Posted on 23 Feb 2011
The Main Street America Group announced today that its 2010 financial results included a 16.8 percent return on equity, 99.2 combined ratio, 9.1 percent net premium growth and surplus growth of $78 million for the fiscal year ended Dec. 31, 2010.
2010 Financial Highlights
* 16.8 percent return on equity was the result of the super regional property/casualty carrier?s underwriting profit and investment return of $105.1 million, just shy of its record $105.5 investment return in 2009.
* 99.2 combined ratio marked its fifth consecutive year of achieving an underwriting profit in a challenging property/casualty marketplace.
* Net written premium growth of 9.1 percent to $890 million was the company?s largest percentage growth in net premium since 2003. New business increased 14.3 percent.
* Surplus growth of $78 million raised the company?s total surplus to $770 million. Over the past two years, the company has increased its surplus by $162 million.
* Net income of $83.5 million, driven by the company?s strong investment results and underwriting profit.
Commercial lines, which accounts for 45 percent of Main Street America?s net written premium, was the company?s profit leader with a 90.3 combined ratio.
“Our outstanding performance in 2010 compares very well against the property/casualty industry,” said Tom Van Berkel, Main Street America?s chairman, president and chief executive officer. “Our balance sheet is very strong and will enable us to continue to invest in new products and new technology to help our customers continue to grow their „Main Street? books of business with us.”
Van Berkel added, “We are extremely well-capitalized, which will allow us to continue pursuing a variety of expansion opportunities in both existing states and new states – including affiliations, acquisitions and partnerships – enabling us to further spread our risk and increase scale.”
Main Street America’s 2010 accomplishments also included:
* In commercial lines, the company?s Main Line Business Owners Policy grew 34 percent year-over-year. The product, in conjunction with its Main Street Station commercial policy processing system, was introduced in five more states.
* In personal lines, the company launched its new homeowners? multivariate product, Homeowners MVP, in three states.
Implemented third-party functionality for its Main Street Station bonds processing system and expanded its surety market share by acquiring the surety division of CAIC Holding Company in Texas, as well as appointing new agents in several other states.
* Integrated its new affiliate, Grain Dealers Mutual Insurance Company, and began selling Main Street America?s commercial, personal and surety products through Grain Dealers? network of independent agents in several states.
* Established Grain Dealers Mutual?s office in Indianapolis, Ind., as its new Midwest Region headquarters.
“Throughout 2010, our employees continued to take magnificent care of our customers (independent insurance agents) and our customers? customers (insureds),” Van Berkel said. “We remain 100 percent committed to the independent agency system as our sole distribution channel and appreciate our customers partnering with us to achieve great success in 2010.”
About The Main Street America Group
With roots dating back to 1923, The Main Street America Group is a super regional insurance company that operates six property-casualty insurance carriers: NGM Insurance Company, Old Dominion Insurance Company, Main Street America Assurance Company, MSA Insurance Company, Great Lakes Casualty Insurance Company and Grain Dealers Mutual Insurance Company. Based in Jacksonville, Fla., Main Street America offers a wide range of commercial and personal insurance, and fidelity and surety bond products to individuals, families and businesses throughout the United States.
With nearly $900 million in premium written exclusively by 2,000-plus independent insurance agents, the 88-year-old company insures more than 600,000 policyholders in 27 states and writes bonds in 44 states. A.M. Best Company rates The Main Street America Group as an "A" (Excellent). Main Street America is the founding company partner of Trusted Choice®, the global branding program of the Independent Insurance Agents & Brokers of America. For more information about Main Street America, please visit www.msagroup.com.