Letter from the Chair




To the Members of AMIC:
A Message from the Chair

In 1989, 83 Alabama cities and towns formed AMIC with the primary objective of creating a fair and stable way to address member’s insurance needs. For more than three decades AMIC has been driven by this objective. Inflation, both social and economic, combined with supply-demand imbalances and financial market volatility made 2023 another challenging year. AMIC’s strong financial condition has allowed it to stay focused on its objective despite these challenges. AMIC will continue exploring innovative programs and services that add value to our members while addressing their current and future insurance needs. I am pleased to bring you this report on the activities of AMIC for 2023.


AMIC’s membership, continues to hold steady with 584 insureds, including 394 municipalities, 75 utility boards, 38 solid waste/water authorities, 57 associations and 20 transit authorities. AMIC insures approximately 95 percent of all public entities in Alabama.


Since 1998, AMIC has returned to its participating capitalized members approximately $18,269,000 in dividend credits representing three times their initial capital investment. The AMIC Board recognizes the tremendous support of our members and is committed to the payment of dividend credits in recognition of that support. Dividends are declared based on AMIC’s actual financial results instead of estimated results maximizing the return of any excess earnings to members in appreciation for the many years of support.

Loss Control

AMIC continues to combine Loss Control resources with the MWCF. This team approach has allowed both programs to maximize the services and programs provided to members at a significantly reduced cost. The combined Loss Control Department consists of 11 dedicated staff members covering every aspect of our members’ operations. In 2023, Loss Control conducted 624 on-site Risk Management Review Surveys with members.


AMIC remains committed to providing cost-effective training options to our members. The SkidCar system, implemented in 2001, has been extraordinarily successful with over 23,600 police officers, fire fighters and employees trained to date. The Firearms Training System (FATS), which provides state of the art “decision making” training to our police officers, has trained more than 9,500 police officers from departments throughout the state. In 2015 AMIC began providing members access to online training solutions through LocalGovU. To date, members have taken more than 48,000 courses.


We have just completed our 23rd year with all services in-house. This improvement has allowed AMIC to increase its quality of services, while reducing expenses by more than $40,000,000 over the last 23 years. To put it simply, that is $40,000,000 you get to use to improve your city or town. AMIC continues to monitor its costs and is working hard to keep its expenses and your insurance costs down.

On December 31, 2023, on a statutory basis, assets were $151,999,308 and surplus as regards policyholders (net worth) was $58,570,030. Direct premiums written now exceed $61,968,400 and net earned premiums are $41,169,357, 4% increases over 2022. The loss ratio rose slightly to 101.6% while the expense ratio dropped to 17% for a combined ratio of 118.6%. The net leverage position of the company continues to be below 100% indicating surplus as regards policyholders remains more than adequate to support the level of risk being written by the company.


In closing, let me say it is a distinct pleasure to bring this excellent report to you. Membership continues to hold steady; member surplus is strong; and AMIC looks forward to Insuring the Future of Your Local Government.


Mayor Charles H. Murphy, Chair