Half Time Report
As Insurors Indemnity Companies crosses the halfway point of 2014 I thought the timing would be good to give you an update on how the Company is doing.
The first six months of this year have put us on track to grow by 20% over 2013 and to exceed some high goals for 2014. The Company’s attractive business results exist because we have some terrific managers running disciplined operations. Let me share a couple of the highlights with you.
First, our Property & Casualty Department, whose underwriting is managed by Nancy Tussy, is up 22% over last year. The P&C Underwriting department combines speed, decisiveness and, most importantly, common sense in a manner unique to our regional market. While growth is important, Insurors Indemnity’s capable team of underwriting professionals never expose the Company to risks that are inappropriate for its expertise or capacity. Indeed, we are more conservative in avoiding risk than most large insurance companies.
A sound insurance company follows four important rules:
- Understand all exposures that might cause a policyholder to incur a loss.
- Conservatively assess the probability of any exposure and the related costs should loss occur.
- Set a premium that on average will deliver a profit after both prospective loss costs and operating expenses are covered.
- Be willing to walk away from a risk if an appropriate rate to risk ratio cannot be obtained.
Many insurers observe the first three rules but are frequently tempted to violate the fourth. Nancy and the P&C team observe all four rules and it shows in their results.
The Bond Department which is managed by Somers Goodman. Somers took over the Bond Department in 2004 and it has been soaring ever since. Year to date, Contract Bond premium is 66% greater than that of the same period in 2013 putting Insurors Indemnity well on its way (58.5%) toward achieving an aggressive 2014 written premium goal.
Underwriters for both Contract and Commercial bonds has delivered admirable results in keeping with the company’s continued commitment to build strong agent relationships.
The growth and profitability of the Company cannot be adequately relayed without the mention of its outgoing president, Jim Piper. Jim’s tireless dedication to the success of the Company, its agents and its employees leaves an indelible mark of achievement. Our best wishes to him as he enjoys some well deserved R&R before getting back to work to focus specifically on helping our agency partners grow with us,
Simply put insurance is the sale of promises. The agent is paid by the customer for a policy today in exchange for a promise from the insurer that they will pay in the future if certain events occur.
For many, the promise will not be tested for decades, or perhaps not at all. Therefore, both the ability and the willingness of the insurer to pay – even if economic chaos prevails when payment time arrives is all-important. With A.M. Best renewing its confidence Insurors Indemnity Companies by awarding it an A- Excellent Rating again in 2014, along with a stalwart reinsurance program with GenRe; a growing force of professional agency partners working with our team of experienced and service oriented employees, I feel confident that we are more than capable of keeping our promises.
Your clients rely on you as an agent to place their business with a carrier that will allow them to sleep well at night. Based on our results over time and especially through the first six months of 2014 I feel like Insurors Indemnity Companies has the best mattress in the Southwestern U.S. We look forward to continuing to work with you to make 2014 a record year.
President & Chief Operating Officer
Insurors Indemnity Companies