2012 Annual Report

Our Story of 2012

Annual reports are supposed to be about a company’s numbers and are useful in understanding its business for a given time. But numbers only tell part of the story. They don’t reveal the heart of a company.

Our 2012 annual report shows how what we do affects the ministries we serve. It’s about our heart—our mission to Advance the Kingdom by Serving the Church.

This is our story of 2012.

See how our financial summary shows

Learn how our tailored products and services create

Find out how new states and strategic alliances generate

Hear from customers about our

Discover how our mission leads to a

We are driven by our passion for serving ministries, so they can serve others.

We believe it isn't just a good corporate thing to do...


Take a closer look...

Chairman and President, Mark Robison

“We understand why our customers are in ministry. We have the same passion. It’s what makes us unique, even among church insurers.”

Mark Robison
Chairman and President

Strength to Perform

Our Financial Stability is Your Ministry’s Security.

In 2012, our numbers were strong, and that means good things for the ministries we serve.

The ministries we serve are recovering from a tough economy. They’re reaching their communities. They’re weathering the storms. And they’re expecting to continue their good work well into the future.

Our reserves were reinforced. We solidified the respect of our reinsurers. We set our strategic plan toward a healthy, sustainable future, and we have the reserves to help those who have experienced a loss to recover.

Direct Written Premium
Direct written premium
Admitted Assets
Admitted Assets
Policyholders’ Security Fund
Policyholder security fund
A.M. Best
A.M. Best rated A Excellent
Statement of Income
Premiums Earned 2012 $203,560,841 2011 $178,586,425
Losses and Loss Expense Incurred 2012 ($127,173,880) 2011 ($143,977,370)
Underwriting Expense Incurred 2012 ($72,326,479) 2011 ($58,318,966)
Net Underwriting Gain/(Loss) 2012 $4,060,482 2011 ($23,709,911)
Net Investment Gain 2012 $6,513,939 2011 $6,691,190
Other Income 2012 $1,122,746 2011 $814,173
Dividends to Policyholders 2012 ($2,142,192) 2011 ($1,901,435)
Federal Income Taxes 2012 ($2,271,766) 2011 $2,352,314
Net Income Gain/(Loss) 2012 $7,283,209 2011 ($15,753,669)

Possibilities to Serve

Our Mission is Protecting Yours.

Ministry takes on many forms and happens in a variety of places. Whether it’s at home, abroad, or online, protecting your people, property, and reputation is something we understand. We believe insurance coverage should be as unique as the ministry it protects—allowing ministry leaders to worry less about guarding their ministry and focus more on fulfilling it.

We’re also passionate about helping churches and related ministries make the most of their resources. That’s why we added MinistryWorks, a new payroll service that offers ministries a low-cost, time-saving option for payroll processing. It’s another example of how we’re meeting the needs of churches, so they can keep their focus on serving others.

43,954 Ministries Served

Opportunities to Grow

New Areas Benefit from the Same Ministry-Centered Focus.

In 2012, we reached out to more churches than ever. With our entry into four new states, we now offer our products to ministries in 43 states and the District of Columbia. Our growth means that more ministries now have access to Brotherhood Mutual’s outstanding products and services.

New Jersey

Commitment to Respond

We’re There When Ministries Need Help.

Ministries have a tough job. We understand. We anticipate their needs by offering an ever-growing, free online library of resources, webinars on topics like safety and security and employment practices, access to our LegalAssistance team, and help with payroll processing.

When a claim happens, our goal is to get that ministry back on its feet as quickly as possible. In 2012, our claims team responded to more than 15,000 ministries who were affected by property or liability issues. When asked about their claims experience, these ministries told us we did a good job. Overall, we have a 98 percent claims satisfaction rate.

Check out what our customers have to say:

Ferguson Ferguson Ferguson Ferguson Ferguson Ferguson Ferguson Ferguson
Ferguson Christian Church

The last 18 months were a major challenge for Ferguson Christian Church in suburban St. Louis. On Good Friday 2011, a spring storm was brewing when about 30 people gathered in the church auditorium to watch The Passion of the Christ. As the movie played, the weather quickly took a turn for the worse.

In the middle of the film, word came that a tornado had just damaged a nearby airport and was spinning toward the church. Preaching Minister Stacy Garner stopped the film and told everyone to head downstairs.

Moments after the last person hustled down the steps to the basement, the twister ripped off most of the building's top. Roof beams cascaded down into the auditorium where people had just been sitting. Thankfully, no one was physically hurt.

“My wife and I tried to get to the church after the storm, but it was a tough process,” Chairman of the Elders Bob Edwards says. “There were trees laying all over the roads, downed power lines…It was a mess.”

Edwards found the church insurance paperwork and called Brotherhood Mutual the next day. An estimator was on-site in about 24 hours, and the cleanup effort started almost immediately.

As the building was being restored, the congregation met at a nearby Christian college. On September 9, 2012, Ferguson Christian Church held its first service under a new roof. Today, things are back to normal.

“We’ve had a great working relationship with Brotherhood Mutual,” Edwards says. “I would highly recommend the company as one that works well with churches and helps them get through these kinds of crises.”

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Wenden Bible Church

On February 7, 2012, Pastor Frank Huffman of Wenden Bible Church in western Arizona was eating lunch with some missionary friends when the phone rang at the restaurant. It was a ministry intern looking for Huffman. He had news: “The church is on fire.”

