(Eflrttell littwrattij ICtbrarij BOUGHT WITH THE INCOME OF THE FISKE ENDOWMENT FUND THE BEQUEST OF LIBRARIAN OF THE UNIVERSITY 1868-1883 I905 ft : .3..lfc..v ; 3>4a. ^tollf. The date shows when this volume was taken. To renew this book copy the call No. and give to the librarian. '% HOME USE RULES All Books subject to Recall All borrowers must regis- '■ ter in the library to borrow books for home use. All books must be re- turned at end of college year for inspection and repairs. Limited books must be re- turned within the four week limit and not renewed. Students must return all books before leaving town. Officers should arrange for the return of! books wanted during their absence from town. Volumes of periodicals. and of pamphlets are held in the library as much as possible. Pot special pur- poses they are given out for a limited time. Borrowers should not use their library privileges for the benefit of other persons. Books of special value and gift books, when the giver wishes it, are not allowed to circulate. n Readers are asked to re- port all cases of books marked or mutilated. ' Cornell University Library arY683 Report exhibiting the .experience of the 499 Do not deface books by marks and writing. 6*3 '«s Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924032177499 mCo ^-^5 ^^ A*^^^ vD ^ ^ ^H£s?HJ Tt£SsNT£j> ' ° THE PROPERTY Of Jqhn W. GuiTEAg. REPORT EXHIBITING THE EXPERIENCE ©F THE MUTUAL LIFE INSURANCE COMPANY NEW-YORK. FIFTEEN YEARS ENDING FEBRUARY , FIRST, 1858. PRINTED BY ORDER OE THE BOARD OE TRUSTEES. NEW-YORK, NOVEMBER, 1859. ■ZH't t r TABLE SHOWING THE PROGRESS OF THE COMPANY. No. of Tolicies in force on the first of February in Amount assured thereby. Assets. No. of Policies in force on the first of February in Amount assured thereby. Assets. 1844 1845 1846 1847 1848 1849 1850 1851 462 971 1,856 2,616 3,620 4,473 5,799 6,242 1,611,718 12,457,709 14,969,481 15,666,476 $32,311 05 97,471 36 216,980 28 325,005 31 551,575 27 758,473 14 1,000,439 62 1,298,388 46 1852 1853 1854 1855 1856 1857 1858 1859 6,512 6,797 7,373 8,118 8,778 9,794 10,390 10,993 16,406,865 17,599,773 19,660,927 22,182,633 24,904,110 28,024,012 30,481,302 32,575,099 $1,627,655 56 2,060,649 30 2,543,301 611 2,850,077 56 3,309,085 80 3,787,945 76 4,685,908 95 5,374,933 42 BOARD OF TRUSTEES. Frederick S. Winston, John V. L. Pruyn, William Moore, Joseph Blunt, Robert H. M'Curdy, Isaac Green Pearson, Samuel M. Cornell, John H. Swift, Wm. J. Bunker, William Betts, John P. Yelverton, John Wadswortii, Alfred Edwards, Nathaniel Hatden, John M. Stuart, George R. Clark, Sam'l E. Sproulls, Lucius Robinson, W. Smith Brown, Richard Patrick, William P. Popiiam, Lycurgus Edgerton, Ezra Wheeler, Cephas H. Norton, Hamlin Blake, Samuel D. Babcock, Millard Fillmore, David Hoadley, Henry A. Smythe, William V. Brady', W. E. Dodge, George S. Coe, Wm. K. Strong, Alex. W. Bradford. FREDERICK S. WINSTON, President. Secretarij, Isaac Abbatt. Actuary, Sheppard Homans. Medical Examiner, Minturn Post, M.D. TO THE BOARD OF TRUSTEES. Gentle vies : In presenting the Financial and Mortuary Experience of this Company during the first fifteen years of its existence, as developed by the Actuary, I take occasion to state some facts connected with its history. The first Actuary of this Company, the late Charles Gill, demonstrated its Experience upon a portion of its business to the period of its second dividend in 1853. (See his Keports of 1851 and 1853.) These documents, marked by the general ability which distinguished his acts, embraced but a portion of the business of the Company, and though valuable as a commencement, yet their scope, both as to extent of observa- tion and the subjects embraced, was necessarily too limited to fully meet our requirements. Our present Actuary, Mr. Homans, from his advanced point of observ- ation, has not only taken up, and brought down to the date of his state- ment, the line of facts contained in the former Report, but he has enlarged the basis of demonstration, developing facts of vital statistics obtained by the Company from other sources, at much labor and expense, as well as by the results of its own experience. The intelligence and industry the Actuary has exhibited in the prepar- ation of this Experience, and the clearness and skill with which he has demonstrated it in his tables and diagrams, will be apparent to you in examining the document now submitted. The importance of collecting vital statistics from all quarters where our business extends, can not be 11 TO THE BOARD OP TRUSTEES. overrated. Those collected by public authority in this country are mostly unreliable from the incompetency or unfaithfulness with which they are gathered and arranged. Those obtained from abroad, while more correct in representing facts, are not only taken from too narrow a territorial basis to suit our purposes, but belong to classes differing from ours in constitu- tion, habits, and employments, nearly as much as the country they inhabit does in geographical extent and position. Again, vital statistics as they exist and are demonstrated in an entire community comprising both sexes, all ages, employments, and conditions, throw little light upon the business of Life Assurance. The classes who assure their lives are taken out from the whole mass included in the census returns, and embrace mainly professional men, merchants, manufacturers, and a few farmers and mechanics, from the ages of 20 to 56. Our observation and experience among those who have been Assured in this Company already embrace a larger number of persons than those com- prising the entire population from which the Carlisle and Northampton Tables were formed, which Tables for a long period and until quite recently were those mainly used by the Life Assurance Companies of Europe. Among English Companies the " Equitable," one of the oldest and most successful, was the first which contributed the results of its Mortuary Experience. It derived its chief value from being the first attempt to ascertain the value of assured lives. The next was the celebrated Actuaries 1 or Experience Table, which embraces results from the records of seventeen different Life Companies, namely, Equitable, Amicable, Alliance, British Commercial, Crown, Economic, Guardian, Imperial, Law, London, Norwich Union, Pro- moter, Royal Exchange, Scottish "Widows' Fund, Sun, Universal, and the University. The Equitable, Amicable, Eagle, and very recently the Econo- mic, have separately investigated and made public the results of theii experience. TO THE BOAKD OF TEUSTEES. Ill Iii the United States, the Report of the Experience of this Company- made by the late Mr. Gill, was the first attempt, as already stated, although on a somewhat limited scale, to ascertain the value of assured lives in this country. The " Mutual Benefit," of New-Jersey, have in their Annual Re- ports for 1857 and 1858, published the probable and actual number of deaths in their Company, from which various tables contained in the present Report have been computed by our Actuary with as much accuracy as the limited facts stated would admit. Our own experience, though more favorable than the Actuaries' Table, or that of any other known, both in its pecuniary results and in its relative mortality, compares more nearly to the Actuaries 1 than to the Carlisle or Northampton Tables.