The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-16
FIRE INSURANCE TREND
IS TO CONSOLIDATION
Year 1914 Comparatively Barren of Formation of New
Companies. but Full Of Alliances
and ASSUMPTIONS.

As the tabulations OF results for 1914
are being published fire underwriting
in the United States presents rather
more di~scouragins than encouraging
features. according to some of the best
posted insurance men. The stockhold-
-rs Of the Are insurance companies
whose capital Is at risk are divided In
their Views, largely In accordance with
the respective condition and expert.
encs Of their institutions. As in other
lines Of business, success has been
achieved by a comparatively small
number Of corporations.
During the past year the tendency
toward consolidation among companies
has confirmed a trend which has been
manifest for some time. Numerous
institutions. sometimes 'oply local in
their ~operAtions, have found II iinpos-
slble to weather the more serious
storms and have allied themselves,
either by complete absorption OF
through underwriting alliances with
stronger and more successful COM
panies.
OF the formation Of new FIRE insur-
ance companies the year 1914 was
comparatively barren. The early fall
ure Of a number of new companies
which were formed under relatively
enormous promotion expense caused
action by numerous State Insurance
departments for the protection Of the
public. with the result that promoters
have been debarred from untruthful
and overcolored statements OF profit.
In the larger cities Of the United
States there II an u~ndersupply of re-
liable indemnity. In the smaller places
conditions are reversed and the over
plus Of capital seeking remunerative
retvrn 10 almost absurd.
Record - Last Decade.
Ten years OF fire underwriting in the
United States, ending December 81.
1914. show the following results:
Foreign Cos. Z. S. Cos.
Premiums. .f1N, les,f .o2s.s CSC. ns;
Losses ..............,... 41s.l15.o22 l.0S0. so. 81!
g~nderwritinE ...."..... 'n.i9,sa fssss.ss
Ratio losses TO pre-
Ratio expenses TO pre-.
Increase in iiabiiitic. a.,s.Sss iiso.s:s
Loss. tGain.
The ten year period indicates an un-
derwriting loss for all companies OF
sl1,45S,311. This period includes the
largest confiagration in history and
greatest destruction of values by fire
that OF San Francisco in 1906. A very
gradual recoupment in loss paying
funds was under way when on Junv
% 1914 n IarCa nnpftor - th~ .,,,, -,
Salem, Mass. was destroyed by fire
With a loss of $4,000. 900. This alon,
has set back the accumulation OF re.
serves, 80 necessary to the solvency
II fire insurance institutions. severa.
years.
The frequency OF large fires. otter
termed confiagrations. raises the con.
lecture. both among fire insurance
people and the general public. which
Ia vitality interested through the a
ment OF premiums. as to whether con,
ditions in the cities of the Unite,
States portend more CONGREGATIONS o
fewer. One of the leading underwater
has declared that as to the large,
cities, such as New York and Chicago
the Increase of fireproof buildings ant
those protected by automatic sprinkler.
has been such, working through tn,
economic forces of land values. az t
render these large cities constant,
less liable to sweeping CONGREGATIONS.
Ffres . Constant Danger.
Certain large sections Of even tn,
great cities are, however. not under
going such transformations. either q
all or not rapidly enough 10 take sucl