Page 2 - FI_2022 Annual Report_Digital Bi Fold_2023.04_FINAL

A Year in Review in excess of $800 million. You can rest assured that
Frankenmuth Insurance is financially stable, strong, and
In a year of incredible challenges secure to meet our ongoing commitment to policyholders.
and uncertainty for the insurance
industry, I’m pleased to say Company-wide, premium growth exceeded plan at 8.7%,
Frankenmuth Insurance had a driven by solid performance across all lines of business.
very strong year of performance,
delivering on our core purpose of Commercial Lines, including Surety, grew by 11.8%. New
providing you with protection and agency appointments combined with increased new
peace of mind. business, policy retention, endorsement activity, and
premium audits contributed to robust growth throughout
Like many of you, we faced rising costs due to inflation, the year.
product and material shortages, and a volatile equity
market. All of this, paired with catastrophic weather- Personal Lines premium growth finished the year
related losses, resulted in one of the most challenging ahead of plan, which was driven by improved rates for
years for the insurance industry. Underscoring our family accounts. Additionally, our Service Center, which
year, we experienced our highest year ever for weather- launched in 2021, has continued expanding to serve
related catastrophic losses, driven by our largest single more agencies and their clients across our footprint.
event of more than $26 million in estimated losses for The Service Center serves as an extension of our
our policyholders. Yet, despite these challenges, our independent agency partners’ teams, handling everything
combined ratio was 98.3%, which exceeded our plan from quoting and issuing policies to processing vehicle
and outperformed the industry. This result serves as a changes and mortgage company requests.
testament to our consistent underwriting practices and With improved Personal Lines rates and our focus on
the strong relationships we have working together with
our independent agency partners. providing a full range of protection for your home, auto,
and life, we saw significant improvement in issued Life
While we look to the future of our company and ways to insurance policies and premium for the year. Issued
better serve you, we achieved an important historical policies were 28% higher, and premium growth exceeded
milestone by converting to a mutual holding company plan at 11.6%.
structure that became effective on January 1, 2023. For our policyholders who experienced losses last year,
With the unanimous support of our voting members our tradition of neighbor helping neighbor rang true
(policyholders), this change provides significant flexibility as our dedicated team of employees and independent
to raise capital for strategic investments, mergers and agency partners worked together to fulfill our promises
acquisitions, and unexpected significant events.
to restore lives and reduce disruption. Customer
We also continued investing in technology and made satisfaction remained outstanding as a testament to
meaningful progress on two key corporate initiatives. their efforts, with 96% of claims survey respondents
We were one of the first companies in the industry to indicating they were satisfied with their experience and
successfully launch the Insurance Services Office (ISO) over 89% indicating they are highly likely to recommend
new commercial auto rating plan with comprehensive Frankenmuth Insurance to family and friends.
product offerings, new endorsements, and enhanced
point-of-sale processing for our independent agency Reflecting on last year, we are encouraged by the
results achieved through our disciplined operating
partners. In our pursuit of enhancing the ease of doing
business, we also completed the second year of a practices combined with our strong independent agency
relationships that have helped continue profitably
three-year development plan for our Personal Lines
system transformation. Initial feedback from our agent growing the company. As we look to the year ahead, we
are committed to remaining your insurer of choice. You
focus group has been very positive, and this project is
on schedule for completion in 2023 and a rollout to can count on us, and we look forward to serving you.
Thank you for your continued trust and confidence in
agencies next year.
Frankenmuth Insurance.
Our overall corporate results were driven by strong
financial performance, which includes direct written
premium reaching a new milestone, exceeding $900
million. And despite the challenges mentioned above, Frederick A. Edmond, Jr.
our Policyholders’ Contingency Reserve Fund remains President and CEO