* On assuming my present official duties, and seeing the great importance of American vital statistics and an American experience in Life Assurance, I applied to other Companies to join with us in gathering from public sources and from such local agents and examining physicians in different sections of the country as could be reached, such facts as might be useful to all. I regret to say that I had not a single response to this appeal from any Company, and that the facts gathered and arranged by Dr. "Wyxxe on our appointment, and published as a " Report on Vital Statistics," and dis- tributed to our Trustees, and others, were from data exclusively collected and furnished by ourselves. During the past two years another attempt has been made to obtain the experience of different Companies not only in their general results, but * For our favorable mortality experience the Institution is much indebted to tbe skillful and thorough examinations of Dr. Post, our Medical Examiner, who in 1853 and in 1858 prepared the Mortuary Reports of the Company. Dr. Post is now engaged in brino-in"- the Reports in a classified form to this date, and when finished, it will be published in a f.iture edition of this work. IV TO THE BOARD OF TRUSTEES. with, special reference to Term Policies, proffering our own experience in retnrn, but, as in the former case, without any response in the form of a re- port, unless the instance already alluded to, forms an exception. It is hoped that neither apathy among officers, want of ability on the part of the mathematicians employed, nor a disinclination to compare results, have led to inaction in a matter of so much importance to all. The Marine Underwriter who would venture to insure vessels to navi- gate the ocean and our inland waters without furnishing himself with proper local charts and the results of experience in the risks that he covers, would scarcely display more imprudence than our Life Assurance Com- panies do by a blind reliance on an experience three thousand miles distant. With almost equal prudence and security might he take the Ordnance Survey of the Coast of Great Britain, and assume that it represented the depth of water and currents of our coast and harbors, as we to venture to predicate entirely the cost and results of Life Assurance over our broad country with all its variety of climate, races, habits, and occupations, on the results of that isolated district with its even climate and homogeneous races. Impressed with these views, we have for several years watched the deve- lopment of the experience of this Company with unceasing scrutiny and solicitude, and under the authority of the Board have from time to time made such changes in the Bates and in the Policies issued, as to conform both to a sound and equitable standard. The result at the present time is thus described by the Insurance Com- mittee in their recent Beport : " They congratulate the Trustees that the Beport demonstrates the Company to have been so managed as to present the best experience in its vital statistics, as well as in its pecuniary results, ever attained in the same period by any similar Institution. It appears that the Officers of the Com- TO THE BOARD OF TRUSTEES. pany have been so fully aware of the facts of this experience as they have been developed in its business and (under the authority of the Board) to have made such proper arrangements and modifications in the extra rates required of residents in various classes and of different conditions, where practicable, as to render any further alterations for the present unnecessary. The facts of our experience fully justify all the changes made in the past four years, both as to Term Policies and to the additional rates charged for certain classes of risks." The Board have determined that the Report of Experience, which was printed for the private use of the Trustees, shall now be gratuitously given to the public for their benefit, in the hope that this example may be fol- lowed by other American Companies. The future growth and magnitude of Life Assurance in this country, may be conjectured from its past progress. No people are more capable of understanding its advantages than ours, and by none will they be more cordially and extensively embraced ; but they will require to know that the Companies they join are based upon sound principles and are pursuing a sound policy. The fundamental principles of Life Assurance are few and simple, rest- ing upon the ascertained duration of human life, a proper selection in the lives assured, and a sufficient rate of premium to cover the risk taken, if in- vested at a rate of interest certain to be realized. Beyond this, in the practical application of these principles, a competent amount of scientific attainment, of knowledge of the races of men, their physical constitutions, habits, and occupations ; the diversities of climates, and the prevailing dis- eases incident to each, and of the actual cost of the several extra risks to be taken is necessary, and this knowledge should be settled and applied by a wise and discriminating judgment. VI TO THE BOARD OF TRUSTEES. As no Company in this country will claim to possess, in its Executive management, all these qualifications, with a requisite duration and extent of experience, to verify its proceedings, all must see the great importance of combined wisdom and united action if the business of Life Assurance is to occupy the commanding eminence here to which it is entitled. The Actuary's Eeport of Experience made to the Board of Trustees in November last, is as follows. I am, very respectfully, Your obedient servant, F. S. WlNSTOB", New-York, Nov. 15, 1858. President ACTUARY'S REPORT. Gentlemen : •The close of the third quinquennial period since the formation of this Company, embracing nearly half a generation, seems an appropriate time for making a careful examination of the results of its Experience in respect to the mortality amongst members ; as well to ascertain in what particular circumstances of class, term, or age, we have been successful or otherwise, as to indicate what modifications, if any, should be made in our present practice. For these reasons I have continued the observations commenced by the late Mr. Gill, from which results of Experience might be deduced ; with special reference to the determination of the comparative mortality among members residing in the different classes ; among holders of short term and whole life policies ; and also of the relative mortality at different ages or epochs of life. It may perhaps be well to remark that this Company assures at the age according to the " nearest birthday," assuming that the errors of deficiency KEPOET ON EXPERIENCE. and excess will balance each other. This is different from the practice of English Companies, who assure at the age " next birthday," which has the effect of representing their members to be older than they are in reality, (about four months on the average.) With the exception of this single assumption, that the office age is the real age, the results which are now presented are deduced from the most rigorous calculation. The number of lives exposed to mortality are carefully separated from the number of policies, and no care or labor has been spared in making the various observ- ations and deductions as complete and accurate as possible. The annual Experience of the whole Company has been noted separately, for each of the fifteen years ending February 1st, 1858, as may be seen by reference to the following Table. TABLE I. Annual Experience of the whole Company— 1843-57 inclusive. Tear. Exposed to Mortality in the Company foe one whole yeak. Probable Loss by Com- pany's Table. Actual Loss. Probable Loss by Carlisle Tab lb. No. of Lives and fractions of Lives. Amount. No. of Deaths. Amount. "si Amount No. of Deaths. Amount 1843 1844 1845 1846 1847 1848 1849 1850 1851 1852 1853 1854 1855 1856 1857 253.59 633.79 1,275.15 1,993.53 2,656.14 3,505.38 4,513.43 5,297.94 5,572.93 5,730.17 6,131.07 6,720.07 7,250.76 8,185.60 8,898.24 966,716 2,312,278 4,346,769 6,226,630 8,128,045 10,707,618 13,290,200 15,127,795 15,867,144 16,713,162 18,508,266 20,723,856 22,870,264 26,148,107 29,121,868 2.962 7.715 15.539 24.934 3.3.550 44.155 56.551 67.320 72.181 76.277 83.315 92.127 100.506 113.374 123.876 11,461 29,703 54,518 80,436 106,741 140,014 173,986 200,261 213,790 228,051 257,197 289,339 321,332 367,014 408,790 5 7 23 28 27 64 71 49 67 72 85 81 75 96 18,000 18,100 69,400 66,150 94,200 175,950 154,640 164,100 203,100 207,200 281,500 267,850 264,255 328,100 2.809 7.297 14.771 23.528 31.733 41.798 53.491 63.613 67.970 71.649 78.019 S5.864 93.653 105.599 115.195 10,902 27,119 51,626 75,809 100,392 131,983 163,859 188,391 200,296 213,924 239,581 269,294 298,490 340,985 379,813 Total, 68,617.79 211,059,018 914.377 2,882,633 750 2,312,545 856.989 2,692,464 These results are deduced from observations embracing every variety MUTUAL LIFE INSURANCE COMPANY OF NEW-YORE. 9 of age, term, and climate, which constitute the Company, as a whole. The comparison is therefore not strictly just, inasmuch as we should expect that the mortality among members residing in the South or California, and who pay an extra premium, would prove to be greater than that obtaining among members residing