2015 annual report - Forward Mutual Insurance Company

Personal Attention…Peace of Mind
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2015 ANNUAL REPORT
To Our Policyholders
…in the tradition of neighbor helping neighbor
On behalf of the Directors of Forward Mutual Insurance Company, I am pleased
to present the 141st Annual Report for the year ended 2015.
On December 31, 2015, there was $914,225,168 of insurance in force with
$1,828,407 of premiums written for a decrease of less than 1%.
Forward Mutual experienced an underwriting loss, but recorded a net income
of $53,670. Surplus increased slightly by $14,254 to $5,880,445. Our losses in
2015 were up and our investment income return was down along with a year end
unrealized loss in the valuation of our equity portfolio. But our premiums written
to surplus ratio remains stable and very favorable at .31 to 1. The lower the ratio,
the greater the company’s financial strength. FMIC is sound, secure and strong
for our policyholders.
Two less property claims were reported in 2015, but the losses we paid were
$304,051 more than in 2014. Forward Mutual paid 76 claims, totaling $757,894
of property loss dollars in 2015.
Water Damage Trends
Property damage nationwide resulting from water damage due to plumbing
failures and freezing pipes is the second most common cause of homeowner
loss. In addition, overflowing dishwashers or washing machines along with
refrigerator ice and water dispenser failures wreak havoc on flooring and other
materials in the kitchen or laundry room. The Forward Mutual loss experience in
2015 seemed to follow this trend:
Cybersecurity
and securely
protecting our files
and information
is essential to the
well-being of our
policyholders.
• 35% or $266,358 of losses paid (12 claims) were due to accidental discharge or
overflow of water or freezing of plumbing. Two claims alone totaled $230,537
with one of these claims in excess of $175,000.
• 33% or $252,059 of losses paid (10 claims) were due to fire.
• 29% or $220,371 of losses paid (26 claims) were due to wind/hail.
• 3% or $19,106 of losses paid (28 claims) were miscellaneous in nature.
Protecting Policyholders with Cybersecurity
Cybersecurity and securely protecting our files and information is essential
to the well-being of our policyholders. Data breaches and cyber-attacks are
becoming more common every day. In addition to Cyber Risk insurance
coverage we continue to contract with Gordon Flesch IT Services in Madison
to 24/7 proactively monitor, maintain and remediate our internal file sharing,
electronic filing system, cloud based backup, and hosted email system. This risk
management plan assists in securing all electronic information as technology and
innovation in how we do business continues to change.
Forward Mutual continues its 35 year partnership with Grinnell Mutual
Reinsurance Company. This relationship is more than just reinsurance protection.
2 | 2015 ANNUAL REPORT
Committed and Caring
…confident about the future
In addition to our flexible and affordable home and farm insurance products,
Grinnell Mutual provides products and services to protect your auto, sport
vehicles, and liability exposures along with commercial insurance lines. It’s our
Policy of Working Together for you.
Our mutual is committed to providing our policyholders with prompt,
professional, and courteous service. How we serve and protect you is very
important to all of us at Forward Mutual.
Forward Mutual Insurance Company provides Personal Attention…Peace of
Mind. It is our privilege to do so.
Lois A. Wiedenhoeft,
President and CEO
Forward Mutual Insurance Company
Our Staff
L-R: Jessica Hill, Customer Service Assistant; Sarah Mueller, Customer Service
Manager; Howard Wiedenhoeft, Claims Manager; Sharon Wolff, Office Assistant;
and Lois Wiedenhoeft, President & CEO
MISSION STATEMENT
The mission of
Forward Mutual
Insurance Company
is to provide quality
insurance products
and services in a
profitable manner
with a commitment to
integrity, honesty and
the highest ethical
standards at all times.
2015 ANNUAL REPORT | 3
Personal Attention
A strong, growing and friendly company
Preparation Before a Disaster
With the exception of certain life insurance policies, most insurance policies
are purchased with the intent of never filing a claim. It is a valuable financial
planning tool to help protect against various financial exposures.
