Contact Shelter Insurance® at:
1-800-SHELTER (743-5837) • ShelterInsurance.com www.facebook.com/ShelterInsurance www.youtube.com/user/ShelterInsurance1 twitter.com/Shelter_ins www.linkedin.com/company/shelter-insurance-companies 2013 Overview
Table of Contents
To Our Policyholders...... 1
Our Commitment to Management Excellence ...... 2
2013 in Review...... 3-11
Companywide Information ...... 12
Family of Companies ...... 13
Financial Results ...... 14-25
Directors and Officers ...... 26
Community Involvement ...... 27-32 dfg Shelter Gardens We’re your Shield. We’re your Shelter. To Our Policyholders
We wish to begin this annual report by thanking retired board member Gerald Brouder for his years of service to Shelter Insurance® and extending our best wishes to his successor, David Monday.
For 2013, moderate catastrophe losses, elevated average premium per policy, improved policy retention, and solid invest- ment returns resulted in $135 million of combined income before tax for the Shelter Insurance Companies. Total gross property and casualty premiums written approached nearly $1.5 billion, policyholders’ surplus increased 12.1% and grew to over $1.566 billion, and total assets under management reached $5 billion as of the year end.
Shelter Mutual and Shelter General reported total net income before tax of $82 million. During the year, Shelter General paid an $8.2 million dividend to Shelter Mutual. Haulers’ gross written premiums were almost $35 million, an increase of 12% due to expansion efforts in Alabama and Georgia. Shelter Reinsurance experienced light catastrophic losses for the year and as such reported a 40% loss ratio and an underwriting gain of $32 million. During 2013, Mutual provided $50 million of additional paid-in capital to this organization in order to tap into potential growth opportunities. Re contributed a 15% return on average investment or $30 million to Shelter Mutual. Shelter Life continued to increase its insurance in force, which at year end was $22.6 billion. The return on average investment in this operation was 8.6%.
During 2013, Shelter Financial Bank was closed due to the imposition of additional federal oversight and regulation. The Bank merged with its parent, Shelter Financial Corporation, which now services the remaining 3,700+ loan portfolio. For the year, Shelter Financial Corporation provided over $3 million of net income before tax, paid a $6.3 million dividend, and returned $7.7 million of additional paid-in capital to Shelter Mutual.
A new subsidiary, Shelter Investments, LLC, was established during 2013 with a capital infusion by Mutual of $56 million in order to hold investments in Goldman Sachs’ managed accounts. As this subsidiary is in its infancy, investment returns will likely take time to develop. Daniel Boone Agency continued to report stellar return on average equity of almost 300%. Shelter Enterprises funded a new building in Tennessee to house Shelter Mutual’s claims branch facility as well as to offer rental space to outside parties. Lastly, Shelter Benefits Management Inc. continued to effectively manage Shelter’s human resource activities, now including the self-funded group health insurance plan.
As 2014 unfolds, the Company continues to plan and prepare for growth opportunities, diversification of risk and ex- panded geographic distribution. To achieve this strategy, plans for expansion into new states in the Western U.S. through the use of an independent agency model will be developed. Entry into new states should provide risk diversification from the Company’s heavily concentrated Midwest presence with its related propensity for wind and hail losses. This strategy also includes restructuring the direct sales channel in existing states, with a goal to provide superior service to customers who prefer using the internet, mobile devices or a 1-800 number to communicate with us. Geographic distribution expan- sion further includes increasing coverage in Colorado beyond the Front Range and spreading into northern Nevada. An expanded presence for Haulers in South Carolina will be pursued as well. Additionally, Shelter is preparing for increased reporting and business intelligence needs with the implementation of a new accounting system during 2014. The Com- pany also looks to expand the pre-loaded debit card program for certain claims payments, initiated during 2013, to other types of claims during 2014.
Shelter continues to produce solid financial results and strength in surplus. This attention to all areas ensures the future success of Shelter Insurance® as an industry leader in products and services, builds on our reputation for integrity and customer service, and solidifies our financial security. These efforts ultimately benefit our customers, employees, agents and their related communities.
J. Donald Duello Rick Means Chairman of the Board President & CEO
Shelter Insurance Companies / 1 Our Commitment to Management Excellence
Annual Meeting of Policyholders
Elects
Board of Directors - 9 Directors
Board Committees Reports Executive and
Investment Audit Compen sation
Appoints
Appoints Oversight
External Audit Oversight Firm Executive Management Audits
Internal Audit Oversight & Delegation
Home Office Operations and Branch Offices
Departments
Investments Accounting
Shelter Insurance Companies are governed by a nine- Shelter’s financial reporting process and internal member Board of Directors that is empowered to control system; appointing, reviewing, and assessing provide policy decisions and general oversight of the the independent audit firm; and providing an avenue of Companies’ operations. Key responsibilities include open communication among the independent auditors, reviewing corporate strategy and business plans and internal auditors, senior management and the Board. appointing officers. Three directors are elected annually by policyholders at the annual policyholders’ meeting. Other senior management committees are established Each director is elected for a three-year term. In addition, according to critical management issues. These the Board appoints three committees to directly assist committees are overseen by executive management. the Board in fulfilling its responsibilities: the Investment The goal of the Board and other committees is to Committee, the Executive and Compensation ensure a management structure that provides effective Committee and the Audit Committee. oversight and is responsive to key issues on behalf of the employees, agents and customers of the Shelter While all three committees are important, the Audit Insurance Companies. Committee in particular is charged with performing three functions: serving as an objective party to monitor
2 / Shelter Insurance Companies 2013 Year in Review
Different Market – Different Approach: Shelter Insurance® Heads West
In a noteable departure from its existing business model, model led the Company to seek out an end-to-end system in 2013, Shelter made the decision to begin laying the that is utilized by other companies that sell through groundwork to expand its operations west into new independent agents. territories. As part of westward expansion, the Company intends to employ a different channel to promote and sell Another area of emphasis leading up to the launching of its products in this new region. Whereas Shelter utilizes the new company is an effort to invest in the restructuring a captive agency force to write policies in its traditional of our direct business – business that is sold through 14-state operating region, it is anticipated that customers Shelter’s 1-800-SHELTER number as well as through its in the new sales area will purchase their coverage from web site. As the population becomes more comfortable independent agents through a newly formed subsidiary. with mobile devices, customers are increasingly inclined to forego a face-to-face meeting with a person in favor Although it will be several months before the first policies of interacting electronically with prospective insurers. To are sold in the new territory, foundational work continues meet the demands of this segment of the insurance-buying into 2014 as the Company readies itself for this new community, Shelter intends to leverage more dollars to challenge. A new policy administration system devoted publicize its capabilities in these areas. The Company solely to the new company is being purchased, which plans to develop its own policy administration system to is also a departure from current operating procedures. account for and service policies sold through these channels. In the past, Shelter has developed home-grown systems; nevertheless, the challenges of pursuing an additional distribution channel that is very different from the existing
