The acquisition cost is high and should be reduced wherever possible. The declaration of further dividends should be deferred until a material increase in surplus is shown. The surplus on June 30, 1918, determined as a result of this examination, is $6,669.91, or a reduction of $149,545.10 when compared with the surplus reported in the June 30th quarterly statement. Ninety-three thousand five hundred and ninety-eight dollars of this reduction arises from the use of market quotations on June 30th in valuing securities in place of December 31, 1917, average values used by the company. The rule for valuing securities for December 31, 1918, adopted by the National Convention of Insurance Commissioners, should considerably increase the security values. The recent increase in plate glass premium rates should in the near future assist materially in improving the financial condition of this company. NEW AMSTERDAM CASUALTY COMPANY NEW YORK CITY Examined to ascertain condition March 31, 1919. Report dated July 1, 1919. Examiner: Charles E. Heath. Examined on increase of capital from $1,000,000 to $1,250,000. Report dated March 13, 1919. Examiner: Charles E. Heath. NORWICH AND LONDON ACCIDENT INSURANCE ASSOCIATION UNITED STATES BRANCH NORWICH, ENGLAND Examined on application for release of deposit. Report dated June 7, 1919. Examiner: C. A. Wheeler. THE OCEAN ACCIDENT AND GUARANTEE CORPORATION, LIMITED-UNITED STATES BRANCH LONDON, ENGLAND Examined to ascertain condition December 31, 1917. Organization The corporation was organized in 1871 under the laws of Great Britain, and in 1895 established the United States branch, depositing securities for $200,000 with the Superintendent of Insurance of the State of New York and receiving a license to transact the business of credit insurance pursuant to the provisions of Article V of the Insurance Law. In 1899 the deposit was increased to $250,000 and the corporation authorized to transact the various lines of casualty insurance specified in section 70 of the Insurance Law. Policies are issued insuring against loss under the following classes of risks: Accident, health, liability, workmen's compensation, fidelity, plate glass, steam boiler, burglary and theft, credit, fly wheel, automobile, team property damage, workmen's collective. The corporation is now admitted to transact business in the District of Columbia and all States of the Union except Arizona, Nevada, South Dakota and Wyoming, having withdrawn from the last named State this year. With the following exceptions it is licensed to write all the above mentioned classes. . Accident and health: Mississippi. Workmen's compensation: Ohio. Fidelity: Delaware, District of Columbia, Georgia, Louisiana, Maryland, Massachusetts, Oregon, Texas and West Virginia. Plate glass: Massachusetts. Steam boiler and fly wheel: Connecticut, Massachusetts. Mr. Oscar Ising was manager of the United States branch from 1895 until 1914, being succeeded by Mr. William J. Gardner, who served as manager and attorney during the following four years. Mr. Charles H. Neely, former manager of the Canadian branch of the corporation, was appointed as manager and attorney of the United States branch from January 1, 1918. The corporation also has branch offices in Australia, Canada, China, Holland, New Zealand and South Africa. Trustees A trust deed executed December 19, 1899, appointed Mr. John Crosby Brown and Mr. Charles D. Dickey trustees to receive and hold moneys or securities of the corporation in the United States for the exclusive benefit and security of the creditors, and certificate and policyholders of the corporation in the United States. The trust deed requires the trustees to hold assets equal to the total liabilities of the corporation in the United States, calculated according to the rules adopted by the Insurance Department and the provisions of the New York Insurance Law. Upon the death of Mr. John Crosby Brown in 1909, Mr. Thatcher M. Brown was appointed. The directors of the corporation at a meeting held February 17, 1914, passed a resolution increasing the number of the United States trustees from two to three, and appointing Mr. Ising as chairman of trustees. Under the terms of the trust deed the income on the securities and moneys held by the trustees is to be collected and remitted to the corporation at its head office in New York. The securities registered in the name of the trustees on December 31, 1917, were for a face value of $4,559,332.50, or a market value (average values) of $3,983,132.60. In addition the trus tees on that date had physical possession of securities having a par value of $1,094,800, and have since had $804,800 of these registered in their names. Financial Statement The following statement shows the assets and liabilities as of December 31, 1917: Mortgage loan on real estate. Ledger Assets $105,000 00 7,639,112 98 1,500 00 399,336 86 |