Document pBnrnL4g8gQzbNmJ61Bv6drdD

Report to Policyholders on 1947 Business Operations of the METROPOLITAN LIFE INSURANCE COMPANY aCPORT ON MeTfOPCUTAM BUSINCSS OPMATIOHS ton 1947* * h mi *9 47 wts one of the best yean in Metropolitan's history. The Company's financial position was excellent. More Metropolitan policyholders than ever before enjoyed the blessings of Life insur ance. Through investments, the Company played a bigger role than in any preceding year in helping keep the wheels of industry turning, provide jobs and homes, and maintain high standards of living. Our program of health education was expanded--helping more people to keep well and live longer, happier lives. The death rate among policyholders in 1947 hit an all-time low. However, the year was not without its problems. Insurance costs were higher because of lower interest rates, and because of the prevalent increase in the cost of goods and services. PAYMENTS TO POLICYHOLDERS 1 AND BENEFICIARIES younf busim In 1947 Metropolitan's payments to policyholders and benefici aries--shown by'the bar at the extreme right on the accompanying chart--topped all records. Payments totaled 1671,000,000, about 41 Vi million more than in 1946, and a gain of 138 million over the figure five years earlier, in 1942. In the past 10 years, the Company's payments to policyholders and beneficiaries have totaled $5,900,000,000--a lot of money, char went to a lor of people all over the United States and Canada. The blue columns at the left show the amounts paid in death and double indemnity claims from 1930 through 1947. Last year such payments totaled more than $243,000,000--money that helped lighten financial burdens, gave hope for the future, helped to keep many homes together and to fulfill plans and ambitions for loved ones. The remainder of the 1947 payments to policyholders--about twice as much as was paid out in death benefits--went to living policyholders. These payments, amounting to more than $428,000,000, served a countless variety of needs. For example, they included vital i Tli suppl other the v with twice than T! ers c not i cred redu on i pred the payi $127,000,000 in matured endowments--funds which helped many ann .yea: MUMS $70# too PAYMENTS TO POLICYHOLDERS AND BENEFICIARIES TOTAL COMPANY PAYMENTS A* ben see I reF ho MO 400 'DEATH AM DOUBLE MOEMNTY 300 CUUMS SUIREHOEX VALUES tat MATURED 1, ENDOWMENTS " OtVtDENOS____ ' OTHER \100 MYMEN1S At it 0 A--- 1 u - A 1(30 47 1933 47 1930 47 1930 47 1930 47 1930 47 set l wi 1 in an on / young men and women get a college education, provided others with business capital, and helped in buying homes and meeting other vital needs. The $73,7fiO,OOG paid last year in cash values of policies helped supply immediate funds to many families that, for one reason or an other, cashed In their policies. There wj * great difference between the volume of these surrender value payments in 1947 as compared with 1933- While our insurance in force in 1947 was more than twice as great as in 1933, the surrender payments amounted to less tlun one third as much. The upward trend in dividends paid to Metropolitan policyhold ers over the years reflects a growth in the amount of business and not increased scales of dividends. Actually, during the period cov ered by the chart, dividend scales have been reduced, and are being reduced in 1948--primarily as a result of declining interest returns on investments. During 1947, some 1148,000,000 was paid or credited to policyholders in dividends--reducing by the same amount the cost of their insurance protection as represented by premium payments. Nearly $80,000,000 went for sickness and accident benefits, for annuity payments which helped many policyholders enjoy the sunset years of life, and for other payments to policyholders and their beneficiaries. While the $671,000,000 Metropolitan paid out last year increased security and lessened worry for hundreds of thousands of people, it represented only a part of the Company's responsibility to its policy holders and beneficiaries. FUNDS FOR FUTURE PAYMENTS TO POLICYHOLDERS AND BENEFICIARIES Each year the Company must set aside sufficient funds, called re serves, which, increased by interest earnings and future premiums, will enable it to pay all obligations under policies that will fall due in the years to come. The law recognizes the necessity of such reserves and requires that they be maintained. These reserves, plus funds in process of payment to policyholders and beneficiaries, together with miscellaneous liabilities, constitute 5 the Company's coal obligations--about 58,049,000,000 as of De cember 31, 1947. To meet these obligations. Metropolian's assets at the dose of die year amounted to 58,348,000,000--an increase of about 5303,000,000 during 1947. . It is seen, then, chat the assets exceed all liabilities by $499,000,000. This is a safety fund which is available to meet unforeseeable contingendes, such as the