The American Family Insurance group of companies added $955 million to policyholder equity in 2018. This brings the group’s total equity to $9 billion, thanks largely to its continued national expansion in the form of a merger with Florida-based mutual insurance company Main Street America, completed Oct. 31. Policyholder equity is an important measure of financial strength, ensuring the company has the resources to help customers recover from severe weather and other unforeseen events. “Our increase in policyholder equity aligns with the outstanding growth we achieved during the year, resulting in an increase of nearly 700,000 policies and revenue of $10.3 billion,” said Chief Financial Officer Dan Kelly. “It allows us to be there for customers when they need us and pursue improvements that benefit them.” Adding Main Street America to the American Family group of companies also expands the group’s national reach, product offerings and distribution channels, while decreasing the impact of regional storms. American Family was not immune to drops in the financial markets as it experienced realized and unrealized losses of more than $500 million. Insurance operations were negatively affected by storm losses and auto insurance underwriting losses caused by more claims and higher loss costs. The group still achieved a net income of $295.2 million, an increase from $155.6 million in 2017. Net income includes underwriting/operating results, investment income, realized gains (and losses) and taxes. Enterprise growth continued American Family announced its 2018 results today at the company’s annual member meeting. The results provide year-end information on the group’s operating companies, which include:
“In 2018, we felt the effects of being a true national enterprise,” said Chair and Chief Executive Officer Jack Salzwedel. “The group continued strong growth as customers placed their trust in American Family agents, our direct-channel affiliates expanded, and we welcomed policyholders and a new distribution channel through our merger with Main Street America. “We collaborated across our companies to develop our people and create technology, resulting in stronger customer service and efficiency. And, we helped customers recover from tragic and historic disasters, while partnering with nonprofits to meet community needs.” Storm and auto losses The combined ratio for auto was 107, reflecting a multi-year, industrywide trend of more auto accidents and increased loss costs. Higher speed limits, more miles driven, distracted driving and increased medical and auto repair costs all contribute to the trend. Capital market losses up “Even with our conservative investment strategy, volatility in the stock market affected us, just as it affected individual’s portfolios,” Kelly said.Additional 2018 results and activities for the group included:
For more information, see our annual report. ### About American Family Insurance from https://newsroom.amfam.com/american-family-insurance-2018-financial-results/
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