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873^
mB3
UC-NRLF
C 2 77E bED
X
REPORT
EXHIBITING THE EXPERIENCE
OF THE
MUTUAL LIFE INSURANCE COMPANY
NEW-YORK,
FOIi
FIFTEEN YEARS ENDING FEBRUARY FIRST, 1858.
L I H U A ii L |,
UNIVKHSITY OF j
, CALIFOKXIA. >
PRINTED BY ORDER OF THE BOA.RD OF TRUSTEES:
NEW-YORK, NOVEMBER, 1859.
/^ °i S/
TABLE SHOWING THE PROGRESS OF THE COMPANY.
No. of Policies In force
on the
first of February in
Amount
assured thereby.
Assets.
No. of Policiea 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
15,660,476
$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
16,406,805
17,509,773
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. Wixstox,
Joiix V. L. Prutn,
William Moore,
Joseph Bluxt,
Robert H. M'Curdy,
Isaac Green Pearson,
Samuel M, Cornell,
John H. Swift,
Wm. J. Bunker,
William Betis,
John P. Yelveeton,
John Wadsworth,
Alfred Edwards,
Nathaniel Hatden,
John M. Stuart,
George R. Clark,
Sam'l E. Speoulls,
Lucius Robinson,
W. Smith Beown,
Richard Patrick,
William P. Popiiam,
Lycuegus Edgeeton,
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.
Secretarif, Isaac Abbatt. Actuary, Sheppard Romans.
Medical Examiner, Mintuen Post, M.D.
UNIVERSITY OF
CALIFOliXIA.
TO THE BOARD OF TRUSTEES.
Gentlemen :
In presenting tlie 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
di^ddend in 1853. (See his Eeports 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. Homansj 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 Keport, 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 ha
TO THE BOARD OF 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' 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, Koyal 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 BOARD OF TKUSTEKS. HI
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' than to the Carlisle or
Northampton Tables.*
On assuming my present oflScial 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. Wynke 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 oureelves. ,
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 the skillful
and thorough examinations of Dr. Post, our Medical Examiner, who in 1853 and in 1858
])repared the Mortuary Reports of the Company. Dr. Post is now engaged in bringinf"
the Reports in a classified form to this date, and when finished, it will bo published in a
f.itnre edition of this work.
IV TO THE BOARD OF TRUSTEES.
with special reference to Term Policies, proifering our own experience in
return, 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 mvich 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 mUes 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 Rates 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 Report :
"They congratulate the Trustees that the Report 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. V
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 wiU 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 sufiicient 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 judgaient.
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. WlNSTOJS^,
New-York, Nov. 15, 1858. President.
h i ii U A li V ^,
UNI VEKSITY OF
tX^LlFOILXlA
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
8 REPOBT ON EXPERIENCE.
and excess will balance eaci. 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.
AxxuAL Experience of the whole Company— 18^3-57 inclusive.
EjtPosEu TO Mortality in the
Probable
Loss BT COM-
1
! Frobaiile: Loss by Cablisli
Tear.
CoMPiNT rOK ONB WIIOLB VKiE. 1
I'ASV'S
Tablb.
Tablk.
No. nf Lives
No. of
Deuths.
^J3
No. of
and fracUtins
uf Lives.
Amount
Amount.
c2
153
Amount
Deaths.
