| Another Great Year for MFM |  |
This past year was a good year for Midwest Family. We still have some accounting to do to firm up our results but we are close enough for this report. First, 2009 was our seventh consecutive year of producing an Underwriting Profit. We ended the year with a Combined Ratio of 97.4. Our written premium grew by 5% in 2009 to in excess of $80M. In light of economic conditions with reducing payrolls, sales, receipts and other rating basis we were very pleased with the growth we were able to achieve this past year. Policyholders Surplus gained 12.6% to $38.1M allowing for further sales growth in 2010. We incurred roughly $7M of storm losses throughout our Region in 2009 which is about what we plan and budget for annually. Our Investment Portfolio performed very well and very predictably in 2009. As many of you may know, we sold our entire Stock Portfolio in October of 2008. We began buying Common Stocks again in April of 2009 and our timing could not have been better. Sometimes you get lucky. We have substantial unrealized gains in our Stock Portfolio with very good dividend paying support for the Stocks we own. These unrealized capital gains contributed nicely to our year end Surplus growth. Currently MFM is invested conservatively with 95% of our invested assets in Investment Grade Bonds and 5% in Stocks. Our Stock Portfolio approximates 10% of our Surplus as limited by our Company Investment Policy. MFM's Balance Sheet has limited down side risk. Our Bond Portfolio is invested very short term in duration as our expectations are for higher inflation and higher interest rates in the intermediate run. We are ever mindful that our success as a Company is heavily influenced by our Independent Agent customers. Thank you so much for you continued sales and support in 2009. It is part of our culture and mission at MFM to treat our Agents as our primary customer. We know we are most effective in servicing our/your insureds and doing so while remaining financially strong by servicing our Agent's FIRST. Thank you again for all you accomplished for us in 2010. Our goal is to grow written premiums by 7% in 2010. We think the improving economy will allow for our momentum to continue in 2010. We also know that the strength of the relationship we have with you will continue to carry us in 2010. Thanks again for all your support.
Best regards, |
|
Posted on Wednesday, January 27 @ 09:09:47 -05:00
View Printable