2014 ANNUAL REPORT MUTUAL ASSURANCE SOCIETY OF VIRGINIA. Incorporated 1794 HOME OFFICE



From this document you will learn the answers to the following questions:

How many total assets were there in 2014?

How many real estate investments were there in 2014?

How many deferred taxes did Richmond have?

Similar documents
Statutory Basis Financial Statements. Superior Insurance Company. For the six months ended June 30, 2011 with Accountants Compilation Report

Kansas City 4Life Insurance Company

REPORT OF EXAMINATION OF PACIFIC SPECIALTY INSURANCE COMPANY AS OF DECEMBER 31, 2008

Report of Examination of. Harleysville Insurance Company of Ohio Columbus, Ohio. As of December 31, 2009

MITSUI SUMITOMO INSURANCE COMPANY, LIMITED AND SUBSIDIARIES. CONSOLIDATED BALANCE SHEETS March 31, 2005 and 2006

REPORT OF EXAMINATION OF THE THE WAWANESA MUTUAL INSURANCE COMPANY (U.S. BRANCH) AS OF DECEMBER 31, 2007

Report of Examination of. Central Mutual Insurance Company Van Wert, Ohio. As of December 31, 2011

CUSTOM BUILT FOR YOU 2015 ANNUAL REPORT

American International Group, Inc. Financial Supplement Fourth Quarter 2005

REPORT OF EXAMINATION OF THE NATIONS INSURANCE COMPANY AS OF DECEMBER 31, 2011

Kansas City 2Life Insurance Company

The Availability of Insurance in the Maine Property & Casualty Market 2015

H a r d W o r k Edition

ANNUAL R E P O R T

Report of Examination of. Citizens Insurance Company of Ohio Columbus, Ohio. As of December 31, 2011

Report of Examination of. All America Insurance Company Van Wert, Ohio. As of December 31, 2011

Best Meridian Insurance Company

REPORT OF EXAMINATION OF THE 2-10 HBW WARRANTY OF CALIFORNIA, INC. AS OF DECEMBER 31, 2010

GE Financial Assurance Holdings, Inc. (Exact name of registrant as specified in its charter)

MEDSTAR LIABILITY LIMITED INSURANCE COMPANY, INC., A RISK RETENTION GROUP GOVERNMENT OF THE DISTRICT OF COLUMBIA

2008 Builders insurance group annual report. Road to the future

Medical Providers Mutual Insurance Company, A Risk Retention Group

REPORT OF EXAMINATION OF THE BUYERS HOME WARRANTY COMPANY AS OF DECEMBER 31, 2006

NAIC Group Code 0008 NAIC Company Code Combined Statement Contact LYNN CIRRINCIONE, (Area Code) (Telephone Number)

REPORT OF EXAMINATION OF THE VETERINARY PET INSURANCE COMPANY AS OF DECEMBER 31, 2011

REPORT OF EXAMINATION OF THE PACIFIC SELECT PROPERTY INSURANCE COMPANY AS OF DECEMBER 31, 2010

The Farmers Automobile Insurance Association

REPORT OF EXAMINATION OF THE CALIFORNIA AUTOMOBILE INSURANCE COMPANY AS OF DECEMBER 31, 2013

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010

TEXAS MUTUAL INSURANCE COMPANY BEST'S RATING FIVE YEAR RATING HISTORY KEY FINANCIAL INDICATORS

REPORT OF EXAMINATION OF THE RESPONSE INDEMNITY COMPANY OF CALIFORNIA AS OF DECEMBER 31, 2014

Kansas City 4Life Insurance Company

Great Atlantic Life Insurance Company

President s Message. Daniel E. Stone President CEO

Kansas City 1Life Insurance Company

United Fire & Casualty Company Reports Record Quarterly Earnings

SAWGRASS MUTUAL INSURANCE COMPANY

F INANCIAL S TATEMENTS S TATUTORY B ASIS. Citizens Property Insurance Corporation Years Ended December 31, 2004 and 2003 AND S UPPLEMENTAL S CHEDULES