Amount
1843
253.59
966,716
2.902
11,461
2.809
10,902
1844
633.79
2,312,278
7.715
29,703
5
18,000
7.297
27,119
1845
1,275.15
4,346,769
15.539
54,518
7
18,100
14.771
51,026
1840
1,993.53
6,226,630
24.934
80,436
23
69,400
23.528
75,809
1847
2,056.14
8,128,045
33.550
106,741
28
66,150
31.733
100,392
1848
3,505.38
10,707,018
44.155
140,014
27
94,200
41.798
131,983
1849
4,513.43
13,290,200
56.551
173,986
64
175,950
53.491
163,859
1850
5,297.94
15,127,795
07.320
200,201
71
154,640
63.613
188,391
1851
5,572.93
15,867,144
72.181
213,790
49
164,100
67.970
200,290
1852
5,730.17
10,713,402
70.277
228,051
07
203,100
71.049
213,924
1853
6,131.07
18,508,260
83.315
257,197
72
207,200
78.019
239,581
1854
6,720.07
20,723,850
92.127
289,339
85
281,500
85.804
269,294
1855
7,250.76
22,870,204
100.500
321,332
81
267,850
93.653
298,490
1856
8,185.60
26,148,107
113.374
367,014
75
264,255
105.599
340,985
1857
8,898.24
29,121,868
123.870
408,790
96
328,100
115.195
379,813
Total,
08,617.79
211,059,018
914.377
•
2,882,633
750
2,312,545
850.989
2,692,404
These results arc deduced from observations embracing every variety
MUTUAL LIFE INSUEAKCE COMPAKY OF NEW- YORK. .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 he 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 anA 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
EEPOBT OU EXPERIENCE.
TABLE II,
Geiieeal Experience op the Mutual Life Insueance Company op New-Toek, foe
Fifteen Years, ending February 1st, 1858.
Exposed to Mortality in thb
PSOBABLR Loss BY CoM- |
ACTTIAI. Loss. 1
Feoeable Loss bt Carlisle
Company fob one whole tear.
I'ANY'S
Tablb.
Table.
Age.
No. of Lives
No. of
O JZ
No. of
and fractions
Amount.
Deaths.
Amount.
6 a
Amount.
Deaths.
Amount.
of Lives.
»P
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
172.90
298,087
1.228
2,117
1
600
1.219
2,105
21
271.68
554,732
1.986
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
80
2,312.85
6,400,502
21.799
60,325
26
82,000
23.356
64,664
31
2,503.43
7,139,008
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
6,981,958
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
61,463
15
46,000
13.283
46,238
MUTUAL LIFE INSURANCE COIIPANY OF NEW-YORK.
11
TABLE II.— Continued.
Exposed to Moetalitv in the
PSOBABLK Loss Bt CoM- 1
...... r^»» 1
Fuobable Loss bt Carlislb
Company foe onb whole ybae.
pany's
Table.
Tablb.
Age.
No. of Lives
No. of
»l
No. of
and fractions
Amount.
Deaths.
Amount.
d-3
Amount.
Deaths.
Amount.
of Lives.
!=S
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
66
543.42
1,902,216
13.659
47,814
10
62,895
10.324
36,142
57
448.37
1,573,554
11.925
41,850
9
45,900
9.371
32,883
58
070.62
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
6]
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 tlie results contained in this Table, I
have plotted in the following Diagram (No. 1) the numbers for eacli 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 diflferent parts
12
EEPORT ON EXPEEIEKCE.
of the country. These classes are the same as those contained in the map
prefacing the Annual Keport for 1858, and explained in pp. 66-69. (See
Eeport.) 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 difiiculty.
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.
COMPAEATTVE MOKTALITT IX THE DiFFEEEXT CLASSES.
(1843-52
Whole Company, ■] 1853-57
(15 years
Class I.,
( 1843-52
i 1853-57
(15 years
n, TT (1843-52
rTl- ' VT^ ^853-57
(including VI.) |igy,^3
Class III.,.
(1843-52
■J 1853-57
( 15 years
(1843-52
•] 1853-57
( 15 years
(1843-52
Classes V. & VH., i 1853-57
(15 years
Class IV.,.
Number of
Lives and
Fractions of
Lives which
have been
exposed to
the risk of
mortality
for one
whole year.
Probable
nnmber of
Deaths.
31,432.05
37,185.74
68,617.79
19,937.20
26,639.49
46,576.69
4,479.40
6,393.45
10,872.85
1,569.60
1,555.20
3,124.70
1,441.10
1,637.55
3,078.65
861.10
960.05
1,821.15
company's
TABLE.
