Main Street America Group Reports Strong 2012 Results

Main Street America Group Reports Strong 2012 Results

Property/Casualty Carrier Achieves 11.9% ROE, $56.7M Net Income, $978M Net Premium, $71M Surplus Growth, 99.9 Combined Ratio

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- The Main Street America Group announced today its 2012 financial results included an 11.9 percent return on equity, 99.9 combined ratio, $978 million net written premium, surplus growth of $71 million and net income of $56.7 million for the fiscal year ended Dec. 31, 2012.


Main Street America's 2012 Financial Highlights

  • 11.9 percent return on equity, driven by investment returns of $83.2 million. The company's return on equity in 2011 was 2.7 percent.
  • Net income of $56.7 million, an 80 percent gain over the prior year ($31.5 million) when the company's results were heavily impacted by $63 million in catastrophe losses. In 2012, the company sustained $23 million in catastrophe losses.
  • Combined ratio of 99.9, a vast improvement over the company's 2011 catastrophe-impacted 106.7 combined ratio. In 2012, Main Street America achieved an underwriting profit for the sixth time in the last seven years.
  • Net written premium of $978 million, a 10 percent increase over the prior year ($889 million). The company last generated double-digit growth in 2003.
  • Surplus growth of $71 million to $847 million, 9.2 percent higher than the company's surplus of $776 million at Dec. 31, 2011.
  • Commercial lines, which accounts for 58 percent of Main Street America's net written premium, achieved a 92.6 combined ratio and 8.5 percent premium growth.
  • Its surety unit posted a 90.5 combined ratio and 15 percent premium growth.
  • Overall, the company's four regions achieved a 98.5 combined ratio and 3.9 percent direct premium growth.

"We finished the year with a very strong balance sheet," said Tom Van Berkel, Main Street America's chairman and chief executive officer. "We significantly increased our surplus, grew our total assets to more than $2.1 billion and are very well-positioned to benefit from an improving property/casualty marketplace."

Van Berkel added, "Our strong capital position will enable us to continue actively seeking profitable growth opportunities in existing states and new states, which will allow us to further spread our risk and increase scale."

Main Street America's 2012 accomplishments included:

  • Being selected to the Ward's 50 for the second consecutive year, which honors the top 2 percent of best-performing U.S. property/casualty companies based on five-year financial performance from 2007-2011.
  • Closing its affiliation with Minnesota-domiciled Austin Mutual Insurance Company, which enabled Main Street America to expand its footprint into several Midwest and Pacific Northwest states. Main Street America now writes property/casualty in 36 states.
  • Launching its full suite of commercial products (i.e., Main Line Business Owners Policy, tiered commercial auto, workers' compensation and umbrella coverages) and Main Street Station commercial lines policy processing system to its network of independent insurance agents in Minnesota, Mississippi and Oklahoma. Its commercial products and platform will be launched in several new Midwest and Western states in 2013.
  • Implementing its new tiered commercial auto product in 15 states. This multivariate product is being rolled out to 10 more states in 2013.
  • Revamping its Personal Auto MVP multivariate product, which will be implemented in nine states during 2013.

"Throughout 2012, our employees served our customers (independent insurance agents) and their customers (insureds) in a magnificent way," Van Berkel said. "I also want to thank our customers for their trust and partnership in continuing to place their customers' business with us."

For more details about Main Street America's 2012 performance and 2013 outlook, please watch an interview with company CEO Tom Van Berkel posted on its YouTube channel: http://www.youtube.com/user/MRFMSAG.

About The Main Street America Group

With roots dating back to 1923, The Main Street America Group is a super regional insurance company which writes business through nine property/casualty insurance carriers: NGM Insurance Company, Old Dominion Insurance Company, Main Street America Assurance Company, MSA Insurance Company, Great Lakes Casualty Insurance Company Grain Dealers Mutual Insurance Company, Main Street America Protection Insurance Company, Spring Valley Mutual Insurance Company and Austin Mutual Insurance Company. Based in Jacksonville, Fla., Main Street America offers a wide range of commercial and personal insurance, and fidelity and surety bond products to individuals, families and businesses throughout the United States.

With nearly $1 billion in premium written exclusively by 2,000-plus independent insurance agents, the 90-year-old company insures more than 600,000 policyholders in 36 states and writes bonds in 45 states. A.M. Best Company rates The Main Street America Group as an "A" (Excellent). Main Street America is the founding company partner of Trusted Choice®, the global branding program of the Independent Insurance Agents & Brokers of America. Main Street America is also an investor in the new independent agency system Consumer Agent Portal. For more information about Main Street America, please visit www.msagroup.com or connect with us on Facebook at www.facebook.com/MainStreetAmerica.



The Main Street America Group
Mark Friedlander, 904-380-7461
friedlam@msagroup.com

KEYWORDS:   United States  North America  Florida

INDUSTRY KEYWORDS:

The article Main Street America Group Reports Strong 2012 Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Investing in Startups

The lucrative and risky world of startups.

View Course »

Add a Comment

*0 / 3000 Character Maximum