2025 Annual Report

We experienced double-digit growth for the third consecutive year, with direct written premium increasing 11.6 percent to more than $1.3 billion, exceeding our plan while reinforcing the value of our disciplined, relationship-driven approach to working closely with our independent agent partners.

Once again, we delivered positive results across our organization in 2025. Admitted assets increased 12 percent or $271 million, exceeding $2.5 billion, and our policyholders’ contingency reserve fund grew by nearly $74 million to $912.2 million. Additionally, our 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. Together, these support the financial foundation in providing peace of mind for policyholders, honoring our commitments to them while investing confidently in the future.

Commercial Lines, which represents 70 percent of our business and is offered in 15 states, delivered another year of consistent, profitable performance. Personal Lines and Surety also experienced meaningful improvement over the prior year, reflecting steady progress through our disciplined underwriting actions across our portfolio.

While the insurance industry integrates highly automated, low-touch new and renewal processes, our personal approach continues to be a differentiator, which is widely valued by our independent agent partners and a philosophy we will continue to embrace. This model has served us well, especially during changing market conditions and increasing customer expectations.

At the same time, we continue to leverage technology to improve efficiency, support decision-making, and help us stay agile. While the tools we use continue to evolve, our commitment to people does not. Insurance is, and always will be, a relationship-driven business. Leveraging technology allows us to operate more efficiently while preserving the personal connections that define our “neighbor helping neighbor” philosophy.

In the latter half of 2025, we resumed geographic expansion with the launch of Commercial Lines in Virginia — our first new state since 2009. As we strategically expand, our focus is on geographic diversification and spread of risk that will support continued profitable growth. Further supporting new and existing states, we are increasing investment in product offerings and enhancements as well as broadening our pricing sophistication capabilities.

Our commitment to you extends beyond financial performance. In 2025, we contributed $757,971 to strengthen the communities we serve through charitable giving, scholarships, educational support, civic and corporate giving, and employee volunteerism. These efforts reflect our support of the communities in which we operate, the insurance industry, and those in need.

We are equally proud of the trust placed in us by those we serve, empowering our team to deliver outstanding customer experiences. Claims satisfaction remained well above “best-in-class” industry benchmarks, with policyholders indicating they are highly likely to recommend Frankenmuth Insurance based on their experience. Agency partner satisfaction also remained strong, reflecting the value of our long-standing relationships and our commitment to dependable, responsive service.

None of this progress would be possible without the dedication and commitment of our employees and the trust and support of our loyal independent agency partners who are essential to our success. And finally, thank you to our policyholders for placing your trust and confidence in Frankenmuth Insurance to protect what matters most.

Fred A. Edmond, Jr., CPCU
CEO