Underwriting Programs Aim to Enhance Data Accuracy
During the past year, the Underwriting Department cancellation work if adverse results are found on the undertook several projects in an effort to provide more CLUE or MVR reports. With point-of-sale access to this accurate point-of-sale data for specific policy rating information, agents will be able to discuss the information purposes, increasing efficiency for agents and Home with the customer, immediately determine whether the Office staff as well as providing other data that canbe customer is still eligible and, if so, re-rate the policy. This used for future rating enhancements to more accurately program was implemented in pilot in 2013 and should be segment individual risks. Auto data prefill was initially completed in 2014. implemented in 2009 and continues to provide point- of-sale auto data to help with rating accuracy and agent Finally, investigative work was completed in preparation efficiency. for implementing three property point-of-sale products in 2014: ISO location property protection class verifier, Additionally, Young Driver Discovery was implemented CLUE-Property, and CoreLogic property wild fire score. in 2013, which provides information about young, newly- In addition, we will do the investigative work on property licensed drivers. This information ensures the young data prefill for future implementation. driver segment is paying the appropriate rate and not being unduly subsidized by other age segments. All of these initiatives potentially position the Company to provide more complete and accurate information to Further, CLUE-Auto and MVR reports are in the process the agent, which means policies are correctly rated at the of being moved to point-of-sale to provide accurate point of sale, which translates into better customer service. prior claim and driving record history to agents as they are quoting business. This process is currently a “back office” function that creates additional re-rating and/or
Shelter Insurance Companies / 3 Shelter Financials Prepare to Rise in Workday Cloud
A quest for greater transparency, accuracy and efficiency motivated the Accounting Department to begin the process of replacing the Company’s outdated mainframe legacy accounting system. Early in the year, a team of Accounting and Information Services personnel was formed to conduct a vendor search. The team’s efforts resulted in four companies being chosen for in-depth demonstrations. After evaluating the four options, a decision was made to move the Company’s financial and budgeting functionality away from a traditional, on-site mainframe model to Workday - a cloud-based, Software-as-a- Service (SaaS) provider.
Workday, an emerging player in cloud technology, along with Tidemark, a funded partner of Workday, will Much could be written about the benefits that are expected be utilized for the Company’s financial and budgeting as a result of this decision: functionality, automated work functions. Tidemark will facilitate the financial planning flow, ease of use, ease of implementation, and the ability and analysis function while Workday will accommodate to work with existing systems. It is also anticipated that not only financial accounting and reporting, but also fixed the capabilities within Workday will enable the Company asset management, procurement and travel and expense. to sunset several other products that have been needed The official agreement was signed in October of 2013, to make up for the inadequacies of the existing system. with a projected go-live date of September 1, 2014. Finally, since Workday is SaaS, there will be no need for on-site hardware and staff to maintain it. Those dollars and man hours will now be available for use on other projects.
“Shelter has a long and successful history serving millions of customers, and as we continue to expand those services, we need to ensure our company is prepared for the road ahead,” said Tina Workman, Vice President of Accounting and Assistant Treasurer, Shelter Insurance Companies. “Workday will remove many of the manual tasks that have held our team back from being able to deliver the critical insights we need to take our company to the next level. Workday will also allow us the ability to provide information back to the company at a much faster pace.”
“Shelter has led its industry by embracing change and innovation,” said Mike Frandsen, Vice President, Products, Workday. “By adopting Workday, Shelter empowers its finance team with a modern application that is flexible enough to change as fast as business requires and allows finance to work with—not for—information they need to deliver new levels of insights back to the business.”
Tina Workman signing Workday contract
4 / Shelter Insurance Companies Daniel Boone Agency, LLC Takes Steps to Ensure Future Growth
In the third quarter of 2013, Daniel Boone Agency, LLC improved training of employees through its standardized began implementation of an agency management system processes and daily workflows are also being counted on to improve its operational efficiencies and allow for growth to boost performance. in three key areas: revenue, efficiency and accounting. The ability to automate downloads of policy information, By eliminating manual administrative processes, brokers commission statements, premium invoicing, collecting can focus on quoting activities to increase growth and premium payables, and financial reporting will opportunities (i.e. traditional Shelter agents, Shelter provide more accurate information concerning operations. expansion agents and Haulers affiliated Independent Agents), enhance marketing efforts, and re-engage prospects.
The creation of a paperless environment and automated workflow represents a major upgrade to existing processes. The ability to drag and drop documents into client folders, fax from desktop and create professional documents and invoices will improve efficiencies as well. The addition of call analysis reports, submission logs, binder logs, suspense files, improved Errors and Omissions documentation, and
Nashville State Office Building Opens for Business
On July 31, Shelter hosted a ceremony and open house to dedicate its new Tennessee state headquarters. On hand for the ribbon cutting were President and CEO Rick Means, Executive Vice President Matt Moore, Claims Vice President Terry Dykes and several other representatives from the Home Office.
Located in Williamson County in the town of Thompson Station, the new office building is approximately 25 miles south of downtown Nashville and just about five miles south of Franklin, Tennessee where the office was previously located. The building is a two-story structure with a total of 31,000 square feet. The upper floor is occupied by the claims staff and has office space for the Regional Sales Manager. The first floor has 12,000 square feet of rental space. Tennessee Office Ribbon Cutting The office is located in a growing commercial area with a number of new businesses locating there. This business expansion will enhance the Company’s ability to attract “I think maybe the reasons you all decided to move here potential clients for this available space. are some of the same reasons a lot of us residents moved here,” Napier told Shelter officials. “This community “This is another great milestone for our community,” really is about a collective approach, saying let’s work Thompson Station’s Mayor Corey Napier said. “Shelter together and help one another, and I get that same feeling really complements the brand we are creating in from Shelter.” Thompson Station, he told the newspaper.
Shelter Insurance Companies / 5 New Claims Payment Options Now Available
An exciting new claim payment option for Shelter’s policyholders was introduced in 2013. The Shelter Insurance® ReStore Card™ (Prepaid MasterCard® instant- issue debit card) was implemented in the 4th quarter for payment of additional living expense and personal property advance payments following catastrophic claims. Funds are immediately available to the customer following card activation and the customer can access cash from ATMs and retailers nationwide. The first card was issued October 21 and as of December 31 a total of $104,702 in claim payments had been made using the debit cards. Plans are in place to expand the program in Diversity Initiative Moves Ahead 2014 to include personalized cards and additional types of claims, such as small personal property losses under $5,000. Over the past 24 months, Shelter Benefits Management Inc. has worked with Bellewether, a consulting firm, to assist with the development of a strategy and an implementation plan to move Shelter forward with its diversity initiative.
