Brotherhood Mutual Reports 2006 Financial Results
Investment gains helped overcome the increased effects of incurred claims.
FORT WAYNE, IND. , February 22, 2007—Brotherhood Mutual reported $9.1 million in net income for 2006, enhanced by outstanding investment gains throughout the year.
Losses: Overall, second quarter tornadoes in the Midwest and South and several large fires elsewhere had marked impact on the company’s 2006 net income. Although Brotherhood Mutual processed only slightly more claims in 2006 than during the previous year, the company’s incurred claims were up 10.2 percent.
Performance: Despite a higher claim experience, Brotherhood Mutual’s combined loss and expense ratio came in at a solid 97.4 percent for the year. Investment gains of $7.1 million—a 45 percent increase over the previous year—helped enhance the company’s performance.
Direct written premium increased to $194 million in 2006. For the second consecutive year, written premium included more than $1 million from Passport to Ministry®, our international travel insurance program.
In 2006, Brotherhood Mutual added $11.6 million to the policyholders’ security fund, bringing its total to $119.5 million. At the same time, company assets grew to $293.3 million, a 7.3 percent gain.
Dividends: The company returned a record $2.1 million in Partnership Group Program dividends to denominational groups with good risk management experience on average over the past three years. It was the fifth consecutive year that dividends reached record levels.
Recognition: For the ninth consecutive year, Brotherhood Mutual retained its A "Excellent“ rating from A.M. Best Company. Once again, National Underwriter, a trade publication, recognized Brotherhood Mutual as one of the nation’s Top 50 commercial lines insurers, based on the company’s average combined ratio over the previous six years.
Brotherhood Mutual Insurance Company is one of the nation’s leading
property/casualty insurers of churches and related ministries. The company
serves more than 30,000 church and ministry customers nationwide and
is represented by 500-plus independent agent representatives. Brotherhood
Mutual employs more than 220 people at its corporate offices in Fort
Wayne, Indiana.