Your home or farm owner’s policy with Forward Mutual is your protection
against a devastating loss. Even though you purchased the policy with the
intent of never using it, sometimes bad things happen to good people. Good
record keeping, before a loss occurs, is the key to a smooth claim settlement.
Here are a few things you can do before a disaster to
make the claims process easier:
Mike Semrow, Property Claims
Adjuster, GMRC Mutual Claim
Services, serves as an adjuster for
all Forward Mutual's property
claims. Mike's helpful articles assist
owners in protecting their property
before and after a disaster.
• Keep an ongoing inventory of your valuable personal property items. Record
model and serial numbers for expensive items (i.e. televisions, computers,
etc.). Keep your receipts for these items. Remember that antiques, family
heirlooms, etc., may not be adequately covered unless specifically insured.
Photographs of items in a pre-loss condition are always helpful.
• Keep records of improvements made to your home or farm outbuildings.
• Keep detailed repair and maintenance records for your tractors and farm
implements. Accurate model and serial numbers will aid in providing a
quick and fair claim settlement.
•Review and/or update
coverage limits with your
agent on an annual basis.
Adequate coverage is the
best way to make sure you
will be made whole after a
covered loss.
•Don’t ignore the small
ongoing repairs to your
property. Deferred
maintenance will not be
considered part of a
covered loss.
•Keep multiple copies
of your inventories,
maintenance and repair
records. Preferably in an
electronic format.
4 | 2015 ANNUAL REPORT
Peace of Mind
…caring for and educating our policyholders
Taking Action After a Disaster
After a disaster strikes, you will find yourself in a very emotionally charged
situation. This is normal. If your insurance policy was destroyed in the disaster,
or if you are confused about policy coverages, limitations or exclusions, contact
your agent or Forward Mutual for assistance.
If you have suffered a covered loss,
contact your agent or Forward
Mutual as soon as reasonably
possible to report the claim. Provide
as much detail as possible regarding
the damaged property. Provide
as many means of contact as you
can (i.e. home, cell and business
telephone numbers, email, etc.).
Here are general
guidelines to follow
once you report
a claim:
• Ensure your safety and the safety of your family members.
• Make temporary repairs to the damaged property. It is your responsibility to
mitigate against the possibility of further damages. This may include tarping a
damaged roof, boarding up broken window(s), contacting utility providers (i.e.
electric, gas, water, etc.) to have service discontinued if they pose an additional
hazard. If possible, take photos of damage prior to making temporary repairs.
• Keep all bills and receipts from the temporary repairs. These will be considered
as being part of the covered loss.
• Do not dispose of damaged items until a company representative has examined
them and approved of their disposal.
• After a natural disaster, beware of “storm chaser” contractors. Instead, deal
with local, reputable contractors. Ask for local references, contact the Better
Business Bureau. Discuss payment terms prior to signing a contract for repairs.
• After a fire, if the responding department deems the structure safe to enter,
remove the small items of value (jewelry, silverware, coin collections, etc.).
Our Service
Commitment
• Protect our financial
strength and stability in a
prudent manner in order to
ensure a strong, growing and
friendly company.
• Provide products that
protect our policyholders
from unexpected losses at
the best value possible and
the ability to adapt to their
diverse and changing needs.
To always provide responsive
and knowledgeable service
that ensures our policyholders
peace of mind through
financial protection and
personal attention.
• Maintain a fast-paced,
challenging and collaborative
work environment that
values its employees and
encourages individual
accountability, innovative
thinking and continuous
learning and improvement.
• Continue to enrich the quality
of life within the community
in which we work and conduct
our business by pledging
our support.
Remember, Forward Mutual will strive to provide excellent claim service when
a covered loss to your insured property occurs. Taking note of the previously
mentioned items will help make the claims process a little less stressful.
