German American Insurance Company’s Early Success

Official certificate issued by the state of New York and handwritten charter of the German American Insurance Company

In early March 1872, George V. Miller, the New York State’s superintendent of Insurance, issued an official certificate indicating that a certified copy of the charter for Great American Insurance Company’s predecessor, German American Insurance Company had been filed with the state. An office was secured, and business officially began on March 7, 1872.

German American originally focused on insuring household and building fire risks, as well as inland marine risks. These risks included insuring vessels, boats and cargos on America’s lakes, rivers and canals.

The first policy was issued on March 19, 1872, and provided fire coverage to India Rubber Comb Company’s plant at College Point in Long Island, New York. The College Point company was run by one of German American’s biggest investors, Adolph Poppenhusen. The Poppenhusen family had obtained a license from Charles Goodyear to manufacture hard rubber goods in 1852. India Rubber Comb was one of the first companies in the U.S. to sell hard rubber products created through the process of vulcanization. By the 1850s, vulcanite had become a popular substitute for the more traditional ivory and wooden combs.

In the same year that German American started, the Boston fire of 1872 cost insurance companies more than $52 million. The fire, following so closely upon the Chicago Fire of 1871, was a staggering blow to many insurance companies and some did not survive. German American’s loss in Boston was believed to be $109,000. At the time, this represented nearly a quarter of the total premium volume of $471,800 during the company’s first year. The company’s sizeable base of capital enabled them to continue.

By July of 1873, German American reported more than $1.4 million of assets and a surplus of $93,000.

In that same year, Emil Oelbermann, one of German American’s original directors, succeeded William Heins as President. Oelbermann, born in Lennep, Germany, was the son of a cloth manufacturer. He was sent to the U.S. in the 1850s to handle the family business in America and manage an importing company. Oelbermann was a commanding voice in the early meetings of German American’s corporators and heavily involved in soliciting capital to start the company. During his presidency, he left a positive mark due to his counsel on successful investments. He would remain president and oversee the growth of the company until his death in 1897.

The following shows the progression of the company’s assets and surplus from 1873-1891 during Oelbermann’s tenure. During this period, the company’s assets grew 309%!

Interested in seeing how Great American grew into the company it is today? Visit our Company Story to see why our yesterdays tell an important story about our tomorrow.