The New York herald., 1922-12-08
Heads of 1853 Companies at
Convention Sound Note
of Optimism.
AVERAGE POLICY LARGER
Old Line Concerns Write Nine
Billions of New Business
in Year.

The purchasing power of the people
of the United States has increased
about z per cent. in 1922. according TO
the experience of 15s life insurance
companies which contributed their sta
tistics to the sixteenth annual con-
vention of the Association of Life In
surance Presidents yesterday after
noon. The 15S companies wrote SO
per cent. of the new life insurance
last year, and their reports as to this
year are regarded as indicative OF ma
tional business conditions.
The reports showed that a total of
$4,000 100000 new life insurance is
being bought this year, an increase OF
1900 200, 900 over 1921. The per cent.
greater production will place the total
old line life insurance In force on
American lives at the end of 1922 well
beyond $4,000, 100000
"A record of the current sales of life
insurance Is now considered necessary
integral factor in constructing salts
factory barometer OF national business
conditions" said Frank II. Davis, second
vice-president of the Equitable Life AS
surance Society. after reading the re-
ports. THE figures for this year fur
nish irrefutable evidence that the coun-
try's recovery from the post war busi-
ness depression has so far progressed
as to indicate a largely increased pur-
chasing power generally on the part Of
the American people.
Business Grows Two Ways.
Twenty years ago the total life in
surance in force was 10000, ,000,0 a
little over the amount of new business
written this year. Now we find not
only the bulk of insurance increasing.
the expanding of its benefits to many
more people each year%7but, what is OF
especial significance. we discover the
individual policy holder taking out more
insurance per policy each year
Continuance of the nationwide demand
for more shelter and increased food pro-
duction is absorbing more than half Of
the current investment funds OF Ameri-
can life insurance companies, said Will
lam w. McC1ench, president of the
Massachusetts, Life Insurance Company
OF Springfield. in presenting survey OF
the general life insurance investment
situation UP to November /.
The outstanding feature of life insur-
ance investments during 1921 was the
great increase in mortgage loans" said
Mr.. McClench. THE s350.000,000 that
was so invested, in excess OF the amount
for 1920, constituted SO per cent. of tho
total increase for the year. The reason
for this large increase was that there
was unusual'activity In building and the
demands for money for such operations
together with the requirements for the
increasing agricultural development OF
the country, offered an attractive field
for investment Of life insurance funds.
other Increases Large.
THE next largest increase for the
year was In premium notes and loans
20 policyholders. These aggregated S14S,-
5000. Investments in stocks and
bonds increased by nearly 1900, 900
notwithstanding decrease of S23.50o,-
600 in the amount invested In railroad
securities. The gain in stocks and bonds
was the result of the increased invest
rnents in Government, state and munich
pal securities. During the first ten
months Of 1922. however, there appears
to be a distinct revival Of interest In
=
show an increase over the amount In
vested in that class of securities at the
close of 1921 OF s95, 900. 900"
The United States and Canada this
year Will have death rate almost iden-
tical with that OF 1921, the lowest in
recorded health history. said Or. Au-
gustus S. Knight, medical director OF
the Metropolitan Life Insurance Com
pany. Mortality from heart disease led
in the causes Of death, increasing over
1921 by nearly per cent Automobile
accidents and diseases OF strain In
Guiding organic heart ailments. cerebral
hemorrhage and Bright's disease caused
more deaths that in 1921. while ma
teriai reductions were noted In tubercu-
losis, typhoid fever. suicides and chill
dren,s diseases. The first quarte OF
1929 began with a much higher NOR
tality than did the corresponding period
IN 1921.
Two successive low annual death rates
are regarded by insurance men as more
than a coincidence. and are believed 20
be the forerunner OF a permanent Inn
proyement in national health condItios.