influenza epidemic we had in 1918-19, or for hard times like the depression of the 30`s. HOW METROPOLITAN DOLLARS WORK " Metropolitan's asset dollars are kept busily at work in sound in vestments, and the Company's first consideration must be safety of prinripal. As a result, we do not put money into investments of a speculative nature--such as common stocks, for example. But while Metropolitan dollars are working for policyholders, they are bene fiting the whole populadon--helping provide jobs, and the goods ' and services we all need and want. At the dose of 1947 the biggest share of the Company's invest* menu was in United States and Canadian Government bonds--a total of 53,800,000,000, accounted for by the heavy purchases made during the war yean. Dollars Working m Productive Enterprises Since the dose of the war, Metropolitan's new investments have gone increasingly to help meet the needs of industry and the com munity, just as they were doing before the war. Over the years Mecropolican has helped provide productive enterprises with tools and facilities through the investment of the Company's funds. Last year we put 5938,000,000 into such investments, refunding opera tions, and the purchase of securities which had been issued in pre ceding years. At the end of 1947 more than 52,600,000,000 was helping in the expansion and further development or in the main tenance of productive techniques and enterprises. The Company's dollars are at work in practically every phase of production and distribution--helping to produce more goods and create more jobs for more people. Few policyholders realize that each of the tens of thousands of concerns or individuals using 6 ^A 1 I 1930 32 34 36 38 40 42 44 46 47 Metropolitan's invested funds is really working for them. The in* tercst the borrowers pay is helping to reduce the cost of all Metro i' v: 2r: <. - politan insurance. Without it, policyholders' premiums would have to be substantially higher. Metropolitan made investments last year to help furnish power, light.^nd heat to meet the nation's needs. Electricity, natural and artificial gas, the telephone, and other utilities have played an im portant part in our industrial progress. The Company's total in vestment in utilities amounted to 3999,000,000 at the end of the year. / At the close of 1947 more than 3338,000,000 of Metropolitan assets were helping in the vital task of transporting passengers and bringing the necessities of life from mines, farms, forests, and fac f^ &rii tories to people throughout the United States and Canada. V- < Dollars at Work on Farms and in City Properties During 1947 the Company continued to help meet the national need of housing for individuals, and for business and industry. ' ' -j r 1 04 </ 4. ..,11 ` f. U ,i NUMBER OF PROPERTIES HELD Mortgage loans made last year on city and farm properties totaled more dun $221,000,000, bringing the total outstanding at the year's dose to more than 1964,000,000. Of this amount 1878,000,000 was in city properties and 186,000,000 in farm properties. During the depression yean the Metropolitan, like ocher financial institutions, was forced to take over a large number of properties to safeguard investments which had been made for the benefit of policyhoiden. Note on the chart the peak in 1933, when the Com* pany was the involuntary owner of 20,729 dty properties and 6,328 farms. Many of these properdes were in a run-down condition, pro ducing little or no income. To meet the situadon, Metropolitan undertook a broad program of rehabilitation. Buildings, land, and equipment were put on an income-producing basis and in salable condition. This program had a stabiluing influence in many communities and was widely ac claimed. As the program progressed, properties were disposed of as rapidly as was practical, and in 1947 the last one of the 10,414 farms which had beeen acquired as a result of the depression was sold. City properties still unsold at the end of the year numbered only 42. 8 Dollars for Housing s In the midst of a previous housing shortage in 1922, Metropolitan undertook, on an experimental basis, its first housing project-- in the Borough of QuccnvNew York City. With the background of this experience, the Company in 1939 started construction of Parkchestcr in New York City, the largest housing project ever built in the United States. This was followed by Parkfairfax, just outside of Washington, D. C., which helped meet an acute wartime housing shortage in the nation s capital. Still other projects--Parkmerced, in San Francisco, and Parklabrea, in Los Angeles--helped meet wartime housing needs. In 1943 the Company turned its attention to providing low-cost modem housing in a blighted area in the heart of New York City, an area known as the Gashouse District. Many of the dwellings were 7$ yean old or more. There were no parks or playgrounds, and children found their recreation in the streets. Most of the living quarters were small dark fiats, without windows in the bedrooms, no closets for clothes, and grossly inadequate in sanitary facilities. Pjri. /', iirr. world"! Urgttl primitly-fuunctd boning projott. proeidti jiirjciiit optrtmtu nmid Uudstopod inmanding! fat Si,000 poopli. r'. tinyo mi , i- r /> * :i - u-.v:. p<` ;..'J' i.f ! lf|J , \ S* l`/1 1 Ue./r.'j'}!, ' -V f/i'i'/; . -V;'. IV -> 1 I V1 ' 1 i'i/ r.Vi.'V' ' H, *'l" ii 'iV;-.;:;,: t./ i: i \V,V' i .1 '.'ll.'