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2007 AMIC Annual Report by lanyuehua

VIEWS: 8 PAGES: 20

									Insuring the Future of
  Local Government
To the Members of AMIC:
             A Message from the Chair

    T
          he insurance industry, which has been in       AMIC has returned to its participating capitalized
          chaos for the last four years, is settling     members since 1998. Dividends will be paid to all
          into a more stable marketplace. The            participating members renewing with AMIC. This
large premium increases created by the successive        is made possible because of the tremendous growth
hurricanes have gone, which means more stable            and success AMIC has experienced over the last
rates for our members. Regardless of the market          several years. I am also very pleased to report that
conditions, AMIC continues to adhere to its original     AMIC continues to secure its A- (Excellent) rating by
game plan, to provide a quality insurance product at     A.M. Best Company, the nations leading insurance
a reasonable cost to its members.                        company rating organization.
Membership                                               Loss Control
  We have added a total of 8 new members since             The focus for Loss Control this year will continue
we met last year. AMIC has continued to add to its       to be on expansion of services, more personal visits,
membership which today stands at 563, including          and live training programs. AMIC and MWCF’s
397 municipalities, 89 utility boards, 40 solid waste/   team approach has allowed both programs to provide
water authorities, 18 associations, and 19 transit       eight dedicated staff members to focus on all aspects
authorities. AMIC’s current market share exceeds 95      of our members operations – translating into more
percent.                                                 services and programs at a much reduced cost.
Dividends                                                Training
  I am pleased to tell you that in 2008, AMIC will         AMIC and MWCF’s Skid Car system, which
pay a 5 percent dividend for capitalized members.        was implemented seven years ago, has been very
This equates to over $6,000,000 in dividend credits      successful with over 8,000 police officers, fire




                                Mayor Robert Payne, Chair
                                   Alabama Municipal
                                 Insurance Corporation


2                                                                                                        AMIC
fighters and employees being trained to date. AMIC       Conclusion
and MWCF have also instituted the Fire Arms                In closing, let me
Training System (FATS) which provides state of the       say it is a distinct
art “decision making” training to our police officers.   pleasure to bring this
More than 2,700 police officers from departments         excellent report to
throughout the state have completed the FATS             you. Membership is
course.                                                  up, member surplus
Financials                                               is at its highest level
  As AMIC moves into 2008, we have completed             in nineteen years and     Steve Wells, President
six years with all services in-house. These changes      AMIC’s future looks         Alabama Municipal
have allowed AMIC to improve the level and quality       brighter than ever.       Insurance Corporation
of services; at the same time expenses have been
reduced in excess of $3,000,000 annually. With the
current state of the insurance market this savings has
gone a long way to allow AMIC to keep pricing down
for its members.                                            Insuring the
                                                           Future of Local
  On December 31, 2007, on a statutory basis, assets
were $80,766,184 and net worth was $28,871,437.
Earned premiums are $29,123,386, a 9.5% increase

                                                            Government
over 2006. Total gross annual premiums now exceed
$38,000,000.




18th Annual Report • 2007                                                                               3
    AMIC’s Board of Directors
     Mayor Robert Payne, Chair
     City of Tallassee
                     Payne was first elected to the Tallassee City
                     Council in 1976 and served in that capacity
                     for 12 years. In 1988, he ran for Mayor
                     and is presently serving in that office. He
                     is a Past President of the Alabama League
                     of Municipalities, the Past President of the
                     Tallassee Rotary Club and the Past Master of
                     the William A. Warren Masonic Lodge. He
                     currently serves on the Executive Committee
                     for the Alabama League of Municipalities.


                             Mayor Billy Joe Driver, Vice Chair
                             City of Clanton
                                                         After serving on the City Council since
                                                         1972, Driver was elected Mayor of
                                                         Clanton in 1984. He is a Past President
                                                         of the Alabama League of Municipalities
                                                         and has been an active member of
                                                         several League committees, including
                                                         the Transportation Committee and the
                                                         Executive Committee. He is retired
                                                         from the Chilton Co. Engineering
                                                         Department.

