The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-10
FIRST THRIVE MONTHS MARKED HY
HEAVY LOSSES. BUT LAST
NINE NORMAL
RATES ON DECLINE
BY o. ID. PITTS,
Treasurer Virginia Fire and Marine

ATe@suTST virginia FIRE ana BiRTfne
Insurance Company.
THE year 1912 began with stag
gering loss record over the entire
country. and for the first three months
this loss record exceeded in amount
the loss record for any similar
months in the history of the coun-
try tapart from confiagrations). and
which caused q great deal of uneasi-
ness TN the minds of the most con-
sentative underwriters However, for
the last nine months of the year the
loss ran much more evenly. thus AL
lowing the companies to recover near
ly normal conditions.
Premiums, Incomes and Rates.
While increase In the material
value OF property In this State re-
suited in o larger amount of insur-
ance for the year 1912 than for 1911.
yet the amount of premium Is not
likely to be increased TO any great
extent, owing to quite g. substantial
reduction In the average rate. This
reduction In rate is made In most in
stances as the result of the better
ment OF or improvement In the risks,
which. of course, quite naturally re-
duced the FIRE hazard. The average
rates. shown comparatively for the
five years. 1907 to 1911, inclusive. are:
1907 an average. rate Of. ...1.17
1908 an average rate f....1.I4
1903 an average rate of. .1.12
1910 an average rate of. los
1911 an average rate Of. ..1.0s
thus showing conclusively that a con-
seant decline is taking place In the
average rate. The public is now pay
Ing IL cents on the 500 less for
their insurance. While we do not
give the figure of the average rate
for the year 1912, stiii We feel quite
confident that 1t has been even less
than for the year 1911. and that the
country now enjoys lower average
than for any year since 1900.
Losses and Expenses.
The fire loss for the past three
years has been excessive. and 1t liz
probable that when the insurance
loss OF 1912 can be accurately tabu-
lated 1t will show much higher than
for the previous year, which was
63.s3, as against 4s.T& for 1910. The
expense of conducting the business
has materially increased. and this In
q great measure Is due to the In
crease In taxes. The taxes OF almost
every company has increased each
year, and in some instances the taxes
actually paid by a number OF the
companies are larger than the dlvi-
dend paid the stockholder. In clos
ing the year 1914 we gathered around
the table TO figure the final result OF
the year, and we find that the
shrinkage in the market value OF
securities an compared with the year
1911 will show quite decrease. This
of course, In an item to be taken into
consideration, as IL affects the ffnan-
ciai condition of every insurance cor
poration, and when we consider the
large loss ratio and the heavy ex-
pense ratio and the decline In secu-
rites. II is very apt TO make the pru-
dent underwater feel that the year
1912 will be even less profitable than
the year 1911. although the year 1911
was far from being q profitable year
The Are insurance business In. as we
must admit. an absolute necessity. and
ts a very hazardous business Anyone
making an Investment in the stock OF
flre Insurance corporation should
receive a larger dividend than from
almost any other business interest
owing to the nature of the business
This. however. the investor does not
receive In a number of instances: ths
net income realized upon his invest
ment Ia less than we would receive
from q banking institution"