2015 ANNUAL REPORT | 5
Forward Mutual Insurance Company
STATEMENT OF ADMITTED ASSETS, LIABILITIES,
AND POLICYHOLDERS’ SURPLUS - STATUTORY BASIS
December 31, 2015 and 2014
ADMITTED ASSETS
Cash and invested cash
Bonds
Stocks and mutual funds
Real estate
$
2015
405,583
3,986,561
1,837,747
340,965
$
2014
626,978
4,096,113
1,737,302
356,474
Total cash and investments
6,570,856
6,816,867
Uncollected premiums
Investment income due or accrued
Fire dues recoverable
Federal income taxes recoverable
Furniture and fixtures
201,847
37,522
572
59,653
2,688.
212,664
40,123
1,503
—
2,823
6,873,138
7,073,980
Total assets
Less nonadmitted assets
Furniture and fixtures
TOTAL ADMITTED ASSETS (2,688)
$ 6,870,450
(2,823)
$
7,071,157
$
93,700
3,750
104,138
788,494
43,159
44,625
127,100
LIABILITIES AND POLICYHOLDERS’ SURPLUS
LIABILITIES
Net unpaid losses
Unpaid loss adjustment expenses
Commissions and accounts payable
Unearned premiums Premiums received in advance
Reinsurance premiums payable
Federal income taxes payable
$
50,750
2,500
74,723
786,092
33,484
42,456
— Total liabilities
POLICYHOLDERS’ SURPLUS
990,005
1,204,966
5,880,445
5,866,191
TOTAL LIABILITIES AND
POLICYHOLDERS’ SURPLUS
$ 6,870,450
$ 7,071,157
6 | 2015 ANNUAL REPORT
Forward Mutual Insurance Company
STATEMENT OF OPERATIONS - STATUTORY BASIS
Years Ended December 31, 2015 and 2014
2015
UNDERWRITING INCOME
Premiums written
$ 1,828,406
Net unearned premium change
2,402
Reinsurance ceded
(611,226)
Net premiums earned
1,219,582
LOSSES INCURRED
Losses incurred
775,129
Reinsurance recovered
(60,185)
Net losses incurred
714,944
NET LOSS ADJUSTMENT EXPENSES
75,008
OTHER UNDERWRITING EXPENSES
574,640
Total losses and expenses incurred
1,364,592
NET UNDERWRITING INCOME (LOSS)
(145,010)
INVESTMENT AND OTHER INCOME
Investment income earned
183,942
Investment expenses
(51,712)
Net realized capital gain
53,348
Other income
18,852
Net investment and other income
204,430
Income (loss) before federal income taxes
59,420
FEDERAL INCOME TAX EXPENSE (BENEFIT)
5,750
NET INCOME (LOSS)
$ 53,670
2014
$ 1,844,906
5,919
(636,301)
1,214,524
294,843
(3,646)
291,197
99,666
609,972
1,000,835
213,689
197,523
(49,262)
45,304
23,735
217,300
430,989
132,100
$
298,889
STATEMENT OF POLICYHOLDERS’ SURPLUS - STATUTORY BASIS
Year Ended December 31, 2015 and 2014
BALANCE, BEGINNING OF YEAR $
Net income (loss)
Unrealized gain stocks and mutual funds
Net change in non-admitted assets
BALANCE, END OF YEAR 5,866,191
$
53,670
(39,551)
135
5,880,445
$ 5,372,358
298,889
193,068
1,876
$ 5,866,191
2015 ANNUAL REPORT | 7
Local Company • Local Support
Organizations
We Supported in 2015
Ambassador Company
(books for Ixonia and St. Paul's elementary schools)
Dodge County Fair Meat Animal Project Sale
Jefferson County Fair Meat Animal Project Sale
Jefferson County Fair
Kids Day Sponsor "Year of the Cheese" Gift Handout
and Vicenta's White Tiger Show
Jefferson County Fair Beef Awards/Trophies
Ixonia Lion's Club (community parade)
National Fire Safety Council (local fire departments)
Watertown Agri-Business Dairy Breakfast
8 | 2015 ANNUAL REPORT
Support for
Our Community
Forward Mutual values
its relationship with the
people and businesses
of our community
2015 ANNUAL REPORT | 9
Our Officers and Directors
Back, left to right: Dale Wolf, Randall Wegner, Mark Mallow, David Blank, Dale Zastrow
Front, left to right: Robert Salov, Roger Degner, Stephen Zillmer, Donald Reese, David Flood
Our Officers and Directors
Stephen M. Zillmer, Chairman of the Board
Lois A. Wiedenhoeft, President & CEO
Roger L. Degner, Vice-Chairman
Donald P. Reese, Secretary-Treasurer
David W. Blank, Director
David P. Flood, Director
Mark D. Mallow, Director
Robert D. Salov, Director
Randall L. Wegner, Director
Dale R. Wolf, Director
Dale H. Zastrow, Director
10 | 2015 ANNUAL REPORT
Forward Has Gone Social!
