The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-01-08
PROSPEROUS YEAR
FOR NATIONAL
LIFE ms. CO.
Largest Business Transacted
in 1908, Says Pres. DeBOer
THREE MILLION MORE ASSETS
Greatest Earnings from investments
in SO Years, Low Expenses and
Favorable Mortality

Montpelier, Jan. S.-The National
Life Insurance company has issued
its 59th annual statement. declared by
its president to represent the most
prosperous year in its entire history.
Expenses have been reduced. the NOR
tally was very favorable and the
earning from investment was the lar.
gest of any year. Insurance outstand
ing amounts to Sl54,147,S43. The in
surance issued and paid for during
1908 equalled S16,159,92l. During the
past year the companys income from
premiums was S5,33S .62S.9S; from in.
terest and rents, $1,9l5.S5510: from
annuities, S4i6, 45S4S; from other sour
ces, $57,60l00; a total of S7.95S. SOS .56
of which S3,24S,009.S7 was saved and
added to the permanently invested as
sets for policyholders use.
There was paid to policy holders
during 1905 the sum of $3,4574S1 OF
which the detail is as follows Claims
by death, $l,4S3,5ST32; dividends S27g
S0S.14; annuities S2S5. 303.S6: matured
endowments, S55A64L73; cash surreu-
der values, SS54.I45.97 In addition
to what precedes the company loaned
to its members on the collateral OF
their policies Sl,5SS,30314. bringing
the total of such loans outstanding up
to S5,476, O247 In connection with
its liberal system of restorations. in
creases and exchange of policies the
company handled transactions for it's
members during the past year amount
ing to 81 ,4S0,451.
Gross assets on December 81, laos
amounted to $44,033, 965.O4 of which
the main items are bonds entirely of
the federal, state county and munici
pal character, Sl6,4lS,21l24: mort
gage loans. first liens, $l742L65IS5
loans to policy holders. including pre-.
lnium notes, $7,1067417S; and cash
81, 12S,71469. The company has nc
investments in collateral loans. stocks
railroad securities or corporation
bonds of any kind, limiting it's invest
ments strictly to municipal bonds and
mortgages. Outside OF its Office build
ings In Montpelier and Boston which
are listed together at $3.50 600, It owns
but $200,500 of real estate. which is
probably the smallest holding of that
nature by any life insurance company
of any size in the United States The
vigorous and healthy character of its
assets are indicated in report by the
fact that not a dollar of due interest
remained unpaid on the entire holding
of bonds and only $4,19S of due inter
est remained unpaid on mortgage ac-
count.
Conservative Accounting.
The total liabilities of the company
including insurance, annuity, extra
and trust fund reserves and all other
items on account Of policy holders,
amount to $50, $3.50, but in addit-
ion to this amount the company in
cludes in its statement of liabilities.
which are all computed on market
values and full statutory reserves. the
sum of all dividends payable in 1909
namely, S536,0l005, and also S205,
72L74, representing all other accrued
or due liability. In this latter amount
is included taxes payable by the com
pany during the current year, namely
S142. 1906S. The State of the com.
pany is therefore made peculiarly
strong in that all calculations of as.
set values are made on a market basis
while policy reserves comply with
every known legal requirement in the
United States, and at the same time
liability account is charged with all
known due and accrued items, incud-
ing all taxes, and all dividends pay
able in 1909 This differs from a
practice which is quite common and
which treats taxes as a current dis
bursement and dividends as an item
to be earned, either as a whole or in
part, after the date of their declara-
ton, when in fact they are already a
lien upon the assets of a company
Substantial Gains.
The company made the following
gains in growth and strength during
1908, a year Of peculiar competition
and change in State laws throughout
the business world. In insurance out
standing the gain was S2,36S,000, in
gross assets, $3,6S1, 900; in gross sur
plus, including credits on deferred
surplus insurance, $9S9,000; in gener-
al surplus, $755OOO, practically an
increase of 100 per cent; while the
number Of policies was advanced TO
1894 on a paid-for basis and to So
151 on an issued basis, the new is
sues being represented by $3.50
policies and $lS0472272l of insur-
ance. These figures signify that the
company earned over and above It's
actuarial assumptions surplus OF
over 100000 per month and that 1t
disposes of said earnings b. inc'oas-
ing the total dividends to be PAID in
1909 by over 100 per cent, a. com
pared with 1908, and increases its
general surplus account in The sane
degree, while at the same time 1t aug
ments all credits on account of de
ferred surplus insurance by a. quarter
of a million.
This analysis of the statement dis
closes the interesting fact that from
the standpoint of statutory reserves
of asset values, of accounting for IL
ability and of treating all policy ac'
counts the company is destined to en-
Joy at an early date, If 1t does not al
ready. the distinction of giving the
most effective as well as the most
economical life insurance service to
be had
Salient Facts.
The details of the companys state
ment disclose the following facts OF
interest and public value; that the
total cash in office on December 81
It's bank deposits In different cities Of