A Great Experience AnnuAl RepoRt 2017

Transcription

1 A Great Experience Annual Report 2017

2 $540,010,808 $534,320,806 $491,715, Policyholders Security Fund $1,239,032,800 $1,172,970,295 $1,105,323, Total Admitted Assets

3 A Great Experience. If the success NYCM Insurance had in 2017 could be summed up in a phrase, that would be it. For starters, it describes NYCM s operating results, which included a positive underwriting experience and continued overall profitability and growth. But equally important, these words speak to how the extraordinary relationships that exist among all the members of NYCM s extended family insureds, agents and employees were expressed and affirmed in powerful new ways. Promoters Webster s refers to a promoter as a person who furthers or encourages. In our business, we refine that a bit to define a promoter as one likely to recommend our company to a friend or family member. For several years now, I have noted in this report the phenomenal customer Net Promoter Score (NPS) NYCM consistently achieves in measuring the likelihood of our customers to recommend our products and services. That exceptional performance continued in 2017, producing a score of 65.9 percent at the top of the insurance business and more than double the industry s average score. Last year, however, we took the challenge even further, asking agents their likelihood to recommend NYCM and customers, their likelihood to recommend their NYCM agent. In both cases the responses were emphatically positive, paralleling the customer NPS. What about the third component of the NYCM family, our employees? Their feelings were conveyed in an extraordinary way: through the exciting news we received just as 2018 was getting underway that NYCM had been named one of the top 24 places to work in New York State among employers our size or larger. NYCM Insurance Annual Report 2017

4 The Best Companies to Work For program evaluates and ranks companies based on documented employee satisfaction and engagement, as well as workplace practices and policies. The honor it bestows is not earned or taken lightly. What s more, our employees showed themselves to be promoters of NYCM in the testimonials and referrals they provided which were the largest contributing factor in the recruitment of nearly 140 new employees last year. That effort coincided with the early retirement program offered and taken advantage of by a number of employees throughout the year. The unprecedented strength and vitality that the blend of new and established employees brought to our workforce was another of NYCM s success stories of The early retirement program itself brought mixed emotions. While it was sad to see dedicated employees who had become friends as well as co-workers depart, we were pleased to help make it possible for them to enjoy their retirement and the opportunities that come with that. Operations The weather is one experience over which NYCM has no control, but fortunately it was mild enough across New York State to prevent any catastrophe events from taking place last year. A winter storm in March came close, triggering some $11.3 million in losses, just short of our reinsurance threshold, but our overall underwriting results offset those losses. The NYCM Group closed out 2017 with a combined loss and expense ratio of 98.2 percent, up marginally from the 97.6 percent recorded at the end of The Group s surplus or policyholders security fund increased from $534 million to $540 million; and total admitted assets reached another all-time high, $1.239 billion, up from $1.173 billion the year before. Direct written premiums from all lines of business rose to $539.4 million from $510.7 million, an increase of 5.6 percent. Voluntary auto grew the most, up 8.4 percent from $292.8 million to $317.3 million, while homeowners advanced from $177.7 million to $180.4 million. Not only was growth seen in higher premium volume, in-force policy counts were up in all lines of business as well.

5 The Group had a net underwriting profit of $4.1 million in 2017 and while that didn t match the $7.7 million of 2016, which was an exceptional year, it was an excellent result that would compare favorably against many years. Net investment income in 2017 reached $24.5 million, up from $22.8 million the prior year, an increase of 7.4 percent. The Group s bonds portfolio and equities portfolio both grew, the former from $834.4 million to $848.2 million and the latter from $135.1 million to $170.7 million. Overall, for the year ending December 31, 2017, the NYCM Insurance Group had net income of $24.3 million. Putting It All Together Customers who are so satisfied doing business with NYCM that they would recommend us to family and friends at twice the average industry rate. Agents who feel the same way. Employees who are enjoying rewarding, fulfilling careers with the company. Leading insurance products, pricing and service. It s no coincidence that when all of these come together, good things happen. In fact, great things happen. That was NYCM s experience in We are grateful to all of the members of the extended NYCM family, including agents, employees and of course our loyal customers, who made those results possible. With such a team in place, we are well positioned to have many more great experiences in the years ahead. V. Daniel Robinson II President & Chief Executive Officer NYCM Insurance Annual Report 2017