     Mayor Melvin Duran
     Town of Priceville
                       Duran was elected Mayor of Priceville in
                       1980. He is the current Vice President of
                       the Alabama League of Municipalities and
                       serves on the Executive Committee as well
                       as the League’s Committee on Finance,
                       Administration and Intergovernmental
                       Relations. He is retired from the Salutia
                       Chemical Company where he’d worked
                       since 1965.




4                                                                                            AMIC
       Mayor Charles Murphy
       City of Robertsdale
                            Murphy was elected to the Robertsdale City
                            Council in 1988 and elected as Mayor in
                            1992. He is the past chair of the Baldwin
                            County Mayors’ Association and has served
                            as an executive board member on the Baldwin
                            County Economic Development Alliance.
                            He has served on the Homeless Coalition for
                            Baldwin County and on the county’s Public
                            Transportation Committee. Murphy is a former
                            chair of the League’s FAIR Committee.


                               Mayor David H. Bradford
                               City of Muscle Shoals
                                                          Prior to becoming Mayor in 2000, Bradford
                                                          served as the Assistant Chief of Police. He is a
                                                          27-year veteran of the Police Department and
                                                          received an appointment and graduated from
                                                          the FBI National Academy. He currently serves
                                                          on the League’s Executive Committee and
                                                          Public Safety and Transportation Committee
                                                          as well as the Transportation Committee for
                                                          the National League of Cities. In addition, he
                                                          is a member of the North Alabama Mayor’s
                                                          Association.



       Appointed Positions




            Steve Wells      Perry Roquemore
             President       Secretary/Treasurer



18th Annual Report • 2007                                                                                5
    AMIC’s Dedicated Staff
                                                  Claims:        (Top Row) Shawn Sellers,
                                                  Danny Ransom, Robert Blaise, David
                                                  Sikes, Jeff Bowen, John Crocker (Middle
                                                  Row) Vickie Brand, Gloria Black, Mattie
                                                  Nelson, Nancy Phillips (Front Row)
                                                  Jennifer Long, Delene Minor, Martha
                                                  Matthews, Sharon Overton, Renee’
                                                  Biggio




    Underwriting & Customer
    Service: (Top Row) Melody Respess,
    Jane Fuller, Michele Fannin (FrontRow) Cara
    LeGrand, Doranne Newton




6                                                                                  AMIC
                                                  Sales:     Mike Gardner, Kelley
                                                  Maltby, Jim Chamblee, Jay Powell




     Loss Control:         (Top Row) Stan Fant,
     Roger Owens, Richard Buttenshaw (Middle
     Row) Todd McCarley, , Will Strength (Front
     Row) Donna Wagner, Jennifer Frakes, Sonya
     McCarley, Rachel Wagner, Myra Forrest




                                                     Administration:
                                                      (Top Row) Kelly Jackson, Debbie
                                                      Meadors, Anita Weldon (Front
                                                      Row) Caroline Cox, Cyndi Wells




18th Annual Report • 2007                                                               7
AMIC’s Financials
                                            (as of December 31, 2007 and 2006)
    StatementS of admItted aSSetS, LIaBILItIeS and memBerS’ equIty Statutory BaSIS
                                                                               2007                 2006
     ASSETS
        Bonds and Stocks                                                     $60,992,084          $56,758,938
        Cash and Cash Equivalents                                              7,389,937           10,115,439
        Subtotal, Cash, Cash Equivalents & Invested Assets                   $68,382,021          $66,874,377

