The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-20
INSURANCE OF
AUTOS SHOWS
RISE IN PROFITS
Chicago Motor Club Unit
Makes Progress Despite
Accident Gain.

AS evidence of successful year
in the face of a decided increase in
automobile accidents, the Interim
surance Exchange of the Chicago
Motor Club in its annual report,
just issued, discloses a marked i'm
provement in its liquid positiop-a
gain of 3.5 per cent from 36.5 to 70
per cent.
c. H. Kirk, Indiana state manager
of the exchange, 426 N. Meridian-st,
says:
In spite of the increase in &C
cidents during 1884, the conServa-
tive underwriting policy of the ex-
change produced highly satisfactory
underwriting results for the year.
The general loss ratio for 1884 was
3789 per cent. In 1888 it was BIAS
per cent.
Some reduction in accidents is
being shown in states having in eff
feet a financial responsibility law,
together with better economic con-
ditions, are factors which should
contribute toward making 1885 a
highly successful year for the eX-
change"
While cash resources were re-
duced about $4,000 total liabilities
we're cut $2S0,000, or more than five
times the amount of the reduction
in cash assets. The ratio of adj
mitted assets TO liabilities was 236
per cent.
Writes Down Service Item
Total admitted assets of the COM
pany as of Dec. 81, 1884, were So
492, 165. This compares with S., $685.
IT'S at the close of 1888
The decrease is accounted for by
a WritedoWn. of about so per cent
in the valuation placed upon the
property and business of the COM
pany's wholly owned subsidiary, Car
Service, Inc, which does the garage
and repair work for the members
of the club. This property was
valued in 1888 at $432,952, but at
the close of 1884 the book value was
placed at $211,133. The writedoWn
was charged to surplus.
Total gain from operations was
$306174 and surplus to policyhclders
was $2,017,894. Cash on hand and
in banks was $27S,S45 at the end of
last year, as against 1881 ,234 at the
close of 1888. First mortgage loans
were 1881, $3.50, against $1,172, 800.
Bonds owned amounted to $898,950.
Stocks Owned by Company
Stocks owned by the company to-
tailed $380,633 and consisted of
American Telephone and Telegraph,
Standard Oil Indiana) shares and
the holdings in Car Service, Inc.
Real estate owned was on the
books at $l99,005. Included in the
first mortgage loans are the bonds
Of the Motor Club Service Corpora
ton, which are secured by a first
mortgage on the History Chicago
Motor building at 66 E. S. Water-st,
maturing serially at the rate of $780,
600 year.
Reserve for losses and claims was
$636,353 as of Dec. 81. 1884, against
1868, 1892. Reserve for unearned pre-
MUM deposits was S607 494, against
$716,125
Liquid Assets S594,49S
Liquid assets of the company were
as follows:
Cash, $276,645; bonds, United
States Treasury and HOLC obliga-
lions, $8638; stocks owned obliga-
tions 1896; stocks owned, $169, 500
american Telephone and Tele-
graph and Standard Oil Qnd0; pre-
niums or deposits outstanding, not
over three months due, $129,715.
This makes a total of $584,498 in
liquid assets, while other admitted
assets aggregated $2,9O7,667, leaving
balance of liabilities of $3.50, 1872.
The total income of the exchange
in 1884 was ST ,999,842 and total dis
bursements were $2212,000.