Chairman's Message: 2006 Review
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James
A. Blum, CPCU |
Premium Income, Security Fund Reach New Highs
In 2006, premium income increased to nearly $194 million while the policyholders’ security fund advanced nearly 11 percent to $119 million.
Hurricanes had little impact on our financial performance in 2006, although second quarter tornadoes in Kansas, Missouri, Tennessee, and Indiana and several large fires in other states did have an impact on results.
Despite the losses associated with these events, Brotherhood Mutual’s combined loss and expense ratio came in at a solid 97.4 percent, on a scale at which 100 percent is the break-even point.
(View the 2006 Financial Statement >>)
Skillful Risk Management Rewards Customers
Again in 2006, good claim experience resulting from skillful risk management rewarded customers who are part of Brotherhood Mutual’s Partnership Group program. One such group earned a record $126,290 for its successful risk management results.
We appreciate your continuing efforts to identify and manage the risks associated with the operation and activities of your ministry. Effective risk management helps minimize insurance costs—for you and for Brotherhood Mutual.
Company Ranks Among Top 50 Insurers
Once again, National Underwriter magazine named Brotherhood Mutual among the Top 50 property casualty insurers in the nation. The ranking measures return on equity based on an average of the combined ratios that the company recorded for the previous six years.
We are thankful to be honored in this way and grateful to Brotherhood Mutual employees and agents, who have greatly contributed to this achievement.
Products Modified and Enhanced
In 2006, we modified both MinistryFirst®, our primary church policy, and Passport to Ministry®, Brotherhood Mutual’s international travel protection program. We added options and changed both products in other ways to make them more flexible and easier to customize.
Corporate Mission Program Introduced
Brotherhood Mutual also established its own corporate mission program in 2006. Called Brotherhood Works, the program is intended to give something back for the blessings God has given Brotherhood Mutual since its founding in 1917.
The new program provides an opportunity for our employees and agents to volunteer their talents and resources and work together on selected foreign and domestic mission projects.
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Mark A. Robison |
In April 2007, I will retire after 40 years with Brotherhood Mutual. Although I will remain chairman of the board, Mark Robison, the company’s current senior vice president and treasurer, will become the company’s new president.
Mark is a Certified Public Accountant and a Chartered Property Casualty Underwriter. He has been with Brotherhood Mutual since 1994 and is very capable of leading the company to new heights for years to come. I am pleased to introduce Mark Robison to you at this time.
Brotherhood Mutual Works to Serve You
As Brotherhood Mutual celebrates its 90th anniversary, I can assure you of our continuing emphasis on being the best
church and related ministries insurer possible.
Because we are a mutual company, Brotherhood Mutual works for you—policyholders and customers. We thank you for your loyalty to Brotherhood Mutual and look forward to serving you in the years ahead.
James A. Blum, CPCU
Chairman of the Board
Read more about our 2006 financial performance:
Our Financial Statement
View and print a PDF version of our 2006 Annual Report (500k).