Shelter Express Term Life Policy Joins A Corporate Diversity Committee composed of Home Suite of Life Products Office and Field employees has been formed to identify opportunities and help lead the effort. With the support of Shelter Life Insurance Company introduced a new life an executive team, subcommittees have been instrumental insurance policy in 2013: the Shelter Express Term. This in spearheading the efforts. An Emerging Professionals product is a simplified issue product, which means no group was formed to offer an outlet for employees to better medical exam is required. The application contains a understand the industry, connect with other employees minimum number of health questions, is concise, and and further their professional standing by attending can be completed in a short amount of time. The policy meetings, networking events and other activities. is available to individuals in good health between the ages of 18 and 60. Face amounts available are relatively A Reverse Mentoring Program will pair a junior employee low: one-third of the new applications requested the with a Shelter officer, benefitting both employees. New maximum coverage available, $100,000, while the technologies and processes will be learned by the officer remaining applications have face amounts of $75,000 or while leadership and career advice can be passed along $50,000. Premiums remain level for 30 years or to age to the junior member. Diversity recruiting will expand the 65, whichever is earlier. A guaranteed death benefit is use of posting boards to target a broader audience. The provided to age 100. Company will also increase its community involvement with organizations with diverse memberships in Shelter’s operating territory. These activities are designed to increase diversity in the talent pipeline.
Finally, a new page has been added to the public website highlighting these exciting developments as well as other involvement Shelter has in the community. To read more about Shelter’s diversity initiative, visit the Company’s website: https://www.shelterinsurance.com/aboutshelter/ diversity/.
6 / Shelter Insurance Companies New TV and Radio Commercials Hit the Airwaves
After months of creative brainstorming and research, commercials from 2006 that featured dogs from various script writing, reviews, and detailed planning meetings, cities enjoying a nice car ride. Low resolution versions of Shelter’s new commercials launched in the fall of 2013. the commercials are available to view at ShelterInsurance. Three new and two re-vamped television commercials com/aboutshelter/tvandradioads/. as well as five radio commercials were produced for this campaign. Shelter’s team worked with a creative agency partner and a production company in Los Angeles to complete the project.
The new television commercials are called “Old Dogs,” Diversity Initiative Moves Ahead “Vignettes,” and “Peace of Mind.” The re-vamped commercials include two versions of the “Enjoy the Ride”
Director of Photography Andrew Shulkind preps the camera for the sinking of the lawn mower. Even though it was 100 degrees during production, young actor Dashiell Schletter did a great job.
The two stars of “Old Dogs” are veterans of other TV shows and commercials; however the bulldog Guapo (Spanish for “handsome”) enjoyed his first commercial. Many of the dogs and other animals the vendor provides are rescues that are The temperature was 98 degrees, so we had several volunteers from trained for this type of work. the crew to help sink the mower.
Shelter Insurance Companies / 7 Agent and Employees Recognized for Excellence
Each year Shelter confers awards on its Agent of the Year and Regional Branch Offices of the Year as well as recognizes a home office and a field office employee with a Standing Ovation Award.
For the second year in a row, Ray Schrock of Alexandria, Louisiana took home the prestigious Agent of the Year Award, an award only given to agents that qualify for the Conference of Champions.
Branch of Excellence awards were presented to employees in Lexington, Kentucky (central region), Springdale, Arkansas (southern region) and Lincoln, Nebraska (western region). Ryan Whitaker, district sales manager in Oklahoma was recognized as the Standing Ovation award winner for field employees while Danielle Harbour of the Life Company was honored as the Home Office recipient. Standing Ovation honorees are selected from monthly Cause for Applause winners selected each month throughout the year. Shelter Insurance® congratulates these individuals and branches for their outstanding contributions to the success of its operations.
Ray Schrock 2013 Agent of the Year
Danielle Harbour Home Office Standing Ovation Award Winner
Ryan Whitaker Field Standing Ovation Award Winner
8 / Shelter Insurance Companies Branch of Excellence Award Lexington, KY (Central Region)
Branch of Excellence Award Springdale, AR (Southern Region)
Branch of Excellence Award Lincoln, NE (Western Region)
Shelter Insurance Companies / 9 Ad Campaigns Win National Design Awards
The boat insurance campaign titled “It’s your Getaway” was honored in 2013 with a national award. The campaign received a “Certificate of Excellence” from GraphicDesign USA, which sponsors a design competition that has highlighted areas of excellence and opportunity in the field of graphic design for more than 50 years. The American In-house Design Awards is the original and the largest showcase for outstanding work by in-house graphic designers.
To qualify for the in-house category, all materials must be created by employees of the originating organization, not outsourced or edited by a freelance or graphic design agency. The “It’s your Getaway” campaign was created by members of the Advertising and Document Services departments to promote Shelter’s boat insurance.
The Inland Marine campaign tied to lost jewelry was also honored with an “Award of Excellence” from the Insurance Marketing and Communication Association (IMCA) during the June 2013 Showcase Awards. IMCA’s annual awards highlight the best in insurance marketing. Each category recognizes at least one Award of Excellence and one Best of Show in each category. Shelter was honored in the in- house product or image category for this promotion.
Shelter Sponsors Holiday Concert
Because of its title sponsorship for the Missouri Symphony Society’s Symphony of Toys Holiday Concert event, the Company was able to treat employees, agents, retirees and board of directors to a special event. The Symphony, under the direction of Maestro Kirk Trevor, performed a private holiday concert at the historic Missouri Theatre in downtown Columbia. Everyone was encouraged to donate at least $5 for the Central Missouri Food Bank with Shelter Insurance Foundation matching the donations. Thanks to the generosity of everyone in attendance, CEO and President Rick Means announced that evening that a check for $6,500 was ready to present.
