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A very stormy Summer!! But it was also a financially successful one! icon

To all Midwest Family Agencies: Hail is a four letter word. Tornado should be a four letter word but maybe wind is its close substitute. In May through July, we experienced some of the worst summer weather our Company has ever experienced. Also this weather was everywhere in the Midwest. In all of our Midwest States we experienced some wind or hail losses. The summer made us better appreciate our diversification strategy and our business spread in the Southwest. If not for our Southwest and Western expansion, this year's storm losses as a percent of premium would be much greater.

Our claims staff has worked 568 storm claims totaling over $12.5M. Fortunately, August was a quiet month for storms allowing us to finally catch up on settlements while no new claims were being reported.

Our year is progressing well financially. In spite of all this storm activity, we were able to record a 97.5 Combined Ratio year to date through August. Traditionally, our Combined Ratio results only improves from now until the end of the year. As such, we are encouraged with our financial prospects going forward.

Premiums are up by 10% this year, which is far ahead of our 7% planned growth rate. New business sales success has been excellent. Thank you to all Agents! Commercial sales have continued strong, but we are also encouraged by the sales success of our new First Class Portfolio program (FCP).

First Class Portfolio program (FCP) packages all Personal Lines needs for affluent customers. We have written numerous new homes with with Coverage A limits up to $10M and written many cars with values over $250K. This program offers CSL limits on auto and home at $1M coupled with Umbrella to $10M. Earthquake and private flood coverage is also available for home. Add UM and UIM with limit offerings up to $3M, and you have coverage options that target the needs of high net worth customers. There is no limit to the number of primary and secondary homes we will write, and no limit to the number of cars in your insured's garage. Our "more cars than drivers 25% per extra car discount" makes us VERY competitive on customers who like to collect cars. I like to call this discount the "Jay Leno's Garage" credit. Premiums we have booked on FCP have run a low of roughly $4,000 to a high of $36,000. Most FCP's average $8-$10,000 in premium. Consider FCP for your high net worth customers. Your errors and omissions risk management will also appreciate this program.

A big thank you to all of you for your continued confidence in us this year. We are working very hard to earn a greater share of your business. Enjoy the seasonal change to fall weather ahead of us. For me fall is the best season of the year. I hope the football team you follow and cheer for is successful.

"We Serve our Agents first to serve Policyholders best."

Best regards,

Ron Boyd, CPCU
President and CEO


Posted on Wednesday, September 06 @ 15:32:04 -06:00
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