EMC Insurance Group Inc. Reports 2013 Third Quarter and Nine Month Results and

INVESTOR PRESENTATION March 2016

Kansas City 2Life Insurance Company

MML Bay State Life Insurance Company Management s Discussion and Analysis Of the 2005 Financial Condition and Results of Operations

NAIC Group Code 0212 NAIC Company Code Combined Statement Contact Colleen M Zitt, (Area Code) (Telephone Number)

CALIFORNIA EARTHQUAKE AUTHORITY. Financial Statements. December 31, 2001 and (With Independent Auditors Report Thereon)

North Carolina Insurance Underwriting Association

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

REPORT OF EXAMINATION OF THE FIDELITY NATIONAL HOME WARRANTY COMPANY AS OF DECEMBER 31, 2010

Minnesota Workers' Compensation Assigned Risk Plan. Financial Statements Together with Independent Auditors' Report

Ultimate Parent: Highmark Health HM LIFE INSURANCE COMPANY OF NEW YORK. New York, New York

REPORT OF EXAMINATION OF THE LOYA CASUALTY INSURANCE COMPANY AS OF DECEMBER 31, 2012

STATE OF NEBRASKA. Department of Insurance EXAMINATION REPORT. GRANGE MUTUAL INSURANCE COMPANY of CUSTER COUNTY. as of.

FORWARD FOCUS 2015 ANNUAL REPORT

ALPHA SAMPLE FUND, L.P. ACCOUNT STATEMENT FOR THE QUARTER AND YEAR ENDED 12/31/07

Citizens Property Insurance Corporation

ST. JOHNS INSURANCE COMPANY, INC.

Intermodal Insurance Company, Inc., A Risk Retention Group GOVERNMENT OF THE DISTRICT OF COLUMBIA DEPARTMENT OF INSURANCE, SECURITIES AND BANKING

REPORT OF EXAMINATION OF THE RESIDENCE MUTUAL INSURANCE COMPANY AS OF DECEMBER 31, 2014

CONSOLIDATED STATEMENTS OF OPERATIONS

INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited)

SAWGRASS MUTUAL INSURANCE COMPANY

Ion Insurance Group S.A.

AMERICAN GENERAL PROPERTY INSURANCE COMPANY OF FLORIDA

EXAMINATION REPORT. ASSOCIATION INSURANCE COMPANY (nka AMERICAN BUILDERS INSURANCE COMPANY) AS OF DECEMBER 31, 2014

Net Income From Kansas Life Insurance Company

Report of Examination of. OHIC Insurance Company Columbus, Ohio. As of December 31, 2011

Associated With: Cincinnati Financial Corporation THE CINCINNATI INSURANCE COMPANIES

AMERISAFE INC FORM 8-K. (Current report filing) Filed 04/29/15 for the Period Ending 04/29/15

AMERICAN VEHICLE INSURANCE COMPANY

Liberty Mutual Insurance Reports Second Quarter 2013 Results

REPORT OF EXAMINATION OF THE DANIELSON NATIONAL INSURANCE COMPANY AS OF DECEMBER 31, 2014

REPORT OF EXAMINATION OF THE SAN DIEGO INSURANCE COMPANY AS OF DECEMBER 31, 2008

Property and Liability Insurance Accounting (Passing grade for this exam is 60)

STATE OF NEBRASKA. Department of Insurance EXAMINATION REPORT CSI LIFE INSURANCE COMPANY. as of. December 31, 2014

Annual Report to Holders of American Depositary Shares For the Year Ended March 31, 2004

Texas Homeowners Insurance Policy Comparison. Report to the 82 nd Texas Legislature as required by Senate Bill 1 (81 st Legislature, 2009)

REPORT ON EXAMINATION OF THE DELAWARE PROFESSIONAL INSURANCE COMPANY, RISK RETENTION GROUP AS OF DECEMBER 31, 2010

REPORT ON EXAMINATION OF THE AMERICAN SPECIAL RISK INSURANCE COMPANY AS OF DECEMBER 31, 2011

REPORT OF EXAMINATION OF THE SAFEWAY DIRECT INSURANCE COMPANY AS OF DECEMBER 31, 2010

REPORT OF EXAMINATION OF THE WESTERN UNITED INSURANCE COMPANY AS OF DECEMBER 31, 2004

REPORT OF EXAMINATION OF THE ROONEY LIFE INSURANCE COMPANY AS OF DECEMBER 31, 2007

Physicians Insurance A Mutual Company Years Ended December 31, 2014 and 2013 With Report of Independent Auditors

