National Telcom Corporation
The State of the Company
President’s Report to Shareholders and Friends
Presented by:
Peter J. Elliott, CPCU
President and CEO
Because it has always been a matter of trust…
Introduction
I am a slow walker, but I never walk back. Abraham Lincoln (1809-1865) 16th US President
It has always been a matter of trust…
-Staff Slogan
Because it has always been a matter of trust…
Charles H. Creason, Jr.
Loren L. Duerksen
Peter J. Elliott
Bill D. Galyean
Michael F. Hagg
Raymond P. Henagan
F. Brad Irwin
Because it has always been a matter of trust…
Directors of NTC
Leroy H. Lage
Catherine F. Moyer
George W. Nostrand
Edgar L. Olson
Richard C. Parker- Chair
Lonnie D. Pedersen
Thomas E. Preston
David E. Schultz
Because it has always been a matter of trust…
Directors of NTC
State of the Insurance Industry2013 Combined Ratio 98.9% *
2012 Combined Ratio 103.2%
2011 Combined Ratio 108.1% as reported by ISO
*Rate of Return 3.5%
2010 Combined Ratio 102.4% as reported by ISO
2009 Combined Ratio 101% as reported by ISO
* Rate of Return 5.8%
2008 Combined Ratio 105.1% as reported by ISO
1959-2008 Average COR 104% as reported by ISO
2006-2007 was the last time where two years of underwriting profit, back-to-back,
have been earned. 2001-2004 was all positive, but 2008-2011 was not good.
*initial report by AM Best
Because it has always been a matter of trust…
Because it has always been a matter of trust…
Industry-12, 7, 4, 2, +5, +4.2
TIG- 5, 1.8, 1.7, .3 ,+.6, +1.7
State of the Insurance Industry
Because it has always been a matter of trust…
2013 Note Worthy
Written Premium
increased $1,520,270 and
Earned Premium was up
$669,982
Because it has always been a matter of trust…
2013 Note Worthy
Loss reserve down $309,774
Profit and loss from $518,785
to Unaudited $975,011.
Because it has always been a matter of trust…
2013 Note Worthy
Record Net Premium Earned
of $5,556,607 drives a Revenue
increase of $798,011.
Investment Income stable at
$492,849
Because it has always been a matter of trust…
2013 Note Worthy
Reported losses DOWN
Operating Expenses DOWN
Profit and Loss
2011 - ($141,137) - operational loss
2012 - $518,785 - operational profit
2013 - $975,011+ - pre-audit
Stock Value
…as of 12/31/12
Active Shares - 1433
Net Asset Value as of 12/31/11 - $4675
Net Asset Value as of 12/31/12 - $5082
Unaudited Net Asset Value as of 12/31/13 - $5676
Because it has always been a matter of trust…
Profit/Loss and Value
National Telcom Corporation - Serves 192 of 800 members (24%)
Developed Telcom Insurance Services Corporation in 1989 - Serves 285 of 800
(35.6%)
Insureds in 41 states
Because it has always been a matter of trust…
Members Benefit
Not Just Monetary Contributions to a Statewide Organization. Real
Products and Services that Give Money Directly to Insureds.
Because it has always been a matter of trust…
OSHA Compliance; Lightning Safety; Bucket Truck Training; Defensive
Driving and Safety First Driving Reporting; CPNI and Red Flags Rules
Guidelines; Teletracker Audits; and Ergonomic Job Task Analysis
Managing Risk
Because it has always been a matter of trust…
2014 and Beyond
Continued Growth of P&C and D&O Programs with an emphasis on
Geographic Spread and the opportunity to make an impact managing and
underwriting for Rural Trust Insurance Company.
Development of coverage that meets the specific needs of the group and
changing the way insurance transactions are handled to better meet the
needs of the customers. Trade Credit Risk and Reputational Injury as
examples.
The Staff of the Telcom Insurance Group appreciates the
support of our Shareholders, Sponsor, Policyholders, and
vendors. The efforts of the Staff, even with the success we
have achieved, would not mean much if it were not for the
relationship we enjoy with you!
Because it has always been a matter of trust…
Thank You!!!!
