Motorists Mutual builds success despite difficult conditions
COLUMBUS, Ohio (April 26, 2010)—The Motorists Insurance Group and its lead company, Motorists Mutual Insurance Co., experienced solid performance in 2009 despite one of the most challenging economic environments the group has ever faced in addition to another year of record catastrophic weather losses.
A corporate culture based on customer service and a conservative management philosophy propelled the company as it grew net written premium and built policyholder security funds while helping personal and commercial lines policyholders recover from 20 catastrophic weather events during the course of the year.
"Our ability to grow during these tough economic conditions further demonstrates why our core values remain our guideposts," said John J. Bishop, Motorists chairman, president and CEO. "They set the course for doing business in an ethical manner, and independent agents and policyholders know we are a company that can be trusted to put their long-term best interests first."
Performance in commercial lines continued to be solid while personal lines business was affected by the weather and the downturn in the economy. The group's overall financial position was supported by A.M. Best when the rating agency affirmed it with a rating of A (Excellent) with a stable outlook.
At year-end 2009, The Motorists Insurance Group posted net written premiums of $674.8 million, $657.3 million in policyholder security funds and a combined ratio of 108.7, which reflected the difficulties caused by storm losses. The group of companies has $1.6 billion in assets.
Motorists Mutual Insurance Co. reported $475.3 million in net written premiums, policyholder security funds of $487.5 million and a combined ratio of 108.6 percent. Continued growth in commercial lines was coupled with flat performance in personal lines. The company operates in Ohio, Pennsylvania, West Virginia, Kentucky, Indiana and Michigan.
"We have been blessed with a strong financial foundation through these difficult economic conditions," Bishop said. "Our careful planning has helped us build and maintain our competitive presence, and we are well-positioned for profitable growth."
During 2009, The Motorists Insurance Group expanded its geographic footprint through the completion of its affiliation agreement with Phenix Mutual Fire Insurance Co., based in Concord, N.H., when policyholders and state regulators granted their approval.
This agreement is the latest in a string of successful affiliations, and will provide the group a larger spread of risk while giving Motorists entrance to additional markets. Phenix, which operates in New England and South Carolina, in return gained larger access to resources and support, plus a wider mix of products.
Among the other highlights of the year for Motorists was the significant investment in information technology and the creation of the MAX Service Division. Motorists made several enhancements to improve the ability of independent agents and policyholders to conduct online business with the company, and the new corporate division will include oversight and deployment of agent-facing technology as part of its responsibilities.
Two appointed to Motorists Board of Directors
Motorists Mutual policyholders selected two new members to the company’s Board of Directors.
Sandra W. Harbrecht, APR, president and CEO of integrated communications consulting firm Paul Werth Associates, was voted unanimously to the Motorists board. She has led the firm through a period of growth and national recognition, including eight Silver Anvil awards – one of the most prestigious national awards for public relations and integrated communications.
She provides senior leadership and direction for the firm's public relations, advertising, public affairs, research and digital accounts. Smart Business magazine has ranked her on its "Power 100" list of central Ohio executives for her leadership roles in academia, her profession and her community.
Harbrecht also serves as a member and is immediate past chair of the Kent State University Board of Trustees, and chaired the search committee for the university’s new president. At The Ohio State University’s Fisher College of Business, she serves on the Dean’s Advisory Council.
In addition, she is on the Board of Directors of The Davey Tree Expert Company, trustee of the Ingram/White Castle Fund of The Columbus Foundation, chair of Experience Columbus and chair of the board of the Law Enforcement Foundation.
As an accredited member of the Public Relations Society of America, she is past chair of the Society’s Counselors Academy and a founding member of the Council of Public Relations Firms.
She holds two master’s degrees from The Ohio State University – a Master of Arts in Education and a Master of Business Administration. She earned a Bachelor of Science degree magna cum laude from Kent State University.
David L. Kaufman, ACAS, MAAA, executive vice president of Motorists Mutual, also was selected unanimously by policyholders for the board. The Motorists Mutual Board of Directors also appointed him to the position of Executive Vice President. He previously served as senior vice president and chief information officer.
Since joining Motorists in 1986, he has also served as actuarial manager and vice president, vice president of commercial lines and vice president of information technology. In addition, in 1993 he served as senior vice president and chief financial officer at American Hardware Mutual Insurance Co. before returning to rejoin the leadership team in the company’s Columbus headquarters.
Policyholders also re-elected R. Michael DeWine and Michael L. Wiseman to two-year terms on the Board of Directors.
The Motorists Insurance Group financials
Motorists Life Insurance Co. had premiums and contract considerations of $58 million and assets of $359.3 million. The company, which operates in 16 states, grew to $6.4 billion of life insurance in-force. Its affiliate, Broad Street Brokerage, continued to grow in 2009.
Wilson Mutual Insurance Co. grew its net written premiums to $20.7 million while posting a 108.7 percent combined ratio. Policyholder security stood at $17.7 million at year-end. The company, which operates in Wisconsin and Minnesota, surpassed $100 million in direct written premium during the year.
Iowa Mutual Insurance Co. and its subsidiary, Iowa American Insurance Co., ended 2009 with net written premiums of $32.4 million, policyholder security funds of $28.9 million and a combined ratio of 108.7 percent. The companies grew both personal and commercial lines during the year.
American Hardware Mutual Insurance Co. posted $127.6 million in net written premiums, $116.5 million in policyholder security funds and a 108.8 percent combined ratio.
Phenix Mutual Fire Insurance Co. closed the year with $20.1 million in net written premiums, $19.7 million in policyholder security funds and a 108.4 percent combined ratio.
MICO Insurance Co. reported direct written premiums of $4.5 million and had $16 million in policyholder security funds at year-end.
Cameron E. Williams Scholarship winner
Kelsey Giesler of Elmore, Ohio, has been selected to receive the 2010 Cameron E. Williams Scholarship. Giesler is the daughter of Operations Officer/Agency Principal Jeannine A. Giesler, CISR, CPIA of Diversified Insurance Service, LLC in Elmore.
She is a sophomore at Ohio Northern University and is majoring in public relations with a 3.42 GPA. She anticipates a career in the insurance industry, and will be recognized during the Annual Policyholder Meeting.
She has been on the dean's list each semester, and is vice president of the Public Relations Student Society of America (PRSSA), and has participated in the marching and concert bands both at Ohio Northern and in high school.
The Cameron E. Williams Memorial Scholarship Fund was established on Jan. 1, 2005, in honor of Motorists' former chairman, president and CEO with funds contributed by the family of Mr. Williams and The Motorists Insurance Group. The Griffith Foundation for Insurance Education administers the $2,000 annual scholarship for full-time students who are pursuing a degree related to the insurance industry.
About The Motorists Insurance Group
At year-end 2009, the group of companies had $674.8 million in net written premium and $657.3 million in policyholder security funds. The group, headquartered in Columbus, Ohio, is composed of seven property and casualty companies, one life insurance company and two brokerages. The group of companies is rated A (Excellent) by A.M. Best. For more information, visit www.motoristsgroup.com.