UmialikXpress
Agency Bulletin
January 5, 2021
Umialik and Western National Insurance Group 2021 Annual Business Plan
While we embark upon a new year in very much the same pandemic-influenced state in which we (and the rest of the world) are ending the current year, the lessons we’ve learned – and the connectivity and resilience we’ve all demonstrated – over the course of 2020 have renewed our focus on Western National’s four strategic pillars for 2021: profitable organic premium growth; strong relationships with our Independent Agency partners; an exceptional service experience; and being an employer that fosters opportunity, engagement, and continued resiliency for all employees.
Starting with profitable organic premium growth: we expect to overcome 2020’s headwinds and return to a more-typical 8.9% premium growth in 2021. For those lines of business that remain challenged by loss activity and social inflation, we will resolutely match our pricing to the increased risk. We will also maintain our expense discipline while continuing to invest in the transformation of our core policy, billing, and portal systems (all now in development). We plan to release a new Personal Auto product in 2021 as this project’s first deliverable.
As for our second strategic focal area, we renew our full commitment to our partner Independent Insurance Agencies as the sole distribution system for our Group’s products. We also commit ourselves to responsiveness in carrying out our business with agency partners, with Western National employees empowered to deliver a proactive underwriting and claims service experience.
Achieving our mission of anticipatory, impressive customer service starts at home. That’s why we’re investing more in 2021 in the talent and tools that support how we provide that customer experience. We will use these resources to continue exploring, designing, and deploying solutions predicated on how our agents and policyholders want to interact with us. (And we’ll still be accessible on the other end of the line when a phone call is preferred.) Providing an exceptional service experience sustains our success.
As a final strategic area of focus, our core values must always align with what is good for our employees. The challenges we have faced as professionals and as a community this past year remind us there is nothing to be taken for granted if we are to continue to celebrate being an Employer of Choice, as a place where people want to work and grow professionally. This will involve expanding our focus on ways to keep employees safe, supported, and included.
Turning to the actual numbers for 2021 goals, we intend to meet these targets in the year ahead:
- Direct Written Premium of $796 million
- Loss and Loss Adjustment Expense Ratio of 63.3%
- Underwriting Expense Ratio of 29.9%
- Return on Revenue of 11.2%
These goals will produce a Combined Ratio of 94.2%. The addition of investment income produces a Net Income After Tax (NIAT) of $59.7 million and year-end surplus of approximately $660 million. (Note: these numbers do not include our affiliate Michigan Millers Mutual Insurance Company.)
It is a great source of privilege and pride for me to work with a team of peers and professionals so inherently passionate in their conviction to serve and deliver the promise entrusted to us by our agency partners and policyholders. Thanks to all of you who will help us carry out the plan above.
Rick Long, CPCU, AIC, Are
President – Western National Insurance Group