in the New-England or Middle States, who are insured at the regular table rates. Each class, term, and age, however, will be considered separately in the sequel. It may be well here to state the reason why the second column of this table contains the number of lives and fractions of lives exposed to mortal- ity for one whole year. It is found more convenient, in computing the Mortality Experience for any given year, to assume one year as the unit, rather than one life / instead of saying, for instance, that we have one life exposed to mortality for one third of a year, we find it more convenient to say that we have one third of a life (.33) exposed to mortality for one whole year : the results in each case being precisely the same. By repeating this process for each life in the office, we have the exact number of lives and fractions* of lives exposed to mortality for one whole year. Out of this number living we may readily determine the number which should die during a given year, according to any table of mortality. In this manner the Experience has been determined separately, for each year of the Com- pany's history, and the results are believed to be quite as favorable as were ever attained by any Life Company in the world. They afford satisfactory proof that the predictions by our theoretical Table of Mortality have, so far at least, been more than sufficient to cover losses actually sustained. It is only by thus carefully noting the annual Experience, and after the lapse of a sufficient number of years combining their results, that information, at once practical and reliable, can be obtained. "We have now had fifteen years' Experience, the combined results of which for every age may be seen by the following table : 10 EEPORT ON EXPERIENCE. TABLE II. General Experience of the Mutual Life Insurance Company of New- York, for Fifteen Years, exding Februart 1st, 1858. Exposed to Mortality in the Pbobablk Loss by Com- ^£vtttit. T.naa Pbobable Loss by Carlisle Company foe one whole year. pany's Table. Table. Age. No. of Lives No. of °5 No. of and fractions Amount. Deaths. Amount. 6 « Amount. Deaths. Amount. of Lives. Bfl 14 22.10 $60,562 0.132 $362 0.118 $335 15 38.52 74,746 .237 460 .239 463 16 42.01 69,176 .266 438 .280 464 17 54.58 97,349 .356 634 .376 673 18 61.60 91,711 .413 615 .427 639 19 109.45 183,025 .755 1,263 4 6,000 .758 1,283 20 1.72.90 298,087 1.228 2,117 1 600 1.219 2,105 21 271.68 554,732 1.988 3,963 4 7,100 1.848 3,853 22 396.32 819,659 2.982 6,168 5 10,000 2.771 5,733 23 596.83 1,207,574 4.619 9,345 4 4,000 4.204 8,505 24 806.13 1,674,654 6.415 13,327 10 16,300 5.716 11,878 25 1,046.36 2,290,504 8.562 18,743 11 14,500 7.653 16,753 26 1,290.30 3,028,871 10.855 25,482 11 26,000 9.507 22,317 27 1,589.81 4,097,960 13.755 35,455 8 29,750 12.350 31,833 28 1,877.73 4,937,100 16.716 43,950 11 22,350 16.328 42,948 29 2,069.02 5,604,777 18.948 51,329 20 33,500 20.324 55,084 30 2,312.85 6,400,502 21.799 60,325 26 82,000 23.356 64,664 31 2,503.43 7,139,038 24.281 69,242 21 55,800 25.527 72,861 32 2,700.65 7,850,626 26.961 78,373 31 86,100 27.354 79,527 33 2,811.82 8,362,402 28.894 85,932 26 57,100 28.260 84,050 34 2,994.62 9,092,211 31.683 96,196 35 79,350 30.404 92,313 35 3,020.93 9,288,660 32.907 101,181 29 76,500 30.985 95,274 36 3,049.80 9,486,108 34.210 106,406 35 91,800 32.075 100,098 37 3,067.96 9,633,974 35.441 111,292 23 72,600 33.195 104,577 38 3,049.61 9,690,711 36.290 115,320 30 108,500 34.055 108,216 39 2,967.64 9,510,563 36.392 116,628 31 113,500 35.245 112,957 40 2,842.58 9,252,250 35.963 116,967 13 41,750 37.050 120,325 41 2,686.54 8,823,127 35.033 115,054 21 69,050 37.005 121,539 42 2,551.34 8,418,212 34.338 113,301 21 82,100 36.671 120,994 43 2,407.72 7,981,164 33.477 110,970 28 85,800 35.110 116,381 44 2,254.94 7,506,844 32.417 107,918 23 75,000 33.368 111,086 45 2,077.77 0,981,958 30.919 103,898 21 75,400 30.776 103,396 46 1,899.11 6,481,796 29.322 100,079 15 43,500 28.135 96,034 47 1,695.42 5,746,111 27.298 92,518 20 61,650 24.757 83,910 48 1,534,69 5,240,157 25.852 88,270 23 66,350 21.383 73,022 49 1,404.73 4,811,853 24.796 84,939 18 47,000 19.219 65,841 50 1,243.14 4,284,821 23.021 79,346 15 53,000 16.681 57,494 51 1,090.47 3,779,253 21.198 73,465 17 97,000 15.583 54,013 52 949.08 3,279,651 19.379 66,967 12 40,000 14.427 49,854 53 822.56 2,863,411 17.656 01,463 15 46,000 13.283 46,238 -v l,9f /. if, ■<7 Ait j, or .sr /. /Z.'f /■ /97 ■ pjt /■ n ij'b • A /. 5 ■ & - "[% ■ s:3 i^cte 1-0 10 /-Of/ .JfO /./fa i.tf% /.2*7 ,\zoi /■rm /. u ■<< /.$?£. MUTUAL LIFE INSURANCE COMPANY OF NEW- YORK. 11 TABLE II.— Continued. Exposed to Mortality in the Probable Loss by Com* Probable Loss bt Carlisle Company for one whole year. pany's Table. Table. Age. No. of Lives No. of o| No. of and fractions Amount. Deaths. Amount. d rt Amount. Deaths. Amount. of Lives. £ & »« 54 726.99 $2,501,514 16.424 $56,514 16 $65,600 12.283 $42,266 55 621.81 2,133,839 14.804 50,805 12 43,000 11.144 38,245 56 543.42 1,902,216 13.659 47,814 13 62,895 10.324 36,142 57 448.37 1,573,554 11.925 41,850 9 45,900 9.371 32,883 58 370.62 1,294,064 10.453 36,498 6 28,800 8.973 31,324 59 311.74 1,024,472 9.346 30,714 3 5,000 8.690 28,966 60 259.19 815,740 8.281 26,062 7 38,300 8.681 27,318 61 212.50 637,865 7.252 21,767 12 31,800 7.634 22,826 62 167.33 520,138 6.113 19,002 5 22,000 6.260 19,457 63 131.62 382,571 5.157 14,989 9 22,500 5.034 14,633 64 104.84 312,201 4.412 13,138 5 17,800 4.170 12,416 65 86.16 243,415 3.899 11,014 5 11,200 3.539 10,001 66 67.19 189,335 3.271 9,216 3 15,000 2.856 8,047 67 49.66 150,676 2.601 7,891 1 1,000 2.193 6,688 68 35.00 104,008 1.972 5,859 1 10,000 1.625 4,831 69 26.98 89,634 1.633 5,424 1 5,000 1.325 4,402 70 20.07 66,245 1.303 4,302 1 4,000 0.979 3,421 71 12.56 37,652 .881 2,642 .... .749 2,216 72 11.55 24,604 .876 1,865 1 1,000 .787 1,676 73 6.71 16,895 .549 1,383 . . . • .525 1,320 74 6.95 14,722 .615 1,302 1 2,000 .626 1,327 75 4.09 9,933 .391 949 .389 949 76 3.96 8,953 .409 924 .408 922 77 2.71 6,827 .302 761 .290 734 78 1.03 2,055 .124 247 1 2,000 .224 224 Total, 68,617.79 211,059,018 914.377 2,882,633 750 2,312,545 857.101 2,692,764 In order to give a clearer idea of the results contained in this Table, I have plotted in the following Diagram (No. 1) the numbers for each age, contained in the columns headed " Probable number of deaths," and "Actual number." Diagram No. 2 contains in a similar manner, a comparison of the " Probable" and " Actual " amount of loss, at each age. By means of these Diagrams the entire results of Experience may be seen at a glance. I have also computed Tables, similar to the above, showing the Expe- rience among members residing in each of the classes separately, in order to determine the comparative mortality among assured lives in different parts -1 -TrO I.' I 1 „. 3 1 12 REPORT OjST EXPERIENCE. of the country. These classes are the same as those contained in the map prefacing the Annual Report for 1858, and explained in pp. 66-69. (See Report.) It will be observed that among the members of this Company are residents in all parts of the United States ; hence the influence of almost every variety of soil and climate is exerted upon the lives and health of our assured, and renders the task of adjusting their varied interests one not only of great interest, but also of some difficulty. It has not been thought necessary to present these different tables in detail, as the results contained in them may be observed by the following recapitulations : TABLE III. Comparative Mortality in the Different Classes. Number of Lives and Fractions of Lives which have been exposed to the risk of mortality for one whole year. company's TABLE. Per cent- age of Actual on Pro- bable No. of Deaths. Rate per cent of Actual Mor- tality. Bate per cent of Probable Mor- tality. COMPAXY'a TABLE. Actual Loss to each $100 predict- ed. Probable number of Deaths. IS 5 £ $ ■ & ,* -*§ *. —5 ^L r / / .a — •* -~°~ ^ ' S ~ 1 ^ *— — \ 51 > = ' " H *»»» °~« ■*■" ~f --* •** -^ ' J9 s >0 1 1 - 3 - # § 8 SI ^ ^ '«« -J s tJfionber of Deaths. K?2. dmount ofltfss by Deaths. MUTUAL LIFE INSURANCE COMPANY OF NEW- YORK. 13 "We observe by this table of recapitulations the following comparisons, which, of course include all ages : 1st. The entire results of Experience not only for the whole Company, but also for each class separately, during the first ten years, the last five years, and the whole fifteen years of its existence. 