The Hon. Bobby Payne

Chairman, AMIC Board of Directors

A Message from the AMIC Chairman

The insurance industry, which has been in chaos for the last four years, is settling into a more stable marketplace. The large premium increases created by the successive hurricanes have gone, which means more stable rates for our members. Regardless of the market conditions, AMIC continues to adhere to its original game plan, to provide a quality insurance product at a reasonable cost to its members.

Membership

We have added a total of 8 new members since we met last year. AMIC has continued to add to its membership which today stands at 563, including 397 municipalities, 89 utility boards, 40 solid waste/water authorities, 18 associations, and 19 transit authorities. AMIC’s current market share exceeds 95 percent.

Dividends

I am pleased to tell you that in 2008, AMIC will pay a 5 percent dividend for capitalized members. This equates to over $6,000,000 in dividend credits AMIC has returned to its participating capitalized members since 1998. Dividends will be paid to all participating members renewing with AMIC. This is made possible because of the tremendous growth and success AMIC has experienced over the last several years. I am also very pleased to report that AMIC continues to secure its A- (Excellent) rating by A.M. Best Company, the nations leading insurance company rating organization.

Loss Control

The focus for Loss Control this year will continue to be on expansion of services, more personal visits, and live training programs. AMIC and MWCF’s team approach has allowed both programs to provide eight dedicated staff members to focus on all aspects of our members operations – translating into more services and programs at a much reduced cost.

Training

AMIC and MWCF’s Skid Car system, which was implemented seven years ago, has been very successful with over 8,000 police officers, fire fighters and employees being trained to date. AMIC and MWCF have also instituted the Fire Arms Training System (FATS) which provides state of the art “decision making” training to our police officers. More than 2,700 police officers from departments throughout the state have completed the FATS course.

Financials

As AMIC moves into 2008, we have completed six years with all services in-house. These changes have allowed AMIC to improve the level and quality of services; at the same time expenses have been reduced in excess of $3,000,000 annually. With the current state of the insurance market this savings has gone a long way to allow AMIC to keep pricing down for its members.

On December 31, 2007, on a statutory basis, assets were $80,766,184 and net worth was $28,871,437. Earned premiums are $29,123,386, a 9.5% increase over 2006. Total gross annual premiums now exceed $38,000,000.

Conclusion

In closing, let me say it is a distinct pleasure to bring this excellent report to you. Membership is up, member surplus is at its highest level in nineteen years and AMIC’s future looks brighter than ever.

The Hon. Bobby Payne

Chairman, AMIC Board of Directors