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“We are very pleased with the excellent results in 2007,” said Elizabeth Haar,
President and Chief Executive Officer. “Our net income was the highest in the
Company’s history. It represents a return on average book value to our
shareholder of 14.4%. We believe we are one of few insurance companies that
increased both the top line and the bottom line in 2007. These results reflect
our commitment to sound underwriting fundamentals and our employees’ ability to
execute our strategic plan. We have strengthened our market position in newer
territories, including the addition of CompWest Insurance Company in November
2007. With CompWest our reach now extends to the West Coast. I also want to
thank our agency and broker partners. Our relationships with our agencies and
brokers are critical to our success, particularly as market conditions become
more competitive.”
Accident Fund Insurance Company of America reported the following
financial results for 2007:
- Consolidated GAAP net income of $98.2 million, compared to $33.3 million in
2007. Included in net income are net after-tax investment gains of $26.6 million
for 2007, compared to $8.1 million net after-tax investment gains in 2006. For
2007 net investment gains include $11.9 million of net after-tax unrealized
investment gains from securities classified as part of a trading portfolio;
there were no such gains in 2006.
- Net income from operations* of $70.7 million, compared to $25.2 million in
2006.
- Premium revenues (net earned premiums) in 2007 of $698.9 million, compared to
$608.0 million in 2006.
- GAAP combined ratio, a measure of underwriting profitability, of 94.8% in
2007, compared to 104.1% in 2006.
- Net GAAP book value at the end of 2007 of $841.3 million.
*Net income from operations, a non-GAAP financial measure, differs from GAAP net
income by the exclusion on an after-tax basis of investment gains and losses and
certain other non-recurring gains and losses.
Accident Fund, a wholly-owned subsidiary of Blue Cross Blue Shield of Michigan,
is the 10th largest writer of workers compensation insurers in the country. Founded in 1912,
the Company and its subsidiaries are rated “A” (Excellent) by A.M. Best.
Accident Fund conducts business from its headquarters in Lansing, Michigan, and
also through its United Heartland division in New Berlin, Wisconsin, and its CompWest division in San Francisco, California.
Financial Reports
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