About Church Mutual

Annual Report

Download our 2010 Annual Report (415 KB PDF)

2010 President's Message

The economic doldrums of 2010 continued to impact governmental entities, businesses and citizens in their struggles to meet budgets and plan for a more secure financial future. Church Mutual was not immune to the strain and recognized the tough decisions that confronted our customers in their efforts to properly insure their houses of worship, schools, camps and conference centers and senior living facilities.

In 2010, Church Mutual saw some improvement in some key financial metrics, evidencing financial strength and stability to meet future obligations owed to our customers:

• Church Mutual's policyholder surplus — the net worth of the company — increased $21.1 million to finish the year at $413.7. This number represents a 5.4% increase, and Church Mutual has exceeded the $400 million mark for the first time in its history.
• Church Mutual's corporate assets increased 2.7% to a new high of $1.22 billion.
• Church Mutual added more than 6,900 new commercial accounts, as faith-based ministries and organizations and senior living operations accepted the value-added protection offered by Church Mutual
• Premium production generated by our 100,000-plus customers reached $584.4 million — a modest increase of 2.8% over 2009's premium production.
• Church Mutual's conservatively invested portfolio generated total gains for 2010 in the amount of $44.7 million. The return on our total portfolio, consisting of fixed income bonds and common stocks, was 4.92%.
• Continued loyalty to Church Mutual, even in tough economic times, led to the renewal of 92% of our premium and our issued policies.

Church Mutual's promise to protect and financial strength were recognized as our customers experienced 36,850 claims totaling $345 million during the year. Serious claims (more than $150,000) amounted to 367 and accounted for $155 million of the total.

Again, catastrophe property claims influenced our results in 2010. We handled almost 2,200 claims arising out of 34 catastrophes. Although 2010 saw no adverse hurricane claim activity, Church Mutual and its customers saw significant damages caused by hail and wind, tornadoes, winter freezes and snow.

Going forward, the economy will see signs of improvement — good news for our customers and our company. Houses of worship and senior living facilities will continue to need insurance protection, and they will seek the best commitment and value they can find. Church Mutual makes a promise to provide that commitment and value by offering the expertise, the service and the financial strength that our customers expect — just as we have for the last 114 years.

In 2011, our company will remain focused on optimizing our staff, our processes and our technology to consistently deliver the service that our customers expect when misfortune strikes.

On behalf of our board of directors and our staff, I want to express my gratitude for your decision to place your trust in Church Mutual. We will continue to earn it.

                                    Michael E. Ravn
                                    President and Chief Executive Officer