After a challenging 2023 that culminated in 108.9 combined ratio and a downgrade to A- by AM Best back in April 2024, Midwest Family Mutual (MFM) tackled the New Year with a renewed commitment to stability and profitable growth. The company’s remarkable turnaround in 2024 underscores the power of perseverance, strategic underwriting, and the loyalty of its Agency partners.
2024: A Year of Recovery and Growth
MFM’s financial performance in 2024 paints a picture of a company that has not only stabilized but is actively positioning itself for long-term success. The company’s combined ratio improved to 98.0 after two years of disciplined underwriting, more adequate pricing, and insurance to value. This combined ratio reflects the company’s ability to balance premium growth with claims and expenses, and is the group’s first combined ratio under 100 since 2020.
Direct written premium increased from $261.9 million to $281.0 million representing a growth rate of 7.3%. This growth rate paired with an 87% retention rate represent a clear indication of both Agency and Policyholder confidence in MFM’s financial strength and commitment to claims. Looking ahead, the company is setting its sights on exceeding the $300M direct written premium milestone in 2025. Given the current momentum, that’s a target that seems well within reach.
For the first time since 2020, MFM reported an underwriting profit, earning $2.3 million. This return to profitability is a testament to the company’s disciplined underwriting approach and the quality of business submitted by our Agents. Additionally, investment income of $10.5 million—boosted by favorable interest rates and a robust stock market—provided further financial stability.
Another major milestone was achieved as company assets surpassed the half-billion-dollar mark for the first time in company history, landing at $507.9 million. This achievement reflects MFM’s strong financial foundation. Meanwhile, surplus grew from $126.9 million to $140.7 million. That surplus growth will feed future premium growth.
Strong Agency Relationships Drove MFM’s Success
MFM’s comeback would not have been possible without the steadfast support of its Agency partners. The loyalty and commitment demonstrated by these Agents played a crucial role in the company’s ability to rebound, as they continued to submit and retain high-quality customers. Our Agents’ trust in MFM’s long-term vision and commitment to mutual success allowed the company to build a stronger, more profitable book of business at a time when the industry saw upheaval.
While our road to recovery was not without its challenges, the alignment between MFM and its Agents ensured that the company could execute a disciplined approach to growth without sacrificing underwriting integrity. This partnership remains the cornerstone of MFM’s success, providing a strong foundation for continued expansion in the years ahead. Momentum is now on our side, and we look forward to maximizing it in 2025.
Looking Ahead to 2025
As MFM prepares for the year ahead, the company will continue to weigh reserve development, inflationary warning signs, and other market forces. We will remain mindful of the lessons of the last few years. We will exercise caution in our approach while exploring opportunities to grow our book. While maintaining financial prudence remains a priority, MFM expects to slightly expand its appetite as market conditions evolve. With a solid financial footing and unwavering support from its Agents, the company is well-positioned to exceed $300 million of direct written premium in 2025. Not bad for a company that exceeded $100M for the first time only 12 years prior in 2012.
Midwest Family Mutual’s 2024 results serve as a powerful reminder that resilience, strategic execution, and strong partnerships can drive a remarkable comeback. With renewed confidence and a clear vision for the future, Midwest Family Group is ready to build on this success and continue its trajectory of sustainable growth.