New Ways of Reaching Out
In the old days, quality insurance meant a lot of knocking on doors, telephone calls
and positive word-of-mouth. This was true not only for a company’s product but also the
service it provided and the way it marketed itself.
While this personal attention is something we never want to lose, the fact is today’s consumer looks
for insurance in very different ways. More customers than ever have become online shoppers and
they turn to the Internet for homeowner information.
89%
Here’s how Forward Mutual is responding
to our consumer's needs:
This spring we updated our website to a
responsive framework. This means it’s easily
viewable on all media devices, whether
you're using a small smartphone or a
large-screen computer. We also listed our
products in careful, yet succinct detail to
accommodate today’s busy shoppers.
This fall Forward Mutual took
another leap and we “went social.”
Social media, that is. You can now
find us on Facebook, Twitter and
LinkedIn, and read regular updates
on the News page of our website.
We’re offering viewers helpful ways
to care for their property. We have
safety suggestions for better living.
And best of all, we’re sharing friendly
news of the community.
92%
97%
Social media
$7.52 marketing
BILLION EXPENDITURE
in the U.S.
GLOBAL SHARE
of businesses
using social
media marketing
FACEBOOK
is the
platform
marketers
use most
83%
Social media offers many benefits for our
policyholders and potential customers. It offers
benefits to our mutual as well.
Social media has become today’s main source of business marketing,
including the insurance industry. When Forward offers helpful
information to consumers, we establish ourselves as a foremost source
of expertise and service. When viewers click “like” on our posts, the
magic of Internet algorithms becomes a modern day word-of-mouth,
spreading faster and farther than old-time pavement pounding ever
could. Social media puts Forward Mutual in the face of consumers
and independent agencies alike. It keeps our name out in front.
We at Forward Mutual encourage you to join us on social media and
follow us regularly by clicking “like.” Help spread the good word of
Forward Mutual to all your family and friends!
FACEBOOK seen
as most effective
business-to-customer
channel by small
businesses
INCREASED
EXPOSURE
seen as
biggest
benefit of
social media
marketing
FORECASTED
social media
marketing
SPENDING in the
U.S. by 2019
$17.34
BILLION
Statistics by Statista.com
FIND US AND LIKE US!
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twitter.com/Forward_Mutual
forwardmutual.com/news
linkedin.com/company/forwardmutual-insurance-company
2015 ANNUAL REPORT | 11
Forward Mutual Insurance available
at independent agencies near you
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Madison
Whitewater
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Stoughton
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Watertown
Ixonia
Watertown
Madison
Brandon
West Allis
Beaver Dam
Williams Bay
Delavan
Waterloo
Whitewater
Madison
608-271-9395
262-473-7334
920-563-5850
608-877-1296
262-670-3888
262-717-3300
608-837-2484
920-261-5403
920-261-2493
920-261-3334
608-442-6666
920-346-2241
414-810-3520
920-885-5589
262-215-2095
262-728-1956
920-478-2585
920-472-0091
608-216-7060
Forward Mutual Insurance Company
W1202 Glenview Avenue, PO Box 326 • Ixonia, WI 53036-0326
920-261-6616 • www.forwardmutual.com