401,166
513,211
914,377
255,083
368,741
623,824
56,643
85,012
141,655
20,199
22,678
42,877
18,575
2.3,937
42,512
8,837
12,843
21,680
340
410
750
178
262
440
48
79
127
20
21
41
23
35
58
37
13
50
Per cent-
age of
Actual
on Pro-
bable
No. of
Deaths.
84.75
79.88
82.02
69.78
71.05
70.53
84.74
92.93
89.66
99.01
92.60
95.62
123.83
146.22
136.43
418.68
101.22
230.62
Rate per
cent of
Actual
Mor-
tality.
1.08
1.10
1.09
0.89
0.98
0.96
1.07
1.23
1.17
1.27
1.35
1.31
1.24
2.14
1.88
4.30
1.35
2.75
Kate per
cent of
Probable
Mor-
tality.
1.28
1.38
1.33
1.28
1.39
1.34
1.26
1.33
1.30
1.29
1.46
1.37
1.29
1.46
1.38
1.03
1.34
1.19
1,238,944
1,643,689
2,882,633
COMPAXy's TABLE.
Probable
amount
of Loss.
1,118,976
264,428
102,921
119,209
38,140
Actual
amount
of Loss.
963,140
1,349,405
2,312,545
782,005
230,650
101,800
208,500
26,450
Actual
Loss to
each
$100
predict-
ed.
77.74
82.09
8 J. 22
69.89
87.22
98.91
174.90
69.35
N«l.
^ ^1 S, 8| !i ^ <., .ll
1
1
1
i
— «6
2
— ^
—
X:
-1-
1
_
_
g 1 J^< ^ 2 S
....
—
— -
7-5
*^
/
y
s
/A
— -^
^
8
/
^
~
/
/
y—
^
■S\
i
, —
/
•y
1
/
r —
-«
^
^.—
-"
/
"^^
i^-
\ — .
^
,«
■
t — ■
=^
vS
■ — ^
/
1
.
^
7^
r
1
.^
'-^
^
■
--^
g
^
^
—
'
,^
7-
^
_s
^
-~~-
■
Y^
. —
^
'*<
-V
^
^
_^
1 — ■
=^
1
va
f^
— 1
''
^^^
^"^
...^
— 1 — '
.^
1
^
--''
1 1
—
—
-^
-^
y
z'
__
/
~
/'
■^^
—
""^
' —
—
SS,
««
{
\
I
—
1
^n
V
^
•^_
^
-
,
:>^
■
""^
1=5.
— -
«:-.
-
<-^
"~
ST-
<;
' — .
f*-..
■"^
■^
■ — '
1 ,
-
^
^-J
^
"^
>.... 1
;>
\
"■
--~^
' — '
— >— i
=v
^
-^
\
N
"~~
K,
^
\
\
1
1
^ Si 8' ^ «,' ^1
-* ^
^^Vumher of Deaths.
]V?2.
eAnwunt ofZOfg hrJDeatJv.
MUTUAL LIFE INSURANCE COMPANY OF NEW-TOEK. 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 fii-st 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,
duiing 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 hMu-
died 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 thotosand lives exposed to mortality, both in the whole
Company and in each of the classes separately.
Tth. 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.
14 BEPOBT 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 wliich an extra premium is charged,
but by reference to the Eeport 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 fii'st 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 INSUEANCE COMPANY OF NEW-YOEK.
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 Tahle, 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. coniMned. Column F shows the extra annual premium now charged by
this Company for residence in each class, in addition to the regular tabic
rates.
TABLE IV.
"Whole Company, . .
Class I.,
" n,
" III.,
" IV.,
" v.,
" " since 1853,
Annaal Eate per cent of Mortality.
1.08
.89
1.07
1.27
1.24
4.30
1S53-5T.
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 Anniml Preminin
which should be charged
in order to equalize the rlblc
with Class I.
Per cent.
0.745
1.147
2.867
6.449
1.290
Willi Cla^-t-B
I. and II.
Per rent.
0.975
2.634
5.158
1.092
ExtraAnnual
i'rtniiiim
now (liarged,
per cent on
Amount <»f
Insurance.
