In the Farmers' and Mechanics' portfolio are three files that have kept this Company's balance sheet sound for over 132 years. Labeled "stability, durability and integrity," these files have been responsible for keeping this Company on solid footing in an industry visited occasionally by shaky trends.
Today we are standing on an economy few would deny is less than secure. But even in the face of national financial anxieties, Farmers' and Mechanics' continues to maintain a calm sense of purpose through its conservative risk selectivity.
Farmers' and Mechanics' ended 2009 with Assets of $3.3 million and Policyholders Security Account at $2.7 million. The Company reported a respectable combined loss and expense ratio of 93.3%, yielding an underwriting gain of $27,000, compared to 104.5% in 2008. Thanks to the operating income and favorable investment results, our Policyholders Security Account increased 13.8% or $332,000. The Company's financial integrity was again confirmed by A. M. Best's "A+ Superior" Rating.
Cheryl Whiteley, Vice President of Operations, in her Annual Report shared, in part, that "the end of a decade which we endured with the exceptional events of 9/11, Wall Street bailouts, political changes, unusual weather events/multiple-catastrophic magnitude in size, we still had heroic events to show our nations fortitude and strength. Farmers' & Mechanics' challenge the next decade to grow stronger and continue with the responsibility of assisting our clientele, both policyholders and agency force, in a time of stress and financial need for which our Company was established in 1877."
Farmers' and Mechanics' respected reputation is its strongest framework. We see ourselves as a most fortunate Mutual Company, thus, the reason we are focusing on "SHARING IN OUR MUTUAL SUCCESS ... TOGETHER," with you, our agents and policyholders.
