Frederick Mutual Insurance Company: April 21st, 2023
Frederick, Maryland
Dear Agents,
The year 2022 was not without major challenges across the entire property and casualty insurance industry, particularly in the personal lines sector. Higher than normal weather catastrophe activity, ongoing economic challenges with interest rate changes, inflation, and stock market volatility have also significantly impacted the industry as well as Frederick Mutual’s operating results and policyholder surplus.
Frederick Mutual maintains a Financial Stability Rating (“FSR”) of “A, Exceptional” with Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves, and realistic pricing.
It is important to note that FMIC maintains a conservative investment portfolio; and a high-quality reinsurance program is in place to mitigate the impact of frequent and severe weather-related events on policyholder surplus.
The executive management team and Board of Directors of Frederick Mutual Insurance Company are actively pursuing strategic initiatives to strengthen Frederick Mutual’s financial position and operating performance. To provide flexibility to thrive in today’s dynamic and competitive environment, Frederick Mutual recently reorganized to a mutual insurance holding company structure. Building on this momentum, Frederick Mutual’s leadership are taking meaningful steps toward a range of opportunities that will improve balance sheet strength and ensure the Company’s long-term success.
Thank you for doing business with Frederick Mutual Insurance!