Living Prepared


2018 Financial Year in Review

As we enter Spring, we can look forward to warmer weather, allergies, and increased home selling and buying.  In the worlds of finance officers and accountants, putting the finishing touches on 2018 year-end financials and wrapping up audits, are keeping us busy.  Before we say goodbye to 2018, let’s look at Prepared’s 2018 financial year.

In 2018, Prepared grew its topline premium over 10% from $54 million to $62 million.  During the latter part of 2017, we rebalanced our rates across the state, which helped support the 2018 premium growth.  The additional topline premium deferred some bottom-line income that the carrier otherwise would have recognized.  This impact is normal when a carrier grows its premium and was expected.  

We continued to adjust, and close claims received from Hurricane Irma in 2017 and Hurricane Michael in 2018.  We received approximately 3,800 claims in Irma and have paid out about $66 million as of December 31, 2018.  We attached to our reinsurance program and retained $3 million in Irma losses ourselves.  Michael was much smaller and stayed within the Company’s retention.

Throughout late 2017 and 2018, we adjusted our claims practices and the actuarial impact on our reserves was significant.  To offset that impact, the Company’s ownership invested an additional $12 million in capital.  At December 31, 2018 the surplus of the Company was $21.1 million, an increase over 2017. 

Prepared remains financially stable and ready to service your policyholders as we move through 2019.