0.500
2.000
1.000
1.000
18
BEPOBT OS EXPERIENCK.
These results, from tlie comparatively small amount of data, can scarcely
be depended upon as furnisMng 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 lives 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.
COMPAKATTVE MoBTALITY AlIONG MeMBEES ASSURED XJNDER ShOET-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.
Actual
No. of
Deaths.
No. of Deaths
to each 100
predicted.
Actual
Hate of
Mortality.
Probabla
Kato of
Mortality.
ExtraAnnnal
Premium
which should
be charged.
Life,
Endowment,. . . .
Seven Years, . . .
Other short terms,
W hole Company,
33,222.52
83.02
3,255.56
624.64
37,185.74
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 INSUBANCK COMPANY OF NEW-YOEK. 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, wUl make the gross
annual premium on short-term policies nearly, if not quite as high as the
regula/r 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, Tcnown 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
EEPOET ON EXPEHrENCE.
The following Table shows the exact number of Life, Term, and Endow-
ment Assurance Policies, which were in force Febiniary 1st, 1858, with
their corresponding dividends or additions, payable in all cases at death or
with the policy itself.
TABLE VI.
Policies is fokob
FBfl. 1st, 1868.
DiTIDEXDS OS ADDniOSS TO POLICIES IH TO»C«.
No.
Amonnt
184S.
1653.
18SS.
ToUL
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
216,925 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 YEAES.
1851
52
53
54
55
56
57
Total,
48
71
65
83
104
106
95
572
$127,400
198,400
217,300
262,650
320,550
339,000
274,000
$1,739,300
$450 01
1,388 23
$1,838 24
$1,502 39
1,980 96
2,867 75
1,986 96
1,314 37
1,381 32
$11,033 75
$3,996 62
6,919 26
6,311 72
5,424 26
5,955 87
4,675 60
758 21
$34,041 54
$5,949 02
10,288 45
9,179 47
7,411 22
7,270 24
6,056 92
758 21
$46,913 53
MUTUAL LIFE LNSUBANCK COMPANY OF NEW-YOEK.
Ifi
TABLE VI.— Continued.
Tear of Issue,
Policies in forob
Feb. 1st, 1858.
DiTIDEHDS OB ADDITIONS TO POLICIES IN FORCE.
Term of Policy.
No.
Amount
1848.
1863.
1S5S.
Total.
Brought over,
10,057
$29,272,646
$273,541 45
$838,775 83
$2,113,871 69
$3,226,188 97
OTHEB 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
6 "
106
306,550
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
ENDOWMBNT-ASSURAKCES.
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-MOETEM BIVIDENDS.
Deaths, 1853
" 64
" 55
" 56
" 57
$1,894 56
4,934 97
7,081 69
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,
10,38
7 $30,473,696
$273,541 45
$839,930 59
$2,168,758 26
$3,282,230 30
20
REPORT ON EXPERIENCE.
Comparative Moetalitt at diffeeent 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 Eate 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 Moetalitt according to the Expeeience of the whole Compant
FOE 15 YEAES ENDING FeBKTTAET IST, 1858.
No. Uvlng.
No. dying
Rate per cent of
AkMUAL MORT.ALITT
NnMBfiK OUT OF WHICH ONE
PeBSON will DIB ASNDALLT.
EXPEOTATION OF LlFK
Age.
Age.
By Co.'fl
Bv Co.'8
Table.
Company's
Company's
By Co.'s
By Co.'s
Table.
Experience.
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
740
.915
1.122
109.34
89.1
31.81
29.03
36
MUTUAL LIFE INSURANCE COMPANY OF NEW-YORK.
21
TABLE VII.— Continued.
No. living.
No. dying.
Eate pei
Annual
CENT OF
MOKTALITY
Number out of which oxb
Pebso.s will die annually.
j Expectation of l-ikb
Age.
Age.
By Co.'s
Bv Co.'a
Company*a
Company's
By Co.*8
Bv Oo.'s
Table.
Exi)erlence.
Table.
Experience.
Table.
Experience.
