re-
suit to Its beneflciaries at a minimum of cost to
its policy holders. each and all.
All details win be found in the financial state
ment whicn accompanies this report.
AN INTERESTING SUMMARY.
summary Of the operations Of fifty mine years
may be stated thus Received from policy holders.
$232, 759, 284S3; returned to policy holders and
their beneciarics 1924 $685. $685. or 81 594 e24 Go
more than the amount received from them. with as
sets in hand of $65, 224 81 3d. and surplus of 81
sZe 664 with which to meet liability actual and
contingent. Of $50 1896 14aS9 on $167 1877 90 at
risk on 7O454 policies. Except In the possible case
Of some society or concern with only n local and
slight membership, no comparable results have
been accomplished by any other American life
insurance company.
PERSISTENCE OF BUSINESS.
AS FOR many years past, most gratifying fea-
ture OF our experience has been the persistence Of
OUT business. 1t has been small factor in the
eompahy's prosperity. Business which goes off
rapidly can be replaced rapidly only at an undue
cost. Business which stays costs little and per-
mits the taking Of new business sufficient for a
uniform good experience at such moderate cost
as does not disturb the favorable average Tint is
one of the simple secrets of The Connecticut Mn,
tual's unequaled success
NEW BUSINESS; ITS CHARACTER AND COST.
The rev business of the year somewhat exceeded
that Of 1903, and also exceeded the amount of
business ceasing; that there was some increase
In the amount in force The new business was
selected with our usual constant to take only
such risks likely to give the same favorable
mortality experience which has been so large n
insurance hitherto; and it 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 a
thoroughly demoralized competition, and despite the
always pressing temptation of much higher COM
missions and allowances from Others choose to
abide seadfast in service because Of its great
er value to those whose need they sincerely seek
to serve, there is due alike from the management
and from the policy holders benefited thereby, tn.
distinct and constant recognition of the high un-
selfish quality of their labors for the greater good
Of the whole membership
RELATION OF MORTALITY TO NEW BUsr-
NESS.
The public is often given to understand that as
a large and rapid influx of new business tends for
a time to keep down the average age of the bust
ness as a whole and to make the death losses
appear smaller percentage of the whole amount
at risk it really gives comparatively better NOR
talty experience and therefore justifes its abnop.
NAL cost. This is not true. 1t bellies the whole
basis and structure Of life insurance. 1t is worth
moments examination:
Take 10000 sound men, aged 80. insured for
$4,000 each, 100000 O00 altogether We
know within safe limits how many Of 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 premiums make the prouer
reserves. The first year only 81 win die the COM
pany will pay out $40, 900. or only eighty four
one hundredths of 1 per cent of the amount a
risk; twenty years later there Will be $3.50 of
these living. with $S1, 800 600 at risk; l24 OF
them will die that year, the company viii pay
81 30 900, IL per cent of the amount at risk;
in the fortcth year 4,4ls viii be living with S4i,-
1s0, 900 at risk 80 will die the company will pay
out 81, 6oo, 900, about per cent of the amount
at risk; in the fftieth year there will be Ito lv-
ing with s17 roo 900 a risk $50 will die. the con-
pany will pay out 81 800, 900, Is per cent of the
amount at risk; in the sixtieth year only PIG will
be living with $2,16o.oo0 at risk 6 win die, the
company will pay out $3.50 900. about 30 per
cent of the amount at risk. But the mortality
which in the sxtieh year of the business calls for
so per cent of the amount at risk is just us nor
NAL and just favorable TO the company as that
which in the first year called for oaIy eighty four
one hundredths OF per cent; and IL the company
has charged the proper premiums and kept the
proper reserves 1t is just well prepared nay
the 80 per cent as it was to pay the eighty-four
cnehundredths of 1 per cent; and il the business
was well selected and well located, the chances for
4 mortality favorable than that calculated
for, with consequent saving on losses have been
equally good AL the way through.
No amount of forcing at whatever cost can al
ways keep the inflow of new business greater than
the outgo of the old. In the nature of things the
day viii inevitably come with any company when
its amount Of risk must come to practical stand
still and the age of its business AMI tie ,Guen-
ratio of its death losses to the amount at risk,
reach tie maximum average. In that day the
greater the amount at risk and the hsaer the cost
at which it was obtained, the greater will be the
struggle and tue higher the COST Of keeping ii at
even 2 standstf
SECURITIES
The corporate securities held 10y Of tie
highest class. Their par value is $50 .36l ,0-v;
they So 6SJ, 1l6, and worth In the market
$500. AIS, or 81 .003.3o2 more than their cost
and 81 1873 ,34s more than their par value. The
year 1908 almost unprecedented strinkage
in the market value of such securities, that upon
holdings aggrcsating $4,000. The past
year has seen q large recovery toward what may