Travelers Reports Record Quarterly Net and Operating Income per Diluted Share of $2.95, Up 27% and 28%, Respectively, from Prior Year Quarter

Halwell Mutual Insurance Company Financial Statements For the year ended December 31, 2014

SOUTHEASTERN MUTUAL INSURANCE COMPANY FINANCIAL STATEMENTS

New Home Warranty Insurance Company, A Risk Retention Group

K.E.L. TITLE INSURANCE GROUP, INC.

REPORT ON EXAMINATION OF THE MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP AS OF

EMC Insurance Group Inc. Reports 2014 Fourth Quarter and Year-End Results and 2015 Operating Income Guidance

AXIS Capital Holdings Limited

ASPEN INSURANCE HOLDINGS LIMITED REPORTS SECOND QUARTER 2006 EARNINGS. Net profit of $101.8 million for three months ended June 30, 2006

News from The Chubb Corporation

CALCULATION OF THE AMOUNTS OF AN INSURANCE COMPANY S CAPITAL, FOUNDATION FUNDS, RESERVES, ETC., FOR RISKS EXCEEDING NORMAL EXPECTATIONS

The General Department of Insurance Control

REPORT ON EXAMINATION OF THE NATIONWIDE LIFE INSURANCE COMPANY OF DELAWARE AS OF DECEMBER 31, 2004

QUARTERLY STATEMENT OF THE. Athene Annuity & Life Assurance Company TO THE. Insurance Department OF THE STATE OF

REPORT ON EXAMINATION THE CHURCH INSURANCE COMPANY OF NEW YORK AS OF DECEMBER 31, 2012

REPORT ON EXAMINATION OF THE SOMPO JAPAN FIRE AND MARINE INSURANCE COMPANY OF AMERICA AS OF DECEMBER 31, 2012

NATIONAL TITLE INSURANCE COMPANY

Sentinel Security Life Insurance Company

Financial Statements. Nova Scotia Association of Health Organizations (Group Insurance Fund) March 31, 2015

Transcription:

2014 ANNUAL REPORT MUTUAL ASSURANCE SOCIETY OF VIRGINIA Incorporated 1794 HOME OFFICE 4001 Fitzhugh Avenue P.O. Box 6927 Richmond, VA 23230-0927 Telephone (804) 355-1794 Toll Free (800) 648-1794 Fax (804) 355-1971 www.mutual-assurance.com

MUTUAL ASSURANCE SOCIETY OF VIRGINIA STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND POLICYHOLDERS' SURPLUS-UNAUDITED YEARS ENDED DECEMBER 31, 2014 AND 2013 ADMITTED ASSETS 2014 2013 Investments: Bonds, at amortized cost $ 75,101,685 $ 61,918,561 Common stocks, at fair value 189,615,113 183,985,132 Real estate 883,931 882,160 Cash and short-term investments 1,471,485 4,270,866 Total cash and invested assets 267,072,214 251,056,719 Accrued investment income 1,170,432 1,038,228 EDP equipment, net 79,481 139,539 Other admitted assets 313,629 484,895 Total Admitted Assets $ 268,635,756 $ 252,719,381 LIABILITIES AND POLICYHOLDERS' SURPLUS Liabilities: Losses $ 2,429,313 $ 1,973,074 Loss adjustment expenses 531,744 586,900 Other expenses 715,179 541,821 Unearned premiums 4,479,443 4,816,147 Net deferred taxes 27,379,620 24,181,596 Ceded reinsurance premiums 152,184 115,116 Deferred compensation 1,069,756 1,146,899 Minimum pension liability 1,664,260 539,939 Other taxes 1,132,126 101,374 Total liabilities 39,553,625 34,002,866 Policyholders' Surplus 229,082,131 218,716,515 Total Liabilities and Surplus $ 268,635,756 $ 252,719,381