. Mi! ;i V'l'V:'.',-- > '' '' W:" jin * *1 '` V-'' r `'".i' 'J-i '.ij!-1 >,j` 4'i'-ty (!''V"': 7 !> - J:" i tX. *i : ;v As soon as the families who lived in this section were relocated, demolition began. Out of the rubble grew Stuyvesant Town--a group of modem apartment buildings. The grounds will be artistic ally landscaped, with plenty of parks and recreational areas, as in Metropolitan's other modem housing projects. When the project is fully completed, 8^755 families will find there attractive, comfort able homes with r maximum of sunlight and air, and at moderate rentals. Two ocher new Metropolitan housing projects in New York? City--Peter Cooper Village and Riverton--received their first ten- _ ana in 1947. -T Housing--as instituted by the genius of the Chairman of Metro politan's Board of Directors, Frederick H. Ecker--has proved to be a sound and satisfactory form of investment, as well as an important social contribution. With the completion of present projects, the Company will have an investment in housing of about $300,000,- 000, and a total of more than 130,000 people will be housed in at tractive, modem Metropolitan apartments. / ii:i`i'll! . v ;! j-', I. V "J : "'"i- i*i , . ,.' ! 1 vY.\.V;; l'r,1:'i / V., v v.!' .-''.m/(''i-i' S" . <: 1 .r-: * 1 M - -i* * * I. ; I. . i: \ A typical unit in Pefklabrea, Mtlropolitan's Lot Audits bousing project, a modern community offering a maximum of tafiuy living space for person! of moderate meant. 10 PERCENT INTEREST RATES EARNED Interest Earui tgs on Investments * As everyone knows, the interest rates that can be earned on in vested funds have declined steadily over a period of years. In the late 1920's, Metropolitan earned an average net interest return of more than 5 percent. Since then, following the general trend, inter est rates on the Company's investments have dropped to substantially lower levels. During 1947 the average net interest earned was 2.94 percent-compared with 3.01 percent in 1946. It is encouraging to note that the average rate of interest at which new investments in securities were made, for the first time in recent years, turned slightly upward during the last part of 1947. Ic is possible that the low point has now been passed, and a gradual improvement in the over-all interest earnings may be forthcoming. Interest earnings last year contributed more than $234,000,000 to the Company's income. Bur if the rare of interest earnings in 1929 had prevailed last year, our income in 1947 would have been about $180,000,000 greater, and that would have greatly increased the amount available for dividends. INCOME AND OUTGO Metropolitan's income is received from two sources: first, pre miums and other payments from policyholders; and second, earnings on investments. In 1947 the Company's income amounted to nearly 11,400,000,000. Of thus, more than $1,160,000,000 came from policyholders, and about $239,000,000 from earnings on the Com pany's investments. As compared with this income, more than $671,000,000 was paid to policyholders and' beneficiaries and more dun $473,000,000 was set aside for future obligations. Thus a total of $1,130,000,000 out of total income was paid or set aside for the benefit of policyholders and beneficiaries, including about $5,000,000 for health and welfare. The balance of $247,000,000 went for taxes, asset adjustments, and the expense of doing business. Taxes took about $22,500,000, asset adjustments about $20,000,000, and the remainder--more chan $204,000,000--was used to provide the kind of services which Metropolitan policyholders'expect, and to which they are entitled. WHERE IT CAME FROM WHERE IT WENT 1 THE COST OF INSURANCE The cost of insurance is determined not alone by premiums but also by any amounts returned to policyholders in dividends. Divi dends--which in a_ mutual company like Metropolitan are paid to policyholders--represent the excess of Company income over the outgo required for claims, expenses, and additions to reserves and surplus. Variations in outgo result primarily from changes in death rates among policyholders and in the cost of doing business. Varia tions in income arise chiefly from changes in interest earnings on the Company's investments. Improved mortality among policyholders has tended to reduce the Company's outgo and hence has had a helpful effect on dividends, and on the cost of insurance to policyholders. The general upward trend in the cost of all goods and services has caused Metropolitan's expenses to rise and this has increased the cost of insurance. As indi cated previously, because of lower interest rates, income from invest ments has contributed a smaller share of the Company's income doilar^and has had a consequent adverse effect on this source of funds available for dividends. THE NUMBER OF LIVES INSURED MILLIONS 35 32, 3* l,oc 30 % l j i / \* -I n- 1 Is -I r> : 1 yd 1V '7. l( / V I''!"',,'' ;; 25 20 od 1924 26 28 30 32 34 38 38 40 42 44 46 47 13 ", r' v r.i'.h "'.!