Evening star., 1918-11-20
Total Paid in Sixteen Years.

Since the establishment Of the in
surance department OF the local Inu-
nicipal government, sixteen years ago,
commencing in 1902. the total amount
of premiums paid the insurance COM
panies in Washington for fire insur-
ance amounted to S11,90S, ,91i.i9, while
the losses paid by the insura nee com
panieS for fire losses was only S5,-
:i6S, ,7IS.4S, or 33 $40 per cent The
report calls especial attention to the
TACT that for the year 1917 there was
paid for fire insurance premiums
amounting to S9SS.2i1.03, on Whlch
there was paid for losses by the m
surance companies $150,902.4i, or only
Is lis per cent, the loss iallo TO PIE
miums being lower than that OF any
state in the Union for the same year,
which is Distinguishing compliment
to the efficiency of the Washington
fire department under Chief Frank J.
Wagner. Michigan and Mlnnesot a
show the highest loss ratio of " 1-l0
and 72 per cent, respectively.
In this connection the report shows
the District of Columbia the loss paid
ratio to 500 of premiums to be 316
per cent There is but one state
shown to have a lower loss ratio than
the District of Columbia for the
twenty-seven-year period. that being
Wyoming, with a percentage OF S4s
per cent. and the highest ratio OF
losses for the same period in Cali
iornia, with S22, Maryland following,
with S1.2 per cent.
1t is shown in the report that for
The period of 1917. using the ratio OF
c542 per cent as the expense ana
adding thereto the loss ratio of Is .
Der cent there was balance OF 4S
per cent underwriting profit to the
Insurance companies. For the SIX
teen-year period the District loss ra-
ITO shows 1873 per cent, to which, by
adding the average expense ratio OF
S642 per cent, there is total OF less
than 70 per cent, leavlns an unaer. @
writing profit of 80 per cent. For a
period of thirty-seven years 1t is
shown that from 1880 to 1916, inclu-
rive. the loss ratio of 37.6 for the Dis
trict and the average expense ratio OF
3s42 per cent, there was a total, ap-
proximately, of "A per cent and an
underwriting profit of approximately
26 per cent.
Discusses Proposed Higher Rates.
Touching on the proposal of the fire
insurance companies to advance their
rates 10 per cent. the report says: Il
have gone into the question OF fire
earnings in the District because it
has been proposed to put into effect
in the District a 10 per cent advance
in rates on fire insurance premiums.
This advance has not been put into
effect at the time of making this re-
port, and my investigation into the
question of fire rates leads me to the
conclusion that the District of Co
jumbia is probably a more profitable
field for fire insurance companies than
any state in the Union" This rate
was not put into effect.
During 1918 the insurance companies
writing insurance against burglary
and theft put into effec: 10 per cent
advance in their rates. The report
shows that upon investigation of the
records for sixteen years these COM
panies received in premiums 37,011
and paid in loses during that period
the sum of S21.536, with a loss ratio
for the period of 156 per cent
with an underiting profit of approXi-
mately 35 per cent. In concluding
the opinion that the recent advance
in rates was entirely unwarranted.''
Auto Liability Insurance.
There was a proposed advance OF
10 per cent in automobile liability
insurance rates recently. For five
years. for the period of 1913-1917, in.
elusive, the premiums paid liability
companies were s1.666. .620.54, on which
VI
showing loss ratio of S0.2 pei
cent Taking so per cent for ex.
penses. which the report says is
liberal. there would be profit OF
20 per cent in this class of risks. The
report shows the superintendent OF
insurance does not believe the ad.
vance in rate is necessary.
There was collected during 1917 fol
license fees S2O.47S.37 and for take.
s101.536.53. making a grand total Of
S121.S5S.53. This is an increase il
license fees of s16s.49 and taxes o.
S3.538.75 over 1916. The amount O.
insurance written during 1917, ex
elusive of casualty. was $1,75O,S64,
246N
Assets Of all insurance companie.
and associations transacting busines,
in the District of Columbia on De
cember 81, 1917. amounted to the sun
of $6.633, 3,495,243.51; liabilities, S5.451,
o36,1S5.11. surplus, including capital
S1.1S2.459, ,05S.40.
The report concludes with a detailed
statement of all companies, of al
classes, doing business in the Distric
of Columbia; those that have beer
established here since the last report
those that have been prohibited from
doing business here, and others tha
have withdrawn from writing policies
here. Among those prohibited from
doing business were six German com
panies. under authority of the trad
ing with the enemy" act
Sixteen companies doing business
here were carefully examined durinf