Rate of Interest Actually Earned

Although the interest on high-grade investments has shown a decided downward tendency during the past thirty years, the annual return on life-insurance investments still averages considerably over 4%. According to the 1913. Insurance Year Book the rate of interest earned on the mean invested funds of twenty-nine of the largest American companies averaged 4.79%, for the five years from 1909 to 1913, inclusive, and 4.76%, for the twenty years from 1894 to 1913. Of the twenty-nine companies under consideration three earned an average rate exceeding 5½%, during the years 1909-1913, thirteen 5%, or over, and sixteen between 4½%, and 5%. These rates clearly show that life-insurance companies by widely diversifying their investments may obtain on the average very satisfactory interest returns on their funds without departing from the principles of conservative investment.