10 / Shelter Insurance Companies Torch Run Promotes the Show-Me-State Games
As part of its sponsorship of the Show-Me-State Games, The Shelter Fountain was the final stop for the torch on Shelter helped to bring back the annual Torch Run leading July 19th. Employees were encouraged to brave the 100- up to the Games. The event had not been held for more degree temperatures to cheer the torch runners as they than 15 years when leaders at Shelter and the Show-Me- left the home office and ran approximately three miles to State Games decided to resurrect it. Torch run events took Mizzou Arena for the opening ceremonies, which were place in six cities throughout Missouri in June and July held that evening. including: The mission of the Shelter Insurance® Show-Me-State • Springfield: June 25 at Jordan Valley Park Games torch run is to generate exposure and enthusiasm for the Show-Me State Games throughout Missouri. The • Joplin: June 26 at Cunningham Park Show-Me-State Games is an Olympic-style sports festival • Lee’s Summit: July 2 at the Shelter Insurance® offering more than 40 events for all ages and ability levels. claims office The 2013 Games took place on June 14-16, July 19-21 and July 26-28 in Columbia, Missouri. • St. Charles: July 9 at Frontier Park • Jefferson City: July 19 at the Missouri State Capitol • Columbia: July 19 at the Shelter Insurance® home office
The media and local community leaders were invited to each event. Representatives from Shelter and the Games made brief comments encouraging participants and volunteers to join in the Games. Volunteer employees and agents then ran the torch a brief distance in each community. In Jefferson City, Governor Jay Nixon attended the event and passed the torch to the Shelter team.
Rick Means carried the torch on the first leg of the trip to Mizzou Arena.
The Home office torch run team ran from the Shelter corporate offices to Mizzou Arena in 100 degree weather!
Shelter Insurance Companies / 11 Companywide Information
Shelter Insurance Companies Financial Highlights ($ in Thousands)
($ in Thousands)
The Shelter Insurance® group is made up of the following operating companies:
Shelter Mutual Insurance Company Shelter General Insurance Company Shelter Life Insurance Company Shelter Reinsurance Company Haulers Insurance Company, Inc. Shelter Investments, LLC Shelter Financial Corporation Shelter Financial Services, Inc. Shelter Benefits Management Inc. Shelter Enterprises, LLC Daniel Boone Agency, LLC
12 / Shelter Insurance Companies Family of Companies
Shelter Insurance® first opened its doors in 1946, providing affordable auto insurance to Missourians. With a policy of integrity and customer service for the benefit of our customers, employees, agents and communities, Shelter has grown to be an industry leader in insurance, financial products, and services. In fact, we are now one of the nation’s most successful and financially sound regional insurance groups, with an international reinsurance operation.
Our financial strength ratings as determined by A. M. Best:
Shelter Mutual Insurance Company A (Excellent) Shelter General Insurance Company A (Excellent) Haulers Insurance Company, Inc. A (Excellent) Shelter Life Insurance Company A (Excellent) Shelter Reinsurance Company A (Excellent)
Office Locations:
Jonesboro, AR Lexington, KY Oklahoma City, OK Little Rock, AR Baton Rouge, LA Tulsa, OK Springdale, AR Jackson, MS Lincoln, NE Denver, CO Columbia, MO Las Vegas, NV Springfield, IL Kansas City, MO Columbia, TN Indianapolis, IN Springfield, MO Nashville, TN Topeka, KS St. Louis, MO
Operating territory for Shelter Mutual, Shelter General and Shelter Life:
Shelter Insurance Companies / 13 Financial Results
Mutual and General Operations
Net earned premiums increased 4.9% compared to 2012 written to policyholders’ surplus, which was 100% and reached $1.275 billion. The overall economy appears in 2013. Furthermore, the Companies had no long- to be improving, with ending policy count up over 25,000 term debt obligations. These positive factors provide policies for the year. Rate competition continues to be a policyholders the assurance that Shelter Insurance® is a threat, but overall customer retention improved 33 points, well-capitalized and stable organization, able to fulfill its resulting in keeping almost 7,500 policies representing future commitments. over $5 million in premium. Due to a corporate decision Shelter General will no longer write private passenger Pre-Event Catastrophe Reserves auto and as a result written premium began to diminish (in Millions) during 2013. As a General policy is renewed for this line, it will be transferred to Shelter Mutual.
These organizations’ direct operations incurred $265 million of weather related events, which represents a small increase from the $255 million reported for 2012, but the same percentage of premium. Even though these losses were greater, 25% of weather-related claims were attributable to the Moore, Oklahoma tornado, indicating an overall lower frequency of events but higher severity. Furthermore, these organizations added $24.2 million to their voluntary pre-event catastrophe reserves, contributing Shelter Mutual an extra 1.9 points to the direct loss ratio. There was Surplus as Regards Policyholders $96.7 million in the earthquake reserve and $35.7 million (in Millions) in the weather reserve in total at year end. Adequate loss reserves continue to be maintained, adjustment expenses remain stable and underwriting expenses as a percentage of premiums written are consistent year over year. The total underwriting loss for the year was just under $44 million - an $18 million improvement over 2012.
Total invested assets have grown 6.3% for the year, but investment yields are diminishing. In total, investment returns provided $116 million for these organizations and reflected gains from limited partnerships and common stock holdings as well as an intercompany dividend of $6.3 million from Shelter Financial Corporation. General Shelter Mutual Insurance Company also provided an $8.2 million dividend to Mutual for the Shelter General Insurance Company year. Total net income before tax was $82 million. Net Income After Taxes (in Millions) Higher premiums, improved underwriting, and continued favorable market adjustments on equity securities resulted in a $169 million increase to Mutual’s policyholder surplus, or 12.1% for the year, which ended at $1.567 billion.