         Premiums in Course of Collection                                      5,888,939            5,998,626
         Electronic Data Processing Equipment                                     92,516               85,480
         Interest Income Due and Accrued                                         417,591              437,015
         Reinsurance Recoverables                                              4,439,271            4,055,273
         Miscellaneous Receivables                                               561,591              625,932
         Real Estate                                                             984,255            1,001,453
                                                                             $80,766,184          $79,078,156
     LIABILITIES
        Losses                                                               $16,350,397          $17,096,813
        Loss Adjustment Expenses                                              18,698,471           17,028,018
        Other Expenses                                                            56,933               96,634
        Taxes, Licenses and Fees                                                       0                    0
        Unearned Premium                                                      14,945,086           14,241,105
        Other Payables                                                         1,843,860            2,263,520
     TOTAL LIABILITIES                                                       $51,894,747          $50,726,090
     MEMBERS’ EQUITY
       Gross Paid In and Contributed Surplus                                   $6,053,304            $6,053,304
       Unassigned Funds – Surplus                                              22,818,133            22,288,972
     TOTAL MEMBERS’ EQUITY as regards policyholders                          $28,871,437          $28,342,276
     TOTAL LIABILITIES AND MEMBERS’ EQUITY                                   $80,766,184          $79,068,366




     StatementS of Income – Statutory BaSIS                     2007                           2006
        INCOME
           Underwriting Income
            • Premiums Earned                                $29,123,386                    $27,940,107
            • Investment Income                                  630,204                      3,016,905
            • Other Income                                        93,450                         73,782
                Total Income                                 $29,847,040                    $31,030,794
        EXPENSES
           Loss Incurred                                      (10,392,948)                   (15,026,214)
           Loss Expense Incurred                               (8,389,542)                    (6,121,372)
           Other Underwriting Expenses                         (6,533,598)                    (6,140,804)
               Total Expenses                                ($25,316,088)                  ($27,288,390)
        NET INCOME                                            $4,530,952                     $3,742,404




8                                                                                                                 AMIC
      Financial Ratios


                Incurred LoSS ratIo
               Losses Incurred          $18,782,490
                                                       = 64.5%
               Net Earned Premium       $29,123,386


                comBIned ratIo

               Incurred loss Ratio          64.5%      = 81.6%
               + Expense Ratio              17.1%


                expenSe ratIo

              Expenses                   $6,533,598    = 17.1%
              Written Premiums          $38,152,751


                InveStment ratIo
              Combined Ratio

                                                              }
              Less: Investment Ratio                  81.6%
                                                                  79.4%
                    Investment Income      $630,204
                    Earned Premium      $29,123,386 = 2.2%




18th Annual Report • 2007                                                 9
               Premium History
             40
                          Premium History
             35

             30

             25
Millions




             20

             15

             10

              5


              0    1997       1998       1999     2000      2001       2002      2003      2004       2005      2006       2007




               Assets to Surplus
               AMIC has put into surplus all the profits of the company since its inception. This surplus growth increases investment
               income and enables the company to stabilize its rates. It also gives AMIC the financial strength to assure its members
               it will always be able to meet its obligations.

             100


                          Total Assets
              80
                          Policyholders Surplus

              60
  Millions




              40



              20



               0
                   1997       1998       1999     2000      2001       2002      2003       2004      2005      2006       2007


  10                                                                                                                              AMIC
                Claim Costs by Year
           25

                       Claim Costs by Year
           20



           15
Millions




           10



           50



            0
                1997        1998      1999     2000     2001     2002     2003     2004    2005    2006    2007




                Historical Claims Count

           25,000

                           Cumulative Number of Claims
           20,000
                           Claims by Year

           15,000
Number




           10,000



            5,000



                0   1997       1998     1999     2000     2001     2002     2003    2004    2005    2006   2007



 18th Annual Report • 2007                                                                                        11
AMIC’s Members                                                       See page 18 for details.