2d. The number of lives exposed to mortality for one whole year in the whole Company, with the corresponding numbers in each of the classes, during each period. 3d. The probable number of deaths according to the Company's Table of Mortality, in the whole Company, and in each of the classes separately. 4th. The actual number of deaths corresponding. 5th. The per centage of actual number of deaths on probable, or in other words the actual number of deaths corresponding to each one hun- dred predicted by the Company's Table of Mortality. 6th. The rate per cent of actual mortality which may be also read, by taking all the figures, as the actual number of annual deaths in the Com- pany, out of each ten thousand live3 exposed to mortality, both in the whole Company and in each of the classes separately. 7th. The rate per cent of probable mortality according to the predic- tions by the Company's Table, corresponding to the above. 8th. The probable amount of loss by the Company's Table, in the whole Company and in each class separately. I regret not being able to give a comparison of the actual and probable amount of loss for the first ten years in each class, on account of the want of time. 9th. The actual amount of loss in each class. 10th. The per centage of actual loss on the probable amount, or in other words, the actual amount of loss corresponding to each $100 pre- dicted. li REPORT ON EXPERIENCE. By means of these comparisons we may readily see that our best Expe- rience has been in the New-England and Middle States, or near the Home Office, and that to a very great extent. That in Class II. or the Western States, in which residents are assured at regular table rates of premium, the Experience has not been quite so favorable, although within the predictions by our tables. "We also observe that the comparative mortality among members residing in this class has materially increased during the past five years. It is true that these results include residents in Class VI., (in the immediate valley of the Mississippi,) in which an extra premium is charged, but by reference to the Report on the Experience among residents of St. Louis, (see " Minutes" Board of Trustees, February, 1857,) of which Class VI. is mainly composed, it will be seen that the mortality in Class II. pro- per, is very nearly as great as that in Class VI. alone. We also observe that the mortality in Class III., or Southern States bordering on the Atlantic, has been more favorable during the last five years than in the first ten, and also slightly more favorable even than in Class II. One thing, however, should be borne in mind, that from the com- parative scantiness of the data in this and in the succeeding classes, the results are not so reliable as those contained in Classes I. and II. The mortality among members residing in Class IV, or the Southern States bordering on the Gulf of Mexico, has materially increased during the last five years, and to an extent somewhat alarming. The amount of loss too, in this Class has been much larger than that anticipated. Perhaps the most curious results of the above recapitulations are those referring to residents in California, (Class V,) showing, for instance, that, while the actual number of deaths corresponding to each hundred predicted was, previous to 1853, nearly four hundred and nineteen, (418.68,) it was during the past five years, one hundred and one (101.22) only, owing no MUTUAL LIFE INSURANCE COMPANY OF NEW- YORK. 15 doubt to the increased facilities of procuring the comforts and necessaries of life in that State. In order to give a clearer idea of the practical value of the foregoing results, I have arranged the following Table, in which columns A, B, and C, show the annual rate per cent of actual mortality among residents in each of the classes, for the first ten, the last five, and the whole fifteen years, respectively, according to the Experience of the Company. Column D shows the extra annual premium (per cent on amount of insurance) which should be charged for residence in each class, in order to place them all upon an equal footing, as far as regards the risk of mortality with Class I. alone. Column E shows in a similar manner the extra annual premium which should be charged in each class when compared with Classes I. and II. combined. Column F shows the extra annual premium now charged by this Company for residence in each class, in addition to the regular tablo rates. TABLE IV. Whole Company, . . Class I., " n., " in, " iv., " v., " " since 1853, Annual Kate per cent of Mortality. 1S48-52. 1.08 .89 1.07 1.2V 1.24 4.30 1853-57. 1.10 .98 1.23 1.35 2.14 1.35 1.35 15 years. 1.09 .96 1.17 1.31 1.88 2.75 Extra Annual Premium which should be charged in order to equalize the rfck ■with Class I. Per cent. D 0.745 1.147 2.867 5.449 1.290 with Clashes I. and II. Per cent. 0.975 2.634 5.L58 1.092 ExtraAnnual Premium now t harged, per cent on Amount of Insurance. 0.500 2.000 1.000 1.000 16 REPORT ON EXPERIENCE. These results, from the comparatively small amount of data, can scarcely be depended upon as furnishing reliable statistics of actual mortality in dif- ferent parts of our country, and among all classes and ages ; at the same time, however, they are believed to afford a more reliable comparison of the relative mortality among assured limes in the different classes than were ever before obtained. They prove conclusively that the extra rates of pre- mium now charged by the Company, are not only judicious, but that they are in no case quite sufficient to provide for the extra risk which they are intended to cover, and consequently can neither be rescinded nor reduced, without doing injustice to members residing in the New-England or Middle States. Comparative Mortality among Members assured under Short-Term and Whole-Life Policies. In order to throw some additional light upon this interesting question, I have computed the following Table, embracing results for the last five years only : TABLE V. Term of Policy. Number of Lives exposed to Mortality. Probable No. of Deaths Company's Table. Actnal No. of Deaths. No. of Deaths to each 100 predicted. Actual Kate of Mortality. Probable Eato of Mortality. ExtraAnnual Premium which should be charged. Endowment,. . . . Seven Years, . . . Other short terms, Whole Company, 33,222.52 83.02 3,255.56 624.64 460.56 0.88 44.03 7.74 513.21 341 56 13 410 74 127 168 80 1.02 0.00 1.72 2.08 1.10 1.39 1.60 1.35 1.24 1.38 1.090 1.878 MUTUAL LIFE INSURANCE COMPANY OF NEW- YOKE. 17 The mortality among persons insured by short-term policies in this Company, has been found to be in all cases inversely proportionate to the length of term of the policy itself. Our Mortuary Experience among mem- bers assured under short-term policies is thus shown to have been very unfortunate, so much so, that by reference to the last column, we find that an extra annual premium of from one to nearly two per cent should be charged; which, added to the regular table rates, will make the gross annual premium on short-term policies nearly, if not quite as high as the regular life rates. In other words, Experience teaches that short-term policies should not be issued by this Company at less than life rates, thus practically confirming the wisdom and justice of the recent Resolution by the Board of Trustees, declining to underwrite these risks, at least until more reliable data than were then possessed could be obtained. Applications for assurance under short-term policies, as was remarked by the President in his last Annual Address, are often made by persons who wish to provide for an extra hazardous risk, either of climate, occupa- tion, or disease, known only to themselves, and in which the applicant has every advantage over the Medical Examiner ; or they are made for the purpose of affording security for debt, both of which cases include contin- gencies not foreseen when naming the premium. In the earlier practice of Insurance, when a life not altogether first class, was offered, the risk was sometimes accepted for a short term of years, and at a small annual premium, when it would have been rejected for the whole term of life, and at a higher rate of annual premium. I mention this singular fallacy to show that the science as well as practice of Life Insur- ance is progressive, and that the results of Experience furnish the safest and surest rules of guidance. 