| MFM Announces First Quarter Results |  |
A LONG Winter influenced our first quarter results. It seemed as if cold weather and snow would not go away this past Winter. Our first quarter combined ratio was a respectable 95.7. We would prefer better results as we enter the storm season but we are overall pleased with this profitable year to date result. Invested Assets in the first quarter exceeded a new record of $100M. Our premiums grew by 9% in the first quarter. Commercial lines premium growth was excellent but Personal Lines growth was also respectable. Our success ratio on all commercial quotes that were sent out in the first quarter was a very respectable 25%. For every four commercial quotes, we wrote one policy. Our new "Edge" system is beginning to show great rewards. A number of changes like: automatic tiering, automatic loss free calculation, data prefill, Insured proposals, and real time changes have had a marked influence on our Personal Lines new business. A single screen of billing data for customer service inquiry on all Personal and Commercial policies has been well received according to Agent feedback. Our expense ratios have also been positively influence by Edge. For the first quarter compared to the same period a year ago, our underwriting expense ratio is down by an impressive 3 percentage points. The Claims expense ratio is down by 2 percentage points. Though we are up 9 percent in premium in the first quarter we have added no additional staff. Our efficiency and productivity have shown great strides with our new Edge system. Our new Ag Business program is doing well. Sales year to date are ahead of plan for this new program. We have written some Grain Elevators, Feed Mills, Fertilizer Blending Plants, and Implement Dealers just to name a few successes. We are in the middle now of some very popular annual ex dates so our quote activity is currently high. If you know of a prospect in Ag business ex-dating in the near future please do consider us for a proposal. We are now preparing Commercial product filings in Montana, Kansas, Missouri, Indiana, and Ohio and expect approval in these 5 new States by the third quarter this year. We do not anticipate being active in these States with new Agency appointments until mid-2012 but these developments will allow you to begin writing in these States later this year. No significant premium writings are planned for 2011 but we do plan to have some targeted success with you, particularly on multi-State commercial prospects that previously we would have had to decline. With one quarter behind us and three to go we are optimistic about prospects ahead. Always know we appreciate your business. Have a great Summer.
Best regards, |
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Posted on Monday, May 09 @ 13:15:15 -05:00
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