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Financial Highlights

UMIA Financial Highlights

Bill McDonough, President and CEO, Constellation

UMIA, a leading medical professional liability organization in the Mountain states, posted an outstanding year of financial performance. We ended 2015 in a strong position, allowing us to continue to help physicians and all those who devote their lives to health care attain their dream – to help and to heal. Industry rating agency A.M. Best again affirmed our financial stability with an “A-” (Excellent”) rating after reviewing our 2015 results.

Policyholders’ surplus, a key indicator of financial strength and stability, ended the year at $117.1 million, up 4 percent over 2014 and 44 percent since 2011. These funds are available to cover future obligations to our policyholders and invest in opportunities to provide them added value.

Extraordinary customer loyalty and retention

The extraordinary customer loyalty and retention we enjoyed in 2015 also affirmed our strength. Over the course of the year, 99.6 percent of our clients chose to continue their policies with UMIA instead of switching to a competitor. We are deeply honored by the trust our clients place in us and are privileged to serve them. In 2015, our former UMIA subscribers received a $30 million installment payment derived from our sale to MMIC in 2013.

Record profitability despite slight revenue decline

UMIA achieved record profits in 2015 due to a significant decline in losses and solid investment results. Direct written premium was $42.6 million, down 2 percent from 2014. This reflects growing pricing pressure resulting from consolidation in the health care market and a strong industry surplus position that, at least for now, enables competitors to aggressively price their products. Despite this topline pressure, our underwriting gain was more than $19 million, almost double that of 2014, and we recorded a combined ratio of 54 percent, a marked improvement over the 84 percent recorded in 2014. Income from our invested assets, which are primarily invested in bonds, was $8.3 million, up 9 percent from 2014. All of this translated to net income of $20.4 million, up 33 percent from the prior year.

Investment in new solutions for policyholders

This strong financial performance allows us to continue to invest in solutions for you, our policyholders. These include services to help you improve patient care, protect your professional reputation, and reduce overall costs.

Joining with other strong companies such as MMIC and Arkansas Mutual under the Constellation umbrella is fundamental to our long-term strategy to continue our growth, increase operational efficiencies and develop unique solutions. Ultimately, this strategy will enable us to achieve our mission of supporting physicians and our vision to have a transformative impact on helping deliver better patient care. We look forward to another year of service to our valued physician clients and the broader health care community.

 

   2015 in numbers