Main Street America Group Reports Strong 2010 Results, Eyes Expansion

Jacksonville, Fla.-based The Main Street America Group reported that its 2010 financial results included 99.2 combined ratio, 9.1 percent net premium growth, a 16.8 percent return on equity and surplus growth of $78 million for the fiscal year ended Dec. 31, 2010.

Commercial lines, which accounts for 45 percent of Main Street America’s net written premium, was the company’s profit leader with a 90.3 combined ratio.

“Our outstanding performance in 2010 compares very well against the property/casualty industry,” said Tom Van Berkel, Main Street America’s chairman, president and chief executive officer.

Van Berkel said the company is “extremely well-capitalized,” which will allow its to continue expanding in both existing states and new states – including affiliations, acquisitions and partnerships.

With nearly $900 million in premium written by 2,000-plus independent insurance agents, the company now writes insurance in 27 states and writes bonds in 44 states.

Among the other 2010 financial highlights reported by the insurer:

• 16.8 percent return on equity was the result of the super regional property/casualty carrier’s underwriting profit and investment return of $105.1 million, just shy of its record $105.5 investment return in 2009.
• 99.2 combined ratio marked its fifth consecutive year of achieving an underwriting profit in a challenging property/casualty marketplace.
• Net written premium growth of 9.1 percent to $890 million was the company’s largest percentage growth in net premium since 2003. New business increased 14.3 percent.
• Surplus growth of $78 million raised the company’s total surplus to $770 million. Over the past two years, the company has increased its surplus by $162 million.
• Net income of $83.5 million, driven by the company’s strong investment results and underwriting profit.

In 2010, Main Street America said it saw its Main Line Business Owners Policy grow 34 percent as it was introduced in five more states. In personal lines, the company launched its new homeowners’ multivariate product, Homeowners MVP, in three states. The company expanded its surety market share by acquiring the surety division of CAIC Holding Co. in Texas, as well as appointing new agents in several other states. It also integrated its new affiliate, Grain Dealers Mutual Insurance Co., and began selling Main Street America’s products through Grain Dealers’ independent agents in several states.