The Van Wert County Courthouse

Wednesday, Jan. 26, 2022

Central reports positive financial results

Central Insurance Company information

Recognizing the value in the company’s results was the focus of the 140th annual Central Mutual Insurance Company policyholders’ meeting held recently in Van Wert.

“We talk about the numbers a lot,” said F.W. Purmort, Central chairman of the Board and president, “but there’s a stronger message in what the numbers reveal.”

Purmort pointed out the company’s Policyholders’ Security Fund is at its highest level in the company’s history and there’s significant value in that number.

“One of my favorite numbers is the Policyholders’ Security Fund,” he said. “Our capacity to respond to our policyholders in a claims situation comes from this fund.”

Central revised logoThe fund increased by 3.4 percent in 2014 to $640.1 million, allowing the company to not only be adequately prepared to respond to a catastrophe, but to maintain a long-term viewpoint on products and pricing as well as the ability to invest in the future.

Purmort also noted the company’s premium production increased by 8.8 percent to $580.5 million. Retention increased 1.5 percent and new business increased 30 percent.

“The value in this number is pretty phenomenal,” he said. “It shows our agents were confident in selling our company’s products and customers were willing to invest in our company.”

Purmort said that while the financial results of the company are important, there’s significant value outside of the number values as well. The company maintained its “A” excellent rating with A.M. Best, while continuing to provide high quality customer service, enhanced Internet technology, and support to its agency partners.

“Times are good and going forward they should continue to be good,” Purmort said. The company will remain focused on positive progress and creating value for its policyholders and agents.

“We have a plan and know where we want to take your company,” Purmort said. “We are grateful for your faith in us to provide the protection, financial security, and peace of mind that comes with our products and services. That is our goal every day.”

Vice President-Treasurer Thad Eikenbary began his treasurer’s report by stating: “Central Mutual recorded another strong financial result in calendar year 2014, much like that of 2013. Continued positive underwriting results and steady investment portfolio performance lead the way.”

Eikenbary reiterated the increase in direct written premiums, noting commercial premium writings increased by a strong 14.5 percent and policy counts increased by 9.2 percent. Personal lines business also increased by 5.3 percent with a 2.3 percent increase in policy count. The company’s combined ratio for 2014 improved to 92.3 percent, much better than the industry at 97 percent. Net investment income for the company increased by $1.2 million from $37.7 million in 2013 to $38.9 million in 2014.

“While still a challenge in the current interest rate environment, income from the company’s investment portfolio continues to be a positive and very consistent contributor to the entire operation,” said Eikenbary.

Central’s bond portfolio increased by 5.6 percent during 2014.  The quality of the portfolio remained very solid and Central continued to manage the maturity of the portfolio to ensure that it maintained the liquidity necessary to meet the company’s financial needs.  Central’s stock portfolio represented 20.5 percent of the company’s total invested assets.

Central registered a net income after taxes and dividends of $60.8 million in 2014.  A net underwriting gain of $31.8 million coupled with nearly $39 million in investment income lead to that result. Net income was down slightly from 2013 due to the company having to pay federal income tax.

Central’s assets increased by 6.7 percent to $1.48 billion and by the end of 2014, the company’s Policyholders’ Security Fund had another great year, increasing by $20 million to $640.1 million.

In other business, Keith Moore, senior vice president and secretary, read the minutes from the 139th Policyholders’ Meeting. T.B. Kearney, S.K. Moore, and J.E. White were re-elected to the Board of Directors for a three-year term. Other directors include J.L Covington, R.J. Kutella, D.P. Maconachy, E.J. Noonan, F.W. Purmort, and E.R. Buhl.

Central Mutual Insurance Company is a personal and commercial property and casualty insurance company operating exclusively through independent insurance agents in nineteen states.  The home office is located in Van Wert, with regional offices in Dallas, Atlanta, Boston, and Van Wert.

POSTED: 06/12/15 at 7:37 am. FILED UNDER: Business