BEST'S INSURANCE REPORTS—FIRE AND MARINE.   127

FARMERS INSURANCE COMPANY,
Cedar Rapids, Iowa.

GENERAL REVIEW.

History.—This company began business in October, 1860, and up to 1868 operated practically as a mutual company. In 1868 $25,000 capital was paid in and the balance of its $100,000 authorized capital was represented by stockholders' notes (par value of stock $100),

In October, 1880, a stock dividend of $75,000 was declared, which canceled the stockholders' notes and made the paid-in capital $100,000. In 'December, 1909, the capital was increased to $200,000 by another stock dividend of $100,000.

The company writes farm business, and takes notes for premiums, which accounts for the large item of " bills receivable." in the statement of assets. These are considered good.

A considerable sum was added to the liabilities in 1919 on account of the unearned premiums being figured on the basis required by most States, instead of but 40%, in accordance with the Iowa laws as formerly. This should be considered when comparing these figures (especially reduction in surplus in 1919) with those of other companies.

Management and Reputation.—The company is fairly well managed, and is making slow progress, its resources being increased slightly each year. Its underwriting in recent years, however, has not been profitable. Substantial dividends have been paid to stockholders out of earnings from investments.

On December 31, 1919. the directors owned $161.900, par value, of the capital stock, the majority of it belonging to the president of the company, who has been connected with it for many years.

The company is in excellent repute concerning its general treatment of loss claimants. Its business increased considerably during 1917 and 1918, and now it writes rather a large volume in proportion to its capital and surplus. Its expense of operation has been high, but its average loss ratio is normal. In 1918 its loss ratio was below the aver-age. and in 1919 it had a very low loss ratio.

Its investments are of good character and yield a good return.

The company states that the property formerly used as its Home Office was sold on contract dated January 28, 1918, and that the unpaid portion thereof is carried as an asset, under real estate owned. It is no longer used as the company's office building.

The mortgage loans are principally upon improved Iowa farm property, and are valued at over three times the amount loaned.

Classes of Business Written.—Fire, tornado, hail and automobile insurance,

Territory.— It is licensed in Ill., Ia., Minn., Neb. and S. D.

Dividends.— 1901 to 1909, inc., 15%; 1910 to 1919, inc., 10%; total dividends paid since organization (cash), $695,-500; (stock), $175,000.

Officers.—President, Ed. H. Smith; vice-president, Jno. B. Henderson; secretary, C. N. Jenkins.

Directors.

Henderson, John B., vice-president of company.

Jenkins. C. N., secretary of company.

Smith, Ed. H., president and treasurer of company; director and vice-president Cedar Rapids National Bank, and of Cedar Rapids Life Insurance Co.; president of Welch-Cook Company, wholesale dry goods.

Smith, Isaac B., vice-president and traffic manager Iowa Railway and Light Co., Cedar Rapids.

Smith, Norman E., chief farm examiner of company. Stockholders' Annual Meeting.— Second Thursday in January.

INCOME, 1919.

Gross premiums written    $825, 317 00

Less reinsurance    196,923 04

Less return premiums    68,837 24

Total net premiums    $559, 556 72

Interest, etc   37,783 53

Other income    12,693 86

TOTAL, INCOME    $610.034 11

DISBURSEMENTS, 1919.

Net losses paid    $155,612 69

Underwriting expenses    307. 250 96

Dividends to stockholders    20,000 00

Other disbursements    19,186 72

TOTAL DISBURSEMENTS    $502,050 37

Ratios to Premiums Written.—Losses paid, 27.8%; incurred, 27 6% ; underwriting expenses, 54.9%; underwriting loss, 10.3%.

Ratios to Premiums Darned.—Losses incurred, 39.7%; expenses incurred, 79.4%; underwriting loss. 14.8%. Miscellaneous, 1919.— Net losses incurred. $154,481.27; net risks in force December 31, 1919, $79,619,729; net premiums in force. $1,562,756.20.