2009 Treasurer's Message to Our Policyholders
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Matthew G. Hirschy, CPA Vice President and Treasurer |
Brotherhood Mutual posted impressive financial results in 2008, despite unrest in the financial markets. More than 450 new churches and related ministries joined our family of customers, pushing up premium growth and contributing to strong underwriting gains.
Premium income totaled $207.7 million in 2008, a 2.7 percent increase over the previous year. Passport to Ministry, our international travel insurance product, posted $1.6 million in total premium, a 12 percent increase in an otherwise quiet year for church-sponsored mission trips. The company also posted an especially solid combined expense/loss ratio of 94.3 percent in 2008, far better than many other property-casualty insurers. Company assets declined 0.6 percent to $312.4 million during the year.
In 2008, the company paid policyholders more than $115.7 million in claims, 35 percent more than in the previous year. Through the Partnership Group Program, Brotherhood Mutual paid $2.2 million to policyholders with good risk management histories over a three-year period. Brotherhood Mutual posted a $10.2 million gain in its underwriting operations in 2008, reflecting the company’s steady rate structure and well-timed arrangements with our reinsurance partners. Underwriting gains helped stabilize decreases in the policyholder security fund, which totaled a healthy $130.7 million at the end of the year, $5.0 million off the previous year’s mark.
The company’s stock investment portfolio declined 38 percent in 2008, in sync with the market’s general decline. Although we remained in the market, we reallocated some funds to securities that will help level the volatility of stock investments. Together with the better yielding, high quality bonds we bought, we expect our investments to produce stronger returns over the next several years.
As the new year begins, Brotherhood Mutual is in an exceptional position to
ride out the current unrest in the financial markets. Staying financially secure
is one of the best ways
we can demonstrate our commitment to protecting the ministries of our policyholders
and those they serve.
Matthew G. Hirschy, CPA
Vice President and Treasurer
Read more about our 2008 financial performance:
View and print a PDF version of our 2008 Annual Report (1.16Mb).