The Honorable Billy Joe Driver

Chairman, AMIC Board of Directors

A Message from the AMIC Chairman

On the eve of AMIC’s 20th anniversary, I am pleased to bring you this report on the activities of the Alabama Municipal Insurance Corporation (AMIC).

Twenty years ago the League set out to create an insurance company that would provide its cities and towns with a stable, fairly priced insurance product. Twenty years later, despite hurricanes, hail and many other crises dominating today’s headlines, AMIC has stayed the course, weathered the storms and succeeded in meeting its original goals.

Membership

We have added six new members since we met last year. In fact, for the past 20 years, AMIC has continued to increase its membership, which today stands at 563, including 395 municipalities, 88 utility boards, 39 solid waste/water authorities, 20 associations and 21 transit authorities. AMIC’s current market share exceeds 95 percent.

Dividends

I am pleased to report that in 2009 AMIC will pay a 3 percent dividend for capitalized members. This equates to over $7,300,000 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 support from our members, which has equated to growth and success.

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 nine 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 SkidCar system, which was implemented seven years ago, has been very successful with over 9,000 police officers, fire fighters and employees trained to date. The Fire Arms Training System (FATS), which provides state of the art “decision making” training to our police officers, has trained over 3,000 police officers from departments throughout the state.

Financials

As AMIC celebrates its 20th Anniversary, we have just completed seven years with all services in-house. This improvement has allowed AMIC to increase the level and quality of services while reducing expenses by more than $3,000,000 annually. With the current state of the economy, AMIC has implemented several new cost cutting programs that will further reduce expenses and help keep your insurance costs down.

On December 31, 2008, on a statutory basis, assets were $81,429,393 and net worth was $25,152,426. Earned premiums are $30,911,914, a 5.8% increase over 2007. Total gross annual premiums now exceed $39,900,000.

Conclusion

In closing, let me say it is a distinct pleasure to bring this excellent report to you. Membership continues to increase; member surplus is holding steady; and AMIC looks forward to meeting your insurance needs for the next twenty years and beyond.

The Honorable Billy Joe Driver

Chairman, AMIC Board of Directors