BALANCE SHEET December 31, 2009

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BALANCE SHEET December 31, 2009 Powered By Docstoc
					                                                                                                                     BALANCE SHEET                           December 31, 2009

                                                                                                                                         Admitted Assets

PAL – Personal Lines was launched December 3, 2008           Fires were the other contributor to a higher than       US Government Bonds                                 9,114,323
with the company’s first series of webinars. PAL         expected loss ratio. The number of fire claims registered   All Other Bonds                                    22,964,866
is the acronym for Partners Agency Link, a group         during the year was up 54% from 2008. The increased         Stocks                                              2,687,236
of web-based, agent-friendly, self-service tools         cost of these additional claims was 2.85 points of the      Cash and Short Term Investments                      (844,796)
including billing, claims, and policy inquiry; and       loss ratio. Unfortunately, some of these fires were of      Premiums Receivable                                 5,193,571
new business quotations and application submission       suspicious origin and reflect the poor economy. Claim       Accrued Investment Income                             313,936
for Businessowners, Contractor Businessowners            time is another opportunity for the company to deliver
                                                                                                                     Federal Income Tax Current
(C-BOP), Commercial Auto, Personal Auto, and             on its motto, “where better service matters”.
Homeowners policies.                                                                                                 & Deferred                                          1,442,233
                                                             The company set a new sales record of $37,097,185
    Improvements and enhancements to PAL                 in Net Premiums Written. The year finished with an          Other Assets                                          964,316
continued and on July 14, 2009 agents were               underwriting loss of $2,441,289 of which fires and the        Total Admitted Assets                          $41,835,685
introduced to PAL personal                                                            hail storm were significant
auto change processing                                                                contributors. The statutory
                                                                                                                       Li a b i l i t i e s a n d P o l i c y h o l d e r s S u r p l u s
and “what-if” scenarios. The                                                          combined loss and expense
“what-if” feature gives agents                                                        ratio at year end was
the ability to price changes                                                          107.8%. Policyholders          Loss Reserves                                    $10,391,504
to the policy like adding or                                                          surplus declined $442,202.     Loss Expense Reserves                              2,173,726
replacing a vehicle. When the                                                         The soft market in             Unearned Premium Reserves                         12,110,229
changes are firm, the agent                                                           commercial lines continued,    Accrued Expenses                                   1,335,375
can submit those changes                                                              but the growth in personal
                                                                                                                     Other Liabilities                                  2,757,123
through PAL.                                                                          lines more than offset
                                                                                      the loss of commercial         Total Liabilities                                 28,767,957
    PAL has advantages for
both agent and company. It                                                            business. Personal lines is    Policyholder’s Surplus                            13,067,728
reduces the number of steps needed to complete           now 80.3% of the premium volume. Investment income             Total Liabilities
insurance transactions, reduces the chance for           and other income could not completely erase the                 & Policyholders Surplus                      $41,835,685
transaction errors because there are fewer data entry    underwriting loss and the year ended with an operating
points, and ultimately speeds the transaction to         loss of $557,027.
completion. PAL makes Partners Mutual Insurance              We delivered on our promises by paying the claims       INCOME STATEMENT                                             2009
Company easier to do business with and is another        we were obligated to pay. The favorable response            Premiums Earned                    $31,214,317
way the company fulfills its motto, “where better        to PAL and a year of record sales indicates Partners
                                                                                                                     Losses Incurred                     19,393,963
service matters”.                                        Mutual Insurance is attractive to agents and insureds.
                                                         Investment in PAL will continue and more features will      Loss Adjustment Expenses Incurred 3,407,422
    During 2009, 90% of applications for insurance
originated through PAL. Partners Mutual has received     be added with the goal of fullfiling our motto, “where      Underwriting Expenses Incurred      10,854,221
positive feedback and the company’s 6.9% increase in     better service matters.”                                    Net Underwriting Gain / (Loss)       (2,441,289)
sales is attributed to the system’s ease of use.            Sincerely,                                                Plus: Net Investment & Other Income 1,703,221
    The company experienced a serious hail storm in                                                                   Less: Dividends To Policyholders       246,116
southwestern Wisconsin, on Friday, July 24, 2009.                                                                     Less: Federal Income Taxes Incurred (427,157)
This storm resulted in 225 claims for a total incurred
loss of $1.84 million. After reinsurance, this storm        Richard C. Ewert                                            Net Income (Loss)                                ($557,027)
was 3.34 points of the loss ratio.                          PRESIDENT
                                                    Company Officers
   PARTNERS MUTUAL                Richard C. Ewert, CPCU, CIC                      John H. Klug
                                  President & CEO                                         Treasurer
  INSURANCE COMPANY               Mark H. Ewert, CPCU, CIC               Kenneth D. Shea, AIC
                                  Executive Vice President                    Vice President–Claims
                                           Gregory E. Bergner, CPCU, CIC, ARe, ARM
                                                                                                      ANNUAL STATEMENT
                                                Secretary & Vice President–Underwriting
     Automobile Insurance
         Homeowners               Richard C. Ewert, CPCU, CIC	                Michael N. Herro
                                  Mark H. Ewert, CPCU, CIC                       Marc A. Lauret
         Inland Marine            Dean K. Harder                          Reuben W. Peterson
                                  Paul R. Haut                                  Mark F. Roethle
      Commercial Packages                             Charles R. Ewert, CPCU

      Specialty Coverages                           Department Heads
                                  John A. Boswell II                   Michael J. Ottman,     CIC
                                  Information Systems                                    Marketing
                                  Mark H. Ewert, CPCU, CIC                         Craig A. Pohl
                                  Administrative Services                               Accounting
   Contractors Businessowners
                                  Douglas W. Moudry, AIC                        Brian G. Martin
                                  Claims                                               Underwriting

     Workers Compensation
                                              Marketing Managers
       Umbrella Liability         C. Robert Oxley                                  Thomas Yanz
                                  Iowa                                                     Michigan
                                                        Donald J. Hady, CIC

                                                    M U T U A L    I N S U R A N C E

                                           Where Better Service Matters
                                      20935 Swenson Drive ■ Waukesha, WI 53186-2057
M U T U A L   I N S U R A N C E   262.798.5050 ■ FAX 262.798.5040

                                  Form 8009 02/09