St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1912-05-01


nation into the mortality, interest
and expense earnings Of the COM
pany and by an analysis Of it's as
sets and liabilities, in all which
matters the work of the company
stands forth as a peculiar example
of administrative results and pre-
vision.
The actual to expected mortality
in 1907 was 1881 per cent; in
1908, 63.66 per cent; in 1909, CLOS
per cent; in 1910, 1915 per cent;
and in 1911, 57.58 per cent. Here,
then, is an average mortality of 3d.
70 per cent for five years, or less
than two-thirds of the expected and
somewhat under the average ex-
perience of the company for the
past 20 years. This proves the
care exercised in the selection of
risks, the value to the company of
its refusal to reinsure or to increase
it's limit or to take on speculative
assurances, and it especially eTnpha-
sizes the high quality of its out
standing business from the stand
point of risk. During the year 1910
1.-THE figures for 1911 not being
avaiIable) rs of the leading life
companies in the United States ex-
perienced a mortality Of 71.O4 per
cent of the expected, as compared
with 1878 per cent in 1911 by the
National Life.
In the matter of
Interest Earned
on mean ledger assets it is to be
noted that the rate of the National
Life was 488 per cent in 1907;
4.89 per cent in 1908; 49O per cent
in 1909; 400 per cent in 1910 and
496 per cent in 1911; while the
aforesaid 25 leading companies av-
eraged Ats per cent in 1910. These
rates of earning, amounting in ag-
gregate for the National Life to sur
plus interest per annum of three
quarters of million, are especially
significant when it is recalled that
it's asset composition consists wholly
of municipal bonds, first lien mort
cages, policy loans and cash in bank,
with the smallest realty holding of
any company of any size, and that
the system employed in the se1ec-
ton and care of it's investments sup
plies a record over the past eleven
years Of investments of $50, 037,-
1898 without the loss of either
1t is difficult to compare statisti-
cally the expense outgo of a life in
surance company, because such ra-
tics are relative only and involve
different forms of work. The Ma
tionaPs combined death and expense
rate averaged 1870 per $1,000 of
insurance in 1907, $17.4O in 1908,
$17.4O in 1909, $3.50 in 1910, and
IN I p.ea6
average of from $19.40 to $3.50
for "a leading companies during
the same period.
Thus the ercord OF the company
presents
Consistent Gains.
in outstanding insurance and in as
sets and an experience in mortality,
investment and expense as the result
of careful and intelligent supervi-
sion which, naturally, tends to pro-
duce a large saving on policy hold
ers' account and made possible the
large surplus returns referred to
above.
But, apart from this, very strong
ly demonstrating an ability to pay
dividends and assuring maintenance
hereafter, are the following very
significant figures: During the last
five years the company's net or gen
eral surplus was advanced from
$887,299.24 to $2,328,691.83, an
increase of $1,441,39259 an aver
age of nearly 100000 per year
and an actual increase over the peri
cd of 162.45 per cent.
The gross surplus, in which item
are included all surplus reserves on
account of deferred surplus policies,
increased during the period from
$4,224,2S7 to $6,574,746, or more
than so per cent, the difference in
the ratios of increase for gross and
net surplus being due to the fact
that all business in recent years has
been written upon the annual divi-
dend payment plan.
These Increases
have been effected Notwithstanding
the fact that during the same period
the company has greatly increased
its outstanding insurance account
until it now amounts, on a paid-for
basis, to $172, ,655.21, while it's
admitted assets during the last five
years have been increased by $751;
933, 013.60, now totaling $53,443,-
227.06 net and $50, 1881
gross.
During the period, therefore, in
which the National Life has shown
such marked gains in every item of
investment and insurance compost
ton, and such great gains over all
the actuarial factors assumed in its
work regarding mortality, interest
and expense, and in which also it
has continued to strengthen its
condition by the most conservative
valuations of both it's assets and its
liabilities, it has yet increased it's
general surplus to admitted assets
from 1.91 per cent at the close of
1907 to 4.36- per cent at the close
of 1911, and it's ratio of gross assets
to liabilities, including deferred
surplus account, from 1921 per
cent at the close of 1907 to 114.22
per cent at the close of 1911.
The economic significance of this
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