Treasurer's Message to Our Policyholders
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Matthew G. Hirschy, CPA Vice President and Treasurer |
Brotherhood Mutual posted another year of excellent financial results in 2009. Despite continued market unrest, the company experienced a substantial increase in the Policyholder Security Fund, as well as increases in premium income and corporate assets.
The Policyholder Security Fund increased substantially in 2009, posting an increase of nearly 10 percent, gaining $12.8 million and bringing the fund’s total to $143.5 at year-end. Premium income totaled more than $214 million in 2009, a three percent increase over the previous year, while company assets advanced 4.9 percent to $327.5 million during the year.
In 2009, the company paid policyholders more than $115 million in claims, much the same as the previous year. Through the Partnership Group Program, Brotherhood Mutual also paid $2.04 million to policyholders with good risk management histories over a three-year period.
Brotherhood Mutual posted a $2.5 million gain in its underwriting operations in 2009, reflecting the company’s steady rate structure and well-timed arrangements with our reinsurance partners. The company also posted a combined expense/loss ratio of 99.2 percent in 2009, surpassing the experience of many other property-casualty insurers and the industry, in general.
The company’s stock investment portfolio rebounded more than 33 percent in 2009, taking advantage of general advances in the financial markets, which remained shaky during most of the year. Our previous year’s reallocation of some or our funds helped the volatility of stock investments, which paid off this year. We expect our investments to continue producing strong returns over the next several years.
As a new year begins, Brotherhood Mutual remains exceptionally strong and well-positioned to take on continuing change in the marketplace. Staying financially secure is one of the best ways we can demonstrate our commitment to protecting our policyholders and their ministries.
Matthew G. Hirschy, CPA
Vice President and Treasurer
Read more about our 2009 financial performance:
- A Message from Our Chairman
- Our Financial Statement
- View and print a PDF version of our 2009 Annual Report (494k)