As Huffman rushed to the building, he saw a column of smoke rising in the distance. “My heart just sank when I saw that,” he said. Huffman arrived to the scene of firefighters knocking out the windows in an attempt to save the building. Still, the roof succumbed to the flames, leaving most everything in the church a total loss.

“It was an emotional time,” Huffman said. “I was pretty numb for a few days.”

While Brotherhood Mutual helped Wenden Bible Church recover, the small congregation met for Sunday worship services at an on-site fellowship hall.

On February 3, 2013, just shy of a year after the fire, Wenden Bible Church held a dedication service for its newly rebuilt facility. Brotherhood Mutual agent Kevin Norton was there, as he and the company had been throughout the rebuilding process.

“It was a very good day,” Huffman said. “We felt blessed to be in our new building.

“We’ve been very happy with the way Brotherhood Mutual responded. I’d recommend them to anybody.”

Generations Generations Generations Generations Generations
Generations Free Will Baptist Church

“It looked like a bomb had gone off,” Pastor Jerald Bass said.

In May 2011, as part of his service as a military chaplain, Bass took part in a two-week training session in South Carolina. A portion of the training dealt with disaster response. Bass never thought he would actually have to use what he learned—especially not within a month of returning from the training. But when a mile-wide EF5 tornado bore down on Joplin, Missouri, Bass’s Generations Free Will Baptist Church found itself in the middle of a disaster area.

As the storm approached, Bass hurried to the church, where the choir—including two of his daughters—was holding practice. Everyone quickly huddled in a classroom without windows.

“Pretty soon, a couple of guys came around the corner and said, ‘Get down! It’s here!’ and we could hear the building going up around us,” Bass says.

Most of the building, including the sanctuary that shared a wall with the classroom, was destroyed. “Ceilings were ripped off. Walls were blown away. Only one vehicle was left,” Bass says. “If you look at the intensity maps, the storm had its greatest strength as it passed the church.”

Seven families that attend the church lost everything. Miraculously, no one from the church was injured.

As the church—and the town—began to rebuild, Brotherhood Mutual was on the scene to help. Tom Lichtenberger, senior manager of property claims, was among the company employees who went to Joplin. He called it the worst damage he had seen in his 25 years of handling church insurance claims. Nevertheless, cleanup efforts led to building plans, which led to girders rising from a new church foundation.

Today, Generations Free Will Baptist Church is back in operation, focusing on serving families of all ages. The congregation held its first service in its new building on February 10, 2013.

“We have nothing but positive things to say about Brotherhood Mutual,” Bass said. “It was way above our expectations of service.

“I’ve been pastoring for more than 20 years now and I’ve worked with three or four different insurance companies,” Bass said. “By far, without any hesitation, I’d say Brotherhood Mutual has been the best of anybody I’ve seen.”

Central Baptist Academy

Rick Voiles, school administrator at Central Baptist Academy in Cincinnati, Ohio, had just received a price quote for MinistryWorks payroll service and thought there was a mistake.

“I had to double-check,” Voiles said. “I asked, ‘Did you say per year?’ We were used to paying more than that per month!”

Voiles did a bit of homework and decided to make the switch to MinistryWorks in October 2012. Consider him a happy customer, and not just because of the savings.

“We’ve been very pleased with how good the service has been, the quality of work, and it’s convenient,” Voiles says. “When I call with a question, I feel like we’re speaking the same language when it comes to things like housing allowances, because they’re used to working with churches.”

And saving money doesn’t hurt, either.

“It’s freed up probably $5,000 per year and we’ve been able to put that money to good use,” Voiles says. “It’s allowed us to make some repairs and upgrades. It’s been a wonderful win for us.”

“Anybody who’s wanting to save some money and still have a good, quality payroll administrator with the good responsiveness and service that you need—my goodness, make the change to MinistryWorks.”

Heart to Make a Difference

We’re Supporting Ministries at Home and Abroad.

In addition to corporate sponsorships and charitable giving, Brotherhood Mutual’s employees and agents worked locally, nationally, and internationally to meet the needs of ministries. Serving and helping people—it’s what our customers do. It’s what our agents do. It’s what our employees do. It’s what we do.

Habitat for Humanity

Habitat for Humanity

We teamed up with 10 local churches to build two homes for residents in our hometown of Fort Wayne, Indiana. Through heavy rainfall and scorching sun, employees worked alongside future homeowners from the first beams to the finishing touches.

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Faith Ventures

Faith Ventures

Agents and employees got to know residents of Freedom Hall Drug and Alcohol Recovery Center in Piketon, Ohio, while painting dormitories. Fundraisers involving a dunk tank and matching funds helped to pay for replacement windows and a new dorm.

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Serbia Now

Through the years, Brotherhood Mutual has helped ministries in Serbia involved in planting churches, starting a church-based drug rehabilitation ministry, and assisting entrepreneurs with business training and access to capital.

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I am encouraged by how you are answering the call that God has given each of you. I hope you are encouraged by us as well, as we work alongside you to advance the Kingdom by serving the church.

Mark Robison
Chairman and President

Our Story of 2012

In 2012, we built on our FINANCIAL STRENGTH, which opened more
We fulfilled our COMMITMENT TO RESPOND in positive ways.
We did all of these things because, like you, we have a

This is our story of 2012.