* . I', ;'/,{ M \. fiv r$ , -.v r.i . . vv /* M * BW^.ee } I.. ' i'.'r 'V*' i .. . ... ,t. i . - .4 -i | " V ` d'; .ii.. ! i'i // J! ',:|r . i . <t .VO , - * i! i' .< / r < 1/ 1< . i,i ,. i1 ,. . i i.1 i:\Hr,1 '''.I'vo,-: !*: ' 'l I , i Vr-:?. i !-iMl;.v-.' v-4. W'r' ' I ;f.1. j I, l> I.. , r i " , i , m. . . c i. ii- !!'.." 1 .. . . I ,./ -Ij.-..'.v. . 'I. ;'.<. f -v.M., Iff ! * `. A'Iy*-*'1/ l ,'ih-v,': - /.!' "T '', . ,. '" 7. ; if -^v i'; /* mi,,' /'* * / *,V List year, the net effect of interest rites, morality experience, and the cost of doing business, although permitting the Company to pay in 1S>48 a little larger amount of money in dividends than it did in ISM7, will require downward adjustments in the scales on most fcl classes of business. The decreases particularly affect old policies 4 -- which were issued on a 3V4 percent interest basis. GROWTH IN METROPOLITAN PROTECTION Last year, more than 2,300,000 people expressed confidence in the n;i Metropolitan organization, and in its Agents, by buying Metro politan policies. Many were old members of our family, who thus reaffirmed their faith in the Company. Thousands were new people rv2. ' i* who joined us--bringing the total of Metropolitan policyholders to < v 32,384,000. The amount of new business written in 1947 was the 2- i highest on record, with the exception of 1946. The total insurance y issued during the year amounted to $2,895,000,000. Of course, each year some policyholders are forced to give up their Life insurance. From an all-time high during the depression in 1932- 33, Metropolitan's lapse rates fell steadily to a low point in 1944. y PERCENT 3 '5' 25 20 LAPSE RATES 1 THI i D EBr ' INI >Uff fW L A 3RI iltu PY < e Jc 15 10 IND LfSl RIA . w LV r a nUl___ 1____ n* 5 IEG RDI 4AI Y N 1929 31 33 35 37 39 41 43 45 1947 14 .1*1 a. t From the rime of the Roman Empire down co the year 1900, the avenge length of life increased from 22 years to about 49--a gain of 27 yean in 20 centuries. Since 1900, however, the average length of life has increased to more than 66 years--a rise of about 18 years in leas than half a century. Metropolitan believes that if the public could be bccter educated to apply up-to-date knowledge as developed by medical science, life expectancy could be still further increased. Since 1909 Metropplitan has distributed health booklets containing the best medical opinion obtainable on various subjects, at the rate of about one every second. In'addition, to help educate the public on health and safety, Metro politan advertised once a month last year in national magazines which had a circulation of more than 33,000,000. Nineteen fortyseven marked the 23th anniversary of such educational activities through advertising. The Company also used the radio in 1947 to bring its "Good Hina for Good Health" to millions of radio listeners. During the past year and a half more than 400,000 requests for copies of Metropolitan's health booklets have been received in response to such programs. Of course, no report of our healch activities would be complete without a word about our educational activities through motion pic tures. Such pictures, in 1947, were shown to about 4,475,000 people in 31,616 showings. Last year a film on heart disease, the leading cause of death, was completed and had its premiere in Radio City Music flail, in New York City. Another pan of Metropolitan's health conservation program is ia Visiting Nurse Service, designed to Help those insured under the Company's Group, Intermediate, and Industrial policies. The nurses are really "angels of mercy" for they bring hope and optimism, as well as skilled visiting nurse care, not only to eligible policyholders, buc also to those who suffer during general disasters. When tragedy struck last year--as in the Texas Gty explosion, and the Mississippi Valley and New England floods--Metropolitan's nurses were promptly on the scene helping the local authorities by rendering first aid and other emergency assistance. In 1947 the Nutsing Service reached an important milestone--it completed the one hundred millionth visit since the inception of this service in 1909. During the year, the Company's Visiting Nurses 16 made more than 1,765,000 visits in the nearly 7,400 communities in the United States and Canada where the service is available. That the activities of medical science, public health officials, and various private organizations have been getting results is obvious from statistical evidence. Note, on