Sound Financial Management
Operating expenses
ISMIE Mutual’s conservative approach to management and operations is reflected
in overall operating expenses.
The majority of our investments are in high quality, fixed income securities (bonds).
This demonstrates that ISMIE’s premium rates do not follow the financial markets.
(2006, latest figures available at press time) Source: Best’s Data Services, Best’s State/Line Report – Property/Casualty – US
Average indemnity per paid claim
The average indemnity per paid claim held in the $600,000 range in 2007.
Administrative expense ratio compared to industry peer companies
Our ratio of administrative expenses to premiums was maintained at less than 13 percent, firmly in the lowest third in a group of comparable medical liability companies.
(2006, latest figures available at press time) Source: Best’s Aggregates & Averages, Property/ Casualty, United States and Canada.
Dividend program launched
Physicians continuously insured with ISMIE since the July 1, 2005 – June 30, 2006, policy year received dividends beginning with July 1, 2007, renewals. This first dividend installment totalled $5.5 million, and was distributed in the form of credits on eligible policyholders’ renewal invoices. Future dividends will be distributed over the next three years, based on the combined experience of the 2005-06 and 2006-07 policy years.
Improved industry rating earned
In June ISMIE learned that A.M. Best, the rating agency for insurance carriers, affirmed the company’s B+ (good) rating for financial strength and assigned ISMIE a “stable” designation for financial strength, an improvement over last year’s outlook.