Abbeville                              Banks
Adamsville                             Bay Minette
Akron                                  Bayou La Batre
Alabama League of Municipalities       Bayou La Batre Water & Sewer
Alabama-Tombigbee Regional Commision   Bear Creek
Alabaster                              Bear Creek Development Authority
Alabaster Water Board                  Bear Creek Water Works Board
Albertville                            Beatrice
Albertville Utilities                  Beaverton
Alexander City                         Belk
Aliceville                             Benton
Aliceville Water & Sewer               Berry
Allgood                                Berry Gas Board
Altoona                                Bessemer
Andalusia                              Bessemer Electric and Water
Andalusia Board of Education           Birmingham Water
Andalusia Utilities                    Birmingham-Jefferson County Transit Authority
Andalusia-Opp Airport Authority        Black
Anniston                               Black Warrior Solid Waste Authority
Anniston Express                       Blountsville
Anniston Water Board                   Blountsville Utilities
Arab                                   Boaz
Argo                                   Boaz Gas Board
Ariton                                 Boaz Water & Sewer Board
Arley                                  Boligee
Asbury Water Board                     Brantley
Ashford                                Brent
Ashland                                Brewton
Ashland Water & Sewer Board            Brewton Natural Gas
Ashland, Goodwater-Lineville Solid     Bridgeport
Waste Disposal Authority               Bridgeport Utility Board
Ashville                               Brighton
Athens                                 Brilliant
Atmore                                 Brookside
Atmore Utilities                       Brookwood
Attalla                                Brundidge
Auburn                                 Butler
Auburn Water Board                     Calera
Autaugaville                           Camden
Baileyton                              Camp Hill
Baker Hill                             Carbon Hill
12                                                                                          AMIC
                                                                      See page 18 for details.




Carbon Hill Utility Board             Cowarts
Carrollton                            Creola
Castleberry                           Crossville
Cedar Bluff                           Crossville Water Board
Cedar Bluff Utility Board             Cuba
Center Point                          Cullman
Centre                                Cullman Utilities
Centre Waterworks & Sewer             Cullman-Jefferson Counties Gas Dis.
Centreville                           Dadeville
Chatom                                Daleville
Chatom Utility                        Daphne
Chelsea                               Daphne Utilities
Cherokee                              Dauphin Island
Cherokee Waterworks & Gas Board       Dauphin Island Water
Chickasaw                             Deatsville
Childersburg                          Deatsville VFD, Inc.
Childersburg Waterworks,Sewer & Gas   Dekalb-Cherokee Counties Gas District
Chilton County Sold Waste Disposal    Demopolis
Citronelle                            Detroit
Clanton                               Dodge City
Clarke-Mobile County Gas District     Dora
Clay                                  Dora Water & Gas Board
Clayhatchee                           Dothan
Clayton                               Double Springs
Clayton Water & Sewer                 Douglas
Cleveland                             Dozier
Clio                                  Dutton
Coaling                               East Alabama Mental Health & Retardation
Coffee Springs                        East Alabama Regional Planning &
Coffeeville                           Development Commision
Coker                                 East Central Alabama Gas District
Collinsville                          East Central Alabama Solid Waste Disposal
Colony                                East Geneva Co. Senior Citizens Com.
Columbia                              Eclectic
Community Life Institute              Eclectic Water & Sewer Board
Coosa Valley Water                    Elba
Coosada                               Elberta
Cordova                               Eldridge
Cottonwood                            Elkmont
County Line                           Elmore
Courtland                             Elmore County Economic Dev
18th Annual Report • 2007                                                                   13
                                                                            See page 18 for details.




Elmore Water Authority                   Gaylesville
Emelle                                   Geiger
Enterprise                               Geneva
Enterprise Rescue                        Geneva Water
Eufaula                                  Georgiana
Eufaula Water Works                      Geraldine
Eutaw                                    Gilbertown
Eva                                      Gilbertown Utility
Evergreen                                Glen Allen
Excel                                    Glencoe
Fairfield                                Goldville
Fairhope                                 Good Hope
Fairview                                 Goodwater
Falkville                                Goodwater Waterworks & Sewer
Faunsdale                                Gordo
Fayette                                  Gordon
Fayette Gas Board                        Goshen
Fayette Water Works Board                Governmental Utility Services (Bessemer)
Five Points                              Grant
Five Star Water District                 Greensboro
Florala                                  Greensburo Utility Board
Florala Water and Sewer Board            Greenville
Foley                                    Greenville Waterworks & Sewer
Foley/Riviera Utilities                  Grove Hill
Forkland                                 Guin
Fort Deposit                             Guin Water & Sewer Board
Fort Deposit Water Works & Sewer Board   Gulf Shores
Fort Payne                               Gulf Shores Utility Board
Fort Payne Improvement Authority         Guntersville
Frisco City                              Guntersville Electric Board
Fruithurst Fire Department               Guntersville Water & Sewer Board
Fultondale                               H. E. L. P., Inc.
Fultondale Gas Board                     Hackleburg
Fyffe                                    Haleyville
Gadsden                                  Haleyville Water & Sewer Board
Gadsden Airport Authority                Hamilton
Gadsden Emergency Management Agency      Hammondville
Gainesville                              Hanceville
Gantt                                    Hanceville Water & Sewer
Garden City                              Harpersville
Gardendale                               Hartford

