Letter from the Chair




To the Members of AMIC:
A Message from the Chair

In 1989, 83 Alabama cities and towns formed the Alabama Municipal Insurance Corporation (AMIC) with the primary objective of creating a fair and stable way to address member’s insurance needs. For more than three decades, AMIC has been driven by this objective. Inflation, both social and economic, combined with supply and demand imbalances and financial market volatility made 2022 a challenging year. AMIC’s strong financial condition has allowed it to stay focused on its objective despite these challenges. AMIC will continue exploring innovative programs and services that add value to our members while addressing their current and future insurance needs. I am pleased to bring you this report on the activities of AMIC for 2022.


AMIC’s membership continues to hold steady with 589 insureds, including 392 municipalities, 81 utility boards, 41 solid waste/water authorities, 54 associations and 21 transit authorities. AMIC’s current market share exceeds 95%.


Since 1998, AMIC has returned to its participating capitalized members approximately $18,269,000 in dividend credits representing three times their initial capital investment. The AMIC Board recognizes the tremendous support of our members and is committed to the payment of dividend credits in recognition of that support. Beginning in 2023, dividends will be declared based on AMIC’s actual financial results instead of estimated results maximizing the return of any excess earnings to members in appreciation for the many years of support.

Loss Control

AMIC will continue to combine its Loss Control Division resources with the Municipal Workers Compensation Fund (MWCF). This team approach has allowed both programs to maximize the services and programs provided to members at a significantly reduced cost. The combined Loss Control Department consists of 10 dedicated staff members covering every aspect of our members’ operations. In 2022, Loss Control conducted 813 on-site Risk Management Review Surveys with members.


AMIC remains committed to providing cost-effective training options to our members. The SkidCar system, implemented in 2001, has been extraordinarily successful with over 22,683 police officers, firefighters and employees trained to date. The Firearms Training System (FATS), which provides state of the art decision-making training to law enforcement, has trained more than 9,369 police officers from departments throughout the state. In 2015, AMIC began providing members access to online training solutions through LocalGovU. To date, members have taken more than 47,000 courses.


We have just completed our 22nd year with all services in-house. This improvement has allowed AMIC to increase its quality of services, while reducing expenses by more than $40,000,000 over the last 22 years. To put it simply, that is $40,000,000 you get to use to improve your city or town. AMIC continues to monitor its costs and is working hard to keep its expenses and your insurance costs down.

On December 31, 2022, on a statutory basis, assets were $149,001,238 and surplus as regards policyholders (net worth) was $64,324,984. Direct premiums written now exceed $55,023,330 and net earned premiums are $39,569,579, which are 6% increases over 2021. The loss ratio rose slightly to 91% while the expense ratio dropped to 22% for a combined ratio of 113% for the second year in a row. The net leverage position of the company continues to be below 100% indicating surplus as regards policyholders remains more than adequate to support the level of risk being written by the company.


In closing, let me say it is a distinct pleasure to bring this excellent report to you. Membership continues to hold steady; member surplus is strong; and AMIC looks forward to Insuring the Future of Your Local Government.


Mayor Charles H. Murphy, Chair