MUTUAL ASSURANCE SOCIETY OF VIRGINIA STATEMENTS OF INCOME-UNAUDITED YEARS ENDED DECEMBER 31, 2014 AND 2013 2014 2013 Income: Premiums earned $ 9,762,120 $ 9,663,169 Less reinsurance ceded 3,835,740 3,602,483 Net premiums earned 5,926,380 6,060,686 Net investment income 6,696,225 5,734,902 Realized capital gains, net of taxes 8,288,130 5,686,551 Other income 22,462 24,178 Total income 20,933,197 17,506,317 Expenses: Losses 7,466,879 4,867,777 Loss adjustment expenses 1,678,640 1,449,023 Other underwriting expenses 5,777,632 5,519,053 Total expenses 14,923,151 11,835,853 Net income before income taxes 6,010,046 5,670,464 Provision for income tax benefit (2,861,124) (2,826,231) Net income $ 8,871,170 $ 8,496,695 STATEMENTS OF POLICYHOLDERS' SURPLUS-UNAUDITED YEARS ENDED DECEMBER 31, 2014 and 2013 2014 2013 Surplus, beginning of year $ 218,716,515 $ 189,409,458 Net income 8,871,170 8,496,695 Unrealized gains, net of taxes 3,423,832 22,583,891 Other surplus adjustments (1,929,386) (1,773,529) Increase in surplus 10,365,616 29,307,057 Surplus, end of year $ 229,082,131 $ 218,716,515

President s Annual Message to the Members: The Society and its members enjoyed another successful year in 2014. Our 220 th year saw no natural disasters impacting Virginia and produced a robust investment market that generated net realized gains of $8.3 million and net unrealized gains of $3.4 million. Our net income for the year was $8.9 million. Following is a brief overview of our 2014 financial and operational highlights. Admitted assets at December 31, 2014 were $268.6 million, which represents an increase of $15.9 million or 6% over 2013. This increase was driven by recovering equity markets and a significant increase in our fixed income portfolio. The Society s domestic investment portfolio, on a total return basis, increased 11.8% during 2014. This ranked as a 10 th percentile performance among our Indata Balanced Funds peer group. Indata is a broad compilation of professionally managed institutional portfolios. For the sixth consecutive year, our performance ranked within the first quartile among this peer group. Our domestic equity portfolio, comprising 94% of our total equity portfolio, returned 13.5% during 2014 as compared to the S&P 500 return of 13.7% and the Lipper Large Cap Core Equity Index return of 11.3%. Since January 1, 2000, our domestic equity portfolio has a cumulative return of 93.1% vs. the S&P 500 cumulative return of 86.6% and the referenced Lipper index cumulative return of 59.5%. The 6% of our equity portfolio allocated to international stocks, through two Vanguard index funds, returned a negative 3.0% on a weighted average basis during the year. The fixed income portfolio returned 8.2% for the year, as compared to the Barclays Intermediate Government/Corporate Index return of 3.1% and the Barclays Intermediate Treasury Index return of 2.6%. Since January 1, 2000, our fixed income portfolio has beaten the first referenced Barclays index, which is our primary benchmark, fourteen out of fifteen years. Our cumulative fixed income performance over this time period of 154.1% compares to the cumulative return of the referenced Barclays indexes of 111.7% and 97.2%, respectively. Our ten-year fixed income performance ranks as the top performer among our Indata Balanced Funds - Bond Portion peer group. Gross premiums in force increased by 4.8% to $39.0 million and property insurance in force increased by 4.8% to $17.9 billion. As previously noted, our investment results for 2014 were very good. Operationally, other than a bad winter and a few shock losses, we incurred no hurricanes, tropical storms or other severe weather events for the year. As a result, we maintained our base annual assessment rate of 15% for 2015. An additional assessment of 15% is applicable to secondary residences and an additional assessment of 10% is applicable to coastal properties located in designated territories. The Society had an after tax net income of $8.9 million. Realized capital gains for 2014, net of taxes, amounted to $8.3 million. The Society has been assigned a Financial Strength Rating of A+ (Superior) from A.M. Best Company and has been assigned a Financial Stability Rating of A Unsurpassed from Demotech, Inc. Real estate markets continue to improve with a steady increase in costs associated with residential construction. Based on residential construction cost indexes for Virginia, our insured property values are being increased 3.8% on a state-wide basis for 2015. If you feel your coverage needs to be adjusted, either upward or downward, we are always willing to re-inspect your property and re-evaluate the amount of coverage you need. After a major loss is the wrong time to question the adequacy of your insurance coverage. Net losses incurred increased by $2.6 million or 53% from 2013. The increase in incurred losses resulted from a significant increase in freezing pipes losses and fire losses. Losses incurred for 2014 were categorized as follows: 41% from water damage from plumbing, heating and air conditioning systems, 18% from fire, 15% from freezing pipes, 6% from windstorm or

