St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1913-01-29
THE OUTSTANDING INSURANCE

the Company has transacted DOth
participating and non-participating
business in accordance with market
demands. AS, however, it became
gradually recognized that the parti-
cipating was more economical
everything else being equal, the is
sues Of non-participating policies
have dwindled down and of late so
decidedly as to lead the Directors to
give notice that no non-partici?at-
ing insurance would be written after
January /, 1913. The outstanding
insurance entitled to share in sur
plus distributions equals $162,2O9,-
1918 and that which does not so
share, $17,255, 289.54, the respect
i've percentages being 9O.3996 par
ticipating and 9.61T % non-parti-
cipating. Twelve years ago the Com
pany changed it's rate and reserve
calculations on new business to a
SO interest assumption, having pre-
Viously thereto used 70. The in
surance now being carried upon a
4 % basis is $50, O4,82431 and on
a 80 basis. $126, O59,76523, the
latter being 7O.24% of all business
in force. The 20 business itself
consists of 53.099o On life plans,
1895 % on endowments and 22.96%
on terms. The experience with in
suraEce upon the lives of women
continues to be favorable. The
Company now carries $3.50 such pol
icies, amount $8,49O,374, with an
average policy amount of $1,335, an
average premium per 81, 900 of SAP
so and a total outstanding premium
account of $338,645.43, indicating
on the part of those women who
have insured a disposition to make
use of the higher policy forms.
SURPLUS EARNINGS
The explanation has been made
many times in the course of an
nual reporting that the chief sources
of surplus are a low mortality ex.
perience and a rate Of net interest
earning in excess of the rate assum,
ed in the calculation of premiums
and reserves. The expected moral
ity for the past year was $1,852,-
1854. The net loss by death,
namely. the gross loss less the re-
serves released, was $1,2+1, 1916
There was a saving from this sourc
of $611, 1888. The actual to en-
pected mortality was 67.O1To. The
interest and rents received equalled
So, 5S2, 660.13 but the gross earn
ings, after allowing for changes in
due and accrued interest, were ST.
674, 525.97 against which a charge
was made for investment expense of
sos, 1895. This leaves $685.
1861 of net interest earned, of
which $1,707, 1868 was needed to
maintain the reserves, thus making
the item of surplus interest earned
1857, 1926. The ratios of actual
mortality to the expected for the
several insurance groups were 70.4C
% for life, 63.2O% for endowment
and 5S.11% for terms.
DIVIDENDS FOR 1913
This report refers to surplus over
and above all contract or policy liza
bility, as per statutory requirements
of $6,8S6, 640.34, an increase of
$311, 894.10 for the year The to-
tai surplus amounts to $7,944,814.-
"a, including 58,174.5O for pay
ment to members in 1913, which lat
ter item itself includes unpaid div
idends of $47,597.62 carried over
from the preceding year. OF the to.
tai surplus $4,422, 96236 is being
carried on account of deferred divi-
dend policies. This leaves a gener-
al or unassigned surplus of $2.463,-
677.98, which is equal to $40 of
all policy reserves. These figures
tions. AS some departments of in
surance make use of the amortiza-
ton valuation, these results will be
increased in the reports of those
states in the neigbborhood OF four
hundred thousand dollars. The div
idends for 1913 will be computed
upon the same scale as for the pre-
ceding year, representing four adj
vances in the scale itself within five
years and a continuous increase of
dividends returned on all standard
forms since the adoption of our
present system of insurance twelve
years ago. The reduction in the net
costs of insurance has been so mark
ed as to warrant attention to the
amounts which the Company has re-
turned in dividends to policyholders
during recent years; in 1908, $279,-
8O8.14; in 1909, $53O,213.19; in
1910, $771,254.39; in 1911, $685.
S70.18; in 1912, $1,O38, SO2.66; and
it has set aside for payment in 1913
the sum of $1,O5S, 174.5O, included
in liability.
CASH SURRENDER VALUES
II 10 PAOpCA1y " OS I6SIGIlCu ina
greater persistency does not apply
to life insurance policies. Yet, apart
from that it should be pointed out
that our company treats with great
liberality those members who are
obliged to retire for reasons often
times best known to themselves. The
reserves released on surrendered
policies during the past year
equalled $1,3O6, 929.4S. The values
paid in cash amounted to $1,221,-
516.59, but the values actually al
lowed in cash and ether equities,
paid-up and extended insurance
amounted to $1,278;855.74, leaving
surrender charge of $28,O73.74,
or less than 2.15% of the reserves
released. The benefits derived by
insured members from their equities
in the reserves which really make
such policies the equivalents of linn
tied payment endowment and life
policies afford an excellent reason