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Lot Essay
Metropolitan Life Insurance Company
Organized by a group of New York City businessmen in 1863, the National Union Life and Limb Insurance Company began business in July 1864 insuring Civil War sailors and soldiers against wartime-related disabilities. By the end of 1864, National Union had written only 17 life and 56 accident policies, was in last place among the 27 life companies operating in New York State, and was running a deficit of $1,400. After five difficult years in business and several reorganizations and name changes, President James R. Dow, (a medical doctor) and the board of directors decided to drop the casualty business and focus solely on life insurance business. And so began Metropolitan Life Insurance Company.
When MetLife opened for business on March 24, 1868 (selling a small number of policies on that date) the company’s first office consisted of only two rooms- enough space for six employees. A severe business depression that began in the early 1870s rapidly put half of the 70 life insurance companies operating in New York State out of business. Only very large, long-established ordinary life insurance companies remained strong. Policy lapses over successive years forced the company to contract until it reached its lowest point in the late 1870s.
In 1879, MetLife President Joseph F. Knapp turned his attention to England, where "industrial" or "workingmen's" insurance programs were widely successful. American companies had not bothered to pursue industrial insurance up to that time because of the expense involved in building and sustaining an agency force to sell policies door to door and to make the weekly collection of five- or ten-cent premiums. By importing English agents to train an American agency force, MetLife quickly transferred successful British methods for use in the United States. By 1880, the company was signing up 700 new industrial policies a day. Rapidly increasing volume quickly drove down distribution costs, and the new program proved immediately successful.
The MetLife agent became an important person in the lives of striving families. Manuals instructed agents to call at a home at the same time each week to ensure familiarity and contact. In the process of collecting premiums, insurance agents listened to the problems, concerns, and hopes of their clients. So successful was this approach that by 1909, MetLife became the nation's largest life insurer in terms of insurance in force, a leadership position they continue to hold today in North America.
Superintendent John A. Megargee (1855 – 1913)
Born in Pennsylvania, John A. Megargee joined Metropolitan Life Insurance in June 1875 when he was just twenty years old. Beginning as an agent, he joined at the time where industrial insurance was not wholly known in America. When the Metropolitan’s industrial department was created, Mr. Megargee was appointed superintendent in New York City directly from his industrial agency in which he had been engaged for only six months. Holding his substantial position for over a quarter of a century, Mr. Megargee was ordered to retire due to his failing health, but not before his twenty-fifth anniversary had been appropriately celebrated by the company only a few weeks before. In a letter written on that occasion, President Hegeman said, amongst other things; “Thus we hail this young veteran. Some claim him now to be fifty years old, but we prefer to think of him as having been twenty-five years old twice…The onflowing years have left him with a patience, a gentleness, and a deference that compel admiration and make us wish we had thousands like him.”
Organized by a group of New York City businessmen in 1863, the National Union Life and Limb Insurance Company began business in July 1864 insuring Civil War sailors and soldiers against wartime-related disabilities. By the end of 1864, National Union had written only 17 life and 56 accident policies, was in last place among the 27 life companies operating in New York State, and was running a deficit of $1,400. After five difficult years in business and several reorganizations and name changes, President James R. Dow, (a medical doctor) and the board of directors decided to drop the casualty business and focus solely on life insurance business. And so began Metropolitan Life Insurance Company.
When MetLife opened for business on March 24, 1868 (selling a small number of policies on that date) the company’s first office consisted of only two rooms- enough space for six employees. A severe business depression that began in the early 1870s rapidly put half of the 70 life insurance companies operating in New York State out of business. Only very large, long-established ordinary life insurance companies remained strong. Policy lapses over successive years forced the company to contract until it reached its lowest point in the late 1870s.
In 1879, MetLife President Joseph F. Knapp turned his attention to England, where "industrial" or "workingmen's" insurance programs were widely successful. American companies had not bothered to pursue industrial insurance up to that time because of the expense involved in building and sustaining an agency force to sell policies door to door and to make the weekly collection of five- or ten-cent premiums. By importing English agents to train an American agency force, MetLife quickly transferred successful British methods for use in the United States. By 1880, the company was signing up 700 new industrial policies a day. Rapidly increasing volume quickly drove down distribution costs, and the new program proved immediately successful.
The MetLife agent became an important person in the lives of striving families. Manuals instructed agents to call at a home at the same time each week to ensure familiarity and contact. In the process of collecting premiums, insurance agents listened to the problems, concerns, and hopes of their clients. So successful was this approach that by 1909, MetLife became the nation's largest life insurer in terms of insurance in force, a leadership position they continue to hold today in North America.
Superintendent John A. Megargee (1855 – 1913)
Born in Pennsylvania, John A. Megargee joined Metropolitan Life Insurance in June 1875 when he was just twenty years old. Beginning as an agent, he joined at the time where industrial insurance was not wholly known in America. When the Metropolitan’s industrial department was created, Mr. Megargee was appointed superintendent in New York City directly from his industrial agency in which he had been engaged for only six months. Holding his substantial position for over a quarter of a century, Mr. Megargee was ordered to retire due to his failing health, but not before his twenty-fifth anniversary had been appropriately celebrated by the company only a few weeks before. In a letter written on that occasion, President Hegeman said, amongst other things; “Thus we hail this young veteran. Some claim him now to be fifty years old, but we prefer to think of him as having been twenty-five years old twice…The onflowing years have left him with a patience, a gentleness, and a deference that compel admiration and make us wish we had thousands like him.”