Mutual and General were rated A (Excellent) by A. M. Best Company during 2013. Another indicator of financial strength was the percent of net premiums
14 / Shelter Insurance Companies Financial Results (continued)
SHELTER MUTUAL INSURANCE COMPANY
Statements of Admitted Assets, Liabilities, and Surplus (Statutory Basis)
December 31 2013 2012 (In Thousands) Admitted Assets: Bonds $ 1,209,265 $ 1,122,140 Investments in affiliates 642,110 548,191 Common stocks, unaffiliated 375,318 327,445 Other invested assets 296,354 211,479 Cash and short-term investments 39,938 68,366 Real estate 32,839 36,502 Total Cash and Invested Assets 2,595,824 2,314,123
Premiums receivable 93,937 83,728 Deferred income tax asset 26,310 56,093 Accrued investment income 14,183 14,846 Income tax recoverable 6,601 1,111 Other assets 19,690 20,412
Total Admitted Assets $ 2,756,545 $ 2,490,313
Liabilities and Surplus: Unearned and advance premiums $ 485,453 $ 456,777 Unpaid losses and loss expenses 400,341 404,031 Catastrophe reserves 130,952 107,297 Accrued expenses 63,732 59,078 Borrowed Funds 47,087 – Drafts payable 41,370 37,359 Other liabilities 20,706 27,883 Total Liabilities 1,189,641 1,092,425
Total Policyholders' Surplus 1,566,904 1,397,888
Total Liabilities and Surplus $ 2,756,545 $ 2,490,313
Shelter Insurance Companies / 15 Financial Results (continued)
Shelter Mutual and Shelter General Property and Casualty Products
Shelter’s exclusive agents offer the following property and casualty products:
Auto Property and Casualty Net Written Premium Private Passenger Auto ($1.3 Billion for 2013) Commercial Auto Motorcycle Recreational Vehicle
Property Homeowners Mobile Homeowners Farmowners Dwelling Fire Farm Fire Apartment Owners Personal Inland Marine Boatowners Assets Under Management (in Billions) Liability Personal Umbrella General Liability Comprehensive Farm Liability
Business Business Owners Commercial Fire Commercial Inland Marine Cargo
Property and Casualty Net Earned Premium and Policy Count Mutual & General
($ Thousands) 2013 2012 2011 2010 2009 Net Earned Premium $1,275,422 $1,216,150 $1,169,923 $1,110,194 $1,038,065 Percent Change 4.87% 3.95% 6.95% 4.25% 2.54%
(Thousands) Policy Count 1,931.1 1,905.9 1,896.0 1,894.5 1,861.5 Percent Change 1.32% 0.52% 1.77% 3.44% 2.76%
16 / Shelter Insurance Companies Financial Results (continued)
SHELTER GENERAL INSURANCE COMPANY
Statements of Admitted Assets, Liabilities, and Net Worth (Statutory Basis)
December 31 2013 2012 (In Thousands) Admitted Assets: Bonds $ 133,435 $ 140,301 Investments in affiliates 11,888 9,997 Other invested assets 3,194 3,095 Cash and short-term investments 1,229 4,103 Total Cash and Invested Assets 149,746 157,496
Premiums receivable 7,694 9,916 Other assets 4,749 3,616
Total Admitted Assets $ 162,189 $ 171,028
Liabilities and Net Worth: Unpaid losses and loss expenses $ 54,122 $ 52,681 Unearned premium 23,261 29,599 Accrued expenses 1,498 2,322 Other liabilities 3,804 4,274 Total Liabilities 82,685 88,876
Net Worth 79,504 82,152
Total Liabilities and Net Worth $ 162,189 $ 171,028
Shelter Insurance Companies / 17 Financial Results (continued)
Haulers Insurance Company, Inc.
Haulers recorded $34.7 million of direct written premium, Weather-related claims were down considerably over the an increase of $3.8 million or 12.2% from the previous previous year as there were only 27 catastrophe claims year. Increased production in two new states, Georgia compared to 261 in 2012. In total, claim counts were and Alabama, contributed in part to this growth. Georgia down 1.7%; however, management decided that the rapid expanded 50% to $4.7 million and Alabama developed growth warranted the boosting of loss reserves by $2.6 226% to $1.2 million over 2012. In addition, a greater million. This decision resulted in a loss ratio of 72.1% for focus on the sale of commercial policies led to further the year and net loss after tax of $33 thousand. growth in premium, constituting 35% of the overall written premium dollar but only 21% of ending policy Total assets were up $7.3 million, or 12.4% due to count. Continued geographic and product expansion led increased investment in bond holdings. Net worth for the to net earned premiums rising by 9.6% to a record $32.0 Company increased $463 thousand. million. Policies in force grew 4.3% to 34,849.
Haulers Insurance Company Haulers Written Premium by State (in Millions) ($34.7 Million for 2013)
Haulers Insurance Company Total Assets Haulers Insurance Company Net Worth (in Millions) (in Millions)
18 / Shelter Insurance Companies Financial Results (continued)
HAULERS INSURANCE COMPANY, INC.
Statements of Admitted Assets, Liabilities, and Net Worth (Statutory Basis)
December 31 2013 2012 (In Thousands) Admitted Assets: Bonds $ 53,988 $ 46,280 Real estate 939 961 Cash and short-term investments 1,373 4,167 Total Cash and Invested Assets 56,300 51,408
Accrued investment income 539 511 Premiums receivable 7,290 6,275 Other assets 1,582 257
Total Admitted Assets $ 65,711 $ 58,451
Liabilities and Net Worth: Unpaid losses and loss expenses $ 17,487 $ 12,068 Unearned premium 11,404 9,814 Other liabilities 1,058 1,270 Total Liabilities 29,949 23,152
Net Worth 35,762 35,299
Total Liabilities and Net Worth $ 65,711 $ 58,451
HICI State License Map
• Writing Currently • Also Licensed
Shelter Insurance Companies / 19 Financial Results (continued)
Shelter Life Insurance Company
Shelter Life recorded profitable results in 2013 with net New life and single life premium was $20.3 million, income before taxes of $19.8 million, down from $22.2 down slightly compared to 2012. Life renewal premium million in 2012. Net worth for 2012 increased $16.2 ended 2013 at $89.1 million, which is up 3.7% from last million to $181.6 million. Assets held continued to grow, year. Overall, Shelter Life added over $800 million to life reaching $1.078 billion. These positive outcomes were insurance in force, bringing the overall total up to $22.6 the result of increased bond and short-term investment billion. Policy count also increased by 2.7%. holdings purchased with positive cash inflows. In total, premium collected was down in 2013 because A new simplified issue term life insurance product was of the decision to move a large portion of a fully insured introduced in 2013 to fill a gap in our product offerings. (through Shelter Life) group health program to a self- The Shelter Express Term policy provides protection to funded plan. Shelter Life received a strength rating of age 100 for individuals between the ages of 18 and 60 A (Excellent) by A.M. Best and A- (Excellent) by Weiss and requires minimal health information. Ratings. These ratings provide further evidence of the strength and stability of Shelter Life Insurance Company.