the accompanying chart, the de cline in death rates from specific causes since the start of Metropoli tan's first campaign against each cause. For example, deaths from children's diseases--measles, scarlet fever, whooping cough, and diphtheria -- have dropped 98 percent. Deaths from tuberculosis have dropped 85 percent, and from pneumonia 68 percent. \ 'i : DIVIDENDS IN PUBLIC HEALTH THROUGH RESEARCH AND EDUCATION METROPOLITAN'S EDUCATIONAL CAMPAIGNS IMPROVEMENT IN MORTALITY FROM START OF CAMPAIGNS TO 1947* OLD Typhoid F*v#f ENEMIES Childhood OtMoiot and Enteritis Twbwtdtei Ritrpsnl DiMom 1911 c_ _ 1911 CL. ; ._L3 1911 f"----- ~L-2D 1911 g------ -- 1911 ------^ 99* 98* 90S 8S* 84* MORE RECENT FOES (Nphriteria Appendicitis Motor Vohido AtdJwN Homo AaidonM Ptioumowla Syphilis Oiahotes . Occupational Acddonts 192S :------ 95* 1933 --n i- 77* 1934 gr-T "" ""'l 29* 193(1 ' 1 1 37* 193S --?.......i 68* 1940 i 36* 1940 ______ 1 10* 1942 :___ i_j 27* TREND OF MORTALITY' 18 Since 1930 there has been some improvement in the death rate from cancer and from diseases of the heart. However, diseases of the heart still lead all causes of death by a wide margin. During 1947 the Life Insurance Medical Research Fund--which is maintained by 151 Life insurance companies, including the Metropolitan--made substantial grants to finance research projects relating to the dis eases of the heart and blood vessels. THE VALUE OF SOUND GOVERNMENT SUPERVISION OF LIFE INSURANCE The growth of Life insurance is a tribute to the private enterprise system. It has been encouraged by sound government supervision, in accordance with State laws in the United States, and similar legis lation in Canada. To help achieve maximum safety, various regula tory laws have been adopted. For example, New York requires the State Insurance Department to make an examination every three years of companies domiciled there. The Insurance Departments of all States participate in these examinations through a committee of the National Association of Insurance Commissioners. Such an ex amination of Metropolitan, requiring a staff of more than 30 expe 1 rienced examiners, was completed last year. It took about a year and a half. The examination covered the Company's financial position, its income and outgo, the treatment of policyholders, and many of the principles and practices followed in the conduct of its operations. The results of this examination were published |pst September and filled 303 pages. The report contains much interesting information. Here are two excerpts from its conclusions: The examination of the Metropolitan Life Insurance Company indicates that it is in a sound financial condition. Policy claims are paid promptly, and fair and equitable treat ment has been accorded the policyholders. Each year Life insurance companies must submit to the insurance supervisory authorities a full report of their operations. Metropoli tan's report for 1947 fills about 200 printed pages about threequarters the size of a newspaper page. This report must account for every penny of income and outgo, as well as give a complete record of all property and other assets in the Company's possession, and a 19 \ .3 x'f ?:<! yi '.-5S i si < i Vt i \ r, i ! *4 ,1 I,' detailed statement of obligations. The report becomes a public document. METROPOLITAN'S "OPEN BOOK" PROGRAM Metropolitan's operations are an open book, and the Company makes every practical effort to have them understood by policy holders and the public. Each year a report is made to policyholders on the high spots of the preceding yesut's activities, and published copies are provided for all who are interested. A condensed report is also prepared for chose who prefer a summary. In addition news papers, with a circulation of 42,000,000, carried last year Metro politan's annual statement advertisement, showing its financial con dition and inviting readers to send tor copies of the published annual reports. 1 A jfnuiiltt ^Jut-trail b k -------_ - -- -- --- - - - -- -- The SO-iumatr motion picture, "A Fatuity Purtrait/' rxpUiat bout Metropolitan operate! in letemg in S2.000.000 policyhoUett. 20 c- \ Realizing the importance of having all Metropolitan people un derstand the over-ail operations and achievements of the Company, there was also published last year the customary annual report to employees. In addition, the Metropolitan prepared a 30-minute sound motion picture entitled, "A Family Portrait," which gives a broad, interesting'picture of the basic operations of the Company. Prints of this film are available for showings by local organizations. Last year Metropolitan completed another phase of its "Open Book" program--a history of the Company entitled, Tbt Mitropolitan Lift--A Study in Busintss Growth. This was designed to help our policyholders and others to learn about the history of the Metropolitan, and to get the background for some of the current management policies. Prepared by