Turning Ideas Into Action: A Strategy For Success
(President's message from 2015 Annual Report)
My father was someone who was always thinking about three steps ahead of everyone else. Not that he was disinterested in the here and now, but rather was always seeking an advantage or improvement over what we were doing at the time.
One day he was over the top to show me this new electronic box about the size of a washing machine. He dialed a telephone number into the controls, placed a document in a feed tray on top of the machine, and pushed a button. I calmly watched as the document crawled and paused to the beeps and buzzes as the machine worked through its cycle. In that spine-tingling minute and a half of processing, my father explained at a somewhat hysterical level that an exact replica of that document was printing in our Atlanta office! I honestly thought he needed a vacation; how could you get so excited over this machine sending a document over the telephone? "It's innovation," he explained, "the future of business communication," all while sending more of these faxes to Central's other regional offices.
I have no recollection of what was on the document he sent that day, but knowing him it was something like, "You ain't seen nothing yet!" More than 30 years later, our museum is filled with equipment like the aforementioned fax machine, but our drive for innovation is the same as it was in 1979: to improve our products and services and gain an advantage in delivering them to our customers. What's even more interesting is our strategy hasn't changed: identify a need, gather together a team of innovative problem solvers, and build a solution that fulfills the need. It's a strategy that has served us well in our 140 years and one you will hear more about in the pages of this report.
I am very proud to continue the investment in our culture of excellence; that passion my father valued so dearly. We will develop and build those exciting capabilities like the one he was proud to share with me so many years ago. It is our investment in your future – anticipating your needs so we can provide security, protection, and peace of mind.
Central is currently building an Innovation Team of people who think like my father to enhance the development of our products and services. Their focus will be to anticipate your needs in the future. We look forward to sharing these results in next year's report.
If you had one of those fancy little machines, I could fax you a document that says, "You ain't seen nothing yet!"
F. W. Purmort
Chairman of the Board and President
Central Mutual & All America Insurance Companies
|ASSETS||CENTRAL MUTUAL||ALL AMERICA|
|Stocks – Affiliates||145,965,052||0|
|Stocks – Nonaffiliated||268,017,938||1,979|
|Cash & Short-Term Investments||32,545,192||9,663,487|
|Agents' Balances & Uncollected Premiums||153,389,374||29,258,743|
|Accounts Receivable – Reinsurance||6,588,423||1,254,938|
|Interest & Dividends Due and Accrued||17,112,503||2,391,817|
|Federal Income Taxes Recoverable||0||0|
|Total Admitted Assets||$1,451,183,410||$275,783,527|
|LIABILITIES & POLICYHOLDERS' SECURITY FUND|
|Losses & Loss Adjusting Expenses||$361,267,060||$68,812,773|
|Commissions Payable & Contingent Commissions||17,723,404||3,375,887|
|Ceded Reinsurance Premiums Payable||4,165,044||793,342|
|Taxes and Other Expenses||42,016,140||4,256,354|
|Dividends to Policyholders||290,697||55,371|
|Capital Stock and Contributed Surplus||0||14,552,000|
|Unassigned Funds (Policyholders'
|Policyholders' Security Fund||705,802,121||145,965,052|
|Total Liabilities & Policyholders'
|Central Mutual Insurance Company – $1,451,183,410|
|All America Insurance Company – $275,783,527|
|Direct Premium Written – $630,501,027|
|Net Premiums Written / Policyholders’ Surplus Ratio – 0.82|
|Combined Ratio - Central Companies – 91.5%|
|Combined Ratio - P&C Industry – 98.0%|
|A.M. Best Rating: A (Excellent)|
This information is not intended to supercede, or be as comprehensive as, the statutory annual statement filed for each company with the appropriate state insurance departments. The statutory financial statements of Central Mutual Insurance Company and Consolidated Subsidiaries have been audited by Plante & Moran, PLLC. Complete copies of the statutory financial statements have been filed with the appropriate state insurance departments and are also on file at the Home Office of the Central Insurance Companies in Van Wert, Ohio.