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 members’ insurance needs. For more than three decades AMIC has been driven by this objective. Economic and social inflation issues continue to be challenges. AMIC’s strong financial condition has allowed it to stay focused on its objective despite these challenges. AMIC continues to explore innovative programs and services that add value to our members while addressing their current and future insurance needs as economically as possible in the current environment. I am pleased to bring you this report on the activities of AMIC for 2024, our 35th anniversary year!
Membership
AMIC’s membership continues to hold steady with 598 insureds, including 396 municipalities, 78 utility boards, 39 solid waste/water authorities, 65 associations and 20 transit authorities. AMIC insures approximately 95% of all public entities in Alabama.
Dividends
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, when declared, are based on AMIC’s financial results with excess profits returned to members in appreciation for the many years of support.
Loss Control
AMIC continues to combine Loss Control resources with the Municipal Workers Compensation Fund (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 2024, Loss Control conducted 601 on-site Risk Management Review Surveys with members.
Training
AMIC remains committed to providing cost-effective training options to our members. The SkidCar system, implemented in 2001, has been extraordinarily successful with over 24,420 police officers, firefighters 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 9,700 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 49,800 courses.
Financials
We have just completed our 24th 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 24 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, 2024, on a statutory basis, assets were $169,267,946 and surplus as regards to policyholders (net worth) was $61,504,650. Direct premiums written now exceed $71,900,000 and net earned premiums are $43,546,383, a 5.8% increase over 2023. The loss ratio dropped to 83.9% and the expense ratio dropped to 13.6% for a combined ratio of 97.5%. The net leverage position of the company continues to be below 100% indicating surplus as regards to policyholders remains more than adequate to support the level of risk being written by the company.
Conclusion
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.
Sincerely,
Mayor Charles H. Murphy, Chair