2024 Annual Report

After a challenging 2023 marked by record weather losses, last year produced our second-highest catastrophe results in our company’s history, with Hurricane Helene being our largest event. Despite this, Frankenmuth Insurance experienced improved underwriting results in both Commercial and Personal Lines, particularly during the fourth quarter. Workers compensation continues to be our best-performing line of business, and homeowners showed the greatest improvement in 2024.

Robust direct written premium growth in Commercial Lines, Personal Lines, and Surety continues to be driven by the impacts of inflation, labor and supply chain shortages, persistent severe weather, and elevated reinsurance costs. As a result, total premium volume for the year surpassed $1.2 billion, as both Commercial and Personal Lines reached new milestones of $800 million and $400 million, respectively.

Our financial position remains strong, stable, and secure. Admitted assets increased by more than 10%, and our policyholders’ contingency reserve fund grew more than $43 million, which provides peace of mind to policyholders who place their trust in us to protect what’s most important to them. Additionally, our financial strength and stability were affirmed by AM Best, with a Financial Strength Rating of A (Excellent) and a long-term Issuer Credit Rating of a+, with stable outlooks for both ratings.

In addition, we achieved two other major accomplishments. First, we completed a 10-year systems transformation initiative, replacing our core operating systems for claims, billing, and policy administration across all property and casualty lines of business. By the end of 2025, all policies will be fully converted to the new system. This significant investment, which was fully paid for without incurring any debt, provides greater efficiencies, streamlines workflows, and enhances processes, delivering more value to our policyholders by accelerating product enhancements and service offerings.

We also introduced our new Commercial Lines platform to better serve our independent agent partners for their small business clients. The new system streamlines business entry and submissions, introduces product upgrades, and speeds up issuance, enhancing coverage for small business owners and improving the agent experience. This has been well received and has exceeded early production targets.

Our independent agency partners and policyholders continue to recognize Frankenmuth Insurance as a leader in responsiveness and service. We place considerable value in empowering our team to deliver outstanding service, which is affirmed by our agency satisfaction survey results of 88% and Net Promoter Score (NPS) of 84.0. Our best-in-class NPS consistently exceeds industry benchmarks, indicating that our policyholders remain very satisfied with our service and are highly likely to recommend Frankenmuth Insurance to others based on their claims experience.

Frankenmuth Insurance donated more than $670,000 in 2024, giving back to the communities we serve through charitable contributions, college scholarships, and participation in local initiatives. This total includes disaster support for those most affected by Hurricane Helene, with donations directed to three organizations that provided immediate relief to the hardest-hit areas — reflecting our core values of caring, commitment, and teamwork.

In 2025, we are resuming geographic expansion, prioritizing growth, and supporting continued technological advancement. With our systems transformation complete, we plan to expand Commercial Lines in Virginia. At the same time, we are preparing to migrate our on-premises systems to a cloud-based platform; this transition will improve efficiency, enhance predictability, and accelerate our ability to bring new products and services to market. We will also be introducing new automation tools to further streamline operations, reduce costs, and continue delivering exceptional service to our agents and policyholders.

As we look ahead, we are grateful to our dedicated employees and loyal, independent agency partners — your hard work and commitment drive our continued success. To our valued policyholders, we thank you for your trust and confidence in Frankenmuth Insurance.

Fred A. Edmond, Jr., CPCU
CEO