14                                                                                             AMIC
                                                                           See page 18 for details.




Hartselle                                   LaFayette
Hartselle Utilities                         Lake-View
Hayden                                      Lamar County Gas District
Hayneville                                  Lanett
Headland                                    Langston
Heath                                       Lawrence-Colbert Counties Gas Board
Heflin                                      Leeds
Heflin Water & Sewer                        Leeds Water & Sewer
Helena                                      Lee-Russell Council of Local Governments
Helena Utilities                            Leesburg
Henagar                                     Leighton
Highland Lake                               Leighton Water Works & Sewer Board
Hillsboro                                   Level Plains
Hobson City                                 Lincoln
Hodges                                      Linden
Hokes Bluff                                 Lineville
Hokes Bluff Sewer Board                     Lisman
Hokes Bluff Water Board                     Littleville
Holly Pond                                  Livingston
Hollywood                                   Loachapoka
Homewood                                    Lockhart
Hoover                                      Locust Fork
Huntsville & Madison County Senior Center   Louisville
Hurtsboro                                   Lowndesboro
HyTop                                       Loxley
Ider                                        Luverne
Indian Springs                              Lynn
Irondale                                    Madison
Jackson                                     Madison Water Works & Wastewater Board
Jackson Water & Sewer Board                 Magnolia Springs
Jackson’s Gap                               Malvern
Jacksonville                                Maplesville
Jacksonville Water Works, Gas/Sewer         Maplesville Water Works & Gas Board
Jasper                                      Margaret
Jemison                                     Marion
Kansas                                      Marshall County Gas District
Kennedy                                     Maytown
Killen                                      McIntosh
Kimberly                                    McKenzie
Kinsey                                      Mentone
Kinston                                     Midfield

18th Annual Report • 2007                                                                             15
                                                                See page 18 for details.



Midland City                      Northwest Alabama Council of Local
Midway                            Government Auto
Millbrook                         Northwest Alabama Council Of Local Gov.
Millport                          Northwest Alabama Gas District
Millry                            Notasulga
Mobile Airport Authority          Oak Grove
Mobile Metro Transit Management   Oak Hill
Monroeville                       Oakman
Montevallo                        Odenville
Montevallo Water and Sewer        Ohatchee
Montgomery Transit                Oneonta
Montgomery Water & Sewer          Oneonta Utilities
Moody                             Opelika
Mooresville                       Opelika Waterworks Board
Morris                            Opp
Mosses                            Orange Beach
Moulton                           Orange Beach Water & Sewer Board
Moulton Water & Sewer Board       Orrville
Moundville                        Owens Cross Roads
Mount Vernon                      Oxford
Mountain Brook                    Oxford Water & Sewer Board
Mountainboro                      Ozark
Mulga                             Ozark Dale Co, E-911
Munford                           Ozark Utilities
Muscle Shoals                     Paint Rock
Muscle Shoals Utilities           Parrish Water & Sewer Board
Myrtlewood                        Pelham
Napier Field                      Pell City
Natural Bridge                    Pennington
Nauvoo                            Pennington Utilities
Nectar                            Phenix City
Needham                           Phil Campbell
New Brockton                      Phil Campbell Water & Sewer Board
New Hope                          Pickens County Gas
New Site                          Pickensville
Newbern                           Piedmont
Newton                            Pike Road
Newton Water and Sewer            Pinckard
North Alabama Gas District        Pine Apple
North Baldwin Utilities           Pine Hill
North Courtland                   Pinson
Northport                         Pisgah
16                                                                                   AMIC
                                                               See page 18 for details.



