| Strategic Alliances is a team player, blending our efforts in providing
American Fidelity’s worksite coverage with a strong network of managing general underwriters,
managing general agents and third-party administrators. Our primary coverage lines include medical
stop loss, mini-medical business and other specialty products.
Stop loss efforts are focused on employers with a workforce of 50 or more,
offering protection against catastrophic loss from large claims.
We target the same sized group for our mini-medical offerings, with a focus placed
on those that experience high turnover with lower income employees that can't afford
expensive major medical coverage.
Our partner in the mini-medical business is Foundation One Insurance Services. We also team up
with several partners in our medical stop loss efforts, including AMF Risk Management Solutions;
Elite Brokerage Services, Inc.; Excess Reinsurance Underwriters Agency, Inc.; International Assurance
of Tennessee, Inc.; Orien Risk Analysts, Inc.; SLG Benefits & Insurance, LLC; and TRU Services, LLC.
Strategic Alliances partners with Combined Insurance Group on occupational accident coverage and
Maksin Management Corporation on accident and health programs for youth. Further efforts include a
dental program with marketing by SecureCare Dental.
Strategic Alliances also reinsures a block of government contract mini-medical business underwritten
by CIGNA, providing employer-paid coverage to employees working under government contracts. The venture
is supported by marketing efforts of the Boon Insurance Group.
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Our division achieved another solid performance in 2007. Top on the list
of achievements was our significant earned premium growth of 47.1 percent. This marked an increase over
the previous year.
Unit value growth also exceeded expectations with an increase of 16.1 percent.
Division success was further supported by securing net profits $500,000 beyond our 2006 results. We
also laid the groundwork for a disability product set to launch in 2008.
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Strategic Alliances looks to procure additional partnerships
after separating from several larger mini-medical cases in 2007. Our goal is to maintain premium
levels in 2008 while seeking new partners, especially within the dental and disability markets.
Our talented home office Colleagues are hard at work keeping our expense ratio at
optimum levels. We look for further success in our 2008 efforts on this front.
Strategic Alliances will work diligently to continually improve return on equity in the coming year
as we position ourselves for increased future performance.
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