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Second quarter results were influenced by a four letter word!! icon

The four letter word referred to is HAIL, and we had lots of HAIL in our second quarter. We have lots of pictures from customers of various size (dime to baseball) HAIL stones to prove this HAIL existed. Our second quarter results were heavily influenced by all kinds of weather. In addition to HAIL, we had tornado losses, straight line wind losses, and plenty of backed up sewer lines and sump pump failures caused by far too much rain. But HAIL caused the most significant damage in all of our upper Midwest States. Our claims adjustors have been doing great work servicing and settling these storm claims. In late 2012 MFM entered Arizona. If only we had more business in non-HAIL prone Arizona. This year we entered Utah--another non-HAIL prone State. Over time this geographic diversification will have a marked influence on our storm loss exposure and our financial results.

As significant as the second quarter weather losses were, we were able to handle the storm damage and still maintain acceptable financial results. We expect to report roughly a 99 Combined Ratio for our second quarter. Producing a Combined Ratio of 99 through June puts the Company in a good position to have acceptable financial results for the full year.

The Company entered three new States in the second quarter. Utah, noted earlier, was also joined by Colorado and Wyoming. Rocky Kotter was hired as our Regional Marketing Manager based in Ogden, Utah and has been appointing agents in Utah. Rocky will also service our Agents in Nevada. Shane Opdahl our Arizona based Regional Marketing Manager will now appoint and service Agents in Colorado. Jim Davidson is appointing and servicing our new Agencies in Wyoming. Our written premiums grew by 10.2% for the first 6 months. All regions produced good growth in written premium. We are very grateful to all of our Agents when your customers' insurance is recommended to MFM.

We always appreciate your business. Here’s to less HAIL in the third quarter! Enjoy the balance of your summer!

Best regards,

Ron Boyd, CPCU
President and CEO


Posted on Wednesday, July 16 @ 10:32:22 -06:00
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