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Dear
Members,
This 2006 report is more positive than one year ago! The
big news for our little company was no hurricane claim,
in contrast to ’04 and ’05. In fact, our end-of-year loss
ratio was a favorable 52%. We did experience one huge
fire loss in personal lines, not completely paid in ’06, as
well as the “usual” variety of hail, wind, and water damage
claims. We saw an increase in the number of theft losses.
Expenses remained relatively stable, with administrative
costs at 35% for the year. It is satisfying to say that in
2006 we added to the Member’s Protection Reserve.
Another encouraging result in 2006 was an increase in
investment income. We continue to rely upon two
different professional managers, one primarily for the
equities and one for the bond portfolio. This year, the
board reviewed, and renewed, the Association’s
Investment Guidelines.
Recall that in 2002 church coverage was transferred to
Brotherhood Mutual Insurance Company. (This accounts
for the extreme drops on the accompanying graphs).
While MAA does not carry the risk for church ministries,
all of us were impacted by two major church losses in
2006. Our denominational group was ineligible for a
dividend check, which we have received the past two
years. We recognize that the business of mutual
assistance through an insurance program also means we
will see our share of large claims.
During 2006 we added 100 new members, and 70
participants attended our Annual Meeting in Des Moines.
We ended the year with a net decrease in policy count and
with premium revenue slightly less than in 2005. The
goal for 2007 will be continued emphasis on serving our
current policyholders, as well as attracting new members
to our Association.
We are pleased that Kelly Bosserman was appointed to
the Mutual Aid Association Board of Directors. He
brings legal training, business expertise, younger
perspective, and church commitment to our decisionmaking
process. The MAA Board and staff promise to
work on behalf of the Association. Visit our office in
Kansas! Contact us via email or phone anytime!
Respectfully,
Jean
L. Hendricks
President
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