March 25, 2008
Financial Results for 2007
It is with great pleasure that Frederick Mutual can report another successful year for 2007. Gross premiums written totaled $21,510,392, which was a 1.4% decrease over the prior year, in the midst of a very competitive marketplace. Admitted assets grew 1.45% to $49,470,292, while policyholders’ surplus increased 6.6% to $29,009,945. Operating results were profitable, resulting in a combined ratio of 88.8% compared to 90.4% in 2006. Frederick Mutual was again fortunate that it was not impacted by any catastrophic weather events.
Net investment income was $2,687,369 compared to $2,274,489 in the prior year, as the company benefited from net realized capital gains on appreciated securities. Net income was $3,987,398 versus $3,262,568 in 2006. Frederick Mutual has a strong capital base, and is well positioned to pursue profitable growth opportunities. We will continue to strive towards providing quality products and service to our policyholders and professional independent insurance agents, in the years to come.
