THE TUSCAN FEDERATION FOR MUTUAL INSURANCE 29 



This table shows that the mutual society of Modigliana, the reinsurance 

 of which was effected only on i Ma}^ "^9'^?, ^^s not yet suffered any loss; 

 the societies of St. Quirico d'Orcia and Poggibonsi have suffered a minimum 

 loss ; those of Ambra, Alta Staggia and Prato one which is below the aver- 

 age ; those of Tizzana and Porcara have kept almost entirely within the an- 

 ticipated limits of mortality ; and that of Valtriano, while losing only 

 0.86 per cent., has received 130.88 liras in addition to the amount of its 

 premium. 



The profits attained by the federation therefore depended on the excep- 

 tionally favourable conditions of the year, owing to which Oxie of the federated 

 societies (Modigliano) suffered, as has been seen, noca.sualty in two months; 

 seven kept more or less below the anticipated level of mortality ; while 

 one (Valtriano), although it did not reach the rate of mortality estimated for 

 it, namely i per cent., received an indemnity greater than its reinsurance pre- 

 mium. The reason for these facts should be sought in rhe excessively low 

 estimate of the insured capital , single animals having been valued, when in- 

 sured, at much less than their actual value, so that when the losses which 

 occurred were estimated each animal was found to have a far higher value. 



As regards the more or less suitability of the reinsurance to the needs it 

 is intended to suppl}', this — as the director of the federation in question ob- 

 serves in his report — cannot be gauged by the results of only one or two years, 

 for there is no equal and constant average mortality for the live .stock in one 

 place : in a given year mortality may reach incredible proportions, such as 

 would compromise the ver> existence of small mutual societies. From sta- 

 tistics of the mutual societies at work in Tuscany the following data are 

 taken : the society of Prato in its first year of activity had a mortality of 

 2.42 per cent., in its second year 3.20 per cent., in its third 0.72 per cent. ; 

 the society of Tizzana in its first year had a mortality of about 2 per cent., 

 in its second 1.60 per cent, in its third 1.14 per cent. : the society of Porcaii 

 one of 4.80 per cent in the first and 2.17 per cent, in the second year ; that of 

 Ambra an average of 0.90 per cent, in its first five years, 1.20 per cent, 

 in its sixth, 0.46 per cent, in its seventh year, etc. 



The federation with which we are concerned wished as far as possible 

 to maintain an equilibrium among the burdens of various societies, and par- 

 tially to compensate those which, owing to their excellent organization or 

 low mortality, could contribute most largely to the formation of a federal 

 reserve. Therefore article 25 provides that that half of the profits, wliich at 

 the end of every year is not -destined for the reserve fund, must go to dimi- 

 nish the contributions of the mutual federated societies in the next year, 

 in the measure of the difference between the premiums paid and the iudenmi- 

 ties received by each mutual society. On the basis of this article, which 

 tends to render reinsurance less burdensome, the entire net profits, which in 

 this first year amounted to 1141.49 liras were divided into two equal parts, of 

 which the one — namely'- 570.75 liras — was appropriated to the reserve, 

 while the other — 570.75 liras — was distributed, in the form of deductions 

 from the reinsurance premiums due in the second year, among societies which 

 on 30 June had paid the federation more than they had received from it. 