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
46
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
69.4
23.00
21.03
48
49
71,080
908
1.277
1.765
78.32
66.6
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
60,257
1,049
1.583
2.259
63.16
44.3
18.71
17.22
64
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
63.17
37.6
16.60
15.40
67
58
61,806
1,247
2.017
2.820
49.57
35.5
15.91
14.81
68
69
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
12.63
62
63
54,780
1,675
3.057
3.918
32.71
25.5
12.61
11.98
63
64
63,105
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
33,307
2,623
2,73a'
7.299
8.197
7.581
8.188
13.70
12.20
13.2
7.70
7.67
72
73
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
6.09
79
84
7,732
1,466
....
18.968
....
6.3
3.63
3.63
84
89
2,156
630
....
29.238
....
3.4
2.36
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
EEPORT on EXPERIENCE.
Some of the corresponding numbers from the Company's theoretical
Table are also given, by means of which the "Annual Rate 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 VO, 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.
CoiIPAEISOX OP THE At'TCAL NuJIBEE OP DeATHS COEKESPOXDING TO EACH OXE HUNDRED
Predicted, oe peeceutage op the actual numbek ox peobable, at decejojial ages.
Class I. alone,
Class I. and II. combined,. . .
Class II. including VI.,
Class in. alone,
Class IV. alone,
Class V. including VII., ....
Whole Company,
"Whole Co., " CarUsle Table,"
"Mut. Benefit," " "
li5-25.
90
90
89
662
595
431
145
157
191
25-35.
77
86
127
85
215
337
99
99
101
35-45.
61
05
80
90
156
159
73
74
80
45-35.
66
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 sges.
70.53
74.07
89.06
95.62
130.43
230.62
82.02
87.52
87.62
No
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66 TO
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tAffes.
MUTUAL LIFE IKSURANCE COMPANY OF KEW-YOEK. 23
We first observe tlie 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 aU 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 75, 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 hundred
and forty and one hundred and forty-OTie, (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 30, 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 difi'erent 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
INT? 4.
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^A^es.
MUTUAL LIFK INSUEAKCE COMPANY OF NEW-YORK.
26
be tliat of tte Experience among members of " Friendly Societies," accord-
ing to Eatcliffe, Neison, or Finlaison.*
By reference to tlie following diagram, No. 5, stowing tbe number out
of wHcli one person will die according to tlie unadjusted Experience among
members residing in Classes I. and II. covnhined^ 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 otter words, tlie value of life or chance of living
during the ensuing year^ increases from tbe age of 24 to 27, decreases
from this latter age to tbat 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 Eeport 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.
Deatbs.
Annual Rate
of Mortality
Friendly Societies, RatcliflPe, ....
Do. Neison,
Do. Finlaison, . . .
Mut. Life, General Experience,
Do. Class I. alone,
621,472
1,135,522
3,930,613
68,606
46,555
6,049
13,563
48,621
749
438
0.9733
1.1944
1.2370
1.0917
.9408
An Actuary in England once remarked, that the rate of mortality stated to prevail
among members of Friendly Societies, Avas 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 Uitc of the working classes, and who were
supposed to have the lowest rate of mortality known.
26 KEPOET ON EXPKBIENCE.
observed among Government male annuitants, published in 1829. He
found, among males, that tbe 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 cliance of living during the ensuing year, was somewhat
greater t\&n at the age of 23 ; after the age of 48 the value rapidly
decreased untn 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 4Y, 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 Report) 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.
Nq5.
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tAffes.
MUTUAL LIFE INSUBANCE COMPANY OF NEW-YOBK.
27
Expectation of Life.
Pertaps 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 life., 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 or Life according to diffeeent Tables of Moetaxitt.
i
e
s
9
1^
it
€
a
I'd
W|
¥^
't-6
H
Carlisle.
II
WW
11
<w
Park's Ekglisu
Life.
English
Friundlt
Societies.
si
£ J
11
WW
Massa-
chusetts.
1855.
Elliott
No.l.
No. 2.
