The Kentucky Farm Bureau Insurance Board met October 18, 2012. The first item discussed was the underwriting profits for the month of September. Kentucky Farm Bureau has made $13.1 million in profit, bringing our loss ratio for the year down to 113.2%
So after losses, reinsurance reimbursements, expenses, gains in the stock market, and the worst storms to hit KY times 2, KFB is 9 million down in reserves. So as of right now, September 30, 2012, KFB has $878 million in reserve with a 1.01% leverage ratio.
I will mention this since I think it’s a problem. We have been having major storms for the last 4-5 years, yet we are still hiring outside adjusters. In 2012 we paid 9 million for outside adjusters.
Andy Hartman was introduced as the Director of Underwriting (Katy Fangman’s old job).
Just a note for those of you who know her, Rada Jeffries will be retiring in 2013.
Memberships
- 15 counties have made quota as of October 15, 2012. As of September 30, we had a growth rate of .09 making us 14,077 memberships behind quota.
- Just to keep you updated on the Agency Managers positions in Barren, Bourbon, and Rowan counties. It looks as if they will be open until June of 2013.
Things That Are Coming
1. In January it looks like they are steam rolling the earthquake project. It is their plan in January to put all new business through a third-party carrier. They are not sure which company or even the cost yet. (Go figure!)
2. ACV roofs are coming, but no date has been mentioned yet.
a. Labor will have no depreciation.
b. Material will be depreciated with a 25% floor.
c. There will be a cosmetic exclusion in the contract of ACV.
d. A buy back option will be offered to “some premier clients.”
i. Good claims history
ii. Good credit
iii. Auto with KFB
iv. Have their roofs re-inspected
If you meet these you can buy replacement cost. The premium has not been set yet.
That pretty much covers our meeting. We will have another meeting in November that I will report on. I will also report again on our December meeting at the Federation Conference.
Reminder: We will have a board meeting the Friday of the Federation Conference, December 7, 2012 at 1:00, and then a full agents meeting at 4:30.
Just a couple of notes to leave you on:
1. The Federation is getting involved with a glass company. Expect to hear more news on that.
2. Your Executive Board has been invited to start having regular meetings with Brad and John, so make sure to let us know of any issues anyone is having. LOL, yeah I know we’re still peeling the onion layers.
Your President- Mickey Sirls
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