Net Income Before Taxes Life Insurance in Force (in Millions) (in Billions)
Premium and Annuity Considerations Shelter Life Insurance Company Total Assets (in Millions) (in Millions)
20 / Shelter Insurance Companies Financial Results (continued)
SHELTER LIFE INSURANCE COMPANY
Statements of Admitted Assets, Liabilities, and Net Worth (Statutory Basis)
December 31 2013 2012 (In Thousands) Admitted Assets: Bonds $ 925,352 $ 892,516 Other invested assets 34,474 33,487 Policy loans 24,924 25,095 Mortgage loans on real estate, affiliated 11,627 5,425 Investments in affiliates 10,807 9,088 Cash and short-term investments 9,632 20,753 Total Cash and Invested Assets 1,016,816 986,364
Deferred and uncollected premiums 31,753 30,092 Deferred tax assets 13,488 12,764 Accrued investment income 11,066 10,179 Other assets 5,325 5,402
Total Admitted Assets $ 1,078,448 $ 1,044,801
Liabilities and Net Worth Aggregate reserves $ 814,431 $ 788,853 Liability for deposit type contracts 57,310 57,858 Policy and contract claims 4,470 9,691 Due to affiliated companies 3,545 3,876 Asset valuation reserve 4,871 3,592 Other liabilities 12,247 15,543 Total Liabilities 896,874 879,413
Net Worth 181,574 165,388
Total Liabilities and Net Worth $ 1,078,448 $ 1,044,801
Products Offered - Life 20-Pay Whole Life Secure Whole Life EZ Term Shelter Express Term Junior Special Whole Life Level Term to Age 100 (10, 20, 30 Years) Yearly Renewable Term Platinum Shield® III Universal Life
Shelter Insurance Companies / 21 Financial Results (continued)
Shelter Reinsurance Company
Shelter Reinsurance achieved excellent financial results in 2013 and finished the year in a very strong position. These results were driven by relatively low claims activity and the investment of an additional $50 million in capital from Shelter Mutual. Re’s combined ratio was 68% resulting in income before taxes of $43.1 million and a record $245.4 million in total net worth.
Profitable growth continued to be the goal for both the domestic and international sectors of Shelter Re. Total gross written premium ended the year at $107.1 million, which is down slightly over 2012, but the decline was anticipated due to very soft global reinsurance rates. Although reinsurance premium declined, Re’s portfolio continued to experience excellent treaty growth at 14% and global dispersion of risk with writings in approximately 60 countries. For the first time in recent history, Shelter Reinsurance had more international treaties than domestic treaties, resulting in improved spread of risk. A.M. Best continued to rate Shelter Reinsurance as A (Excellent) with a stable outlook.
Although overall catastrophe activity declined over 2012, there were still a number of significant events where Shelter Re was there to pay for partners’ losses. The five largest events on an incurred basis were the Alberta, Canada, Flood ($2.7 million), the Central Europe Flood ($2 million), the Philippines’ Typhoon Haiyan ($3.3 million), the West Texas Explosion ($1.4 million) and Central Europe’s Windstorm Christian ($1.7million). While none of these losses approached the scale of losses in prior years, there was still quite a bit of global claim activity. Shelter Reinsurance also continues to pay losses from the devastating 2011 earthquakes of Tohoku (Japan) and Lyttleton (New Zealand).
Shelter Reinsurance remains financially strong by nurturing and maintaining business relationships with client companies world- wide. These companies vary in size and writings, but a target underwriting focus continues to be placed on small to mid-size mutual or cooperative organized companies. Shelter Re has been able to develop a number of excellent new relationships by partnering with like-minded organizations around the globe. Worldwide, the regions that have grown the most in written premium in 2013 were Oceania, Israel and Canada. The two largest regions in the portfolio continue to be the United States and Europe (including the United Kingdom).
Looking to the future, Shelter Reinsurance is committed to maintaining a strong, long-term presence in the marketplace. Potential new territories and client companies are closely analyzed for acceptability and diversification. Re’s continued reputation for prompt claims payment, exceptional customer service and solid financial strength enables it to continue to diversify and support the Shelter Insurance® group of companies.
22 / Shelter Insurance Companies Financial Results (continued)
SHELTER REINSURANCE COMPANY
Statements of Admitted Assets, Liabilities, and Net Worth (Statutory Basis)
December 31 2013 2012 (In Thousands) Admitted Assets: Bonds $ 334,688 $ 267,293 Cash and short-term investments 23,252 30,237 Other equity investments, affilitated 596 548 Total Cash and Invested Assets 358,536 298,078
Accrued investment income 3,648 3,097 Deferred tax asset 3,263 3,534 Premiums receivable 1,906 6,372 Other assets 15,603 10,768
Total Admitted Assets $ 382,956 $ 321,849
Liabilities and Net Worth Unpaid losses and loss adjustment expense $ 110,691 $ 125,188 Unearned premium 21,331 21,973 Other liabilities 5,505 9,524 Total Liabilities 137,527 156,685
Net Worth 245,429 165,164
Total Liabilities and Net Worth $ 382,956 $ 321,849
Shelter Reinsurance Company Distribution of Signed Premium
Shelter Re s www.shelterre.com
Shelter Insurance Companies / 23 Financial Results (continued)
Shelter Financial Corporation
In September of 2012, Shelter Insurance® announced the Loan Loss Reserve Ratio eventual closing of Shelter Financial Bank. Driving this (Loan Loss Reserves / Gross Loans) decision were the new banking regulations, including the Dodd Frank Act and more specifically the Volker Rule, which imposed unusual restrictions and regulatory burdens on insurance companies that own banks. The dissolution of Shelter Financial Bank was completed on March 22, 2013.
The dissolution process required closing all deposit accounts. In order to fund the closing of these deposits, Shelter Mutual Insurance Company provided a line of credit. Some of the deposits and loans were sold to a local bank, which expedited the closure; however, the majority of the loans were retained by its parent company, Shelter Financial Corporation, a wholly owned subsidiary of Shelter Mutual Insurance Company. Although no new Shelter Financial Corporation Net Income loan applications are being accepted by Shelter Financial (in Thousands) Corporation, the same great level of service is being provided to those policyholders, customers and agents that currently have an outstanding loan.
Net income for Shelter Financial Corporation for 2013 was $2,059,000. Loan balances on December 31, 2013 were $75,880,000.
Shelter Financial Corporation Total Assets (in Millions)
24 / Shelter Insurance Companies Financial Results (continued)
SHELTER FINANCIAL CORPORATION
Statements of Financial Condition
December 31 2013 2012 (In Thousands) Assets: Loans, net $ 77,925 $ 137,598 Certificates of Deposit – 247 Federal home loan bank and MIB stock, at cost 1,185 3,073 Cash and due from banks 1,823 1,576 Accrued interest receivable 248 440 Other assets 478 1,683
Total Assets $ 81,659 $ 144,617
Liabilities and Net Worth: Deposits $ 189 $ 61,069 Other borrowed funds 75,562 34,023 Federal funds purchased – 29,424 Other liabilites 335 2,576 Total Liabilities 76,086 127,092
Net Worth 5,573 17,525
Total Liabilities and Net Worth $ 81,659 $ 144,617
Shelter Insurance Companies / 25 Directors and Officers
BOARD OF DIRECTORS
J. Donald Duello, Chair and Director Barry L. McKuin, Vice Chair and Director Deborah L. Douglas, Director Randall C. Ferguson, Jr., Director Andrés Jiménez, Director Don A. McCubbin, Director Rick L. Means, Director David R. Monday, Director J. David Moore, Director
OFFICERS
Rick L. Means, President and Chief Executive Officer S. Daniel Clapp, Executive Vice President and Treasurer Teresa K. Magruder, Executive Vice President Madison M. (Matt) Moore, Executive Vice President
David N. Abbott Joe L. Moseley Vice President of Investments Vice President of Public Affairs
Rockne P. Corbin Randa Rawlins Vice President and General Manager Secretary and General Counsel Shelter Reinsurance Company
Terry L. Dykes John T. Rooney Vice President of Claims Vice President of Information Services
Paul J. LaRose Francis (Frank) L. Thompson IV Vice President Vice President of Marketing Shelter Benefits Management Inc.