18 REPORT ON EXPERIENCE. The following Table shows the exact number of Life, Term, and Endow- ment Assurance Policies, which were in force February 1st, 1858, with their corresponding dividends or additions, payable in all cases at death or with the policy itself. TABLE VI. Tear of Issue. Policies in force Feb. 1st, 1858. Dividends oe Additions to Policies in foecb. No. Amount. 1848. 1853. 1S5S. Total. 1843 144 $482,300 $50,130 19 $43,959 38 $48,639 28 $142,728 85 44 198 656,750 57,388 91 60,564 84 66,935 62 184,889 37 45 378 1,025,950 66,217 67 94,561 49 106,727 82 267,506 98 46 398 969,030 42,837 75 92,986 76 102,891 69 238,716 20 47 585 1,599,115 36,058 65 158,595 03 173,598 21 368,251 89 48 535 1,396,773 3,277 00 120,467 25 152,018 54 275,762 79 49 652 1,608,300 2,337 18 110,653 15 178,428 76 291,419 09 50 537 1,252,600 7,539 93 68,916 01 143,290 32 219,746 26 51 400 971,244 2,954 85 32,274 24 110,720 84 145,947 93 52 476 1,388,600 2,932 62 17,984 09 161,788 08 182,704 79 53 620 1,823,827 5,744 50 195,660 76 201,405 26 54 866 2,634,237 8,281 06 220,185 07 228,466 13 55 1,018 3,472,660 6,124 67 209,800 71 215,925 38 56 1,297 3,874,010 4,083 19 148,285 58 152,368 77 57 1,372 4,342,850 .... 1,272 26 58,785 72 60,057 98 Joint Lives, 9 35,100 28 46 1,276 16 2,073 15 3,377 77 Total Life, 9,485 $27,533,346 $271,703 21 $827,742 08 $2,079,830 15 $3,179,275 44 SEVEN' TEAKS. 1851 48 $127,400 $450 01 $1,502 39 $3,996 62 $5,949 02 52 71 198,400 1,388 23 1,980 96 6,919 26 10,288 45 53 65 217,300 2,867 75 6,311 72 9,179 47 54 83 262,650 1,986 96 5,424 26 7,411 22 55 104 320,550 1,314 37 5,955 87 7,270 24 56 106 339,000 1,381 32 4,675 60 6,056 92 57 95 274,000 ... 758 21 758 21 Total, 572 $1,739,300 $1,838 24 $11,033 75 $34,041 54 $46,913 53 MUTUAL LIFE INSURANCE COMPANY OF NEW-YORK. 19 TABLE VI.— Continued. Year of Issue, Policies in force Feb. 1st, 1858. Dividends or Additions to Policies in force. Term of Policy. No. Amount 1848. 1SS3. 1S53. Total Brought over, 10,057 $29,272,646 $273,541 45 $838,775 83 $2,113,871 69 $3,226,188 97 OTHER SHORT TERMS. 14 years, 1 $1,000 $36 07 $72 50 $108 57 11 " 1 10,000 86 83 507 02 593 85 10 " 14 79,000 988 52 2,281 54 3,270 06 9 " 1 10,000 .... .... ■ • • • 8 " 1 4,000 • • • • 93 27 93 27 5 " 106 305,550 43 34 2,774 14 2,817 48 4 " 1 200 .... .... • ■ • • 3 " 8 26,600 .... 180 83 180 83 2 " 20 88,200 • . • ■ 611 29 611 29 1 " 21 66,700 169 55 169 55 Total, 174 $591,250 $1,154 76 $6,920 14 $7,844 90 ENDOWMENT-ASSURANCES. Death or 40, " 45, " 50, " 55, " 60, " 65, 1 31 53 36 34 1 $2,000 143,000 180,000 154,000 125,800 5,000 $41 15 2,694 93 4,226 91 3,726 35 3,562 65 364 71 $41 15 2,694 93 4,226 91 3,726 35 3,562 65 364 71 Total, 156 $609,800 $14,616 70 $14,616 70 POST-MORTEM DIVIDENDS. Deaths, 1853 " 54 " 55 " 56 " 57 $1,894 56 4,934 97 7,081 59 8,480 28 11,188 33 $1,894 56 4,934 97 7,081 59 8,480 28 11,188 33 Total, $33,579 73 $33,579 73 Total Office, 10,387 $30,473,696 $273,541 45 $839,930 59 $2,168,758 26 $3,282,230 30 / 20 REPORT ON EXPERIENCE. Comparative Mortality at different Ages. In order to facilitate the interesting comparison of the relative value of life at different ages, I have computed the following Table No. VII., which is an " Adjusted Kate of Mortality according to the General Experience of the Mutual Life Insurance Company of New-York, for the fifteen years ending February 1st, 1858. TABLE VII. Adjusted Table of Moetality accoeding to the Expeeience oe the whole Company FOE 15 TEAES ENDING FeBETJAET 1ST, 1858. No. living. No. dying Rate per cent op Ahnual Mortality Number out op which onb Person wilt, die annually. EXPEOTATIOK OP LlPE Age. Age. By Co/s By Co.'B Company's Company's By Co.'s By Co.'s Table. Experience. Table. Experience. Table. Experience. 10 100,000 741 0.741 0.526 135.00 190.0 49.24 47.51 10 11 99,259 739 .744 .544 134.35 183.7 48.60 46.76 11 12 98,520 738 .749 .562 133.50 177.9 47.96 46.01 12 13 97,782 737 .754 .580 132.70 172.5 47.23 45.27 13 14 97,045 736 .758 .598 131.85 167.4 46.68 44.53 14 15 96,309 735 .763 .615 131.03 162.5 46.03 43.79 15 16 95,574 734 .768 .633 130.20 157.9 45.38 43.06 16 17 94,840 733 .773 .652 129.35 153.5 44.73 42.33 17 18 94,107 732 .778 .671 128.50 149.1 44.07 41.60 18 19 93,375 731 .783 .690 127.68 144.9 43.41 40.88 19 20 92,644 732 .790 .710 126.60 140.8 42.75 40.16 20 21 91,912 732 .796 .731 125.57 136.8 42.09 39.45 21 22 91,180 733 .804 .753 124.45 132.9 41.42 38.74 22 23 90,447 733 .811 .774 123.35 129.2 40.75 38.03 23 24 89,714 734 .818 .796 122.24 125.6 40.08 37.32 24 25 88,980 735 .826 .818 121.11 122.2 39.41 36.61 25 26 88,245 735 .833 .841 119.98 118.9 38.73 35.91 26 27 87,510 736 .841 .865 118.86 115.6 38.05 35.21 27 28 86,774 737 .849 .890 117.74 112.3 37.37 34.51 28 29 86,037 738 .857 .916 116.63 109.2 36.69 33.82 29 30 85,299 738 .866 .943 115.53 106.1 36.00 33.13 30 31 84,561 739 .874 .970 114.44 103.1 35.31 32.44 31 32 83,822 739 .882 .998 113.35 100.2 34.62 31.75 32 33 83,083 740 .891 1.028 112.29 97.3 33.92 31.07 33 34 82,343 740 .899 1.058 111.25 94.5 33.22 30.38 34 35 81,603 740 .907 1.089 110.24 91.8 32.52 29.70 35 36 80,863 1 740 .915 1.122 109.34 89.1 31.81 29.03 36 MUTUAL LIFE INSURANCE COMPANY OF NEW- YOKE. 21 TABLE VII.— Continued. No. living. No. dying. Bate per cent of Annual Mortality Number out op which onk Person will die annually. Expectation" op Iiipe Age. Age. By Co/s Bv Co.'s Company's Company's By Co.'s By Co.'s Experience. Table. Experience. Table. Experience. Table. 37 80,123 738 .921 1.155 108.53 86.6 31.10 28.35 37 38 79,385 736 .927 1.190 107.88 84.0 30.39 27.67 38 39 78,649 732 .931 1.226 107.47 81.5 29.67 27.00 39 40 77,917 726 .932 1.264 107.25 79.1 28.94 26.33 40 41 77,191 721 .934 1.304 107.03 76.7 28.21 25.66 41 42 76,470 717 .938 1.346 106.61 74.3 27.47 24.99 42 43 75,753 719 .949 1.390 105.37 71.9 26.72 24.33 43 44 75,034 729 .972 1.438 102.93 69.5 25.97 23.66 44 45 74,305 750 1.010 1.488 99.03 67.2 25.23 23.00 45 46 73,555 784 1.066 1.544 93.84 64.8 24.48 22.34 46 47 72,771 824 1.133 1.610 88.29 62.1 23.73 21.68 47 48 71,947 867 1.205 1.685 83.02 59.4 23.00 21.03 48 49 71,080 908 1.277 1.765 78.32 56.6 22.27 20.38 49 50 70,172 941 1.341 1.852 74.56 54.0 21.56 19.74 50 51 69,231 966 1.395 1.944 71.68 51.4 20.84 19.10 51 52 68,265 990 1.451 2.042 68.92 49.0 20.13 18.47 52 53 67,275 1,018 1.513 2.146 66.09 46.6 19.42 17.84 53 54 66,257 1,049 1.583 2.259 63.16 44.3 18.71 17.22 54 55 65,208 1,086 1.666 2.381 60.02 42.0 18.00 16.61 55 56 64,122 1,131 1.764 2.514 56.68 39.8 17.30 16.00 56 57 62,991 1,185 1.881 2.660 53.17 37.6 16.60 15.40 57 58 61,806 1,247 2.017 2.820 49.57 35.5 15.91 14.81 58 59 60,559 1,317 2.175 2.998 45.97 33.4 15.23 14.23 59 60 59,242 1,399 2.361 3.195 42.35 31.3 14.55 13.65 60 61 57,843 1,485 2.568 3.413 38.94 29.3 13.89 13.08 61 62 56,358 1,578 2.800 3.653 35.72 27.4 13.25 12.53 62 63 54,780 1,675 3.057 3.918 32.71 25.5 12.61 11.98 63 64 53,105 1,774 3.340 4.208 29.94 23.8 12.00 11.45 64 65 51,331 1,878 3.659 4.525 • 27.33 22.1 11.39 10.93 65 66 49,453 1,978 4.000 4.868 25.00 20.5 10.81 10.43 66 67 47,475 2,082 4.386 5.237 22.80 19.1 10.24 9.94 67 68 45,393 2,193 4.831 5.633 20.70 17.7 9.69 9.46 68 69 43,200 2,304 5.333 6.052 18.75 16.5 9.15 8.99 69 70 40,896 2,427 5.935 6.494 16.85 15.4 8.64 8.54 70 71 38,469 2,539 6.601 7.016 15.15 14.3 8.15 8.10 71 72 35,930 2,623 7.299 7.581 13.70 13.2 7.70 7.67 72 73 33,307 2,730 8.197 8.188 12.20 12.2 7.26 7.26 73 74 30,577 2,705 8.847 8.847 11.30 11.3 6.86 6.86 74 79 17,669 2,298 .... 13.006 7.7 5.09 5.09 79 84 7,732 1,466 .... 18.968 5.3 3.63 3.63 84 89 2,156 630 29.238 3.4 2:35- 2.35 89 94 213 110 51.630 1.9 1.28 1.28 94 99 1 1 100.000 100.000 .... 