Evening star., 1933-12-07
LESS AID ASKED
BY POLICY HOLDERS
Insurance Companies Reveal
let-up in Loans at An
nuaI Session.
Special pisnatch to rhe star.

Special Dispatch to The Star
NEW YORK, December Probably
the item Of most popular interest to be
dug out Of the mass of figures of life
insurance investments submitted today
at the twenty-seventh annual conven-
ton Of life insurance presidents would
be that of loans on policies.
The significance of the latest total
Of such loans is that it is now only
S20,000.000 higher than in 1882. This
definitely indicates the let-up In the
drain on the resources Of the insurance
companies, which had caused them
much anxiety in the preceding four
years, during which loans to policy hold
ers expanded 81 ,615 900, 900.
In 1929 the loan increase was Just
under $3.50 900, 900. This was before the
depression started and was partly due
to borrowing by policy holders to pur-
chase securities. In 1890 the increase
was $376,000.000. in 1881 it was $780,
100000 and last year $400. .0o0, 900. Loans
in this three-year period greatly eased
the position of policy holders when
their reserves Of other kinds had been
drawn down to minimum.
The present total of all policy loans
and premium notes outstanding by the
life insurance companies Is given as
S3. .435, ,000, 900. 1t is 17.7 per cent OF all
investments and reserves.
Portfolios Changed.
During the last IL months there have
been important changes in the invest
ment portfolios of the life companies
in general. These are represented in
decreases in farm and city mortgages
and increases in corporation securities
and in the obligations of the United
States Government and of various po-
littcal divisions in this country. The
ratio OF mortgages on property Of all
kinds to total life insurance invest
ments has, therefore, dropped to 32.6
per cent from 35.7 per cent last year,
while that In securities has risen to
37.4 per cent from 36.7 per cent.
Actually the holdings of all mortgages
amount to S6,3l7 ,000, 900; those of all
bonds and stocks, to s7,247 ,000, 900.
AS the life insurance companies have
in cash today s475, 100000 and in
United States Government bonds. $685.
600 900, the total Of tne.r so-called
liquid assets" roughly approximates
the present cash balance of the United
States Treasury. The ratio to all re-
sources Is about per cent, compared
with 3.7 per cent a year ago.
The year now closing has been one
in which much has been made Of the
relation of the life insurance companies
to farm mortgages. The total given
value of these mortgages Is 81 ,533 ,000,-
COO, or slightly less than 8 per cent Of
all investments, comparing with 89 per
cent last year, IL per cent in 1929 and
nearly 19 per cent decade ago. About
SO per cent Of all mortgages on farm
property are located in Minnesota, Iowa,
Missouri, North and South Dakota, Ne
braska and Kansas, or in that agricul-
tural area where the agrarian move
ment is strongest and most Of the up
risings against farm mortgage fore
closures have taken place.
Real Estate Increases.
The item Of real estate held by the
life insurance companies shows an in
crease this year from S753 1886, 900 to
S1,1l3, 100000. This fact Is commented
on in today's report, where it is stated
that lit should not be interpreted as
evidence of wholesale foreclosures on
the part Of. the life insurance COM
panies"
Breaking up the totals of corpora
ton securities held by the life insurance
companies into different classifcations,
it will be found that, of the total owned
OF a par value of $7,247, 900 900, no less
than s2,906,000,000 represents invest
ments in American railroads. Actually,
one-flfth of the entire funded debt Of
the steam transportation lines is held
by these institutions The next largest
corporate investment is in the public
utilities and amounts to s1,826, ,000, 900.
Bonds OF States, counties and cities ag-
gregate S795, 900 900, those of the United
States Government $4,000 900, Cana
dian government issues S452 .000, 900 and
all other bonds and stocks S598 900 900.
The total assets of 81 units which hold
the greater part of all the assets of all
legal reserve companies are now esti-
mated in excess of $2l 900, ,000, 900 and
have increased in the last four years of
strain and stress on all fduciary con-
Germs in the amount of S3,653, ,000, 900.
This exhibit of investments of widely
diversified character. the fact that the
liquid position of the life companies
has improved during the year and that
the demand on them has practically
ceased is one of the most gratifying
evidences of the fundamental strength
in American institutions that could be
presented. 1t should be most encour-
aging to, the holders of the $4,000, 900
life insurance policies outstanding.
Copyright 1887