H. Lloyd Montgomery, Jr. Todd J. Weyler Vice President of Alternate Channels Vice President of Underwriting
Christina M. Workman Vice President of Accounting and Assistant Treasurer
26 / Shelter Insurance Companies Community Involvement
Shelter Insurance® Names Paul and Sally Hoos as 2013 Heinkel Award Winner
Shelter agent Paul Hoos and his wife, Sally, a middle learned of three children—eight-year-old twin girls and school teacher, were awarded the Fred V. Heinkel Award their sister—who were going to be separated for adoption. for Excellence as a result of their exceptional humanitarian Paul and Sally couldn’t let that happen so they brought all efforts to adopt and raise five children. three into their family.
Paul and Sally entered the Foster and Adoptive Families The Fred V. Heinkel Award for Excellence is presented program of the Nebraska Department of Health and annually to one or more individuals that have Human Services in 1999 when Brionna joined the Hoos’ demonstrated excellence in any area of science, medical household. They finalized the adoption of Brionna 10 research, health services, education, history, agriculture, years ago. Mackenzie came to live with Paul and Sally athletics or any other field designated by the foundation’s in 2001 at the age of one month. Four years later, they board of directors.
Recruiting and Development Team Funds Coyote Hills Baseball Program
The 27-member Recruiting and Development team of Shelter Marketing embraced the project of acquiring both funds and equipment to help establish a baseball program for the children of Coyote Hill, a professional home of love for abused and neglected children.
The R&D team kicked-off the program in late January, and, while serving as guest advisors for a New Agent Fundamentals I School, presented a significant mass of baseball equipment as well as $1,245 in donations to Kari Salmon of Coyote Hill. Recruiting and Development Team Coyote Hill provides children with licensed counseling and professional social work services. The facility consists of three homes on 150 acres near Harrisburg, Missouri. beach with swimming area, mountain biking and walking In addition to each home having its own basketball court, trails, camping sites, a BIG sledding hill, and plenty of the children and youth have jungle gyms, tether balls, and room to roam. The property was donated by Mark Zimmer, swing sets. Also on the property are two fishing lakes, a retired vice president of Marketing, and his wife, Laurene.
Team Shelter Scores Big for MS
Now in its 7th year of pedaling for MS, Team Shelter, consisting of 25 cyclists and 11 volunteers, rode over 2,500 combined miles and raised over $10,000 for the Gateway Area Chapter of the National Multiple Sclerosis Society. Congratulations to this team of pedal pushers!
Team Shelter
Shelter Insurance Companies / 27 Shelter/West Partnership Celebrates 29th Birthday
As a long-time supporter of education, Shelter is proud of during the school year. The its continuing association with West Middle School (WMS Company also honors a worthy v - formerly West Junior High School) as part of Columbia, educator with an Outstanding i Missouri’s Partners in Education initiative. Contributor Award, which includes k a framed certificate and a i n Each May, all of the Columbia schools and businesses that $2,000 honorarium from the participate in the Partners in Education program gather in g Shelter Insurance Foundation. s downtown Columbia at Courthouse Square to kick off This recipient is nominated by Partner in Education Week and to celebrate the program students and parents with the and the impact it has made on Columbia youth. The next winner being selected by WMS staff. day, representatives from Shelter and WMS meet in front of the Newcomer Schoolhouse located in Shelter Gardens Other activities that mark this association include to raise the Partners in Education flag, celebrating their musical performances by various school groups unique relationship and marking the beginning of a new during Shelter’s annual policyholder meeting and the year of activity between Shelter and WMS. Spring/Winter celebrations around Shelter’s landmark fountain. Additionally, the Jazz Band usually makes a Shelter continues to award scholarships to one male couple of appearances a year in the Shelter cafeteria, student and one female student. Additionally, the Lehr/ entertaining employees during the lunch period. Battle Outstanding Achievement Award is presented to one male student and one female student at the end-of- Art students continue to participate in the Christmas the-year awards assembly. The Lehr/Battle Award, a non- greeting card contest, producing original works of art monetary award, recognizes outstanding performance for the competition. The contest provides a real-world teaching tool for the faculty by enabling students to put into practice specific techniques learned in the classroom. Three entries are selected to be printed and packaged for purchase by Shelter agents, employees and retirees as well as WMS staff and families of students. Shelter is also instrumental in helping WMS with fund-raising projects and providing mentors to students. These and other activities continue to serve this partnership well as it embarks on its 30th year.
Above, from left: Dzung Nguyen, Bridget Hartley, and Esther Brooks.
Shelter Insurance Foundation Provides Vital Funding
The Shelter Insurance Foundation continues to support Other causes that have benefited from significant many causes throughout Shelter Nation, enriching the lives Foundation donations include the Community Foundation of others and enabling many to live their dreams. A major of Central Missouri, American Cancer Society Coaches vs supporter of higher education, the Foundation continues Cancer, The White House Jesuit Retreat House, Central to award financial aid to students through its scholarship Missouri Food Bank, Conway County Community programs: Agents’ Scholarship Program, Scholarship Foundation, Special Olympics, Roots and Blues Festival, Program for Children of Employees and Agents, West Friends of Music, Plan USA, and March of Dimes. The Middle School Scholarship Program, the B.M. Seamon Shelter Insurance Foundation is pleased to be able to Scholarship Program and its program for matching participate in these worthy projects, not only in its role contributions. Overall, the Foundation contributed a total as a non-profit foundation but also in partnership with the of $855,000 in scholarships during 2013. Company’s employees.
