SVMIC – 2008 Financial Results – Part 2

Our last post discussed State Volunteer Mutual Insurance Company’s  $251,321,000 policyholder surplus.  This post will discuss other aspects of the company’s finances.

As of December 31, 2008, SVMIC had total assets of $1,324,500,000 assets.  (That’s $1.3 Billion).  The vast majority of those assets are in government (federal, state and local) and corporate bonds, although the company does have some stock holdings ($53M).  The conservative allocation of monies among these investment vehicles resulted in only a very small loss in investments in 2008.  The loss on the value of these investments sold was only $1.7M, although the the investments that continued to be held had a decline in value of about $23M. 

The total revenues of the company in 2008 were down about $12,000,000 to $246,000,000.  It is important to note that the number of policyholders decreased from 16,155 to 15,501, which certainly had an impact on revenue. 

Despite the fact that revenue fell, net income of the company increased by almost 20%, from $28.4M to $34.5M.   For the first time in years the company paid a dividend to its policyholders – the amount of the dividend was $3,900,000. 

My next post will discuss claims.