Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-12-10
Big Real Estate
Holdings by
Insurance G.0mnanleS

railroad securities as the leading IN
vestment held by life insurance COM
uanies, according to original statis-
ties submitted to the 10Th annual
convention Of the Association OF Lie
Insurance Presidents here today.
Speaking on "A Decade of Life In
surance Investments" Asa S. Wing
president of the Providcnt Life and
Trust Company of Philadelphia, stat
ed that the real estate mortgage loans
OF the life insurance companies have
doubled in ten years, increasing from
81 DDS, 100000 at the end of 1911 to
$o,46S, 100000 on October 81 Of this
year.
Investments in railroad securities
were 81, $50, OOO.OO at the end of 1011
as against $1.793, 100000 at the end
Of 1920. Real estate mortgage loans
form more than 80 per cent. of the
total assets of the companies now,
while railroad securities, which
formed more than So per cent. ~
years ago, have dropped to 26 per cent.
Policy loans of $S2O,O00,OOO rank
third and United States government
bonds of $772,COO,OO0 are a close
fourth, being 11.3O per cent. of the
assets. Other investments include
state, county and municipal bonds
and real estate. The total assets of
the companies are in excess of ST.
800, 100000.
Referring to the huge increase in
real estate mortgage loans, President
Wing said much of it had gone to the
farmers, but that there is now dis
cernible trend toward the city again
this point he said:
I'm order that this convention
might have the latest data as to the
trend of life insurance investments
in mortgage leans, AZ companies
holding more than % per cent. of the
; assets of American companies have
just made reports showing the total
amount of their farm and city mort
cages as of October 81, 1921.
II find that $261 100000 has been
! added in ten months from December
/ u, 1920, to October 81, 1921, making
total of $22,46S, 100000 real estate
| mortgage loans on October 81 of
| this year. OF this total, 1921, 300,-
600 is on farm property and $1,221,-
800, 900 on city property. Therefore.
for the first time in many years, if
not for the first time in the history of
the country, the total amount of
farm loans held by life insurance
/ companies now exceeds the loans on
city property, the proportion being
5O.53 per cent. loans on farms as
against 1917 per cent. on city prop
erty.
"Of the increase of $261 100000 in
! mortgage loans during the first ten
months of this year, S161 100000 is in
farm mortgages and S1OO,6O0,00O in
city mortgages. The increase in
farm mortgages is greater in amount
than the increase in the city mort
cages during these ten months, as
| was the case in 1920, but there is
still the same tendency that I previ-
ously pointed out, namely, to increase
the proportion of loans on city prop
erty as compared with farms.
"This trend of investments toward
the city has been strongly manifested
since 1919 and can be shown most
clearly by the proportion of new
| money going into each class of mort
cages during the last few years.
Please note, during 1918 and 1910,
that 9f.03 per cent. of all the net in
crease in loans was on farm property
and S.97 per cent. on city property.
vested in farm loans dropped to 63.1S
per cent, while the city loans in
creased to 1922 per cent.
During the first ten months of
1921, the same tendency has contin-
ued and the proportion of farm loans
has dropped to 81 80 per cent. while
that on city property has increased
to 3S.41 per cent. With justifiable
pride, speaking at an insurance gath
ering, ! can point to the investment
of life insurance funds where the
greatest need of the nation has
called During the last six years it
was vital for this nation, for itself
and the part it was playing, that our
agriculture should be stimulated to
highest productivity. That the COM
panies met this condition is shown in
the percentage IF agricultural loans.
There is at the moment another i'm
hot of
ton catching up with deferred build
ing in our cities. The national tend
ency of insurance company invest
ments to meet imperative, justifi-
able demands is made equally clear
in the now perccptible trend toward
city loans again"
Another striking effect of the re-
cent world war on life insurance in
vestments is shown in their holdings
of United States bonds. On this
point Mr.. Wing said
AT the end of 1911, before these
bonds were listed as n separate item,
the life insurance companies held
about $4,000 of them as compared
with seven hundred and sevcnty-two
millions at the end of 1920. The ap.
pearance of United States bonds as a
separate life insurance investment
item occurs in the tables beginning
with. the year 1917, when the amount
had increased to nearly $4,000, 600
little more than one per cent of all
the assets. Three years later, with
the amount increased to seven hun
dred and seventy-two millions, the
nercenfara is II IN par rant of @y,o