6 NYCM Insurance Combined Financial Report as of December 31 Assets Bonds $ 848,165,634 $ 834,373,119 $ 795,614,288 Equities 170,724, ,145, ,048,615 Cash & Short Term Investments 30,380,428 15,228,753 22,573,865 Premiums Receivable 130,177, ,858, ,754,779 All Other Admitted Assets 59,585,288 66,364,123 65,331,934 TOTAL ADMITTED ASSETS $ 1,239,032,800 $ 1,172,970,295 $ 1,105,323,481 Liabilities Reserve for Claims and Claims Expense $ 347,856,476 $ 329,761,238 $ 310,663,131 Reserve for Unearned Premiums 268,620, ,597, ,583,219 Reserve for All Other Liabilities 82,545,453 56,290,663 62,361,145 TOTAL LIABILITIES $ 699,021,992 $ 638,649,489 $ 613,607,495 Surplus (Policyholders Security Fund) $ 540,010,808 $ 534,320,806 $ 491,715,986 TOTAL LIABILITIES & SURPLUS $ 1,239,032,800 $ 1,172,970,295 $ 1,105,323,481 Statement of Income Net Income Before Federal Income Tax $ 32,785,063 $ 34,844,929 $ 30,546,797 Federal Income Tax Incurred (8,439,364) (8,763,824) (8,143,046) NET INCOME $ 24,345,699 $ 26,081,105 $ 22,403,751 Other Information Loss Ratio 67.3% 67.0% 66.9% Expense Ratio 30.9% 30.6% 31.9% Combined Ratio 98.2% 97.6% 98.8% DIRECT WRITTEN PREMIUMS $ 539,374,000 $ 510,726,000 $ 486,075,000 Licensed Territories: New York A.M. Best Rating: A (Excellent)

7 Directors VanNess D. Robinson Chairman, Secretary New York Central Mutual V. Daniel Robinson II President, Chief Executive Officer New York Central Mutual Albert Pylinski, Jr. Executive, Chief Financial Officer, Chief Risk Officer, Treasurer New York Central Mutual Patricia T. Civil Certified Public Acountant and Retired Partner, PricewaterhouseCoopers LLP Daryl R. Forsythe Retired Chairman NBT Bancorp, Inc Edward Gozigian Attorney at Law Gozigian, Washburn & Clinton Jennifer R. Haack Private Investor Benjamin C. Nesbitt Retired - Senior, Bank Investments Wilber National Bank Charles R. Schanz Owner/President C.R. Schanz, Inc. William F. Streck, M.D. Retired - President, Chief Executive Officer Bassett Healthcare Scott D. White President Bank of Cooperstwn a unit of USNY Bank Bruce C. Wratten Retired - Owner/Operator Horned Dorset LTD Officers VanNess D. Robinson Chairman/Secretary V. Daniel Robinson II President/CEO Albert Pylinski, Jr. Exec. Vice Pres./ CFO/CRO/Treasurer Michael A. Perrino First Senior Cheryl L. Robinson First Senior Vice President Jeffrey R. Barrett Senior Stephen M. Cembrinski Senior John E. Holdorf Senior Katharine S. Landers Senior Peter L. Owens Senior, Privacy Officer Julie D. Palmer Senior Kevin L. Plows Senior Jeremy J. Robinson Senior Timothy A. Trueworthy Senior Chad R. Barth Michele D. Couperthwait William W. Couperthwait II John J. Foy Douglas H. Franklin Mark A. Grygiel James E. Potts, Jr. Brian M. Stoll Mark R. VanDewerker Robin R. Carnrike Assistant Tiffany C. Florenz Assistant Michael J. Millea Assistant, Information Security Offcer Robert D. Snyder Assistant Diane R. Wildey Assistant NYCM Insurance Annual Report 2017

8 New York Central Mutual Fire Insurance Company 1899 Central Plaza East Edmeston, NY Fax: nycm.com A. Central Insurance Company 1899 Central Plaza East, Suite 2000 Edmeston, NY Fax: acentralinsurance.com