1.0 .50 .50 99 22 EEPOET ON EXPERIENCE. Some of the corresponding numbers from the Company's theoretical Table are also given, by means of which the "Annual Eate of Mortality," the " Number out of which one person may be expected to die in each year," and the " Expectation of Life," as determined by the results of our own Experience, may be readily compared, at each age, with the same num bers according to that Table. It will be observed that these numbers for both tables are the same after reaching the age of TO, which is owing to the fact that the number of lives exposed to mortality above that age in the Company, has been too small to furnish results at all satisfactory. The relative mortality at different ages among members of this Com- pany and also of the " Mutual Benefit," which we have deduced from data furnished in their last Annual Report, may be observed by Table VIII. TABLE VIII. comparison of the actval number of deaths cobeesponding to each one hundeed Predicted, oe peecentage of the actual number on probable, at decennial ages. Class I. alone, Class I. and II. combined,. . Class II. including VI.,. . . . Class III. alone, Class IV. alone, Class V. including VII., . . . Whole Company, Whole Co., " Carlisle Table,' "Mut. Benefit," " " 15-25. 90 90 89 662 595 431 145 15T 191 25-35. 77 86 127 85 215 337 99 99 101 35-45. 61 65 80 96 156 159 73 74 80 45-55. 67 71 90 79 201 73 88 84 55-65. 98 95 83 99 44 89 101 72 65-75. 71 83 195. 122 80 92 103 All ages. 70.53 74.07 89.66 95.62 136.43 230.62 82.02 87.52 87.62 ^9 3. |s , fe § 1 1 1 ■ — 1 e s ; \ s '" r k. 8"Zp I . -+_ -p, M II II 1 II M 1 1 1 l v * ±__^ -, of tie ^ ■§ ACTUAL DUMBER OF DEATHS, corresponding to _ in the — JfutualZz/e Insurance G>. of*Mw York Z and also in the A — | •Mutual Benefit of *Ybv Jersey, jif- z -^^ feu ^ It i \ \ A 1 fe- N ^r- k \ \ t t _A T ' 4 fe- L. i- is. § ul t %, v^ i ^ 3 ^ H= * 63- S-^ C -fe 8 ■N- 5 L .V ! 3 t^-4 A-* V- Y-^c fe xti s § ^^4 is V\ 3aX CA 1 ts- 5^^ 1% ^ C\V ^ 33 -t 5u 3& -•»- JL - -S*. 2%£ &&Zii£;& 7 ••' N >.. J 3^ ,<)> / ,--K *♦ ^/ XT Y / N \ / ^ o \«, a ^L". -_„ ^gfe ,*> .- ,1 .. -^ Y / « --.«. \^ r f / /./>" v ,y ^F- ^S^^ .«£' /jr N 4/ -- -<> 5^53%- ^fc- ^ y 2^ -- OS- ^'*~*r -^E= N ^ ^*-=- --^ ~&Z ^_tlv^-- » *.+. ^ v^ i- <*' 1^ A / I s '*& a. C* ^2 _J ,Z A , / *, ^ Si\ ft .N ^ S.V._U" ^.s-ifi ^C' I N -- ^ - "S3. %> '- »«. _. £'. aseii* /? - • ° "*|V ^ **=**■ ^7 3 - "£<- ■ 3; .^T 7 ~ * o —t - 8 j .... c I 8 j ^ i t , . J , " u I *■- 5, Li -^ 1 1 1 | !S 1 I -« &- K -s JZ IS 2f> Z5 30 35 ZO ■As Ao A& do &> fa h tlges. •a"*w**oTcaTv3!5?333i« MUTUAL LIFE INSURANCE COMPANY OF NEW-YOKK. 23 We first observe the extraordinary mortality at younger ages in the South and California, -while in Class I. alone, as well as that in Classes I. and II. combined, it is in all cases less than that called for by the Company's Table. Some of these results are plotted in the accompanying diagram No. 3, by reference to which the comparisons may be more readily made. The horizontal line marked 100, refers to the predicted number of deaths, while the curved lines mark the actual number corresponding at decennial ages. We thus see how very large the per centage of actual deaths has been at young ages, and how small comparatively between the ages of thirty and sixty, after which the actual and probable results seem to ap- proximate very nearly to each other, both according to our own Experience and that of the " Mutual Benefit," in a remarkable manner. One thing must still be borne in mind, however, that from the scantiness of the data, at very young or old ages, the corresponding results are not entitled to the same degree of confidence as those for intervening ages. I have plotted in Diagram No. 4, the " Number out of which one person may be expected to die" each year, not only from the foregoing Tables, but also according to some of the more celebrated and reliable Eng- lish Life Tables. The numbers at the bottom of this diagram represent the various ages from 15 to 7 5, or of the younger and older lives insured, while those on the side of the diagram represent the numbers out of which one person may be expected to die annually. In order to find the number according to any life table, we must note the points of intersection of the curve corresponding, with the horizontal lines, at each age. For instance, at the age of 20, we find that our curve of General Experience intersects the horizontal lines between the numbers one hundred and twenty-six and one hundred and twenty-seven, (126.60,) which means that out of every one hundred and twenty-six persons living at the age of 20, one will die 24 REPORT ON EXPERIENCE. each year, according to our own Experience. Our theoretical curve at the same age intersects the horizontal lines between the numbers one Tmndred and forty and one hundred and forty-one, (140.8,) which means that accord- ing to Mr. Gill's Table, we will have but one death annually out of every- one hundred and forty-one persons living at the age of 20. At the age of 40, according to the same Table, one death will occur annually out of each seventy-nine persons (79.1) living, while it has been found by the General Experience of this Company, that we will have but one death annually out of every hundred and seven (107.25) persons living at that age. By thus noting for each age, the number out of which one person will die, according to any Table of Mortality, and then connecting the various points, we are enabled to determine the curve corresponding to the given table. By an examination of the same diagram we may also observe the very great comparative value of life between the ages of 30 and 60, while below the age of 80, and particularly below that of 25, this value rapidly becomes less than we had anticipated from any previous observations. The excess- ive mortality at younger ages is perhaps owing to the fact that in this country young men are induced, by a spirit of enterprise, to enter upon the anxieties and cares of active business life too early. Besides, perma- nent habits of life and character are rarely formed below the age of twenty-five; while the effects of neglected education, bad habits, or un- governable passions, then begin to manifest themselves, and all serve to render the risks on very young lives less desirable than those of somewhat older ages. By comparing the different curves we may ascertain more clearly than by any other method, the peculiar type of our own curve of General Expe- rience. We also observe that this curve approaches more nearly to the "Actuaries" than to our own, or to that of any English Life Table, unless it Isl h * 1 ! ' ; ! | — r - ■:-■-■ M | « | ! , _ -, j 1 i ' ] 1 _, _ - -_| | ^ «^ 8 & £ -- 8 « \ § i-\i- t \ \ 4 V it fc-4 \ -te r \- V 8 V x \. V ***=■* ^s^*^.^ k. ^-. ^ ^ k « -■ t Y 5 ^3fc_ "V L \ \ 1* v ^^ -v § t* c;-^ \ V A- 1 --. te I- ^ ^-s: \fc^ X § ^ ^^ — \ "■■ \ \ , * ^S. \ m \ ^-V ■ * k Ts s\ \\ \ / \.» 3 {. 1 \ A \ N - / 'J* te 5* ^ K ^J. N ~^ _3' S " ~ [ ' r + \ S 1*^ " N $■ ^ i ^ \1 'Vi N^ I i V V ^ '*_ < s^Jio-? ■* 5 « «* *\ ^i; 5 x vt V^- "'• ' S T ^y >>. Nf. ;^^^s ^ *!> v- S -^^ ^ . & X ' a jo -r\ jje- v> ''&>' - 5^--^^ to < ^ * V ^JI~\ n* z^t % « >- x\ \s V \ ^k. ^v- - ; ^\S? \ ^-^^ ^ $ - v. | \\\ V C^- '^ 8 ' $ ^ IE •■ A5 ^ ^^, V AS. ^^ " £ 1 \\ ^ X^i ST ! > [ "v\ V A\ ^ "+- „ J ^ * - t" ^s.^^c-4- vv V " s ^ a i ' • ■ ■ V ^ S^k^ X £ s ■ -4- J.T- ^s, Va v s 5, I v Vt- t it ? ^_ ^_\ \i V\ A •. V \ ■ ^ ^S^^r- ir-A^ ^ _ S^i, \ V IL - -S V^ ^^ I & 'S^^l CI- jk 6 vs^X ^t- j s ivsg $ v f J • BL. ' ^^ ^^ 4-' V A w- ^ fc \ \&— \ 'l_ Si ..-.V™fc S. V « - -IlIL.V^^Ji. ^k_ "V H ^t- > "V -1_. L ■ V- S^^^' N ^ >i _t s^t^ *, 1 ^ _ . ., s O« ^, 8 I r: T §5^^ i s&- ; i . , . ^S» kk _l 4- "- * - i 5 ; -in: ~r- it - . " " ■ ~rri i ~i 16. SO ZS 30 36 JK> d S ACL J& £o &5 !?0 75 lAe/es. MUTUAL LIFE INSURANCE COMPANY OF NEW-YORK. 25 be that of the Experience among members of " Friendly Societies," accord- ing to Katcliffe, ISTeison, or Finlaison* By reference to the following diagram, No. 5, showing the number out of which one person will die according to the unadjusted Experience among members residing in Classes I. and II. combined, we find in the comparative security of life at different ages, the apparent anomaly of two points of maxima and two of minima, namely, at ages 27 and 42 for maxima, and at 24 and 34 for minima. In other words, the value of life or chance of living during the ensuing year, increases from the age of 24 to 27, decreases from this latter age to that of 34 ; again rapidly increases from the age of 34 to that of 42, after which the value again rapidly decreases, and with considerable regularity to the close of life. I cannot think that this anomaly is entirely owing to the scantiness of the data from which our Experience was deduced. The same pecu- liarity was first noted by Mr. Finlaison, in his Report on the Mortality * The annual rate of mortality among members of Friendly Societies between the ages of 16 and 75, and also among the members of this Company between the same ages, may be seen by the following Table. No. of Lives. Deaths. Annual Kate of Mortality Friendly Societies, Ratcliffe, .... 