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Through September 30, written premium for our Group (not including affiliate Michigan Millers) is at $627.9 million – which means we’re on track to meet our annual goal. Our loss ratio is 56.0% (vs. goal of 52.9%), our loss adjustment expense ratio is 10.3% (vs. goal of 10.8%), and our underwriting expense ratio is 29.5% (vs. goal of 30.8%) — adding up to a combined ratio of 95.8%. These numbers put us in a good spot to make our financial goals, but we know reaching the finish line will require our continued hard work and partnership.
Thanksgiving is in just a few days, and I want to take a moment to say “thank you” to you, our agency partner. It has been a very active year for storms across the country, which has been challenging for the whole industry. Through it all, you have continued to partner with us to serve our mutual policyholders, and I sincerely appreciate it. We look forward to our continued partnership.
You have no doubt witnessed 2022 as a year of challenges and uncertainty. In the context of the business of risk, we have responded to the needs of thousands of policyholders who sustained wind and hail losses from convective Midwest weather events. In the month of May, we experienced two severe events resulting in an accumulation of direct losses in excess of $45 million. For the entire year, catastrophic losses have exceeded $100 million. This represents a multiple of the typical severe weather we anticipate in a calendar year. The ability to absorb the volatility and severity experienced from these storms and remain within striking distance of our financial forecast is the result of a comprehensive reinsurance program with business partners quite literally located around the globe.
The issue of securing affordable reinsurance coverage going forward is a substantial headwind for the industry. Capacity will remain available to those companies with the underlying capital to absorb losses at higher thresholds. We take great pride in being in the company of those operating from a position of financial strength, and we will continue to have a strong comprehensive reinsurance program to support our business and our mutual policyholders.
