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It was a Stormy Summer!! But MFM "Weathered" the Storm! icon

It is tough to complain about our stormy summer season at the same time that a Cat 4 Hurricane is set to hit the Florida coast. Matthew reinforces our strategy to not write business in hurricane exposed coastal regions. That said, Midwest storms can be less than kind as well. Our largest storm of the year dropped large hail on Bismarck, ND and then managed to inflict smaller damage on Brainerd, MN. We also had several other smaller storms across the Midwest. We even had an unusual hail event in Utah this year. Of particular note has been the significant deterioration in our Commercial Auto and Personal Auto experience this year. This significant auto trend has been a stark contrast to the superb years we have experienced in the decade prior. Similar results have been experienced by our competitors. Are gas prices encouraging more driving? Is texting having a negative impact? Has low unemployment made it more difficult to obtain qualified drivers? We haven't put our finger on all of the reasons, but we will likely be doing something different in underwriting qualification and/or rates as we move into 2017. Our Combined Ratio is estimated at a respectable 99 through September with an expected 3 point improvement to 96 if our fourth quarter performs as it has in past years.

Premium growth has been strong. We grew written premiums by 12% through September. Growth is occurring in all states with Arizona, Utah, Missouri, Kansas, and Indiana showing the most growth. A concerted effort in Ohio should push growth in that state the remainder of the year. All lines of business are showing respectable growth trends.

We are always appreciative of the efforts of our Independent Insurance Agents and thank them very much for their business. We look forward to everyone doing their part to finish the year strong. Enjoy the upcoming Holiday season!

Best regards,

Ron Boyd, CPCU
President and CEO

Posted on Tuesday, October 11 @ 10:21:22 -06:00
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