hail, 6 % from personal liability, 4% from thefts, 4% from all risk coverage, and 6% from all other causes. The frequency and severity of water damage losses continues to rise and represents one of the most disruptive types of loss our members face. We strongly recommend that our members not leave their home while clothes washers, dishwashers or toilets are running. When such appliances fail or malfunction while no one is at home to remedy the situation, the nature and scope of damage to homes and the personal inconvenience to families can be enormous. I would like to take this opportunity to remind our members that Identity Recovery Coverage is included on all homeowner policies at no extra cost to you no matter how often you talk to an identity recovery specialist. The services provided by our case management provider, Identity Theft 911, now include services such as email compromise assistance, social media compromise assistance, phish assistance, system protection guidance, breach assistance and assisted living fraud support. I encourage you to take advantage of these services and to educate yourself on how to proactively protect your good name. Check out the ID Recovery link on our web site for the latest information from Identity Theft 911. Annually, we also remind you of the optional property coverage endorsements that are available for purchase from the Society. These optional coverages include Equipment Breakdown Coverage, Water Damage-Sewers, Drains and Sumps-Increased Limits, Earthquake Coverage, Unscheduled Personal Property-Increased Special Limits and Scheduled Property. Call your agent or company representative if you wish to discuss adding any of these optional coverages to your policy. Please remember that your policy forms and related endorsements are available for review or download from the Member Login section of our web site www.mutualassurance.com. Making your policy forms available online saves the cost of printing, handling and postage. It also contributes to the preservation of our natural resources and the protection of our environment. Of course, you always have the right to obtain, upon request and without charge, a paper copy of your policy forms and endorsements. As always, we appreciate the cooperation and support of the members of the Society and welcome any questions you may have about the Society or this Annual Report. Sincerely, Jeffrey S. Wrobel, Sr., CPCU, AU, AIT President April 1, 2015

BOARD OF DIRECTORS Mary C. Doswell (1)(2)(C) Senior Vice President, Retail and Alternative Energy Solutions Dominion Resources, Inc. George C. Freeman III (3)(A) Chairman, President and Chief Executive Officer Universal Corporation Julious P. Smith, Jr. (3)(B) Chairman Emeritus Williams Mullen Richard T. Wheeler, Jr. (1)(2)(3)(B) Former Chairman, President and Chief Executive Officer Franklin Financial Corporation and Franklin Federal Savings Bank Chairman, TowneBank - Richmond R. Gregory Williams (3)(C) Vice Chairman CCA Financial Services, LLC Richard W. Wiltshire, Jr. (2)(B) Former President Home Beneficial Life Insurance Company Coleman Wortham III (1)(2)(C) Chairman Davenport & Company LLC Jeffrey S. Wrobel, Sr. (1)(2)(A) President Mutual Assurance Society of Virginia (1) Member of Executive Committee (2) Member of Investment Committee (3) Member of Audit Committee (A) Term Expires in 2016 (B) Term Expires in 2017 (C) Term Expires in 2015 OFFICERS AND MANAGERS Jeffrey S. Wrobel, Sr., CPCU, AU, AIT President Theresa C. Lewis, CPA, CFE, CGMA, Secretary-Treasurer Paul R. Davis, AIC, Vice President Claims C. Lewis Marsh, CFA, CPA, FLMI, Vice President Investments Jonathan D. Sisk, Vice President Information Systems GENERAL COUNSEL Williams Mullen, Richmond, Virginia