Annual Report Download our 2009 Annual Report (657KB PDF) 2009 President's Message The last two years — 2008 and 2009 — tested institutions, companies and organizations throughout America, particularly those operating in the financial services arena. Church Mutual’s results improved in 2009 as our policyholders’ surplus — your company’s net worth — rose $43.2 million, an increase of 12.4%, to reach a new high of $392.6 million. During the year, we worked hard to assist our customers with claims and other issues that confronted them during a time of budget pressures and other strains caused by the very serious economic downdraft still facing the United States. At year-end, the company’s assets reached a new high — $1.192 billion. The company’s A+ (Superior) rating was reaffirmed by A.M. Best for the 57th consecutive year, and bottom-line profitability returned to Church Mutual as $26.8 million in net income was achieved. Direct written premium generated across our 100,000+ accounts was a shade under $569 million — almost exactly what it was in 2008. The company paid 37,695 claims as we wrote checks totaling $372 million during the year. The previous year, 40,498 claims resulted in claims paid of $373 million. Loyalty among Church Mutual’s customers during our 113th year remained strong. We renewed 93% of our premium and accounts during the year. The company’s producers wrote more than 7,500 new institutional accounts during the year as decision makers in these houses of worship, senior living facilities, schools and camps and conference centers looked to Church Mutual for their insurance protection. Church Mutual’s portfolio, always conservatively invested, generated $50.3 million in net investment income and net realized capital gains. Coupled with net unrealized stock gains of $12.2 million, total investment gains for 2009 were $62.5 million. This was a new record for the company. Our equity portfolio, just 6% of the company’s investments at year-end, was up 33% in 2009, outperforming the S&P 500, which was up 23.5%. Church Mutual’s fixed income bonds were up 8.4%. Once again, catastrophic property claims drove the company’s results during 2009. While the nation was hurricane-free, the company stepped up to handle a total of 2,264 claims that came from 28 other catastrophes — tornadoes, winter freezes, hailstorms and windstorms — that impacted customers in many states. You will note two signatures on this report as January 2010 brought to conclusion a multiyear transition in leadership at Church Mutual. Gerald Whitburn, President and CEO since 2001, retired from active service, and Michael Ravn, previously our Chief Operating Officer, moved to the senior position. Though now entering our 114th year of operations, your management team learns a lot each year, and we work to improve the company accordingly. The core nature of our business, however, does not change.We sell you an insurance policy. What is it? At the end of the day, it’s a promise. The commitment we continue to make to you is to pay our claims — $745 million over the last two years — fairly, with respect and without hassle. And to do all we can to maintain and build your ever-stronger insurance company that you can count on should bad things happen. We appreciate your business. Gerald Whitburn Michael E. Ravn |