Dear Loyal Policyholders:
Once again I am pleased to report a successful year for Lawyers Mutual and our policyholders. We met our targets for underwriting profit, investment income and surplus growth, which enabled us to declare a dividend for the fifth consecutive year. Including the nearly $1 million dividend declared for 2015, we will have returned $6 million to you since 2011. As your 2015 policies expire, you will receive a check equal to approximately 5.7% of the final premium paid on that policy.
The theme for our 2015 Annual Report is “Forward Thinking” and I believe it is appropriate for several reasons, one being that looking and thinking forward are an inherent part of the insurance business. In Underwriting, we use our historical data, tempered with our business judgment, to project losses and required premiums for future policies. Very early in the life of a claim, our claims attorneys must set aside capital to reflect the amounts we believe we will pay in the future for defending a claim and indemnifying a claimant. Client Services looks to identify changes and trends in claims, law practice management and the practice of law, and develop new ways to keep you informed about these changes and trends. One of Accounting’s integral functions is to project future financial results, which is crucial to business planning and strategy. Last, but not least, is Information Technology.
There is no doubt that IT will continue to play a major role in shaping the future of the insurance industry. The same holds true at Lawyers Mutual. In 2016, IT will take center stage as we begin the process of replacing our aging enterprise system – a very exciting and challenging project in which many people will play important roles. After an extensive search, we have partnered with Insurance Systems Inc., to implement a more flexible, cost-effective system. A few of the primary objectives for the new system include improving analytics, functionality and policyholder interaction, creating efficiencies and allowing us to meet evolving policyholder needs.
While we believe this new enterprise system is an important step in positioning us for the future, we also appreciate that the practice of law and delivery of legal services have changed and will continue to change. The only real question is the pace of change. At Lawyers Mutual, we realize that in order to remain a relevant part of the legal community, we must continue to look ahead and try to understand how these changes will affect you so that we can provide meaningful solutions. After all, we want to be sure we are here tomorrow . . . and well into the future.
Watch our Annual Report 2015 Video and learn more.