BEST'S INSURANCE REPORTS—FIRE AND MARINE.   69

INSURANCE COMPANY—Continued.

Ratios to Premiums Earned.—Losses incurred, 49.7%; expenses incurred, 50.7% ; underwriting loss, 0.4%.

_Miscellaneous, 1919.— Net losses incurred, $187,909.66; net risks in force December 31, 1919, $71,739,834; net premiums in force, $725,971.39.

Underwriting Exhibit, 1919.— Premiums earned during 1919; $377,959.37; gain from underwriting profit and loss items, $18.75.; total, $377,978.12.

Losses incurred during 1919, $187,909.66; underwriting expenses incurred during 1919, $191,573.56; total, $379,-483 22.

Loss from underwriting during 1919, $1,505.10.

Inrestment Exhibit, 1919.— Interest; etc., earned during 1919, $53,988.42; profit on investments during 1919, $26,-505.39; total. $80,493.81.

Loss on investments during 1919. $11,419.38; investment

expenses incurred (luring 1919, $6,449.92; total, $17,869.30. Gain from investments during 1919. $62,624.51.

Gain and Loss Exhibit, 1919.— Gain from investments,

$493,227 97   $62,624.51.

Losses: Underwriting, $1,505.10; increase in special re-serves, $5,000; dividends, $22,400; total, $28,905.10.

Surplus, December 31, 1918, $301,524.28; increase, $33,-719.41: surplus. December 31, 1919, $335.243.69.

('APITAL FIRE INSURANCE COMPANY OF CALIFORNIA, ('apital National Bank Bldg., 7th and J Streets, Sacramento, Cal.

CAPITAL FIRE INCOME, 1919.

Gross premiums written    

Less reinsurance    

Less return premiums    

$776,331 36 214.860 71 103,724 25

Total net premiums    

Interest, etc   

Borrowed money    

Other income    

TOTAL INCOME    

$457,746 40 57,302 99 50,000 00 4,268 44

$569.317 S3

DISBURSEMENTS, 1919.

Net losses paid    

Underwriting expenses    

Dividends to stockholders    

Borrowed money with interest    

Other disbursements    

$181, 000 186, 619 22. 400 86, 406 16, S01

56 14 00 47 80

TOTAL DISBURSEMENTS    

Ratios to Premiums Written.— Losses paid, 39.5%; incurred, 41.0%; underwriting expenses, 40.8% : underwriting loss, 0.3%.

GENERAI. REVIEW.

History.— This company was incorporated January 21, 1911, as the Western National Fire Insurance Company, through the Sacramento Holding Company. Stock of the Sacramento Holding Company (authorized capital, $1.-000.000, par value $1 per share) was sold at fifty cents per share, with the intention of organizing an insurance company with a paid-in capital of $250,000 and a surplus of a like amount. The promoters used for organization expenses approximately .$200,000 of the amount paid in. This company was launehed with $250,000 capital and $50.000 surplus paid in, and the present title was adopted. It was licensed to begin business January 20, 1912.

The promoters responsible for the heavy organization expense are no longer connected with the company in any way.

During 1915 an assessment was called and paid on the capital stock of $67,500. In January, 1916, the capital stock was reduced to $225,000.

During 1917 it was examined by the Insurance Departments of California and New Mexico, as of June 30, 1917. The report showed a surplus of but $5,377.43 on that date.

In 1919 an assessment of 30% on stockholders was made and $67,500 was thus provided for surplus.

Policies entitled " Liberty Underwriters of California " are guaranteed by this company, and are issued only in California

Management and Reputation.— Since organization, the company's underwriting operations have been very unprofitable. The expense and loss ratios have been high.

It suffered a loss from underwriting during 1919 of $66,267.09 but increased its surplus $155,577.92 by reason of the fact that $67.500 was contributed to surplus during the year. The, surplus would ,be increased $3,198.12 if credit was taken for this amount which is in excess of all liabilities against, a special deposit of $10,000 set up with the New Mexico Insurance Department.

The president of the company, H. C. Muddox, is a very heavy stockholder. He is in the sewer-pipe manufacturing business and is president of a small bank in a suburb of Sacramento. Previous to his connection with this company he had no insurance experience, so far as we are advised. He has had charge of making the company's general agency contracts.