St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1913-01-29
Sixty-Third Report
of the
Policy Holders
of the
National Life
Insurance Company

OOhpdAJ respectfully SUBMIT lLS
sixty-third annual report During
1912 the Company enjoyed contin-
ued growth and prosperity. It's
gross income amounted to $9,431,-
841.55, it's gross cutgO to S6,S42.-
960.76 of which $5,395,797. was
paid in various benefits . to policy
holders, and income saved to So
5SS,8S0.79. The new insurance is
sued and paid for equalled $2O,3S5,-
OBJ. At the close of the year the
gross assets equalled $56,038, 867,-
81, and outstanding insurance on a
paid-for basis, $179,464, 607
CONSISTENT GAINS FOR TIT
YEAR
AS evidence of the Company's con
sistent growth during 1912 the
following gains are reported over
the corresponding items for the pre-
ceding years: In insurance pre-
miums $225,O62.24; in interes'
and rents $191, 1O9.OS; in surplus,
including deferred credits, $311,-
894.10; in gross assets $2,593, 57S
and in insurance on a paid-for basis
$6,7S5,952.
INCREASED SERVICE TO POLICY
HOLDERS
The service to rolicyholders has
been increased very materially, such
payments during the past year
amounting to $685., 1876, dis
tributed as follows: For claims
by death, $1,898, 8S6.S0; dividends,
S ,038, 802.66; life annuities, $499,-
O39.8S; trust fund payments $22,-
767.42; matured endowments,
STA, 1884, 81; cash surrender values,
81, 221.516.59. These payments
to members exceed the total for the
preceding year by $3.50, 571.46,
while the increase during the last
three years in payments to policy
holders amounts to $1,518, 018.18.
NO CHANGE IN INVESTMENT
POLICY
The Company has continued it's
simple investment policy of making
loans only within continental United
States, resulting in a broad distri-
button and a strong composition of
it's assets, which now equal $685.
038, 867.81. This amount in turn
consists of government, state, coun
ty and municipal bonds, $1S,985,-
009.46 at market value; of first lien
mortgages on carefully selected real
estate, $25, 5,899.10; of loans to
the Company's members on the col
lateral of their own policies, S.
7O6, 687.9S; of real estate, $275, 700,
consisting of $25O,0O0 in Office
buildings and $4,000 in long time
ground lease; and of $3.50, S67.S0
cash in bank and in hand. The
item of $1,979, 4O3.47, interest due
and accrued and unreported and
net deferred premiums and the
amount due from agents ($1, 233.19)
is properly secured.
AN ANALYSIS OF THE ASSETS
The Company's aim has been to
reduce it's investment holdings to
the simplest and most solid char
acter, so as to secure a profitable
rate of return and a condition that
will insure the definite fulfilment of
its insurance contracts at a low net
cost to the insured. During 1912 its
holdings of municipal bonds were
increased by $500, 1852 at market
value, as per this report, but by
$40, 1852 at par value. The
mortgage account was increased
$1,866, 627.81 The item of policy
loans and premium notes increased
$526, 255.45. There was no change
in the real estate item, which is
negligible quantity, practically linn
tied to Office occupancy, thus meet
ing the demands of state regula-
tions upon that point. The dis
tribution of the assets by class is as
follows: net uncollected and de-
ferred premiums, 131 %; cash, 1.01
%; policy loans and premiums
notes, 15.4S%o; municipal bonds
34.11 % and first lien mortgages
45.39To. The due interest on mort
gage investments is $4,368.51, free
from prospect of loss. The item Of
due and accrued interest and rents
is 2.21&5 and real estate, including
the Company's occupancy is forty
nine one hundredths of one per
cent. The Company continues it's
system of reviewing all investment
matters through daily, meetings of
its Committee on Finance and caus-
es all mortgage our securities to be
inspected by its own officers, thus
insuring for it's investments quality
a proper distribution, good earning
capacity and freedom from friction
THE INSURANCE WORK
During 1912 the Company issued
new insurance of $22, 633, 400. The
amount paid for was $2O,3S5, OBJ.
The sum carried over into 1913 was
$2,11O,500. The average amount
of new policy issues was $2,22S, as
compared with $1y97S for all bus
mess outstanding. The premium
per $1,000 of new insurance was
$31.O3 Of the issues 54.67 % was
upon life plans, 11.70% upon en-
dowments and 33.639o upon terms.
1t continues to be slowly recognized
that under an equitable and scien
tific accounting the life and endow-
ment policies WILL in the long run
prove to be more profitable and sat
isfactory to the average policyhcld-
er. While the gain in issued in
surance, compared with 1911, was
$2,756,2O8, it was S2,310,129 on
paid-for basis, and the gain in total
outstanding insurance amounted tc
$6,7S5,952 as compared with So
ATLAS, in 1911. The policy of a
conservative expansion, Of improving
the efficiency of existing agencies