621,472 6,049 0.9733 1,135,522 13,563 1.1944 Do. Finlaison, . . . 3,930,613 48,621 1.2370 Mut. Life, General Experience, 68,606 749 1.0917 46,555 438 .9408 An Actuary in England once remarked, that the rate of mortality stated to prevail among members of Friendly Societies, was almost the same as saying that the working classes were immortal ! But we find that the rate of mortality among members of this Company residing in Class I. is less than that by either of the above observations, which are based upon persons selected from among the 6lite of the working classes, and who were supposed to have the lowest rate of mortality known. 26 REPORT ON EXPERIENCE. observed among Government male annuitants, published in 1829. He found, among males, that the point of greatest security in life was about the age of 13 — decreasing afterwards to the age of 23, then increasing to the age of 34, after which it decreased, but so slowly, that at the age of 48, the value of life, or chance of living during the ensuing year, was somewhat greater than at the age of 23 ; after the age of 48 the value rapidly decreased until the close of life. These results were somewhat confirmed by M. Quetelet, from observations made in the kingdom of Belgium. And also by Mr. Neison in his valuable " Contributions to Vital Statistics," who found that this peculiarity occurred among members of " Friendly Societies," and varied with different occupations. Thus among agricultural laborers the value of life is greater at the age of 30 than at 23. Among country work- men, not laborers, the value is less at the age of 19 than at 25, and again less at 30 than at the age of 32 — somewhat similar to our own experience. Among clerks there are also, in the value of life, two points of maxima, namely, ages 35 and 47, and two of minima, 28 and 44; while among bakers there are three points of each, namely, ages 22, 38, and 54 for the maxima, and ages 18, 31, and 49 for the minima. I also find (from data furnished in their last Annual Keport) that the Experience of the "Mutual Benefit" shows the same anomalies, as may be seen by reference to the diagram No. 5, having, in the value of life among their assured, two points of maxima, namely, ages 31 and 40, and two points of minima, namely, ages 21 and 36. Such anomalies'are not observed when the observations are made among miscellaneous communities of men, women, and children, but seem to be peculiar to certain classes of persons, and no doubt similar facts, at different ages, might be deduced from observations among female lives alone. Va- rious explanations have been offered by such men as Quetelet, Prof. Bucha- nan, etc., but which would be out of place here. fe-l • * J te 1 \ fe- \ - \ \ < S. ' / /'i. \ ' v -IS r . -- S ■ f « i 1 a fit \ i H \ ' 1 _jj* \ i -J* V '■ \ / ii \ ^_. h-~ i : | \ H 1 i iN \ ,\ 1 Hji: Q \v y r* " -Ss. V \W n 1 V \ _jk ^ ^ \ \i 1 i 'i 1 \ w ^ ^3 L N / \ *. 1 \ ; ! 5^ '*« « /\ \. -V . o % fc *«» **\ t^ \ - '-V ~r^ •o f- i _!_ v \ -Z\ \ A _l_ >^ ±i- ^ T fct V% > -$- nS 1 >ti \ V 1 ■^U- -^\ > \\ k V- s! \'' .V r* * ^ i r 4> \ / \ " .. / \ \v Tj / \ ' \ \N s [) *s>\/ i\ V \ / \,> A V vi \\ / ' / V \ ■• V V \ Jo > v / *v U \v-» _V . \', '\ /\ V J '^ V" -\ r* \ w i V -\<%- ^» \ W \ ^» \ V \ > s > \* \? Nt \=3 I X i J r I','' / ^ ff — ■- 1 T" V- \ \ r °^ v< ^ v \ * \ V s "% »e \- \ \ \ S of ^>** r ^ x n k\ \\ "\ \ j^ ^ ! } V-, '« * \ \y \ o C \ s 1 £ 3 Sl_ H _K \ W '\ v -\ v / \ v > t , s 3 0|_ ^^ \ \ , v 1 , *• g A . V v< 3! \ \ \ \ 3 \ ' \ ' \ V\ \ X \ \ \ <3 \ \ \ V » > 'N "^ \ \ | ^s \ -\ \ \ •^ " s \ ^ ' r 7 \ ■48 v^ \ \ vN ' V ^ s ^N > \ \v / .. \ •^ , ! 3 . iS / K -■vl ^« i. f I \ ..-• \ ^ -§ k ? X ^ 1 ^. s? ?^ J i V : 1 5 1 -c ; — — 1 5 - ■ I \ 16 20 26 SO 35 HO 46 6 l O £ 5 ec 66 7 7 1 5 lAges. MUTUAL LIFE INSURANCE COMPANY OF NEW-YOBK. 27 Expectation or Life. Perhaps the most interesting results of Table VII. are contained in the column headed " Expectation of Life," by which we may find for every age the aftertime Ufe, or the number of years which, taking one person with another, we may expect to live. By means of the following table we may compare these numbers from our own Tables, with those according to some of the more celebrated English Tables of Mortality. TABLE X. Expectation of Life according to different Tables of Mortality. i 6 a S3 1 si a IP'S H Is 03 S2 a ° Carlisle. "I Ji 3 Oh WW 5 °« P -A <1S Farr's English Life. English Friendly Societies. «3 gs WW Massa- chusetts. 1855. Elliott. bo <1 No. 1. No. 2. jo ill &M3 20 30 40 50 60 70 40.16 33.13 26.33 19.74 13.65 8.54 42.75 36.00 28.94 21.56 14.55 8.64 38.45 32.18 25.71 19.40 13.56 8.55 41.49 34.43 27.28 20.18 13.77 8.54 41.46 34.34 27.61 21.11 14.34 9.18 41.06 33.98 27.40 20.83 15.06 9.84 33.68 25.94 18.99 12.88 8.11 39.88 33.13 26.57 20.03 13.59 8.52 39.99 33.31 26.43 19.87 13.60 8.55 40.92 33.70 26.41 19.40 13.29 9.09 43.77 36.61 29.33 22.19 15.69 10.21 41.40 34.82 27.20 19.96 13.83 9.23 39.9 34.0 27.9 21.3 15.0 9.4 20 30 40 50 60 70 We here find that our Adjusted Experience gives a higher Expectation of life at all ages, than the Company's theoretical table, and also higher than any English table below the age of TO, except the " Friendly Socie- ties " according to Neison, which is uniformly higher at all ages. At and above the age of 70, the Expectation by several English tables is higher than that shown by our own Experience. 28 REPORT ON EXPERIENCE. Comparative Mortality in England and in the Northern United States. In a Keport upon the Experience in 1851, Mr. Gill made a comparison of the actual rate of mortality among members of this Company residing in the Northern States, with that according to the experience of English Com- panies. I have extended that comparison so as to include our present results for fifteen years, together with the rate of mortality amongst the members of the Mutual Benefit Life Insurance Company of Newark, for twelve years, as published in their last Annual Keport. We may thus com- pare the relative mortality among assured lives in this country and in Eng- land, at different ages. TABLE IX. Comparison of the Annual Rate of Mortality in England and in the Northern United States. Esglish Companies. Mutual Life Insckahce Company of N. T. u Mutual Benefit" Experience. 12 years. N. T. State Census, 1855. First year of Assurance. Total Expe- rience to 1888. Classes 1. and II. combined. Class X alone. Whole Company. 8 years. 15 years. 15 years. 15 years. A B C D B F G H 15-25 25-35 35-45 45-55 55-65 65-75 .5844 .8872 1.3181 2.6755 3.4060 .7910 1.1002 1.6140 2.9433 5.1769 .7433 .8533 1.2512 2.8011 8.9802 .6838 .8182 .8059 1.1783 2.7298 4.5252 .68 .73 .76 1.16 2.79 3.85 1.10 .94 .91 1.28 2.55 4.34 1.3363 .9652 1.0027 1.2372 1.8544 4.9327 .80 .77 1.04 1.47 2.10 4.08 MUTUAL LIFE INSURANCE COMPANY" OE. NEW-TORE. 29 The first column (A) contains the annual rate of mortality among members of English Companies during their first year of assurance, or when the effect of selection was greatest. Column B contains the annual rate of mortality among members of the same Companies after their first year, or when the effect of selection is supposed to have diminished. Co lumns C, D, E, and F show the annual rate of mortality among members of this Company according to Experience ; while column G shows the rate amongst all the members of the "Mutual Benefit" for twelve years. Column H contains the rate of mortality which I have deduced from the last Census of the State of New- York, but the Report itself is so badly arranged, at least in regard to mortality statistics, that I place no reliance upon the numbers in this column. Theoretically, the rate of mortality among members of the American Companies should be greater than that shown by column A, but somewhat less than that of column B. We find, however, the rates shown by columns D and F are greater below the age of 35 than those in column B, while above that age they are somewhat smaller, and also that the