Marquis James, the distinguished author and historian who was twice i Pulitzer prize winner, the book is a neutral, objective portrayal of Metropolitan. It is available to those interested, in public libraries, numerous educational institu tions, and the libraries of many local, civic, and business associations. A WORD OF APPRECIATION OF METROPOLITAN MEN AND WOMEN I wish that all our policyholders could have an opportunity to know the wholehearted and faithful service rendered by our Agents,. the Staffs of the District Offices, and employees in our Home and Head Offices--a combined total of more than 43,000 people. Frequently we receive commendatory letters and comments from policyholders regarding Metropolitan employees. We appreciate them and wish it were possible to bring to the writers, and in fact to all policyholders, a picture of the complex organization which is necessary to assure efficient service. ' In order to help the public understand the significance of the effons of Metropolitan personnel, and because die public comes in direct contact with Agents, we featured the Agent again last year, as Metropolitan has on ocher occasions, in an advertisement in several prominent magazines. In some respects' our Agents are really the Company to policyholders, but without the able services of the em ployees in the Field Offices and in the Home and Head Offices, Metropolitan's high standards of service would be impossible. We 21 # .... * 22 IN CONCLUSION -- Wc arc looking forward to further progress in the years to come, and to the continued achievement of the high ideals of service which Metropolitan constantly strives to provide for its policyholders. And so we close the story of our 1947 stewardship, grateful for ' the confidence of our policyholders and for the opportunity to serve them, and most appreciative of the wholehearted efforts of Our or ganization to fulfill our obligations with fidelity and efficiency. * 25 .f' 1 .1 t Ngnbfr of new Ordinary uid Industrial Life insurance policies issued 24 2.2W,7frl A Brief Summary of . 'ON.* P' ipnc't n (7 We received or hive due fofpremiums and other payments by policyholders...................................$1.162,617,175.21 Our invesiments earned net intereat (after real estate taxes and other investment expenses) .... 234.843.321.10 TOTAL..................................................................... ." . . . . . *1,397,460,496.31 We paid to beneficiaries and policyholders as: Death benefits....................... *.............................. Matured endowments.............................................. Disability benefits.................................................... Accident and Health benefits................................... Annuity payments.................................................... Surrender values.................................................... Dividends on policies.............................................. Refunds for direct payment of weekly premiums . * 243,118.344.32 127.16S.926.63 10.413.IS8.2S ' 38,165.301.93 23,133.31629 73.773.947.22 14S.169.7l6.46 7,960.261-S3 Total Paywears to Bene/frierier and folityMfm . S 671.927,603-22 We paid for health and welfare work for policyholders and public................................... 3,265,717.94 Increase in funds set aside for the benefit of beneficiaries and policyholders............................. 47J.016.20S.21 TeltU Par'd or Set AiUt far Bntfuiarui and Palicjbaldtrt .... Sl.150J09J99.37 We reduced stated value of assets (less Si 1,010,628.32 net profit on sale or maturity of investments), etc.............................................. 20307,20634 We required for payment of the operating expenses of the Company: For Field service to policyholders and obtaining new insurance . . For service to policyholders at Home Office and Head Offices . . . . 136JI2.169.44 67.636J37.19 We required for payment of taxes (other than real estate taxes, etc) . . 22,494,864.07 TOTAL..................................................................... ..................................*1.397,440,49631 The *473.016.208.21 increase in funds set aside for the benefit of bene ficiaries and policyholders resulted from an increase of *470,441,132.33 in Statutopr Reserves and other policy obligations, a decrease of *11.232,000.00 in Special Surplus Funds, and an increase' of *13,827,073.66 in Uosssigncd Funds (after transfer of (13,629,1314)0 to increase Reserve standards). 1 *m i - ,5 v !. > vf/ i1 " > 1 il' d .-Jj; ' "7.V:';v ' . 0 5nl-f . . > 7 i :vA ' .'i1;:'. ' . ... ... , |. . >|*: #- ;' ' 1 -fV ' , ^_ 1 11 . i BALANCE : (In accordance with the Annual Statement filed w Obligations to Policyholders, Beneficiaries, and Others Policy Reserve* Required by Law............................... $7,333.537,964.00 This amount, together with future premiums end reserve interest, is required to assure payment of all {unite policy benefits. n Reserved for Future Payment Under ' Supplementary Contract*............................... Policy proceeds from death claims, matured endowments, and other payments which beneficiaries and policyholders have left with the Company to be paid out to them in future years. 