Pleasant Grove                     Scottsboro
Pleasant Groves                    Scottsboro Sewer & Waterworks Board
Pollard                            Scottsboro Electric Power
Powell                             Section
Prattville                         Section-Dutton Water
Prattville Solid Waste Authority   Selma
Priceville                         Selma Water & Sewer
Prichard                           Sheffield Utilities
Prichard Water                     Shorter
Ragland                            Silas
Ragland Water Works & Gas          Silverhill
Rainbow City                       Sipsey
Rainbow City Utilities Board       Skyline
Rainsville                         Slocomb
Red Bay                            Slocomb Water & Sewer
Red Bay Water & Gas                Smiths Station
Red Level                          Snead
Reece City                         Somerville
Reform                             South Alabama Utilities
Rehobeth                           South Vinemont
Repton                             Southeast Alabama Gas
River Falls                        Southeast Alabama Regional Planning &
Riverside                          Development Commission
Roanoke                            Southside
Roanoke Utility Board              Spanish Fort
Robertsdale                        Spirit of Anniston Main Street Program, Inc.
Rockford                           Springville
Rogersville                        Steele
Russellville                       Steele Waterworks Board
Russellville Electric Board        Stevenson
Russellville Gas Board             Stevenson Utilities
Russellville Waterworks & Sewer    Storm Water Management Authority
Rutledge                           Sulligent
Saint Florian                      Sumiton
Samson                             Summerdale
Sand Rock                          Susan Moore
Saraland                           Sweet Water
Sardis City                        Sylacauga
Sardis City Waterworks Board       Sylacauga Utilities
Satsuma                            Sylvan Springs
Satsuma Waterworks & Sewer Board   Sylvania

18th Annual Report • 2007                                                                 17
Talladega Springs                           Wadley
Talladega Water & Sewer Board               Walnut Grove
Tallassee                                   Warrior
Tarrant City                                Washington County Library Board
Tarrant Electric Department                 Waterloo
Taylor                                      Weaver
Thomaston                                   Webb
Thomasville                                 Wedowee
Thorsby                                     West Alabama Regional Commission
Top of AL Regional Council of Governments   West Anniston Community Development
Town Creek                                  Corporation
Toxey                                       West Blockton
Trafford                                    West Jefferson
Tri Community Water System                  West Point
Triana                                      Westover
Trinity                                     Wetumpka
Troy Board of Education                     White Hall
Trussville                                  Wilcox County Gas
Trussville Utility Board                    Wilsonville
Tuscaloosa                                  Wilton
Tuscaloosa Parking & Transit Authority      Wilton Water and Gas
Tuscumbia                                   Winfield
Tuskegee                                    Winfield Waterworks & Sewer
Tuskegee Utility Board                      Winston County Industrial Development
Twin                                        Authority
Union                                       Woodland
Union Grove                                 Woodstock
Union Springs                               Woodville
Uniontown                                   York
Upper Bear Creek Water, Sewer & FPA
Valley
Valley Grande                                         President’s Award
Valley Head                                        Top 5% for five years.
Valley Head Water Works Board
                                                      Gold Award
Vance
                                                   0-5% losses in the year 2007.
Vernon
Vestavia Hills                                        Silver Award
Vina                                               5-20% losses in the year 2007.
Vincent
                                                      Bronze Award
Vincent Water & Sewer
                                                   20-40% losses in the year 2007.
Vredenburgh

18                                                                                   AMIC
Notes
aLaBama munIcIpaL InSurance corporatIon
   110 north rIpLey Street • montgomery, aL 36104
        phone: 334-386-3863 • fax: 334-386-3873
          toLL free: 1-866-239-amIc (2642)
                www.amIcentraL.org




      Insuring the Future of Local Government

								
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