The following is a comparative statement in condensed form of income, disbursements, assets and liabilities of the years 1915, 1916 and 1917 as taken from the company's audited statements: Premiums Total interest and rents. Sundry items of income. Fluctuations and changes in assets, viz.: real estate, stocks bonds Total 1915 Income $59, 255, 292 97 1916 1917 $64, 751, 710 72 29, 676, 089 56 1,377, 040 22 and $88,251, 707 66 $92, 439, 475 14 $96, 461, 069 70 Based on figures contained in the above statements, the percentages of commissions, agency expenses and general expenses to premium income for each of the last three years is as follows: Total admitted assets. $616, 642, 729 99 $627, 145, 558 99 $636,370, 108 32 4, 506, 200 60 8, 615, 834 35 Liabilities Reinsurance reserve ... $503, 252,993 00 $510, 562, 769 00 $521, 173, 426 00 Supplementary contracts not involving life contingencies 4, 000, 441 00 4, 280, 591 63 4,384, 540 21 Conclusion The clerical errors noted in the foregoing report were doubtless due to the disturbance of the company's office routine caused by reason of war and labor conditions. Efforts are being made by the company to overcome such labor difficulties and restore home office routine to its normal efficiency. Since the last department examination as noted in the report, the company has adopted a pension and allowance system for the benefit of its employees. A charter amendment made in 1917 enables the company to furnish to its policyholders disability, health and accident insurance. The company's surplus (contingency reserve) has been increasing and amounts to almost 4% of the net value of its policies. The maximum contingency reserve (surplus) allowed by the New York Insurance Law is 72% of such net values. NEW YORK LIFE INSURANCE AND TRUST COMPANY Examined to ascertain condition December 31, 1917. Examiner: Thomas L. Lynch. The insurance reserve as computed by this department is $2,352,821.00. There is but one life insurance policy in force. All annuity contracts issued during the years 1914, 1915, 1916 and 1917 have been checked to the department valuation register from the annuities issued book, the stubs of which are numbered consecutively, and found to agree in all particulars with information reported to department in valuation register. The company keeps in ledger accounts under "Life insurance" and "Annuities" the entire insurance part of its business. These two accounts are treated as deposits in trust. Premium receipts and considerations for annuities have been credited to these accounts; interest on annuities has also been credited to the "Annuities" account. Payments on account of annuities and for death claims have been charged to these accounts. The balance of these two accounts represents the accumulations since the company began business. As the assets representing this fund are not segregated to provide for the liquidation of the insurance liabilities of the company but are held among the general assets of the company, a statement of the assets and liabilities of the company as a whole, as of December 31, 1917, follows: The company considers the life insurance fund of $360,996.42 and the annuity fund of $2,310,101.68 to be entirely invested in bonds and mortgages on New York City real estate, of which the company held on December 31, 1917, $3,622,740.21. It would seem that legally these mortgages are assets available for the liquidation of the general liabilities of the company and not for any specified liability or group of liabilities, irrespective of the fact that the company considers them to be the investment of the insurance and annuity fund. It is the opinion of your examiner that the assets of the company as a whole should be considered as available for the liquidation of the insurance and annuity fund, in which case the question arises whether a corporation operating under both the insurance and banking laws can purchase or loan upon stocks or make any other investments of its funds which are prohibited by section 100 of the insurance law. THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY MILWAUKEE, WIS. Examined to ascertain conditions as of December 31, 1917. Report dated February 18, 1918. Examiners.- Grady H. Hipp, for Wisconsin Insurance Department. James Fairlie, for Division of Insurance, Illinois Department of Trade and Commerce. H. L. Phillips, for Minnesota Insurance Department. J. C. Harvey, for Missouri Insurance Department. History The Northwestern Mutual Life Insurance Company was incorporated by special act of the Wisconsin Legislature under chapter 129 of the Private and Local Laws of 1857, which has since been amended from time to time at various sessions of the Legislature. The history of the company was covered in greater detail in the report of the previous examination of the company made by the insurance departments of the States of Wisconsin and Illinois. Management: The management of the company is vested in the board of trustees consisting of thirty-six persons. The term of office of the trustees is four years. Nine trustees are elected at the annual |