373,634,251.42 Policyholder*' Dividends Left on Deposit . . . . 64,747,219.00 1 ) Reserved for Dividends to Policyholders.................. Set aside for payment in 194* to those policyholders eligfele to 141,215,117.00 Policy Claims Currently Outstanding...................... Claims in process of settlement, and estimated claims that have occurred but have not yet been repotted to the Company. 34,085,580.50 Other Policy Obligations...................... Including premiums received in advance, etc. 33,550,654.32 Taxes Accrued. Including estimated amount of taxes payable in 1948 oti the busi ness of 1947. 17,704,521.00 Contingency Reserve for Mortgage Loans.................. 21,000,000.00 All Other Obligations................................................. 29,389,937.42 TOTAL OBLIGATIONS........................................$8,048,865,244.66 Thus, Assets exceed Obligations by . . $499,557,356.51 This safety fund is made up of: Special Surplus Funds..................$ 72,281,000.00 (including S36.336,000.00 (or possible lost or fluctuation in the value of investments) Unassigned Funds (Surplus) . . . $427,276,356.51 NOTE--Assets carried at S4I2.32S.264.37 in the above statement are depoiiieiJ i'h * various public officials under requirements of law or regulatory authority- * 26 ment filed with the New Ybrk State Insurance Department.) ?rj Assets Which Assure Fulfillment of Obligations ',964.00 <,251.42 r,219.00 i,l 17.00 1,580.50 1,654.32 ,521.00 1,000.00 `,937.42 ,244.66 National Government Securities U. S. Government.........................................*3,632,510.S03.00 Canadian Government................................... 244,410421.32 13,876,921,624.32 Other Bonds.................................................................. Provincial and Municipal............................. * 74,399432.13 Railroad.......................................................... 310414,3*7.99 Public Utility.............................................. 973,6*1,103.30 industrial and Miscellaneous.............................. 1,130494,333.13 2,710,589,958.79 , Stocks............................ .. All but 31.363.3(2.00 art Preferred or Guaranteed. 105,388,903.00 First Mortgage Loans on Real Estate.......................... Farms..........................................................* 86,117.937.09 Other Property.............................................. *7S,34*,7*4.10 964,666,721.19 Loans on Policies......................................................... Made to policyholders on the security of their policies. 343,301,733.81 Real Estate (after decrease by adjustment of - $25,090,000 in the aggregate).................. Housing projects and other real estate acquired for investment............................. * 139490,3*0.35 Properties for Company use....................... 3341343547 Acquired in satisfaction of mortgage in debtedness (of which *19,091,379.96 is under contract of sale) . . . . - . 39,645473.37 Cash and Bank Deposits............................................ / 208,752,510.79 156,258,124.20 Premiums, Deferred and in Course of Collection . . 124,836,913.79 Accrued Interest, Rents, etc.......................................... 57,706,111.28 TOTAL ASSETS TO MEET OBLIGATIONS . . . $8,548,422,601.17 This fund, representing about 6 percent of the obligations, serves as a cushion against possible un favorable experience and gives extra assurance that all policy benefits will be paid in full as they fell due. -posited with Annual Statement filed with the Massachusetts Insurance Department, Policy Reserves jrity. In the Required by Law arc S7.535.661.993.0tL and All Other Obligations ate (29,263.908.42.  I 1 ' ' i / FREDERICK H. ECKER, Chairman of tbt Board LEROY A. LINCOLN, President CHARLES G. TAYLOR, Jr., Executive Vice-President. FREDERIC W. ECKER, Financial Vice-President ACCOUNTING AND AUDITING Joseph J. CLAJA, Controlltr ACTUARIAL Horace R. Basspoed, Vice-Preiideul and Chief Actuary George V. BaaDV, Actuary > Marvin E. Davis, Actaary Rijnhaab a. Hohaus, Actuary Joseph A. Christman, Atsociete Actuary y CLAIMS John B. Northrop, Third Vice-Pretideut COORDINATION Jamas L Maoosn, Second Vice-Pretideut J. Evrartt Reva. Third Vicc-Prctidcnt, Ptennhy and Methods ECONOMIST William A. Bsriiogr, Ph.D., Economist FIELD MANAGEMENT , Csai J. North, Vicc-Prctidcnt Walter S. J. Shepherd, Third Vice-Pretidenl and Field Personnel Oficer ReGo/aLD R. LawAINCI, Third Vke-Pretident John H. Almv, Chairman of the Snyrtintendentt of Atenciei Emile P. Aanautou, Snperintendent of Atenciei Milton O. CULPEPPER, Snperintendent of Atenciei WlLBUA W. Hartshorn, Superintendent of Atenciei FuLton W. Jsnkins, Superintendent of Afenciet A. ItocRRS Maynard, Superintendent