20
40.16
42.75
38.45
41.49
41.46
41.06
....
39.88
39.99
40.92
43.77
41.40
39.9
20
30
33.13
36.00
32.18
34.43
34.34
33.98
33.68
33.13
33.31
33.70
36.61
34.82
34.0
30
40
26.33
28.94
25.71
27.28
27.61
27.40
25.94
26.57
26.43
26.41
29.33
27.20
27.9
40
50
19.74
21.56
19.40
20.18
21.11
20.83
18.99
20.03
19.87
19.40
22.19
19.96
21.3
50
60
13.65
14.55
13.56
13.77
14.34
16.06
12.88
13.59
13.60
13.29
15.69
13.83
15.0
60
TO
8.54
8.64
8.55
8.54
9.18
9.84
8.11
8.52
8.55
9.09
10.21
9.23
9.4
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 YO, except the " Friendly Socie-
ties " according to JSTeison, 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 OX EXPERIENCE.
COMPARATIVI; MOKTALITT IN ENGLAND AND IN THE NoKTHEEN UnITED
States.
In a Keport upon tte 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 Report. We may thus com-
pare the relative mortality among assured lives in this country and in Eng-
land, at different ages.
TABLE IX.
COMPAEISON OF THE AnTSXJXL RaTE OF MoETAXITT IX ENGLAND AND IX THE
NoETHEEX United States.
ESOLISH COMPASIBS.
Mutual Life Insubancx Coxpant or N. T.
" Mutual
Benefit"
Experience.
12 years.
N. T. State
Census,
1865.
First year of
Assurance.
Total Expe-
rience to 1888.
Classes I. and II. combined.
Class L alone.
Whole
Company.
8 years.
15 years.
15 years.
15 years.
A
B
O
D
H
P
a
H
15-25
25-35
35-45
45-55
65-65
65-'?5
.5844
.8872
1.3181
2.6755
3.4060
.7910
1.1002
1.6140
2.9433
5.1769
.7433
.8633
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
.11 i
1.04
1.47
2.10
4.08
MUTUAL LIFE INSUEANCE COMPANT OF NEW- YORK. 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 moi-tality among members of
this Company according to Experience ; while column G shows the I'ate
amongst all the members of the " Mutual Benefit" for twelve years.
Column H contaias 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.
80 EEPOET ON EXPERIENCE.
General Observations on the Results op the Company's Experience
The very favorable results in the Experience of tliis 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
oMde 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 JExperience 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. WiUiam Farr, r.R.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.
LIBRA U Y
UNIVEliSITY OF
CALIFUKNIA.
/
MUTUAL LIFE INSURANCE COMPANY OF NEW-YORK.
81
COMPAEATIVE MORTALITY AMOXG THE MaEEIED AND SiXGLE US' FeANCE, 1851.
Ages.
ANKUAL MOBTALITT among ZACH 10,000 FEBSONS UVINQ.
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
71
124
91
103
170
113
40-50
100
177
100
138
172
138
50-60
183
295
163
235
161
144
eo-Yo
354
499
354
498
141
141
By this Table we observe that tlie 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 mcrease 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 bis plan to some of tbe most experienced
Actuaries in England, wbo 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 dements sufficiently rdiable 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 amonotst the class of assured lives, at the different
ages. The importance to this Company of such a table cannot be too
MUTUAL LIFE INSUEANCE COMPANY OF NEW-YOEK. 88
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 pi-esent results
of Experience prove that the Company's theoretical Table of Mortality
does not fairly represent the comparative value of assured lives at different
age-s^ in this countiy. And consequently that our rates of premium are not
perfectly adjusted, being at some ages too Zcw, 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 rates of premium slightly
too high or too low, is of but little consequence in a Ifutiial Company,
provided we have the means of making a just compensation to the original
34 REPORT ON EXPERIENCE.
contributors. The amount of sucli excess or deficiency in tlie 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.
Respectfully submitted to the Board of Trustees, by
Sheppaed Homans,
Acttiar'y.
New-Yoek, Octoler 25t7i, 1858.
./.