28 / Shelter Insurance Companies Shelter Cares
280 Hours volunteered by employees at dfg the Central Missouri Food Bank 200 Hours volunteered by employees at the Live United Action Team Project 150 Hours volunteered by employees at the Company’s partner in education, West Middle School 30 Hours volunteered by employees at Clean Up Columbia 25 Hours volunteered by employees at 24 Hours the Salvation Army volunteered by employees at Lunch in the Park
Several years ago, the Company established a committee The volunteer efforts extended beyond the projects noted to coordinate volunteer opportunities for employees above. Shelter employees also provided support for other who wished to give back to the Columbia community. community efforts such as the Bike Safety Challenge, Roots The committee was named Shelter Cares and has been ‘n’ Blues BBQ Festival, Phoenix Family Services, City instrumental in providing thousands of service hours of Columbia Spook-Tacular, Meals on Wheels, Special in and around Columbia. For 2013 alone, 280 hours Olympics, Show-Me-State Games, Columbia Homeless were spent at the Central Missouri Food Bank, helping “Room at the Inn” Program, Columbia Parks and Rec package food for distribution through central and northern activities, and the City of Columbia Eggstravaganza. Missouri. The Live United Action Team Project benefited as well from 200 volunteer hours from Shelter staff. Clean While not officially a part of the Shelter Cares program, Up Columbia (30 hours), Salvation Army (25 hours) and Shelter employees also donated close to 150 volunteer Lunch in the Park (24 hours) also received assistance from hours to the Company’s partner in education, West Shelter Cares volunteers. Middle School.
Shelter Insurance Companies / 29 Shelter Lends a Helping Hand at Home and Abroad
Although Shelter Cares coordinates volunteer activities in the metro Columbia area, there are many more charitable projects that take place throughout Shelter country. Staff from the customer call center in Kansas City worked together to purchase school supplies and make them available to those who were unable to afford the basics. These contributions were donated to the Hope House, which provides shelter and comprehensive services to survivors of domestic violence. The call center employees also joined the branch staff in adopting a military veteran and providing Christmas gifts for the children.
Across the state in St. Louis, members of the Claims branch Kansas City Claims conducted a two-week food drive to benefit Operation Food Search, which serves the greater St. Louis area. The staff also participated in a fun-raiser to benefit the United Way. Through a series of fun events, they were able to exceed their monetary goal for the third year in a row. We can’t promise that no one was hurt during the tricycle race!
The United Way Day of Caring event in Springfield, Missouri featured several Shelter employees who donated their time and energy helping the Community Partnership of the Ozarks. Volunteers assisted with landscaping projects, painting, and cleaning and organizing office space. Meanwhile, a little further south in Springdale, Arkansas, members of the Claims office donated time and money to Equestrian Bridges, a program to empower St. Louis Claims children and youth considered to be at risk for social, behavioral or academic delays. This program provides tools to develop emotional, mental and physical fitness using natural horsemanship doing equine-assisted activities and therapies.
Springdale Claims
30 / Shelter Insurance Companies Members of the Las Vegas call center were also instrumental in providing school supplies as well as coordinating relief to Oklahoma tornado victims. When one of the customer service representatives heard that the owners of a local air conditioning and appliance repair shop were closing their doors in order to take supplies to Oklahoma victims, she contacted them and arranged for them to stop by the office to pick up items that had been collected. If that wasn’t enough, the team also raised over $1,000 to donate to the Red Cross to assist with disaster relief efforts in the Philippines. The Shelter Insurance Foundation was pleased to match their contributions, bringing the total to $2,170. It has been said that what happens in Vegas, stays Las Vegas Call Center in Vegas. Apparently someone forgot to tell the staff of the Las Vegas call center.
Another group of employees with hearts that reach beyond their local neighborhood calls Lexington, Kentucky home. A couple of ladies from this office recruited family and friends to partner with a local church to pack meals for the impoverished in Haiti. Each food packet contained vegetables, soy protein, spices and rice. During 2013, the Meals for Haiti program sent around 1,500,000 meals to Haiti. Incidentally, Big Blue didn’t ignore the hungry at home, but volunteered at God’s Pantry Food Bank, sorting and boxing frozen foods donated by supermarkets. The packets were then distributed in central and eastern Kentucky.
Meanwhile, back in Columbia, Missouri, members of the Alternate Channels group strapped on their aprons and Lexington Claims cooked dinner for residents of the local Ronald McDonald House. Residents of Ronald McDonald Houses are already dealing with the serious illness of a child, so it is a real treat to be able to enjoy a home-cooked meal and a little conversation while taking a break from the hospital. The volunteers provided to the residents a delicious meal of chili and chicken noodle soup with a side of salad and garlic bread. Pumpkin pie was also available for dessert.
Home Office Alternate Channels
Shelter Insurance Companies / 31 Shelter Sponsors Susan G. Komen Race for the Cure
The largest series of 5K runs/fitness walks in the world, Race for the Cure funds national research to discover the causes of breast cancer and its cure. Team Shelter from the Home Office recruited 31 team members to run or walk the 5k, raising a total of $1,320 in donations.
The Oklahoma City Branch also organized a bake sale event for this cause, which resulted in $500 being raised. The Shelter Insurance Foundation was pleased to match their donation. Displayed at the bake sale was a “Wall of Honor” for all the loved ones whose lives have been touched by breast cancer. Oklahoma City Claims
Accounting Department Aids Man’s Best Friend
Members of the Accounting Department coordinated a charity drive to benefit Second Chance of Columbia. Second Chance, a privately funded animal rescue organization, is dedicated to “seeking first-class homes for second-hand pets.” Through volunteers and foster homes, the organization cares for animals of all types, either on a temporary basis while in search for a new, permanent home, or on a long-term basis while the animal is treated for illness or injury.
In addition to the many generous donations of pet items such as food, toys and pet welfare items, the Accounting Department raised over $1,200 in cash donations, which included a $500 matching gift from the Shelter Insurance Home Office Accounting Department Foundation.
These are but a few of the many volunteer efforts that were undertaken during 2013 by Shelter’s employees and agents. The Company is proud of the heart and dedication demonstrated by its people and looks forward to continuing to work together to make our communities and our world a better place.
aking a ifference M D
32 / Shelter Insurance Companies 2013 Overview
Table of Contents
To Our Policyholders...... 1
Our Commitment to Management Excellence ...... 2
2013 in Review...... 3-11
Companywide Information ...... 12
Family of Companies ...... 13
Financial Results ...... 14-25
Directors and Officers ...... 26
Community Involvement ...... 27-32 dfg Shelter Gardens We’re your Shield. We’re your Shelter. Contact Shelter Insurance® at:
1-800-SHELTER (743-5837) • ShelterInsurance.com www.facebook.com/ShelterInsurance www.youtube.com/user/ShelterInsurance1 twitter.com/Shelter_ins www.linkedin.com/company/shelter-insurance-companies