rates shown in column E, for which alone our Table of Mortality was strictly intended, are less at all ages than that in column B, while for some ages they are even less than those shown by column A. The Experience of the "Mutual Benefit" also shows an unusual degree of mortality at younger ages, while at the middle and older ages the rates are somewhat less than those in column B. From this we may see that the fear expressed by Mr. Gill, in the Report referred to, that the mortality in this country above the age of 55 would prove to be greater than that obtaining among similar classes in England, is not justified by the results of more extended Experience. On the contrary, the fear now seems to be that the mortality at younger ages may be greater than that anticipated, as we have already seen. 30 REPORT ON EXPERIENCE. General Observations on the Results op the Company's Experience The very favorable results in the Experience of this Company may be attributed to two principal causes, namely, the influence of selection, by which persons in sound health only, are admitted as members of the Com- pany, and the fact that among these members are to be found so many married men, or heads of families. The value of selection in this Company has not yet been ascertained. It has been found in England, however, that the value of life among per- sons selected with the greatest care, although at first greater than, yet gradually approximates to, the value among similar classes taken from the community at large. Whatever benefit we may have derived from judi- cious selection should not be considered as clear profit, but should be set aside in order to meet that depreciation in the value of life, which, in process of time, must be expected among members of long standing. In other words, although the deaths heretofore have been fewer in number than those predicted by standard Tables of Mortality, we should be prepared for the contingency, when present members become older, of having at some future time, an Experience just the reverse of the present. The favorable influence of marriage upon the value of life has been long conceded, but has never been numerically measured, I believe, until very recently, when Dr. William Farr, F.E.S., read a paper before the British Association for the Advancement of Social Science, on the " Influence of Marriage upon the French People." Some of his results have been arranged in the following Table. MUTUAL LIFE INSUEANCE COMPANY OF NEW-TOBK. 31 COMPARATIVE MORTALITY AMONG THE MARRIED ANT) SlNGLE IN FRANCE, 1851. Ages. Ahkual Mortality amoxg BACH 10,000 PERSONS LIVING. Number of deaths among Single, corresponding to each 100 among the married Husbands. Bachelors. Wives. Spinsters. Bachelors. Spinsters. Under 20 293 67 .... 71 23 20-30 65 113 93 82 174 88 00-40 VI 124 91 103 170 113 40-50 103 177 100 138 172 138 50-60 183 295 163 235 161 144 60-70 354 499 354 498 141 141 By this Table we observe that the mortality among husbands at the younger ages, is excessively high ; while the annual mortality among bache- lors above the age of twenty is from 74 to 41 per cent greater than that among husbands. May not this hold good, to a greater or lesser extent, in the United States ? The very large number of lapses (other than by death or expiration) which, in this Company, is much greater in proportion, than among the English Companies, no doubt also exerts a great influence upon the fore- going results. Should these lapses in future materially decrease, we may expect an increase in the rate of mortality. Before going further, it may be well to remark that the Table of Mor- tality now used by the Company, and upon which all rates of premium etc. are based, was constructed by your former Actuary, the late Prof. Gill, in a manner fully described by him in his introduction to " Assurance 32 REPORT ON EXPERIENCE. Tables." Mr. Gill submitted lis plan to some of the most experienced Actuaries in England, who gave it their unqualified approval, and no doubt, it was the best table for this country which could have been framed from information then obtainable. It is, however,, entirely arbitrary, as far as regards the value of life in the United States, being a mere digest of the results of English observations. It is beautifully graduated, and reflects great credit upon the skill of its author. "We have already seen that its predictions have been more than sufficient to cover the results of actual practice. Mr. Gill remarks, at the end of the description referred to above : " It is believed that this Table gives a more accurate representation of the value of the class of assured lives in England, than any other now extant. It will of course require to be modified for the United States, whenever elements sufficiently reliable can be procured." "We can not rely upon the results of any Federal or State census in this country, for the purposes of Life Insurance, and besides it is very doubtful whether a Table of Mortality deduced from observations made upon a miscellaneous com- munity, of men, women, and children, will ever represent with entire satis- faction, the value of life amongst assured lives, who are in many respects a peculiar class. Hence for the purpose of modifying or correcting our own Table of Mortality, elements sufficiently reliable can only be obtained from the Experience of our own or similar Life Insurance Companies. For this reason, I have bestowed great care, and no small labor, in deducing from this Company's Experience, results which are as accurate, complete, and reliable as possible ; confident that if such observations are continued, we will soon have the requisite data for framing a reliable American Table of Mortality, and which will be an accurate, representation of the relative value of life amongst the class of assured lives, at the different ages. The importance to this Company of such a table cannot be too MUTUAL LIFE INSURANCE COMPANY OF NEW-YORK. 33 highly estimated, as affording the only means by which the scale of pre- miums can be equitably adjusted, or by which the present value of the Company's contingent resources and liabilities, in a financial statement, may be correctly ascertained. Such a table, in fact, being absolutely essential for the proper solution of all questions depending upon the duration of human life. At the present time, it may be safely said, that the comparatively limited Experience of this Company, even when the very large number of lives exposed to mortality is considered, will scarcely furnish results upon which we may place implicit reliance — at least, not sufficient to justify any change in the present rates of premium. At the same time, however, confirmed as they are by those of the " Mutual Benefit," our present results of Experience prove that the Company's theoretical Table of Mortality does not fairly represent the comparative value of assured lives at different ages, in this country. And consequently that our rates of premium are not perfectly adjusted, being at some ages too low, and at others too high for the risks which they are intended to cover. Should these present results be confirmed by future Experience sufficiently extended, a modification of our table rates of premium will no doubt be necessary. In the mean time, I would respectfully suggest that any injustice which has been done to pre- sent members, by reason of the unequal graduation of premiums, may be obviated, at least in part, by introducing results of Experience in such a manner as to modify the apportionment of each future dividend, thus making our system of reversionary dividends the fly-wheel or governor of the vast machinery of Life Insurance. The fact of charging at any age, comparative rate3 of premium slightly too high or too low, is of but little consequence in a Mutual Company, provided we have the means of making a just compensation to the original 34 EEP0ET OX EXFEEIENCE. contributors. The amount of such excess or deficiency in the rates of pre- mium, can only be determined by tables based on actual Experience ; while the compensation itself may be effected, as we have already seen, by a slight modification in the future apportionments of reversionary dividends. Kespectfully submitted to the Board of Trustees, by Sheppaed Homans, Actuary. New-Yokk, October 25th, 1858.