of Atenciei Clifton E. Reynolds, Superintendent of Atenciei SamURL D. Rulry, Superintendent of Atenciei Austin T. Schussler. Superintendent of Atenciei G. Hoyle Wright, Superintendent of Atenciei Louis J. ZETTLSR, Superintendent of Afenciet GROUP INSURANCE Alrxandea C. Campbell, Vice-Pretidenl Jambs M. Campbell, Second Vice-Pretidenl, Croup Adminiiiralion Edwin C. McDonald, Second Vice-Preiident, Croup Sales Gilbert W. Fitzhugh, Third Viee-Pteiideut, Group Sales William J. Barrett, Third Vice-Preiidm, Policyhotderi Serrice Bureau HEALTH AND WELFARE Donald B. Armstrong, M.D., Seeoud Vice-Pretidenl Anthony J. Lanza, M.D., Anoctate Medical Director / 28 INDUSTRIAL DEPARTMENT Francis M. Smith. Vice-Pretident JOHN C. Timkermann, Third Vitr-Pretideet INVESTMENTS Harry C Kagerty, Vitt-Prttidtnt end Ttranter, Strnritia EuGene A,-Schmidt, Jr, Third Vice-Pretident, Secnrititt Hh.LMan.JL. Hunnewell. Third Vice-Preudtnt, City Morlgeget Cl INN E.' Rogers, Stroud Vict-Prttidt--, term Mrrtgpga George Cove, Third Vice-President, Honing Project! LEGAL Joseph H. Collins, Control Cornel Churchill Rodgers, Cencrel Camel Byron Clayton, Atsntintt Ctntrol Comet Charles G. Dougherty, Aitaeietc Control Cennjtl Walter H. Saunders, Jr, Auociott Centroi Conmtl MEDICAL Earl C. Bonnett, M.D,, Medkol Dirtcltr Haynes H. Fellows, M.D., Auociott Mtdicol Director Joseph C Horan, M.D., Aiiocitte Mtdicol Dirtctor Aleert O. JiminIs, M.D., Auociott MedicJ Director ' ORDINARY DEPARTMENT Samuel Milugan, Vice-Pretidea Douglas S. Craig, Third Vice-Pretidea, Ordinory loinronct Lawrence K. Farrell, Third Viet-Prttidttl, Pertonol Accident end Htdth tnmronce PERSONNEL (Horn Oflkt) Hereirt L Rhoades, Third Vict-Praiden end Ptrtttncl Offer PUBLICATION William J. Barrett, Third Vice-Pretidea SECRETARY Jahee R. Herman, Secretory STATISTICAL Louis I. Durum, Ph D-, Second Vice-Pretident end Stetht 'tcien PACIFIC COAST HEAD OPPICE Henry E. North. Vice-Pretident in Chorgt v. Arnold B. Brown, Aiiic/enl Resident Monger WiluAm P. Shepard, M.D, Third Vke-Praident, Heolth rad WUfore Julius O. Klein, Snptrinttndtnt nf Agenda C. Coleman Berwick, MJX, Atiodott Mtdicol Director CANADIAN HEAD OFFICE Glen J. Spann, Second Vkt-Prttidenl in Cierge William D. McKewrm, Attitttmt Centred Menoger Freeman D. Smith, Stprrtnltndent of Agenda Wallace Troup, M.D, Auttieto Medico! Director .M}U il].'.yft ,'-'ff ;? ,c,3itAf-vV''-il{iV.i - ' `J 'v . "V ;,')) . ." 8- ', A + >r/ ' 17, ': V ' - iVr'`1 - t 'I,". I *V.uj ,'i ' I;:::'.!-,' V-' )7;'!'( .' : .rV -iW- ' 'r. ' : V r .. I < >..T-i. - . r. .1^..*<; v;H.V 1 ' :,.v .! `-'' j"' -V- `V 1. * 'f;K^'/:v- fl'VV` yp-'i1M i 7' ... i< " .'M1.1' '* r1' ' 1#4 fife ; ;( IlillSKli HiilS1! v. V ; -MV* * -'/ 1 w / , ; ;i'v J!; -si.- *;: v 1 {rh> ' J ,ln ,i' V*V ., "'i,'MV : i.'y' ,.' , v'-r * DIRECTORS i ------------------------ i PmK3c H. Bqt. New Yotk, N. Y. Chiimmi of die Bond, MraopoUaw Life latunoee' Compear Lonsooh P. Maivih New Yoik, N. Y. Ebum^ Bftnria * Uenio, Annqi at Zjnr Wiuum L. DiBon, Nor Yotk, N. Y. Chairmen, Uaioo Dime Seeingi Bank' y Jiumum IfaaAMc, New York, N. Y. Milhanh It Company D'Alton Cour Coliman, Moturcai, Canaria Canarfiaa hdfe Kailway Company Niwcomi Cauton, New York, N, Y. The Vmn Union Tdefraph Company Luoy A. Lincoln, New Yotk, N. Y. PteudanL Matmpolitaa Life Insurance Company Thomas H. Bioc, New York, N. Y. Chairman of the Board, The Crowell-CoUier PaNiihing Company Waina Hworc Mon, New York, N. Y. hfilhank, Tweed, Hope tc Hadley, Attorneys at Law 'Samuil V. Foaorca, Sc. Louis, Mo. Fordyce, White, Mayoc, WiQiams It Hartman, Anomcyi at Law GlOkOI McAnsny, New York, N. Y. VioeChainnan, Executive Committee, Title Guarantee It Trust Co. Rouit V. Fuming, Washington, D. C President end Chairman of the Board, The Higgs National Bank 'Deceased, Jtnulty 9, 1948. 30 WirmuOP V. Almich, New York, N. Y. Chairman,lioard of Directors, The Chase National Bank of New York William W. Cocke, Sin Francisco, Calif. President, Crocker First National Bank of San Francisco A most Houghton, Coning, N. Y. Chairman of (he Board, Coming Claw Work* Hanest E. Noaan, Washington, O. C President, Southern Railway System Thoha* H, McJnneeney, New York, N. Y. Chairman of the Board, National .Pair? Product) Corporation Phiup D. Reid, New York, N. Y. Chairman of the Board, General Electric Company Juan T. Tempi, New York, N. Y. Praident and General Manager, Pan-American Airway* Sytrcna Wtasm B. Todd, New York, N. Y. Equity Corporation - v John L Downey, New York, N. Y. Praident, The Fifth Avenue Bank of New York James H. Douglas, Ja,, Chicago, 111. Gardner, Carton Ac Douglas, Attorney* at Law Chaelb G. Tavlm, J*., New York, N. Y. Executive Vice-Praident, Metropolitan Life Insurance Company Edward H. Bunt*. Buffalo, N. Y. Publisher, Buffalo Evening News Fxeoeeic W. Ecxaa, New York, N. Y. Financial Vice-Praident, Metropolitan Life Insurance Company Gale F. Johnston, St Louis, Mo. Praident Metcuno'lt-Coromerci Bank h Trust Company