Evening star. [volume] (Washington, D.C.) 1854-1972, 1961-02-26

report now being mailed to str
Record assets Of $94,646. 00l
with $41. 1854. 900 five years earl
$84S, 900 20 years ago.
$2.4 million Is years earlier and
Earnings after taxes surged
onward to $6.416,000. compared
with $3.4 million in 1855, $751;
900 in 1850, $4,000 in 1S45 and
SIS, 900 in 1910.
The latest assets and earn
ingS after taxes also were well
ahead Of q year earlier when
the former aggregated $8l, 6I5,.
900 and net was $4,908, 900.
Signed by President Lorimer
A. Davidson, the report went
out with proxy statements for
the annual meeting at 10 am.
on Wednesday. March %.
More Liberal Pensions
The proxy statement dis
closed stockholders will vote on
proposed liberalization Of the
company's pension plan, in
GLIDING elimination Of employee
contributions and increased
benefits.
If the changes had been in
effect in 1860, the statement
said the company would have
paid out $16S.46S, or $2O, 1895
more than the $147,573 cost Of
the present plan.
The maximum annual pen
sion would be increased to $685.
600 from $4,000. Directors be-
lieve the changes will help at
tract and retain superior en-
ployes and maintain high en-
ploye morale, the statement
said.
The company had around l.
$50 employees at the end of 1860
compared with 1900 o year
earlier. less than 800 five years
earlier, around 400 ten years
earlier. less than $50 fifteen
years earlier and less than 100
at the end Of 1910.
Expansion Impressive
A 25-year summary of the
company's growth is easily the
outstanding feature Of the Sill
yer Anniversary report.
For stockholders the best
comparison was Of net earn
ings after taxes. These amount:
ed to $3.14 q share for 1860 VS.
$40 in the previous year, $1.67
q share five years earlier, "A
cents a share for 1850, / cent
a share in 1945 and not quite
cent q share in 1910.
Net premiums written in 1856
aggregated SOS, O22 900, COM
pared with $50, ESQ 900 in 1859
$25, 785. 900 in 1855, $8,O17,0OC
in 1850. 1889 900 in l945 and
1880 In 1910.
Policyholders' surplus totaled
$2S, SIS. 900 at the end Of 1860
compared with $22, 280, 900 8
year earlier. $12,434,000 five
years earlier, $685. 900 ter
years earlier, $567,0OO fifteer
years earlier and 1921 900 TWEEN.
ty years ago.
The casualty company had
719.646 policies in force ct the
years end vs.. 645,254 o year
earlier. more than $50, 900 In
1855. around 10000 in 1850
around $4,000 In 1945 and less
than rs, 900 in 1910.
Continuation Expected
President Davidson told news
men gains In both volume and
earnings are expected to con-
tinue in 1861.
The addition Of certain pro-
fessional. managerial and ad-
miniStrative personnel to cate
gories eligible for GEICO poll
cies in 1858 spurred expanding
volume. he said. The new
groups accounted for 11.6 pei
cent Of new policies in 1859 and
1873 per cent in 1860.
GEICO is still studying vari-
able annuity life insurance, but
has no immediate plan to &C.
tivate a new subsidiary in this
field. Mr.. Davidson said. Con.
tradictions in regulatory laws
remain to be cleared up, he
said.
Higher postal rates raised
GEICO's expense ratio to 1874
per cent in 1860 from 1877 pei
cent in the previous year, but
it remains one Of the Lowest
ratios in the casualty insur-
ance business, he declared. Thu
loss ratio was reduced to 66.6
Nor cent in loan from go no,