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MFM weathers a stormy June! icon

Our second quarter results were tracking VERY well through May and then June changed everything. We had our fair share of the Wadena, Minnesota tornado. Our field adjustor Tony Gordon was in Wadena working claims the next day after the storm and progress on settlements is far ahead of schedule. All of our seven States had some storm activity in June. I learned that parts of Iowa, as an example, have experienced 15-20 inches above normal rain fall this year. All considered, a .91 Combined Ratio through May became a still respectable .98 through June. We will add to Surplus through the first 6 months.

Written Premiums are up 1% through June. This economy is our major headwind for growth. We are writing a substantial amount of new business but with sales, receipts, and payrolls negatively effecting rating basis and resulting in return premium audits it is tough to show real growth. It is interesting to note on most other competing Company earnings reports I have reviewed that written premium growth in announcements is silent. As a result, I suspect many of our competitors may be realizing negative premiums year over year. If so, perhaps we should be happy with our year to date growth.

We still have another 2 months of storm season ahead of us but are confident that our financial results the balance of the year will be good. Our business plan calls for planned storms losses annually. When storms do not occur at these planned levels we get a bonus to our results.

Our Edge system is getting greater Agency acceptance and is resulting in much more Personal Lines sales. Data Pre-fill and Automatic Tiering is making our quoting process much more efficient. Doing changes on line by you adds to your ability to service and quote the myriad of policy changes that good Agency customer service requires. I have been very pleased with the Agency feedback on our training sessions conducted by our Agent's Service Center. If you have not attended one of these sessions please do so as they are scheduled.

Commercial lines activity has been excellent. Our turnaround time to meet your Commercial proposal needs is unmatched. Daily turnaround when necessary has been accomplished. I have always said that expediency in quote response will sell a lot of insurance. AND many sales orders are made before the competition catches up.

We appreciate your business! Enjoy the summer.

Best regards. Ron

Posted on Wednesday, July 21 @ 11:22:25 -06:00
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